Vol. 148, No. 12 — June 4, 2014

Registration

SOR/2014-111 May 16, 2014

WEIGHTS AND MEASURES ACT

Regulations Amending the Weights and Measures Regulations

P.C. 2014-566 May 15, 2014

His Excellency the Governor General in Council, on the recommendation of the Minister of Industry, pursuant to paragraphs 10(1)(d) (see footnote a), (e.1) (see footnote b), (g) (see footnote c), (i) (see footnote d), (q.1) (see footnote e), (u) and (v) of the Weights and Measures Act (see footnote f), makes the annexed Regulations Amending the Weights and Measures Regulations.

REGULATIONS AMENDING THE WEIGHTS AND MEASURES REGULATIONS

AMENDMENTS

1. (1) The definitions “inspection mark” and “tank” in section 2 of the Weights and Measures Regulations (see footnote 1) are repealed.

(2) The definition “acceptance limits of error” in section 2 of the Regulations is replaced by the following:

“acceptance limits of error” means the limits of error that apply to a device when the performance of the device is tested

(3) Section 2 of the Regulations is amended by adding the following in alphabetical order:

“examination mark” means a mark that indicates the year in which a device was examined; (marque d’examen)

“examination sticker” means a self-adhesive label that indicates the month and year in which a device was examined and, if applicable, the month and year of the next examination required under section 15 of the Act, as determined in accordance with section 29; (étiquette d’examen)

“measuring tank” means a tank for use in trade for measuring the volume of liquid received or delivered, and includes a fixed, portable or vehicle-mounted tank; (réservoir jaugeur)

“vehicle tank” means a measuring tank that is mounted on a vehicle other than a vehicle for railway use. (réservoir sur véhicule)

2. The Regulations are amended by adding the following before the heading “EXEMPTIONS FROM THE ACT” before section 3:

INTERPRETATION

2.1 The following definitions apply in this Part and in Schedule I.

“downstream petroleum trade” means the trade of refined petroleum products and liquid alternative fuels between petroleum refineries, gas processing facilities, wholesalers, retailers and commercial customers. (commerce pétrolier aval)

“fishing products” means finfish, shellfish, marine vegetation and marine animals, including seals but no other furry marine animals, that are obtained from ocean or inland waters or aquaculture farms, and the products and by-products of their processing. (produits de la pêche)

“forestry products” means

“grain and field crop products and services” means

“mining products” means metal and non-metal ores, refined ores and their transformed products, as well as refined precious metals and precious stones, but does not include scrap metal, products produced from the subsequent refining of precious metals and precious stones and, if used for construction, sand, gravel, stone and concrete products. (produits miniers)

“retail food trade” means the retail trade of food by retail food stores, including grocery stores, supermarkets, delicatessens, ethnic food stores, natural food stores, butcher shops, farmers’ markets, fish and seafood retailers, fruit and vegetable retailers, coffee retailers and specialty candy and nuts retailers. (commerce au détail des aliments)

“retail petroleum trade” means the retail trade of liquid refined petroleum products and liquid alternative fuels. (commerce pétrolier au détail)

3. Section 3 of the Regulations is renumbered as subsection 3(1) and is amended by adding the following:

(2) A device is exempt from the Act if it is used exclusively for

4. The heading before section 4 of the Regulations is replaced by the following:

EXEMPTIONS FROM SECTION 8 AND SUBSECTION 15(1) OF THE ACT

5. (1) The portion of subsection 4(1) of the Regulations before paragraph (a) is replaced by the following:

4. (1) The following classes or types of devices are exempt from section 8 and subsection 15(1) of the Act:

(2) Paragraph 4(1)(f) of the Regulations is replaced by the following:

(3) Subsection 4(1) of the Regulations is amended by striking out “and” at the end of paragraph (m) and by adding the following after paragraph (n):

(4) Subsection 4(2) of the Regulations is replaced by the following:

(2) A device is exempt from section 8 and subsection 15(1) of the Act if it is used exclusively to weigh or measure

6. The heading before section 5 and sections 5 and 6 of the Regulations are replaced by the following:

EXEMPTIONS FROM PARAGRAPH 8(a) AND SUBSECTION 15(1) OF THE ACT

5. A measuring tank is exempt from paragraph 8(a) and subsection 15(1) of the Act if it conforms to applicable specifications relating to design, composition, construction and performance set out in Divisions I, V, X and XII of Part V and any additional specifications established under section 13.

EXEMPTIONS FROM PARAGRAPH 8(b) AND SUBSECTION 15(1) OF THE ACT

6. A device is exempt from paragraph 8(b) and subsection 15(1) of the Act if it is used exclusively in the wholesale trade of gold, silver or diamonds, after initial refining.

EXEMPTIONS FROM PARAGRAPH 8(b), SUBSECTION 15(1) AND PARAGRAPH 26(1)(c) OF THE ACT

6.1 (1) Subject to subsection (2), a meter register approved under section 3 of the Act that has no means, or has means that are not in use, of automatic temperature, pressure or density compensation is exempt from paragraph 8(b), subsection 15(1) and paragraph 26(1)(c) of the Act if it is installed as a replacement register on a volumetric liquid meter that has previously been examined and certified for the purposes of paragraph 8(b) of the Act.

(2) Subsection (1) does not apply to a register that is altered to operate with automatic temperature, pressure or density compensation.

7. The heading before section 7 of the Regulations is replaced by the following:

EXEMPTIONS FROM SECTION 8, SUBSECTION 15(1), SECTION 23, PARAGRAPH 24(b) AND SECTION 33 OF THE ACT

8. Subsection 7(1) of the Regulations is replaced by the following:

7. (1) Subject to subsection (2), section 8, subsection 15(1), section 23, paragraph 24(b) and section 33 of the Act do not apply in respect of a trade transaction if the parties give written notice to the Minister that

9. The Regulations are amended by adding the following after section 10.1:

EXEMPTIONS FROM SUBSECTION 19(2) OF THE ACT

10.2 The following devices are exempt from subsection 19(2) of the Act:

10. (1) Paragraphs 15(1)(a) and (b) of the French version of the Regulations are replaced by the following:

(2) Subsection 15(2) of the French version of the Regulations is replaced by the following:

(2) La personne qui présente une demande au titre de l’article 14 doit fournir tous les autres renseignements, résultats des essais, dessins ou caractéristiques que demande le ministre et dont il a besoin pour traiter la demande.

11. Section 16 of the Regulations is replaced by the following:

16. On the request of the Minister and under any conditions that may be specified by him or her, the applicant shall make available to the Minister one or more devices of the class, type or design to which the application relates, together with any information, equipment, material and services that are required to evaluate the device for approval.

12. Subsection 18(2) of the Regulations is replaced by the following:

(2) If information is marked on a plate, a suitable area of not less than 12 mm by 25 mm shall be left blank on the plate for the examination mark referred to in section 30 and the plate shall be made of a durable material and shall be located and mounted so that it can be stamped with a steel die.

13. The portion of section 19 of the Regulations before paragraph (a) is replaced by the following:

19. Before being sold or otherwise disposed of, or leased, a static measure that is of a class, type or design approved for use in trade and that is manufactured on or after January 1, 1976 shall be marked with the following information:

14. The portion of subsection 20(1) of the Regulations before paragraph (a) is replaced by the following:

20. (1) Before being sold or otherwise disposed of, or leased, a weight that is of a class, type or design approved for use in trade shall be marked with the following information:

15. The portion of section 21 of the Regulations before paragraph (a) is replaced by the following:

21. Before being sold or otherwise disposed of, or leased, a weighing machine (other than a weighing device to which the Specifications Relating to Non-Automatic Weighing Devices (1998) apply) or measuring machine that is of a class, type or design approved under section 3 of the Act, and any equipment or accessory attached to or used in conjunction with the machine that has or could have an effect on the accuracy of the machine and that was approved under section 3 of the Act shall be marked with the following information:

16. Sections 22 and 23 of the Regulations are replaced by the following:

22. Before being sold or otherwise disposed of, or leased, a weighing machine or measuring machine that is of a class, type or design approved under section 3 of the Act and that is referred to in subsection 28(2) shall be marked “Not for Use in Trade until Examined” (“Ne pas utiliser dans le commerce avant l’examen”) or shall be marked with words that convey the same meaning, and those markings shall be in letters of not less than 12 mm in height and shall remain on the device until it has been examined and is found to meet the requirements of the Act and these Regulations.

23. (1) Before being sold or otherwise disposed of, or leased, a weighing machine or measuring machine that is not of a class, type or design approved under section 3 of the Act and that is not exempt from approval under that section shall be marked “Not Legal for Trade” (“Non légal pour le commerce”) in letters of not less than 6 mm in height.

(2) A device described in paragraph 4(2)(a) shall be marked “For Prepackaging Use Only” (“Pour préemballage seulement”) in letters of not less than 6 mm in height.

17. The portion of subsection 24(1) of the Regulations before paragraph (a) is replaced by the following:

24. (1) Before being sold or otherwise disposed of, or leased, a measuring tank that is of a class, type or design approved under section 3 of the Act shall be marked with the following information:

18. Section 25 of the Regulations is replaced by the following:

25. Before being sold or otherwise disposed of, or leased, for a use other than use in trade, a weighing machine or measuring machine that is of a class, type or design approved under section 3 of the Act shall be permanently marked “Not for Use in Trade” (“Ne pas utiliser dans le commerce”) in letters of not less than 12 mm in height.

