Regulations Amending the Wild Animal and Plant Trade Regulations: SOR/2023-241

Canada Gazette, Part II, Volume 157, Number 24

Registration
SOR/2023-241 November 9, 2023

WILD ANIMAL AND PLANT PROTECTION AND REGULATION OF INTERNATIONAL AND INTERPROVINCIAL TRADE ACT

P.C. 2023-1134 November 9, 2023

Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment, makes the annexed Regulations Amending the Wild Animal and Plant Trade Regulations under section 21footnote a of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act footnote b.

Regulations Amending the Wild Animal and Plant Trade Regulations

Amendment

1 The Wild Animal and Plant Trade Regulations footnote 1 are amended by adding the following after section 12:

Elephant Tusk and Rhinoceros Horn

Interpretation

12.1 The following definitions apply in this section and sections 12.2 and 12.3.

elephant
means a member of the species Elephas maximus, Loxodonta africana or Loxodonta cyclotis. (éléphant)
raw horn
means a whole rhinoceros horn or a cut piece of rhinoceros horn in any form, polished or unpolished, and includes horn that is part of a taxidermy mount, but does not include a whole horn if its entire surface has been carved or a cut piece of horn if it has been fully or partially carved or shaped. (corne brute)
raw ivory
means a whole elephant tusk or a cut piece of elephant tusk in any form, polished or unpolished, and includes tusk that is part of a taxidermy mount, but does not include a whole tusk if its entire surface has been carved or a cut piece of tusk if it has been fully or partially carved or shaped. (ivoire brut)
rhinoceros
means a member of any species of the family Rhinocerotidae. (rhinocéros)

Permits

12.2 Despite any other provision of these Regulations, a person who imports into Canada or exports from Canada any specimen of elephant tusk or rhinoceros horn is under no circumstances exempted from holding a permit issued under subsection 10(1) of the Act.

12.3 A permit issued under subsection 10(1) of the Act must not authorize the importation or exportation of a specimen of raw ivory or raw horn unless the specimen is destined for

Coming into Force

2 These Regulations come into force on the 60th day after the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Global elephant and rhinoceros populations have been in decline over the past century. The principal threat they face is poaching, fuelled by the demand for ivory and horn. Despite global trade restrictions aimed at preventing illegal trade, trade in elephant tusk (also commonly referred to as elephant ivory) and rhinoceros horn continue to threaten these species by providing markets for ivory and horn. Open markets continue to put elephants and rhinoceros at risk and undermine the international ban on commercial trade. As a result, there have been growing calls for Canada to consider strengthening domestic measures on importation and exportation of elephant ivory and rhinoceros horn.

Background

The International Union for Conservation of Nature (IUCN) estimates that the African elephant population decreased by approximately 18% between 2007 and 2016. The IUCN’s most recent and reliable estimate of the population is approximately 415 000 African elephants left in the wild.footnote 2 For Asian elephants, the IUCN estimates an overall population decline of at least 50% since 1945, leaving 40 000–50 000 individuals in the wild.footnote 3 Globally, rhinoceros populations have declined 3.7% from 2017 to 2021.footnote 4 Poaching continues to be the largest contributor to the declines.

The Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (the Act) and the Wild Animal and Plant Trade Regulations (the Regulations) set requirements for international trade of Canadian and foreign wildlife species that may be at risk of overexploitation due to illegal trade.

The Act and the Regulations are also the legislative instruments through which Canada meets its obligations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES or Convention). CITES regulates international trade in specimens of species of wild flora and fauna based on a system of permits, which can be issued only if certain conditions are met. When these conditions are fulfilled, the trade is legal, sustainable, and traceable. The species covered by CITES are listed in three appendices, according to the degree of protection they need.footnote 5 Under CITES, countries must require export permits for all listed species, and import permits for species listed under Appendix I. Commercial trade in Appendix I specimens is generally prohibited. All elephant and rhinoceros species are listed in CITES Appendix I, with the exception of the elephant populations of Botswana, Namibia, South Africa and Zimbabwe, which are listed in Appendix II.

CITES allows international commercial trade for both raw or workedfootnote 6 products of elephant ivory and rhinoceros horn acquired before the species was first listed under CITES, in the mid-1970s (known as “pre-Convention”) or acquired from registered facilities that breed in captivity elephants or rhinoceroses. Some legal, non-commercial trade in newer elephant ivory and rhinoceros horn is also allowed under specific conditions. This could include elephant ivory and rhinoceros horn moving between countries under the personal effects or household effects exemption (e.g. travelling with a specimen being part of an individual’s clothing, or moving a piano with ivory keys from one household to another), elephant ivory and rhinoceros horn acquired in a legal hunt, and elephant ivory and rhinoceros horn used for scientific research. The Convention allows CITES Parties to implement stricter measures than those set by the Convention to provide additional protections to selected species.

