Guide to the Annual Report

Section 87 of the Precursor Control Regulations (PCR) requires that a Licensed Dealer shall make a report to the Minister, within three months after the end of each calendar year, which summarizes all authorized activities pertaining to Class A precursors at the licensed site.

  1. When to submit the Annual Report

    Licensed Dealers should furnish the Annual Report to the Office of Controlled Substances, Health Canada, before March 31 of each calendar year.

    If a licence expires without being renewed, is revoked or closed during a calendar year, an annual report is required for the calendar months that the licence was valid.

    An annual report must be submitted for each licence number. For example, if a Licensed Dealer changes its Certificate of Incorporation in April which led to the issuance of two different licence numbers for the same address, an annual report must be submitted for each licence number. In this scenario the licence that closed in April will have a nil ending inventory and the new licence will have a nil starting inventory. Both licences will report the transfer of substances: the closing licence will report the substances as sold or provided and the new licence will report the substances as purchased or received.

  2. Information required

    • 2.1 Licensed Dealer information

      • The licence number, company name, address and name of the Responsible Person in Charge (RPIC) must be provided on the Annual Report.

    • 2.2 Reporting period

      • The reporting period and the submission date must be provided in the Annual Report.

      • The year must be provided even if the licence was not active for all months in the calendar year. The actual licence dates can be provided in the notes section of the Annual report.

    • 2.3 Class A precursors

      The precursors mentioned in these guides and annual reports correspond to the substances listed in Part-1 of Schedule VI of the Controlled Drugs and Substances Act.

      • Quantities should be reported in grams or litres, as listed in the annual report template, and in pure base form.

        If applicable, the quantity of any salt of the precursor should be converted to pure base, using the proper conversion factor included in the annual report template.

      • The total quantity of ephedrine should include the amount of ephedrine in any plant, if applicable.

      • The total quantity of safrole should include the amount of safrole in any essential oil (i.e. sassafras oil).

    • 2.4 Activities

      It is to be noted that all categories are mutually exclusive. Amounts should be placed in one category only, to avoid double counting. (i.e. Starting inventory + Quantities produced at and taken into the site - Quantities consumed at and sent out from the site = Year end inventory.)

      All values should reflect the net quantity involved, exclusive of the weight of packages or containers. For preparations (e.g. preparations containing ephedrine or pseudoephedrine), values should refer to the pure content of the respective substance, i.e. excluding the weight of any other substance that may be combined or mixed with it and excluding the weight of packages or containers.

      The data provided must cover all regulated activities conducted during a calendar year.

      • Starting physical inventory

        The physical inventory of the total quantity of precursor in stock at the licensed site on January 1st of the reporting year. (If there was not a valid licence on January 1st of the reporting year, please use the initial inventory count as indicated as a condition of the new/amended precursor licence). The starting physical inventory reported on January 1st in one annual report must equal the physical inventory as reported on December 31st in the previous annual report.

      • Purchased / Received (domestic distribution)

        1. The quantity purchased/received by the Licensed Dealer from another Licensed Dealer in Canada.

        2. The quantity of returned products sent by the retailers for destruction.

      • Produced (raw material)

        The quantity of raw material of precursor produced by the Licensed Dealer by synthesizing, cultivating, propagating or harvesting the precursor or any living thing from which the precursor may be isolated or otherwise obtained.

      • Produced (mixture / preparation)

        The quantity of precursor used for altering the chemical or physical properties of the precursor, i.e. the production of mixture/preparation containing that precursor.
        Note: This quantity will not affect the year-end inventory

      • Imported (international transaction)

        The quantity of raw material and/or mixture/preparation imported by the Licensed Dealer from a foreign supplier.

      • Used by the Licensed Dealer for own purposes including

        1. The quantity of operational loss, such as the amount wasted or loss in-process during the production of mixtures or preparations which contain that precursor (i.e. the operational loss of pseudoephedrine raw material during the production of pseudoephedrine preparations)

        2. The quantity of raw material used for production of exempted products under Sections 3 and 4 of the PCR, including the waste or loss in-process (operational loss).

        3. The quantity of raw material used during the manufacturing process of non-controlled chemicals, including the waste or loss in-process (operational loss).

        4. The quantity used for quality control testing.

      • Sold / Provided (domestic distribution)

        The quantity of raw material and/or mixture/preparations sold or provided by the Licensed Dealer to other Licensed Dealers or end users.

      • Exported (international transaction)

        The quantity of raw material and/or mixture/preparation exported by the Licensed Dealer to the foreign customer.

      • Loss / Theft

        The lost or stolen quantity reported by the Licensed Dealer under Section 90 of the PCR during the reporting year. Such incidents must be reported to Health Canada using the Loss or Theft Report. For additional information on loss or theft, please consult the Guidance Document CS-GD-005.

      • Normal operational loss

        The quantity of normal operational loss based on the accepted business activities.

      • Destroyed

        The quantity destroyed by the Licensed Dealer either on site or off site under Section 47 of the PCR.

      • Year-End Inventory

        The physical inventory of the total quantity of precursor in stock at the licensed site on December 31 of the reporting year.

      • Balance

        The Balance is the calculated inventory as of December 31 based on all quantities reported for the year which should equal the physical inventory of stock on hand as of December 31 of the reporting year. If not, details must be provided in the template under the comments section.

    • 2.5 Estimates

      The estimates are the annual legitimate precursor requirements (quantities) anticipated for the following calendar year.

      The expected purpose for the estimated precursor quantities should also be provided.

  3. Where to submit the Annual Report

    Please contact the Office of Controlled Substances to obtain a copy of the form to fill out by emailing: hc.ocs.monitoring-surveillance.bsc.sc@canada.ca

    The completed report should be sent by the Responsible Person in Charge (RPIC) to the following email address: hc.ocs.monitoring-surveillance.bsc.sc@canada.ca

    Mandatory format name for the English report:

    9-XXXX_PAR_2019

    Note: 9-XXXX represents the licence number, for example 9-0123 or 9-8765, and PAR represents Precursor Annual Report.

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