19. The heading before section 28 and sections 28 to 32 of the Regulations are replaced by the following:

EXAMINATION OF DEVICES

28. (1) For the purposes of paragraph 26(1)(c) of the Act and subject to subsections (2) and (3), a device that is of a class, type or design approved under section 3 of the Act or that is described in section 8, other than a static measure or a device described in subsection 4(2), shall not be sold or otherwise disposed of, or leased, unless

(2) Subsection (1) does not apply to any device, the performance of which cannot be examined until the device is installed for use in trade, if the dealer

(3) Subsection (1) does not apply in respect of a device that is to be sold or otherwise disposed of, or leased, for a use other than use in trade if the dealer

29. (1) For the purpose of subsection 15(1) of the Act, a trader who uses or possesses for use a device set out in column I of Part I of Schedule I, in the category of trade set out in column II, shall cause the device to be examined within the period set out in column III, counting from the most recent day on or after August 1, 2014 on which a certificate showing that the device meets the requirements of the Act and these Regulations was issued following an examination referred to in paragraph 8(b) or section 15 or 15.1 of the Act.

(2) If a device referred to in subsection (1) was used in or possessed for use in trade before August 1, 2014, the trader shall first cause it to be examined for the purpose of subsection 15(1) of the Act within whichever of the following periods ends later:

(3) If a device falls under more than one item of Part I of Schedule I, the shortest period set out in column III for those items applies for the purposes of subsection (1) and paragraph (2)(b).

(4) For the purpose of paragraph (2)(a), if a device is moved from one geographic area to another before the expiry of the applicable implementation period set out in column I or II of Part II of Schedule I for the geographic area set out in column III from which the device is moved, the implementation period in respect of that device is, counting from August 1, 2014,

29.1 For the purpose of subsection 15(2) of the Act, the Minister may grant to a trader an extension of a period established under subsection 29(1) or (2) if

MARKING OF DEVICES

30. (1) An inspector who, for the purposes of paragraph 8(b) or 26(1)(c) of the Act, examines a device and determines that it meets the requirements of the Act and these Regulations shall mark the device or the container in which the device is stored when not in use with an examination mark in accordance with subsections (2), (3) and (4).

(2) A device referred to in subsection (1) shall be marked by means of a steel die or, if that is not possible, by means of a sticker.

(3) The examination mark shall be placed,

(4) Despite subsection (3), if a device is so small that it cannot be marked in accordance with that subsection, the examination mark shall be placed on the container in which the device is stored when not in use.

30.1 An inspector who marks a weighing or measuring machine with an examination mark under section 30 shall also place an examination sticker on the device.

31. (1) An inspector who, under section 15 of the Act, examines a weighing or measuring machine set out in column I of Part I of Schedule I that is or is to be used in the category of trade set out in column II or who, under section 15.1 of the Act, examines a weighing or measuring machine that is or is to be used in trade and, in either case, determines that the machine meets the requirements of the Act and these Regulations shall mark the machine by placing on it an examination sticker.

(2) An inspector who, under paragraph 17(1)(b) or subsection 21(2) of the Act, examines a weighing or measuring machine that is or is to be used in trade and determines that it meets the requirements of the Act and these Regulations shall mark the machine by placing on it a sticker bearing the examination mark.

(3) An inspector who, under section 15 of the Act, examines a weight set out in column I of Part I of Schedule I that has a lead plug and that is or is to be used in the category of trade set out in column II or who, under section 15.1, paragraph 17(1)(b) or subsection 21(2) of the Act, examines a weight that has a lead plug that is or is to be used in trade and, in either case, determines that the weight meets the requirements of the Act and these Regulations shall

SEALING OF DEVICES

32. For the purpose of paragraph 19(2)(a) of the Act, the seal that shall be attached by an inspector who marks, as prescribed by section 30 or 31, a volumetric liquid meter, measuring tank or electronic device, other than a weighing device to which the Specifications Relating to Non-Automatic Weighing Devices (1998) apply, shall be of the self-adhesive, self-locking or lead-and-wire type.

20. The heading before section 33 of the Regulations is replaced by the following:

ACCESSIBILITY AND ASSISTANCE FOR EXAMINING AND SEALING DEVICES

21. (1) Paragraph 33(1)(a) is replaced by the following:

(2) Paragraph 33(1)(c) of the Regulations is replaced by the following:

(3) Subsection 33(2) of the Regulations is replaced by the following:

(2) Subsection (1) does not apply if the owner or person in possession of the device agrees

22. Subsection 38(3) of the English version of the Regulations is replaced by the following:

(3) If a device described in subsection (2) has been removed from its installation and is installed again, the trader who owns the device or has it in their possession for use in trade shall, within five days after the date of the installation, make a report in writing to the nearest Measurement Canada office containing the information required by subsection (2) and the address and description of the place where the device was previously installed.

23. (1) Paragraph 39(1)(f) of the Regulations is replaced by the following:

(2) Subsection 39(2) of the Regulations is replaced by the following:

(2) If a trader who owns or has in their possession for use in trade a measuring machine described in subsection (1) changes the address at which the machine can be examined, they shall, within five days after the date of changing the address, make a report in writing to the nearest Measurement Canada office containing the information required by paragraphs (1)(a), (b), (c), (d) and (f) and the address at which the machine could have been examined before the change of address.

24. Section 47.1 of the Regulations is replaced by the following:

47.1 The statement of quantity for a commodity set out in column I of Schedule II.1 shall consist of at least one statement per parameter set out in column II.

25. (1) Subsection 52(1) of the English version of the Regulations is replaced by the following:

52. (1) The examination of any quantity of prepackaged commodities, referred to as a lot, each unit of which purports to contain the same quantity of commodity, that an inspector undertakes to determine whether the lot meets the requirements of the Act and these Regulations respecting the statement of quantity, shall be made by selecting and examining a sample from the lot.

(2) The portion of subsection 52(4) of the English version of the Regulations before paragraph (a) is replaced by the following:

(4) The lot from which a sample was taken and examined by an inspector does not meet the requirements of the Act and these Regulations respecting the statement of quantity if the inspector determines that

26. Subsection 54(2) of the Regulations is replaced by the following:

(2) If the nominal value of a local standard is not set out in column I of the appropriate Part of Schedule IV, the tolerance for that standard shall be the amount resulting from linear interpolation between the tolerances set out in column II of that Part in respect of the nominal values set out in column I that are nearest to the nominal value of the standard.

27. The portion of item 10 of the table to subsection 56(1) of the Regulations in column I is replaced by the following:

Item Column I

Local Standard
10. A linear static measure ...............................................................

28. The Regulations are amended by adding the following after section 58:

58.1 The fees and charges under this Part do not apply to services provided by an inspector who is not employed in the federal public administration.

29. Paragraphs 59(1)(a) to (e) of the Regulations are replaced by the following:

30. Section 63 of the Regulations is replaced by the following:

63. If, in order to perform an examination, an inspector requires any equipment, material or commodity that is not customarily supplied by a Measurement Canada office and that has not been supplied by the dealer or trader for whom the examination is to be performed, the cost of purchasing or renting the necessary equipment, material or commodity and transporting it to and from the place where the examination is to be performed shall be payable in addition to the fee and charge otherwise payable for the examination.

31. Section 70 of the Regulations is replaced by the following:

70. If the use of a device in any manner or for any purpose is prohibited in either the certificate issued at the time of the most recent examination performed under the Act or in the notice of approval of the device issued under section 3 of the Act or under a previous enactment, the device shall, throughout the period of its use in trade, have closely associated with it or prominently displayed on it a readily legible sign or notice setting out the manner or purpose of use that is prohibited.

32. Section 78 of the Regulations is replaced by the following:

78. At the time of an examination for the purposes of paragraph 8(b) or 26(1)(c) of the Act, not more than two adjusting holes shall be provided in a single weight and at every examination there shall be lead in each adjusting hole sufficient to accept an examination mark.

33. Section 90 of the Regulations is replaced by the following:

90. When not in use, a weight that, due to its small size, is not individually marked with an examination mark shall be stored in a container that bears the examination mark.

34. The headings before section 107 and sections 107 to 119 of the Regulations are repealed.

35. Subparagraph 282(3)(b)(i) of the English version of the Regulations is replaced by the following:

36. Section 284 of the Regulations is replaced by the following:

284. A meter, other than a slow-flow meter, shall be installed so that it has a convenient means for delivering the measured product when the meter installation is examined.

37. Sections 292 and 293 of the Regulations are replaced by the following:

292. A flow transmitter for input to an electronic data processing system may be attached to a liquid meter and the output from the data processing system used for invoicing purposes if the purchaser of the liquid being measured or their agent or mandatary is given a printed copy of the data recorded by the data processing system before they leave the trader’s premises.

293. A flow transmitter may be installed at a key-operated self-service meter installation to drive the auxiliary accumulative totalizers for individual customers if the purchaser of the liquid being measured is able to visually check the advance of their totalizer against the indication of the primary indicator at the time of delivery of the liquid.

38. Section 296 of the Regulations and the heading “Interpretation” before it are repealed.

39. Section 310 of the Regulations is replaced by the following:

310. (1) A portable measuring tank shall be equipped with permanent level gauges to enable it to be levelled for examination and use.

(2) A portable measuring tank with a gauge glass shall be equipped with levelling jacks to enable it to be levelled for examination and use.

40. Sections 321 to 323 of the Regulations are replaced by the following:

321. A measuring tank shall be tested and calibrated with a liquid that has a thermal expansion coefficient, volatility and viscosity not greater than those of domestic furnace fuel oil and that will not have a corrosive effect on the tank.

322. A measuring tank shall be tested and calibrated when all necessary supports have been installed and it is resting in the position in which it is designed to be used.

323. A measuring tank, other than a vehicle tank, shall be calibrated to a valve immediately adjacent to the outlet connection on the tank.

41. (1) The portion of subsection 325(3) of the Regulations before the table is replaced by the following:

(3) Subject to subsection (5), the limits of error set out in the table to this subsection apply to all measuring tanks that are calibrated in terms of metric units of volume.

(2) The portion of subsection 325(4) of the Regulations before the table is replaced by the following:

(4) Subject to subsection (5), the limits of error set out in the table to this subsection apply to all measuring tanks that are calibrated in terms of Canadian units of volume.

42. Section 328 of the Regulations is replaced by the following:

328. A fixed measuring tank shall be level when filled, as shown by the levels installed on the tank or by the levelling ledges, and, when in use, a portable measuring tank or vehicle tank shall be filled and emptied when it is as close to level conditions as possible.

43. Schedule I to the Regulations is renumbered as Schedule II.1 and is repositioned accordingly.

44. The Regulations are amended by adding, before Schedule II, the Schedule I set out in the schedule to these Regulations.

45. The Regulations are amended by replacing “tank” with “measuring tank” in the following provisions with any necessary modifications:

46. The Regulations are amended by replacing “inspected”, “inspection”, “inspecting” and “inspect” with “examined”, “examination”, “examining” and “examine”, respectively, in the following provisions:

47. The French version of the Regulations is amended by replacing “vérifié”, “vérifications” and “vérification” with “mis à l’essai”, “essais” and “essai”, respectively, in the following provisions with any necessary modifications:

48. The French version of the Regulations is amended by replacing “réservoir” and “réservoir-mesure” with “réservoir jaugeur” and by replacing “réservoirs” and “réservoirs-mesures” with “réservoirs jaugeurs” in the following provisions:

49. (1) The portion of subsection 33(1) before paragraph (a) of the French version of the Regulations is amended by replacing “ou le détenteur” with “de l’instrument ou la personne qui l’a en sa possession”.

(2) Paragraph 59(1)(f) of the French version of the Regulations is amended by replacing “ou du détenteur de celui-ci” with “de celui-ci ou de la personne qui l’a en sa possession”.

COMING INTO FORCE

50. These Regulations come into force on August 1, 2014.

SCHEDULE
(Section 44)

SCHEDULE I
(Sections 2.1 and 29 and subsections 31(1) and (3))

EXAMINATION PERIODS

PART I
Item Column I

Device		 Column II

Category of trade		 Column III

Period
1. weighing machine wholesale trade of dairy products 2 years
2. meter wholesale trade of dairy products 1 year
3. any device downstream petroleum trade 2 years
4. any device wholesale trade of fishing products 1 year
5. weighing machine trade of forestry products 1 year
6. device other than a weighing machine used in a grain elevator licensed by the Canadian Grain Commission wholesale trade of grain and field crop products and services 2 years
7. weighing machine used in a grain elevator licensed by the Canadian Grain Commission wholesale trade of grain and field crop products and services 1 year
8. any device wholesale trade of mining products 2 years
9. any device retail food trade 5 years
10. device other than a propane meter retail petroleum trade 2 years
11. propane meter retail petroleum trade 1 year
PART II
Item Column I



Implementation period — General		 Column II

Implementation period — Devices used in retail food trade		 Column III




Geographic area by first three characters of postal code
1. 6 months 18 months A0A, A1A, A1B, A1C, A1E, A1G, A1H, A1K, A1L, A1N, A1S, A1W, A1X, A1Y, B0H, B0M, B2T, B2V, B2W, B2X, B2Y, B2Z, B3A, B3B, B3E, B3G, B4A, B4B, B4C, B4E, B4G, E1H, E1J, E2V, E4A, E4B, E4C, E4E, E4G, E4H, E4J, E4K, E4L, E4M, E4N, E4P, E4R, E4T, E4Z, E5J, E5K, E5L, E5M, E5N, E5P, E5R, E5S, E5T, E6C, G0K, G0L, G1B, G1C, G1E, G1G, G1H, G1X, G1Y, G2B, G2C, G2E, G2G, G2J, G2K, G2L, G5H, G5L, G5M, G5N, G5R, G5T, G7B, G7G, G7H, G7J, G7K, G7N, G7P, G7S, G7T, G7X, G7Y, G7Z, G8A, H0A, H1A, H1B, H1C, H1E, H1G, H1H, H1J, H1K, H1L, H1M, H1N, H1P, H1R, H1T, H1V, H1X, H1Z, H7A, J0A, J0B, J0C, J0G, J1A, J1E, J1G, J1H, J1J, J1K, J1L, J1M, J1N, J1S, J1T, J1X, J1Z, J2A, J2B, J2C, J2E, J3P, J3R, J3T, H7B, H7C, H2A, H2E, H2P, H2R, H3N, H3P, H3R, H3X, H4P, H4W, H4V, H4B, H4X, H4E, H4H, H8N, H8P, H8R, H8S, K1B, K1C, K1E, K1G, K1H, K1J, K1S, K1W, K1Y, K1Z, K2A, K2B, K2C, K2H, K2K, K4A, L0P, L0R, L3M, L4X, L4Y, L5E, L7G, L7J, L7M, L7P, L8E, L8J, L8W, L9B, L9G, L9K, L9T, M1E, M1G, M1H, M1J, M1K, M1L, M1M, M1N, M1P, M1R, M3A, M8V, M8W, M8X, M8Y, M8Z, M9A, M9B, M9C, M9N, M9P, M9R, N0A, N0B, N0E, N0J, N0K, N0L, N0M, N0N, N0P, N0R, N1A, N1M, N1P, N1T, N2A, N2B, N2E, N2K, N2N, N2P, N2R, N2T, N2V, N3B, N3C, N3E, N3L, N3W, N3Y, N4B, N4G, N4S, N4T, N4V, N4X, N4Z, N5A, N5C, N5H, N5L, N5P, N5R, N5V, N5X, N6E, N6G, N6H, N6K, N6L, N6M, N6N, N6P, N7G, N7L, N7M, N8A, N8H, N8M, N8N, N8P, N8R, N8S, N8T, N8V, N8W, N8X, N8Y, N9A, N9B, N9C, N9E, N9G, N9H, N9J, N9K, N9V, N9Y, P0H, P0J, P0K, P0M, P0N, P0S, P1A, P1B, P1C, P2N, P3A, P3B, P3C, P3E, P3G, P3L, P3N, P3P, P3Y, P4N, P4P, P4R, R2C, R2G, R2H, R2J, R2K, R2L, R2M, R2N, R2P, R2R, R2V, R2W, R2X, R2Y, R3A, R3B, R3C, R3E, R3G, R3H, R3J, R3K, R3L, R3M, R3N, R3P, R3R, R3S, R3T, R3V, R3W, R3X, R3Y, R7A, R7B, R7C, S4L, S4N, S4P, S4R, S4S, S4T, S4V, S4W, S4X, S4Y, S4Z, S7H, S7J, S7K, S7L, S7M, S7N, S7P, S7R, S7S, S7T, S7V, T1H, T1J, T1K, T1Y, T2A, T2B, T2C, T2J, T2W, T2Z, T3B, T3H, T3J, T5A, T5C, T5E, T5L, T5M, T5N, T5P, T5R, T5W, T6B, T6H, T6J, T6K, T6L, T6N, V1M, V2K, V2L, V2M, V2N, V2Y, V2Z, V3A, V3C, V3J, V3K, V3L, V3M, V3N, V3R, V3S, V3T, V3V, V3W, V3X, V4C, V4E, V4G, V4N, V4W, V6V, V6W, V6X, V6Y, V7A, V7C, V7E
2. 11 months 23 months A0B, A0H, A0L, A0M, A2A, A2B, A2H, B0R, B0W, B2G, B2H, B4V, E1A, E1B, E1C, E1E, E1G, E2E, E2G, E2H, E2J, E2K, E2L, E2M, E2N, E2P, E2R, E2S, E3A, E3B, E3C, E3E, G0A, G0R, G0S, G2A, G2M, G2N, G3A, G3E, G3G, G3H, G3J, G3K, G3L, G3Z, G4A, G5A, G5V, G6C, G6E, G6J, G6K, G6L, G6V, G6W, G6X, G6Z, G7A, G8B, G8C, G8N, H2B, H2C, H2M, H2N, H3L, H3M, H4J, H4K, H4L, H4M, H4N, H4R, H4S, H4T, H4Y, H7E, H7G, H7H, H7K, H7L, H7M, H7N, H7P, H7R, H7S, H7T, H7V, H7W, H7X, H7Y, H8T, H8Y, H8Z, H9A, H9B, H9C, H9E, H9G, H9H, H9J, H9K, H9P, H9R, H9S, H9W, H9X, J0E, J0H, J2G, J2H, J2J, J2K, J2L, J2S, J2T, K1K, K1L, K1P, K1R, K2P, K6H, K6J, K6K, K6T, K6V, L2E, L2G, L2H, L2J, L2M, L2N, L2P, L2R, L2S, L2T, L2V, L2W, L3B, L3C, L4T, L4V, L4W, L4Z, L5M, L5N, L5P, L5R, L5S, L5T, L5V, L5W, L6H, L6M, L7L, L7N, L7R, L7S, L7T, L8G, L8K, L8N, L8T, L8V, L9A, L9C, M1B, M1C, M1S, M1T, M1V, M1W, M1X, M2H, M2J, M2K, M2M, M2N, M2R, M3H, M3J, M3K, M3L, M3M, M3N, M9L, M9M, M9V, M9W, N0G, N1C, N1E, N1G, N1H, N1K, N1L, N1R, N1S, N2C, N2G, N2H, N2J, N2L, N2M, N2Z, N3H, N3P, N3R, N3S, N3T, N3V, N4N, N4W, N5W, N5Y, N5Z, N6A, N6B, N6C, N6J, N7A, P0A, P0G, P2A, P5A, P5N, P6A, P6B, P6C, P7A, P7B, P7C, P7E, P7G, P7J, P7K, R0G, R0H, R0K, R1A, R1N, R2E, R4A, R4H, R4J, R4K, R4L, R5A, R5G, R5H, R6M, R6W, S0A, S0G, S0K, S2V, S4H, S6H, S6J, S6K, S6V, S6W, S6X, S9A, T1M, T1P, T1X, T2X, T2Y, T3A, T3G, T3K, T3L, T3M, T3N, T3Z, T4A, T4B, T4C, T4H, T4V, T4X, T5S, T5T, T5V, T5X, T5Y, T5Z, T6M, T6P, T6R, T6S, T6T, T6V, T6W, T6X, T7N, T7P, T7X, T7Y, T7Z, T8A, T8B, T8C, T8E, T8G, T8H, T8L, T8N, T8R, T9A, T9C, T9E, T9G, V0R, V2J, V2T, V2X, V3B, V3E, V3H, V3Y, V4K, V4P, V4R, V4X, V5A, V5B, V5C, V5E, V5G, V5H, V5J, V5K, V5M, V5P, V5R, V5S, V5W, V5X, V6M, V6N, V6P, V7B, V9G, V9K, V9L, V9P, V9R, V9S, V9T, V9V, V9X, V9Y
3. 15 months 27 months A0E, A0J, A0N, A2N, B0J, B0T, B2N, B3H, B3J, B3K, B3L, B3M, B3N, B3P, B3R, B3S, B3T, B3V, B3Z, all postal codes beginning with the letter C, E1N, E1V, E3L, E3Z, E4S, E4V, E4W, E4X, E4Y, E5A, E5C, E5H, E6A, E6B, E6E, E6G, E6H, E6J, E6K, E6L, E7G, E7H, E7J, E7K, E7L, E7M, E7N, E7P, E9A, E9B, E9C, E9E, E9G, E9H, G0J, G0M, G0N, G0P, G0X, G0Y, G0Z, G4W, G4Z, G5C, G5J, G5X, G5Y, G5Z, G6A, G6B, G6G, G6H, G6P, G6R, G6S, G6T, G8H, G8J, G8K, G8L, G8M, G8T, G8V, G8W, G8Y, G8Z, G9A, G9B, G9C, G9H, G9N, G9P, G9R, G9T, G9X, H0M, J0J, J0L, J0N, J0P, J0R, J0S, J0V, J2N, J2W, J2X, J2Y, J3A, J3B, J3E, J3G, J3H, J3L, J3M, J3N, J3V, J3X, J4B, J4G, J4H, J4J, J4K, J4L, J4M, J4N, J4P, J4R, J4S, J4V, J4W, J4X, J4Y, J4Z, J5A, J5J, J5R, J5V, J5W, J5X, J5Y, J5Z, J6A, J6E, J6J, J6K, J6N, J6R, J6S, J6T, J6V, J6W, J6X, J6Y, J6Z, J7A, J7B, J7C, J7E, J7G, J7H, J7J, J7K, J7L, J7M, J7N, J7P, J7R, J7T, J7V, J7X, J7Y, J7Z, J8A, J8B, J8C, J8G, J8H, J8L, J8M, K0C, K0E, K0G, K1M, K1N, K1T, K1V, K2E, K2G, K2L, K2M, K2R, K2S, K2T, K2V, K4C, K7A, K7G, K7H, L0A, L0B, L0C, L0E, L0G, L0H, L0J, L0L, L0M, L0N, L0S, L1A, L1B, L1C, L1E, L1G, L1H, L1J, L1K, L1L, L1M, L1N, L1P, L1R, L1S, L1T, L1V, L1W, L1Z, L2A, L3K, L3P, L3R, L3S, L3T, L3X, L3Y, L3Z, L4B, L4G, L4J, L4K, L4L, L4M, L4N, L4P, L5A, L5B, L5C, L5G, L5H, L5J, L5K, L5L, L6G, L7B, L7C, L7E, L8H, L8L, L8M, L8P, L8R, L8S, L9H, L9L, L9N, L9P, L9R, L9S, L9V, L9W, L9Y, N0C, N0H, N4K, N4L, N7S, N7T, N7V, N7W, N7X, P0B, P0C, P0E, P0R, P0W, P0X, P0Y, P1H, P1L, P1P, P5E, P8N, P8T, P9A, P9N, R0A, R0C, R0E, R0J, R0L, R0M, R7N, S0C, S0E, S0H, S0L, S3N, S4A, S9H, T0L, T0M, T1A, T1B, T1C, T1G, T1R, T1W, T2E, T2H, T2V, T3E, T4E, T4G, T4J, T4L, T4N, T4P, T4R, T4S, T7A, T7E, T7S, T9N, T9S, T9W, T9X, V0L, V0M, V0N, V0P, V0X, V1B, V1H, V1K, V1P, V1T, V1V, V1W, V1X, V1Y, V1Z, V2G, V2P, V2R, V2S, V2V, V2W, V4A, V4B, V4L, V4M, V4S, V4T, V4V, V4Z, V6K, V6L, V6R, V6S, V6T, V7G, V7H, V7J, V7K, V7L, V7M, V7N, V8A, V8C, V8G, V9H, V9J, V9M, V9N, V9W
4. 18 months 30 months A0C, A0G, A1V, A0K (on Newfoundland Island only), B0C, B0E, B0K, B0L, B0N, B0S, B0V, B2C, B2J, B4H, B5A, E2A, E3N, E3Y, E7C, E7E, E8A, E8B, E8C, E8E, E8G, E8J, E8K, E8L, G0C, G0E, G0H, G0T, G0V, G0W, G4R, G4S, G4X, G5B, J0K, J0T, J0W, J0X, J0Z, J8N, J8P, J8R, J8T, J8V, J8X, J8Y, J8Z, J9A, J9B, J9E, J9H, J9J, J9L, K0A, K0B, K0H, K0J, K0K, K0L, K0M, K1X, K2J, K4M, K4P, K4R, K6A, K7C, K7K, K7L, K7M, K7N, K7P, K7R, K7V, K8A, K8B, K8H, K8N, K8P, K8R, K8V, K9A, K9H, K9J, K9K, K9L, K9V, L0K, L1X, L1Y, L3V, L4A, L4C, L4E, L4H, L4R, L4S, L6A, L6B, L6C, L6E, L6J, L6K, L6L, L9M, P0P, P0T, R8A, R8N, R9A, S0M, S0N, S0P, S9V, S9X, T0A, T0B, T0C, T0E, T0G, T0J, T0K, T2G, T2K, T2L, T2M, T2N, T2P, T2R, T2S, T2T, T3C, T5B, T5G, T5H, T5J, T5K, T6A, T6C, T6E, T6G, T7V, T8V, T8W, T8X, T9M, T9V, V0E, V0G, V0H, V0J, V0K, V0S, V0T, V0V, V1E, V1G, V1J, V1L, V1N, V1R, V1S, V2A, V2B, V2C, V2E, V2H, V3G, V7P, V7R, V7S, V7T, V7V, V7W, V8J, V8M, V8N, V8P, V8R, V8S, V8T, V8V, V8W, V8X, V8Y, V8Z, V9A, V9B, V9C, V9E
5. 24 months 36 months all other postal codes

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Measurement compliance rates in the Canadian marketplace have declined since the early 1980s. Consumers and vulnerable parties believe the Government should protect and advocate for their interests. There is an expectation that consumers and small businesses will be protected from unscrupulous trade practices. Business and consumer confidence in the accuracy of the quantity of goods and services bought and sold on the basis of measurement is key to a fair, efficient and competitive Canadian marketplace. Stakeholders have repeatedly recommended that mandatory examination (inspection) frequencies be reinstituted under the Weights and Measures Act. During the extensive consultations conducted as part of the trade sector reviews, the vast majority of consulted stakeholders made the same recommendation.

Description: The Regulations Amending the Weights and Measures Regulations (the Regulations) are designed to reverse the decline in measurement accuracy in the Canadian marketplace by making it mandatory for retailers to have their devices examined at regular intervals. Mandatory examination frequencies apply to the following sectors (categories of trade): retail and downstream petroleum, mining products, grain and field crop products and services, dairy products, forestry products, retail food, and fishing products.

Cost-benefit statement: The total estimated costs associated with the examination of the devices in the eight categories of trade for the analysis period (2013 to 2023) are estimated to be $56 million. (see footnote 2) The total estimated benefits resulting from the Regulations are estimated to be $629 million. (see footnote 3) This equates to an estimated net benefit of $573 million (see footnote 4) and an annualized net benefit of $81 million per year. There are also significant qualitative benefits that accrue as a result of the regulatory amendments, including reduced dispute and transaction costs, consumer protection, levelled playing field for commerce, national benefit of more accurate measurement for commodity exports, facilitation of international trade and improvement in the natural environment.

“One-for-One” Rule and small business lens: The “One-for-One” Rule does not apply, as the Regulations will not increase administrative burden on business.

The regulatory amendments reflect the interests of small businesses. The examination frequencies, which were established in consultation with stakeholders, were almost always reduced from the vulnerable parties’ starting point. Some vulnerable stakeholders could therefore expect examinations to occur more frequently than what is provided for in the Regulations. The Regulations maintain annual examination frequencies for categories of trade where small businesses are particularly vulnerable to short measure because of the very large number of transactions between companies and measurement errors penalizing customers (small businesses). This is reflected in the results of the cost-benefit analysis, which shows the largest portion of benefits going to small businesses.

Background

The Fairness at the Pumps Act was introduced by the Government of Canada in the House of Commons in April 2010 and it received Royal Assent on March 23, 2011. The new legislation marked the most fundamental step in a longer-term process of evolution and innovation in assuring measurement accuracy for Canadians.

Many of the benefits of ensuring accuracy are “public” in nature — setting standards of accuracy and enforcing them are core functions of Government that cannot easily be delegated to the private sector. Measurement Canada is the agency responsible for ensuring the integrity and accuracy of measurement in the Canadian marketplace.

Until the mid-1970s, Measurement Canada carried out annual periodic examinations of all devices used in trade. This approach was resource-intensive and, over time, budget realities forced the Government of Canada and Measurement Canada to reduce frequencies in some areas.

In the mid-1980s, regulatory changes were introduced to change periodic examinations pursuant to the Weights and Measures Act (the Act) from an annual to a biennial basis. Mandatory periodic examinations were no longer required as of 1994.

At the same time, the need for accurate measurement continued to grow with Canada’s economy and population. Measurement Canada estimates that the number of devices used for trade measurement purposes has doubled since 1970. This increase in device numbers, combined with much greater device complexity, has lead to

A progressive plan was needed to address Measurement Canada’s sustainability issues.

Measurement accuracy

In introducing the Fairness at the Pumps Act, the Minister of Industry (the Minister) emphasized the importance of measurement and consumer protection, referring to “measures to protect Canadian consumers from inaccurate measurement when purchasing gasoline or other measured goods.” The Minister noted that the measures would “make retailers more accountable for the accuracy of their pumps and other measuring devices.”

The annual aggregate value of trade measurement transactions represents a large portion of an industrialized country’s gross national product. Legal metrology provides the following benefits to society:

A new act and a new business model for Measurement Canada

At the time of the tabling of the Fairness at the Pumps Act in April 2010, it was clear that

Issues

Measurement Canada examination data indicates that measurement compliance rates have trended down as the organization’s presence has declined in the marketplace since the early 1980s. Of particular public concern has been the role of short measure at the gas pumps in exacerbating the impact of rising fuel prices. Consumers and vulnerable parties believe that the Government should protect and advocate for their interests. The decline in measurement accuracy affects consumers and small businesses.

Objectives

The objective of the Regulations is to reduce measurement errors and increase fairness in the Canadian marketplace in an efficient and innovative way.

The Regulations will strengthen consumer protection against unfair retailer practices and improve consumer confidence in the accuracy of commercial transactions involving measurement by placing responsibility for device accuracy on retailers through mandatory examinations at regular intervals. The regulatory amendments introduce mandatory examination frequencies in the following categories of trade: retail and downstream petroleum, mining products, grain and field crop products and services, dairy products, forestry products, retail food and fishing products.

Amendments to the Act included authorizing the Minister of Industry to appoint non-government inspectors (authorized service providers) to perform these examinations.

Description

Periods between device examinations

The periods between examinations are set out in section 29 of the Weights and Measures Regulations (WMR). These periods were established following extensive consultations with stakeholders from the categories of trade concerned. These consultations were held as part of the trade sector reviews conducted by Measurement Canada between 2001 and 2011.

For example, a meter used in the trade of dairy products will need to be examined within a period of not more than one year from the last examination at which it was certified as being compliant, whether that be

The introduction of periodic examinations will not preclude the possibility of the devices undergoing other examinations to monitor compliance with the Act and the WMR. Such examples include examinations following a complaint and as part of marketplace monitoring or performance monitoring of an authorized service provider. It is not the responsibility of the owner or the person in possession of the device in question to have it undergo such examinations or to cover any related costs. These other examinations, however, will not be taken into account in determining the date of the next periodic examination of the device in question.

Devices that do not meet the legal requirements at the time of the examination must be repaired or adjusted. The necessary repairs or adjustments must be performed so that a certificate of examination can be issued to certify the device’s compliance.

Introduction of examination cycles

New paragraph 29(2)(a) of the WMR provides for the implementation of periodic examinations in five phases to avoid all the devices having to be examined at the same time. This would create pressure on the availability of examination services and, in turn, would affect the prices charged for performing the examinations.

The implementation periods are determined by the first three characters of the postal code for the geographic area in which the devices are located. The table listing those periods can be found in the new Part II of Schedule I of the WMR.

The examination cycles of the devices will be introduced over a period of 24 months (or 36 months for devices used in the retail food trade) following the implementation of the regulatory amendments. The five phases are as follows (add 12 months for devices used in the retail food trade):

New section 29.1 of the WMR establishes a mechanism for extending the time periods. This mechanism will prevent traders from being penalized if, for reasons beyond their control, they are unable to meet the deadline for the next examination of their device. The Minister may allow traders to delay the next periodic examination if they meet the requirements set out in that section.

Examination follow-up stickers

To assist in the implementation of the examination cycles, the Regulations change the requirements respecting stickers placed on devices that are found to comply with the regulatory requirements, following an examination by an inspector. The new examination stickers will indicate the month and year in which the examination was conducted and the month and year in which the next examination must be conducted. The stickers will be an important part of the examination process, as they will serve as a reminder to the trader as to when the next periodic examination must take place. Further, users, whether they are the device operators or clients, will be able to see the status of the device. Such an indication will increase the confidence of the parties in the fairness of trade-related measurements. It is a key element to ensure accurate measurements for all and the fair trade of products and services.

Exclusions

The responsibility of traders to have the devices used in the eight categories of trade periodically examined does not apply to all device types. A list of devices excluded from examination cycles is included in the Regulations.

a. Exclusions from the application of the Act

When devices, such as electricity meters, which must be verified under the Electricity and Gas Inspection Act, are excluded from the application of the Weights and Measures Act, none of the provisions relating to approval and examinations apply to them. The exclusion also applies to tolerances and regulatory standards of design and operation. In addition, Measurement Canada does not conduct examinations of these devices in cases of dispute between the parties. Stakeholders affected by the exclusions are not vulnerable parties and have accepted that users of these devices are not subject to the provisions of the Act.

a.1 Devices used exclusively for gauging tanker ship holds and large petroleum tanks

Devices used exclusively for measurement of tanker ship holds and large tanks used in the downstream petroleum trade (e.g. trade of refined petroleum) are excluded from the application of the Act under new paragraph 3(2)(a) in the WMR. The exclusion follows the downstream petroleum trade sector review.

Trade transactions in that category of trade involve the transportation of large quantities of products by tanker ships to and from marine terminals. Products may also be measured in stationary tanks and transported by other means. These trading activities are conducted under contracts of sale and through the purchase and exchange of large quantities of products among petroleum companies and refiners, and, to a limited extent, they include sales to large industrial clients. Measurement is performed before and after loading by specialized companies using American Petroleum Institute guidelines. The exclusion does not apply to measurement by means of meters on the dock when loading or unloading ships.

Trading activities based on these measurements are conducted for companies with the expertise and means to confirm measurement results when necessary. Stakeholders are confident, based on past experience, that they can adequately ensure accuracy and fairness of measurements, and that they can satisfactorily resolve any complaints that may arise. Stakeholders declared that they are fully satisfied with the services rendered by companies specialized in assessing measurement and quality, and the standards they use. This type of measurement, and consequently the exclusion described above, does not apply to the retail petroleum trade.

a.2 Devices used exclusively for gauging the holds of ships in the wholesale trade of mining products

The introduction of paragraph 3(2)(b) in the WMR follows the review of the mining trade sector. The exemption relates to devices used exclusively for gauging the holds of ships in the wholesale trade of mining products. The context of these transactions is similar to that of the petroleum category of trade.

The gauging of ship holds is used primarily for exporting mining products, but it is used domestically as well. Marine custody transfers are certified by third-party testing and certification services companies. These companies determine and certify the volume loaded to and unloaded from ships.

b. Exemptions from approval and mandatory examination requirements

The following devices are exempted from approval, initial examination and periodic examination requirements.

b.1 Linear static measures

It is becoming increasingly difficult for individuals to purchase static linear measures for trade applications. Very few static linear measures are approved for trade, and many device manufacturing companies have stopped manufacturing them. Measuring sticks and tape measures are included in this static measurement category.

Since it is easy for all parties involved in commercial transactions to verify the accuracy of measurements of length, new paragraph 4(1)(o) of the WMR exempts linear static measures from the approval, initial examination and periodic examination requirements of the Act. This exemption maintains existing practices, since Measurement Canada has not been conducting type approval evaluations or examinations of static linear measures for several years. Because of the modifications made to the Act, the regulatory exemption is important to prevent traders from being required by law to have their static linear measures regularly examined by inspectors.

However, products and services traded on the basis of linear measurement continue to be required to comply with the tolerances prescribed by the WMR.

This exemption involves the repeal of sections 107 to 119 of the WMR, sections which regulated linear static measures.

b.2 Pipeline meters

This exemption follows the downstream petroleum trade sector review. Pipeline meters and auxiliary measuring devices (e.g. temperature, pressure and density measuring equipment) used in the downstream petroleum trade are excluded from the approval and examination requirements under new paragraph 4(1)(p) of the WMR. These pipeline meters measure refined petroleum products.

The parties involved in the transactions have the means and expertise to ensure accurate measurement and to protect their interests. There would be no vulnerable parties in the category of trade, except in cases where the client is the end user of the petroleum product (i.e. when the client uses the delivered product to change its nature). For example, if a meter is installed on a pipeline supplying a chemical fertilizer plant, or a generator is used by a public utility company to produce electricity, the device needs to be approved and examined under the requirements of the Act and the WMR, because these clients do not necessarily have the technical expertise to protect themselves from measurement errors.

b.3 Devices used exclusively for weighing or measuring crude petroleum products

Crude petroleum products are found where crude petroleum is bought and sold: between the borehole (or the extraction site) and the refinery (or refining plant).

This exemption follows a review of the upstream petroleum sector. It applies to all devices used exclusively to weigh or measure crude petroleum products. The parties involved in the transactions involving the use of these devices have the means and expertise to ensure accurate measurement and to protect their interests. There would be no vulnerable parties using these instruments in trade.

Under new paragraph 4(2)(b) of the WMR, if a device is used to measure crude petroleum entering the refinery and refined petroleum products, it is no longer used exclusively for the measurement of crude petroleum products.

c. Exemption from mandatory examinations

Devices used exclusively in the wholesale trade of gold, silver or diamonds are exempt from mandatory examinations through the addition of section 6 of the WMR, which follows the mining trade sector review. The exemption does not apply to retail transactions; it only applies to wholesale transactions. The parties involved in these transactions have the means and expertise to ensure accurate measurement and to protect their interests. Considering the value of gold, silver and diamonds, stakeholders ensure that calibration and monitoring of devices is carried out frequently.

There would be no vulnerable parties in these commercial transactions. Considering the nature of this type of trade, and the fact that measurement is frequently used for exporting, device calibration is often required to follow international standards. These standards are not necessarily traceable to the reference standards prescribed by the Act.

However, stakeholders have requested that measurements be made with devices approved under the Act, so these devices are not exempted from paragraph 8(a) of the Act.

Applicable fees

Section 59 of the WMR sets out the charges and fees for the services provided by an inspector. New section 58.1 confirms the current practice whereby only charges and fees for the services provided by inspectors employed by the federal government are governed by the fees set out in the WMR. Authorized service providers will continue to be responsible for setting the fees they require for conducting regulatory examinations of devices.

Changes to terminology and other amendments

The terminology used in the WMR is amended to reflect changes made to the Act in 2011 and to achieve consistency between the French and English versions of the WMR. In particular, in the English version, the term “inspection” and most variants thereof are generally replaced by the term “examination” or one of its equivalent variants. In the French version of the WMR, the term “vérification” and variants thereof are generally replaced by the term “examen” or one of its variants, and in some instances by “mis à l’essai,” “essai” or one of their variants, as appropriate in the context.

Some of the amendments to the Act were designed to ensure that it takes into account the terminology of both common and civil law. The Federal Law–Civil Law Harmonization Act, No. 3 (S.C. 2011, c. 21) has already amended certain provisions of the Act with the same intent. The WMR is amended to reflect these changes and to accurately reflect the concepts of common and civil law. For example, the phrase “before being sold, leased or otherwise disposed of” is more accurately rendered by “before being sold or otherwise disposed of, or leased;” that phrase is therefore amended accordingly in the WMR. In particular, these amendments will facilitate the administration of the WMR in Quebec by allowing those who enforce these Regulations to better understand and interpret them.

Editorial changes are made to several sections to improve readability and ensure a higher level of agreement with the amendments to the Act and between the English and French versions of the WMR. Also, some sections are renumbered to improve the logical flow of the document.

Regulatory and non-regulatory options considered

Four options were considered:

Benefits and costs

The tables in this section provide an overview of the results of the cost-benefit analysis. The analysis demonstrates the difference between the incremental costs and benefits of the base case (i.e. the status quo with existing levels of measurement accuracy) and the policy case (i.e. renewed periodic examinations with extensive use of ASPs). The analysis involved assessing the total costs (government and private) against total benefits (assumed to be the value of the improvement in measurement accuracy to businesses and consumers). To calculate benefits, the analysis uses estimates by Measurement Canada on the improvement in measurement accuracy which will result for each scenario. Standard cost-benefit analysis methodology was used as per the Treasury Board’s Cost-Benefit Analysis Guide. (see footnote 6)

The analysis period begins in the fall of 2013 and the first full year of impacts would be 2014. The policy case, which forms the basis of the analysis, is Measurement Canada’s estimate of the improvement in measurement accuracy which will result from the regulatory package. Several sensitivity analyses were performed to account for the possibility that costs may increase or decrease or that improvements in measurement accuracy may be greater than or less than expected (these cases are laid out in Table 2).

The assessment showed significantly positive net benefits for each scenario. The total benefits of the Regulations for the period of analysis would be $629 million in present value (PV) terms. The total costs resulting from the Regulations are estimated to be $56 million in PV terms. This results in a net benefit of $573 million (PV) over the study period. Table 1 shows quantitative results for the policy case. All numbers are shown in 2011 dollars. Entries in the table are undiscounted unless otherwise indicated.

Methodology and assumptions

The analysis focuses on devices from the eight categories of trade. The most common device type of each of the five categories of trade listed below was chosen for the analysis. The devices with the lowest measurement compliance rates have been marked with an asterisk.

In the grain and field crop products and services trade, hopper scales were chosen, as they are used to weigh very large volumes of grain.

Bulk truck meters were chosen in the dairy products trade, as they are used at dairies to measure most of the milk delivered from farms. In these transactions, farmers are the vulnerable parties, and while compliance rates are high, the measurement errors are weighted heavily in favour of the dairies.

Point-of-sale, computing and platform scales are primarily used in the retail food trade to weigh fresh fruit, vegetables, meat, and fish. There is no apparent way to distinguish the volume of products weighed by a given type of scale; therefore, the three types of scales were chosen.

Costs

The incremental direct costs of increased periodic examinations are calculated as follows, based on estimates of the number of measuring devices used in each of the eight categories of trade and the percentage of device owners who have their devices serviced regularly by ASPs.

Benefits

The benefits analysis is based on the development of a reasonable proxy for willingness to pay for increased measurement accuracy as follows:

The estimated reduction in income transfers resulting from the introduction of mandatory examinations is the proxy for the reduction in economic costs associated with the new measurement regime. That estimated reduction in economic costs is the quantitative estimate of benefits.

Summary of cost-benefit analysis
A. Table 1 — Policy case in millions of 2011 Canadian dollars
Categories of trade   2013 Year 1 2014 Year 2 2015 Year 3 2017 Year 5 2022 Year 10 Total (Present Value) Annualized Average
Benefits
Fishing products   0 0.349 0.349 0.349 0.349 2.451 0.349
Grain and field crop products and services   0 2.101 2.101 2.101 2.101 14.755 2.101
Mining products   0 5.384 5.384 5.384 5.384 37.812 5.384
Downstream petroleum   0 66.205 67.529 71.557 79.121 503.512 71.689
Dairy products   0 1.418 1.424 1.476 1.551 10.366 1.476
Retail gasoline Consumers 0 3.265 3.298 3.406 3.580 23.892 3.402
Businesses 0 2.463 2.488 2.570 2.701 18.024 2.566
Retail food Consumers 0 0.326 0.326 0.326 0.326 2.293 0.326
Businesses 0 1.228 1.228 1.228 1.228 8.626 1.228
Forestry products   0 1.115 1.115 1.115 1.115 7.828 1.115
All categories of trade Total benefits 0 83.854 85.249 89.511 97.455 629.558 89.635
Costs
Fishing products   –0.265 –0.237 –0.237 –0.237 –0.237 –1.927 –0.274
Grain and field crop products and services   –0.268 –0.261 –0.261 –0.261 –0.261 –2.098 –0.299
Mining products   –0.041 –0.031 –0.031 –0.031 –0.031 –0.260 –0.037
Downstream petroleum   –0.238 –0.225 –0.226 –0.226 –0.226 –1.822 –0.259
Dairy products   –0.055 –0.052 –0.052 –0.052 –0.052 –0.422 –0.060
Retail gasoline   –2.580 –2.338 –2.338 –2.333 –2.333 –18.965 –2.700
Retail food   –1.495 –1.174 –1.174 –1.174 –1.174 –9.739 –1.387
Forestry products   –0.628 –0.611 –0.611 –0.611 –0.611 –4.920 –0.700
All categories of trade Businesses –5.569 –4.924 –4.924 –4.924 –4.924 –40.153 –5.717
Government –2.000 –2.000 –2.000 –2.000 –2.000 –16.047 –2.285
Total costs –7.569 –6.924 –6.924 –6.924 –6.924 –56.200 –8.002
Net Present Value
Total net present value   –7.569 71.897 68.412 58.884 46.021 573.358 81.633
B. Quantitative impact in non-dollars
C. Qualitative impacts

Benefits described

Sensitivity analyses

The sensitivity analyses were carried out to reflect a number of contingencies. For example, measurement accuracy might improve more than expected (hence the doubled improvement scenario) or it might improve less (one-half improvement scenario). Alternatively, costs may increase or decrease or expected improvements may occur less quickly than expected (phased in).

The sensitivity analysis in Table 2 shows that net benefits remain positive in all the cases examined.

Table 2: Summary of sensitivity analysis — Present values in millions of 2011 dollars

  Policy Case Doubled Improvement One-half Improvement Increased Costs Decreased Costs Phased-in
Businesses
Business costs 40.2 40.2 40.2 50.5 30.2 40.2
Business benefits 603.4 1,206.7 310.4 603.4 603.4 567.6
Net business benefits 563.2 1,166.5 270.2 552.9 573.2 527.2
Consumers
Consumer benefits 26.2 52.4 14 26.2 26.2 24.2
Summary
Net private benefit 589.4 1,178.8 284.2 579.1 599.4 591.8
Cost to Government 16 16 16 16 16 16
Net societal benefits 573.4 1,202.9 268.2 563.1 583.4 535.6
Distribution of benefits

The distribution of benefits among stakeholders is also an important consideration in the analysis. Results show that consumers do not benefit greatly from the improvements, since so many transactions occur between businesses. Consumers receive 4% of net benefits and bear no cost.

Businesses benefit most from improved measurement accuracy: in all categories of trade, nearly 96% of benefits accrue to business. Benefits accrue most to small businesses (43.9%), followed by large businesses (36.6%) and medium-sized businesses (15%). If measurement accuracy deteriorates, small businesses will experience a disproportionate transfer of incomes when compared with bigger businesses.

“One-for-One” Rule

The “One-for-One” Rule does not apply, as the Regulations will not increase administrative burden on business.

Small business lens

The views and interests of small businesses have been important influences on the evolution of the regulatory proposals. The initial option considered was to require annual device examinations in all categories of trade with the exception of retail food trade, in which biennial examinations would be required. Following consultations, it was decided to require biennial examinations in the mining products, downstream petroleum and retail petroleum trades, and five-year examinations in the retail food trade.

As initially proposed, annual examinations would be required in the fishing products, forestry products, grain and field crop products and services, and dairy products categories of trade, largely because it was seen as important by smaller businesses. The transactions involving measurement in these categories of trade occur overwhelmingly between small and large businesses (e.g. between fishers and seafood processing plants, loggers and processing mills, grain farmers and grain wholesaler/distributors and dairy farmers and dairies). An estimated 100% of grain and dairy farmers, 95% of fishers, and 85% of loggers are small businesses. These small businesses will benefit significantly from reductions in measurement errors, and annual examinations will help ensure these benefits are realized and maintained. The completed Small Business Lens Checklist can be found in Appendix A.

The table below provides estimates of the costs associated with the initial and flexible options.

Table 3: Small business lens (see footnote 7)

  Initial Option Flexible Option
Short description Annual examinations in all categories of trade, except biennial examinations in the retail food trade Annual examinations: fishing products, forestry products, grains and field crop products and services, dairy products trades; biennial examinations: mining products, downstream petroleum, retail gasoline trades; five-year examinations: retail food trade
Number of small businesses impacted 28 750 28 750
  Annualized Average ($) Present Value ($) Annualized Average ($) Present Value ($)
Compliance costs (costs of device examinations) 4,551,563 31,990,982 2,330,521 16,380,230
Administrative costs 69,421 487,932 55,113 387,367
Total costs (all small businesses) 4,620,984 32,478,914 2,385,634 16,767,597
Total cost per small business 160.73 1,129.70 82.98 583.22
Risk considerations Estimates should be treated as being indicative rather than precise due to the processes through which they are derived (see footnote 6). Estimates should be treated as being indicative rather than precise due to the processes through which they are derived (see footnote 6).

Consultation

In the period leading up to the development of the new Act and Regulations, Measurement Canada undertook extensive consultations and met with over 3 000 stakeholders over a 10-year period from 2001 to 2011. The main consultations were conducted during the extensive trade sector review process over a 10-year period starting in 2000. A summary of the trade sector reviews can be found on Measurement Canada’s Web site: www.ic.gc.ca/eic/site/mc-mc.nsf/eng/h_lm00215.html.

There were also consultations with the stakeholders over a three-month period in 2008 and again in 2009 during the legislative review process leading up to the legislative amendments. Stakeholders were also consulted over a three-month period in 2011, as part of the regulatory amendment process.

Business representatives supported mandatory periodic examinations to promote a more level playing field so that honest traders would not be at a disadvantage when compared with less scrupulous competitors whose devices regularly short-changed their customers or suppliers.

In addition, business is increasingly globalized and the benefits of measurement accuracy are international in scope. During consultations, mining companies noted that mandatory periodic examinations would help to increase exports because their international customers had confidence in Canadian government certification of measuring devices.

Stakeholders, including consumers and regulated parties, in the retail and downstream petroleum, retail food, dairy products, fishing products, forestry products, grain and field crop products and services and mining products categories of trade, have recommended the reintroduction of mandatory examination requirements.

Result of prepublication

The proposed Regulations were published in the Canada Gazette, Part I, on November 2, 2013, followed by a 30-day comment period. A total of seven stakeholders provided feedback, and Measurement Canada responded to each one directly. Two associations representing traders indicated their support. The five other stakeholders requested clarifications on certain aspects, and none voiced opposition.

An association representing traders working in the retail food trade and in the retail petroleum trade requested an extension of the deadline for the implementation of periodic examinations for the retail food trade. This extension will allow traders to better plan the scheduling of examinations, given the significant number of devices owned by some of them. It was decided that the implementation period in this category of trade will be delayed by twelve months. This extension will have little impact on fairness in the market, as the examination period for these devices is five years. This compromise is consistent with the level of reliability of measuring devices used in this category of trade and the fact that they are used in a controlled environment in which weather conditions have little impact on the reliability of measurements.

The second association, which represents traders working in the retail petroleum trade, recommends that Measurement Canada supervise ASPs that examine measuring devices in order to avoid conflicts of interest, as the majority of them also carry out the sale and service of these instruments. This recommendation applies more specifically to the first stages of implementation of the regulatory amendments. Measurement Canada is aware of the importance of the integrity of the device examination process, and its requirements and processes for designating ASPs have been in existence for some time now. These requirements prescribe mandatory training, theoretical and practical evaluations of ASP personnel, Measurement Canada approval of examination procedures, as well as the calibration and certification of standards used to perform examinations. Measurement Canada employees who perform audits and examinations currently carry out oversight activities (e.g. audits, follow-up examinations) on a regular basis to ascertain whether ASPs are performing their duties properly.

These two associations, as well as another stakeholder, have raised the issue of the availability of examination services offered by ASPs. Measurement Canada considers this issue to be one that is crucial and as a result, the implementation period for periodic examinations will extend over a period of 24 months for seven out of eight of the targeted categories of trade and over a period of 36 months for the retail food trade. This will allow ASPs to develop their expertise, hire new technicians and buy new standards and other equipment used to carry out examinations. Measurement Canada is actively working on minimizing situations in which there is a shortage of examination services.

In response to a request, Measurement Canada is developing a search engine that will allow traders to search by region and field of expertise for ASPs offering examination services. This tool will be available on the Measurement Canada Web site once the Regulations have been registered.

There will be a period of about 60 days between the publication of the Regulations in the Canada Gazette and their coming into force. This period and the phased-in implementation of examination cycles will help both traders and ASPs to comply with the new requirements.

A few questions were also asked in order to seek clarification, and stakeholders were contacted directly and seemed satisfied with the answers that were provided.

It was decided that the introduction of examination cycles in the geographic area having a postal code starting with T1V will change from 11 months to 24 months (36 months for devices used in the retail food trade), in order to help the affected traders recover from the flooding that occurred in Alberta in 2013.

Rationale

The Fairness at the Pump Act and the Regulations allow for both updated legislation and a new business model for Measurement Canada that seeks to maximize efficiency within the Agency’s limited budget. In this model, increased examinations will not be carried out by government employees at Measurement Canada, but rather, by ASP technicians trained and licensed by Measurement Canada. Most ASPs are expected to come from the existing private sector measurement industry and will likely integrate examinations with the services they now provide customers, thereby creating a highly efficient low-cost alternative to government inspectors.

Measurement Canada will move to an oversight role rather than directly providing examination services. This represents an opportunity for small businesses. Non-government inspectors will be responsible for certifying the accuracy of thousands of devices used in commercial transactions involving millions of dollars annually. Measurement Canada will provide training, technical guidance and direction to ensure continued consistent and uniform application of legislative requirements which directly affect retailer business costs and the level of consumer protection.

The Fairness at the Pump Act and the Regulations strengthen consumer protection against unfair retailer practices and improve consumer confidence in the accuracy of commercial transactions involving measurement. The Fairness at the Pump Act and the Regulations

Implementation, enforcement and service standards

The regulatory amendments will allow for the mandatory examination frequencies to be implemented using the phased-in approach explained in the “Description” section.

In order to implement mandatory examination frequencies, Measurement Canada has been building capacity by using quality assurance principles to qualify ASPs that are designated as inspectors and whose technicians are trained by Measurement Canada. ASPs undergo a rigorous qualification process and are required to successfully complete mandatory training related to the examination process.

The programs for designating ASPs have been in place for a number of years. Currently, there are 115 organizations (with over 400 recognized technicians) qualified to perform examinations on behalf of Measurement Canada. Further information on criteria for designating ASPs, as well as details on the organizations that can perform examinations is available on Measurement Canada’s Web site at www.ic.gc.ca/eic/site/mc-mc.nsf/eng/h_lm00003.html.

The system that has been set in place through the legislative amendments and the regulatory amendments will provide device owners with the flexibility to schedule examinations for periods that best suit their business model and schedules.

Measurement Canada will continue to monitor the marketplace through random marketplace monitoring examinations and focused examinations when issues are identified through investigations and analysis of compliance data.

It is anticipated that the number of examinations taking place in the marketplace will increase from the current 42 000 (approximate) per year to over 250 000 per year. This increases the likelihood that measurement errors will be detected and corrected in a timely manner.

ASPs may conduct the mandatory examinations upon request or as a part of existing service contracts. Only government inspectors will have the authority to take enforcement actions.

As Measurement Canada’s processes for designating non-government inspectors have been in place for a number of years, service standards have been established and are regularly monitored. The programs designating non-government inspectors are also subject to regular third-party audits as Measurement Canada has acquired ISO 9001:2008 certification for the delivery of its accreditation and registration programs. In light of the increased number of examinations that will be conducted by authorized service providers, it is important to formalize their status instead of using an administrative approach as in the past.

A comprehensive communications strategy will be used to communicate the implementation of mandatory examination frequencies. This includes products such as fact sheets and consumer FAQs that will be available on Measurement Canada’s Web site. Public notice and advertising campaigns have also been developed to ensure traders understand new legal obligations and to communicate the Government’s commitment to consumer protection.

Performance measurement and evaluation

The Minister of Industry will complete a review of the provisions and operations of the Act within five years after it receives Royal Assent.

Contact

Gilles Vinet
Vice-President
Measurement Canada
Telephone: 613-941-8918
Email: gilles.vinet@ic.gc.ca

Appendix A: Small Business Lens Checklist

1. Name of the sponsoring regulatory organization:

Industry Canada (Measurement Canada)

2. Title of the Regulations:

Regulations Amending the Weights and Measurements Regulations

3. Is the checklist submitted with a RIAS for the Canada Gazette, Part I or Part II?

Empty box Canada Gazette, Part I    Checked box Canada Gazette, Part II

A. Small business regulatory design

I Communication and transparency Yes No N/A
1. Are the proposed Regulations or requirements easily understandable in everyday language? Checked box Empty box Empty box
The text in the Regulations has been drafted to be as clear as possible. Plain language was used to ensure the Regulations are easily understood.
2. Is there a clear connection between the requirements and the purpose (or intent) of the proposed Regulations? Checked box Empty box Empty box
As described in the RIAS, the cost-benefit analysis and other documents used for public consultations, there are clear justifications for the regulatory change.
3. Will there be an implementation plan that includes communications and compliance promotion activities, that informs small businesses of a regulatory change and guides them on how to comply with it (e.g. information sessions, sample assessments, toolkits, Web sites)? Checked box Empty box Empty box
As part of the implementation plan for the Regulations, a communication plan has been developed. This plan includes information sessions and presentations at association meetings, public notices and an advertising campaign designed to ensure that stakeholders, including small businesses, are informed of the regulatory changes and their obligations in order to comply with the new requirements.
4. If new forms, reports or processes are introduced, are they consistent in appearance and format with other relevant government forms, reports or processes? Empty box Empty box Checked box
No new forms are being introduced.
II Simplification and streamlining Yes No N/A
1. Will streamlined processes be put in place (e.g. through BizPaL, Canada Border Services Agency single window) to collect information from small businesses where possible? Empty box Empty box Checked box
Small businesses will not be required to complete forms when devices are examined. Inspectors will be responsible for completing the examination certificates. Inspectors will be able to submit inspection data to Measurement Canada online.
2. Have opportunities to align with other obligations imposed on businesses by federal, provincial, municipal or international or multinational regulatory bodies been assessed? Empty box Empty box Checked box
The Government of Canada has regulated trade measurement since 1871, and retains exclusive responsibility for legal metrology (trade measurement) under authority of section 91, subsection 17, of the Constitution Act. There is no overlap, duplication or shared responsibility with any other provincial or territorial government.
3. Has the impact of the proposed Regulations on international or interprovincial trade been assessed? Checked box Empty box Empty box
The Regulations apply to the monitoring of measuring devices used in trade within Canada, which is solely a federal responsibility. There will therefore be no international or interprovincial impact.
4. If the data or information, other than personal information, required to comply with the proposed Regulations is already collected by another department or jurisdiction, will this information be obtained from that department or jurisdiction instead of requesting the same information from small businesses or other stakeholders? (The collection, retention, use, disclosure and disposal of personal information are all subject to the requirements of the Privacy Act. Any questions with respect to compliance with the Privacy Act should be referred to the department’s or agency’s ATIP office or legal services unit.) Empty box Empty box Checked box
No other department or jurisdiction collects the data or information required under the Regulations.
5. Will forms be pre-populated with information or data already available to the department to reduce the time and cost necessary to complete them? (Example: When a business completes an online application for a licence, upon entering an identifier or a name, the system pre-populates the application with the applicant’s personal particulars such as contact information, date, etc. when that information is already available to the department.) Empty box Empty box Checked box
Small businesses will not be required to complete forms when devices are examined. Inspectors will be responsible for completing the examination certificates. Inspectors will be able to submit inspection data to Measurement Canada online.
6. Will electronic reporting and data collection be used, including electronic validation and confirmation of receipt of reports where appropriate? Empty box Empty box Checked box
Small businesses will not be required to submit data when devices are examined. Inspectors will be responsible for completing the examination certificates. Inspectors will be able to submit inspection data to Measurement Canada online.
7. Will reporting, if required by the proposed Regulations, be aligned with generally used business processes or international standards if possible? Empty box Empty box Checked box
The Regulations do not require small businesses that use measuring devices to report to Measurement Canada.
8. If additional forms are required, can they be streamlined with existing forms that must be completed for other government information requirements? Empty box Empty box Checked box
Examination results (examination certificates) are completed by inspectors.
III Implementation, compliance and service standards Yes No N/A
1. Has consideration been given to small businesses in remote areas, with special consideration to those that do not have access to high-speed (broadband) Internet? Empty box Empty box Checked box
Examination frequencies will require an inspector to be on site to conduct a physical examination of devices.
2. If regulatory authorizations (e.g. licences, permits or certifications) are introduced, will service standards addressing timeliness of decision making be developed that are inclusive of complaints about poor service? Empty box Empty box Checked box
The model introduced by these Regulations allows small businesses (device owners) the flexibility to schedule the examination when it best suits them.
3. Is there a clearly identified contact point or help desk for small businesses and other stakeholders? Checked box Empty box Empty box
Measurement Canada’s Web site identifies the address, phone number and email address for district offices across the country. This information allows stakeholders and small businesses to contact Measurement Canada to get information and lodge complaints.

B. Regulatory flexibility analysis and reverse onus

IV Regulatory flexibility analysis Yes No N/A
1. Does the RIAS identify at least one flexible option that has lower compliance or administrative costs for small businesses in the small business lens section?

Examples of flexible options to minimize costs are as follows:
  • Longer time periods to comply with the requirements, longer transition periods or temporary exemptions;
  • Performance-based standards;
  • Partial or complete exemptions from compliance, especially for firms that have good track records (legal advice should be sought when considering such an option);
  • Reduced compliance costs;
  • Reduced fees or other charges or penalties;
  • Use of market incentives;
  • A range of options to comply with requirements, including lower-cost options;
  • Simplified and less frequent reporting obligations and inspections; and
  • Licences granted on a permanent basis or renewed less frequently.
 Checked box Empty box Empty box
The RIAS indicates that during consultation with stakeholders, the vulnerable parties requested one-year or six-month time periods for mandatory examinations. The time periods adopted were at least doubled (one year, two years or five years) in order to minimize costs. The RIAS also describes a phased-in implementation period to comply with the requirements.
2. Does the RIAS include, as part of the Regulatory Flexibility Analysis Statement, quantified and monetized compliance and administrative costs for small businesses associated with the initial option assessed, as well as the flexible, lower-cost option?
  • Use the Regulatory Cost Calculator to quantify and monetize administrative and compliance costs and include the completed calculator in your submission to TBS-RAS.
 Checked box Empty box Empty box
The RIAS contains an analysis of different options, showing quantified and monetized compliance and administrative costs. The flexibility analysis compares the costs and benefits associated with a base case to those under different conditions.
3. Does the RIAS include, as part of the Regulatory Flexibility Analysis Statement, a consideration of the risks associated with the flexible option? (Minimizing administrative or compliance costs for small business cannot be at the expense of greater health, security or safety or create environmental risks for Canadians.) Checked box Empty box Empty box
The RIAS provides an analysis of the potential impacts associated with the flexible option. The conclusion is that there is very little or no impact on health, security, safety or the environment.
4. Does the RIAS include a summary of feedback provided by small business during consultations? Empty box Checked box Empty box
Mandatory examination frequencies were identified in consultation with stakeholders, including vulnerable parties. Often these vulnerable parties were small businesses. For more information on these consultations (including the recommendations that came about as a result of the consultations), refer to Measurement Canada’s Web site at www.ic.gc.ca/eic/site/mc-mc.nsf/eng/h_lm00215.html.
V Reverse onus Yes No N/A
1. If the recommended option is not the lower-cost option for small businesses in terms of administrative or compliance costs, is a reasonable justification provided in the RIAS? Checked box Empty box Empty box
The RIAS indicates that the lower-cost option was selected based on analysis and evaluation of the different options.