Canada’s previous restrictions on trade in elephant tusk and rhinoceros horn included measures stricter than those required by CITES. Notably, Canada required an import permit prior to entry into Canada for all elephant ivory and rhinoceros horn specimens of Appendix I listed species, including those specimens that are pre-Convention, or specimens from registered facilities that breed elephants or rhinoceroses in captivity unless the specimens qualified under the personal effects and household effects exemption.

Although the international commercial trade in elephant ivory and rhinoceros horn is banned by CITES, many domestic markets remain open. Domestic markets for ivory and rhinoceros horn make it difficult to reduce demand, provide a legal source of ivory and horn for international buyers and traffickers, and create opportunities to launder illegal ivory and horn, thereby contributing to poaching and illegal trade. In order to further combat illegal trade in elephant ivory and rhinoceros horn, CITES has called on countries to close domestic elephant ivory markets that are contributing to poaching or illegal tradefootnote 7 and urged countries to implement trade restrictions aimed at reducing illegal trade in rhinoceros parts.footnote 8

Canada imports about 4% of the global legal trade in elephant ivory and less than 1% of the global legal trade in rhinoceros horn. For example, between 2015 and 2021, there was an average of 14 elephant tusks and 2 rhinoceros horns imported per year.footnote 9 Based on permits issued, the most commonly imported rhinoceros horn and elephant ivory items include worked items such as carved cups (typically called libation cups), saucer dishes, handles for antique tools or toiletry sets, netsuke (small Japanese carvings), chess sets, mahjong sets (a tile-based game), instruments (bagpipes, violin bows, piano keys), ivory insets in miniature paintings, ivory carvings, small parts of handles or knobs on teapots/coffee pots, cutlery handles, hair combs, furniture inlays, or religious items. In general, most infractions in Canada are items that could be legally imported or exported but were not accompanied by the proper documentation. Between 2015 and 2021, 4662 ivory items were seized globally, only 7 of which were from Canada.footnote 10

Objective

The objectives of the Regulations Amending the Wild Animal and Plant Trade Regulations (the Amendments) are to

Description

The Amendments will prohibit the import and export of raw elephant ivory and raw rhinoceros horn unless the specimens are destined for a museum or zoo; use in scientific research; or use in support of law enforcement activities.footnote 11 Thus, the import and export of most raw elephant ivory and raw rhinoceros horn is prohibited, including elephant ivory and rhinoceros horn hunting trophies.

The Amendments will also remove the permit exemption for worked elephant tusk or rhinoceros horn that is a personal or household effect. Permits issued under the Act will be required for all imports and exports of elephant tusk and all rhinoceros horn.

Regulatory development

Consultation

Consultations prior to prepublication in the Canada Gazette, Part I

The Department held a public consultation on potential increased trade controls on elephant ivory from July 24, 2021, to September 22, 2021. A discussion paper presented several options ranging from maintaining the current levels of control, to changes to policy and procedures for permitting trade or to amendments to the Act or Regulations to further increase controls in elephant ivory trade. The consultations only considered the application of the increased trade controls on elephant ivory. They did not address the application to rhinoceros horn, however, the Department expected to receive similar feedback in relation to rhinoceros since the same type of concerns have been raised with regard to declining rhinoceros populations, and since the proposed Amendments would apply in the same way, and the interests of stakeholders are similar. Over 86 000 submissions were received. The vast majority of submissions were from individuals in response to letter-writing campaigns led by four international organizations. Three were by animal welfare and conservation organizations, who were supportive of the proposal and also favoured stricter controls due to the poor conservation status of elephants as well as the ongoing poaching and illegal trade in ivory. One was by a hunting organization that was opposed to proposed restrictions on hunting trophies. Between 2015 and 2021, trade in Canada was approximately 14 raw/trophy ivory and 2 raw/trophy rhinoceros horns annually, indicating that very few Canadians engage in trophy hunting for elephant ivory and rhinoceros horn. The Amendments do not prevent participation in legal hunts or the trade-in other forms of legally obtained hunting trophies from these species.

Submissions were also received from an Inuit organization, an association of antique dealers, a fur association, a hunting organization, and three conservation organizations, all of which raised concerns about the proposal. The Inuit organization expressed concern with potential future implications of the proposed Amendments on trade in non-elephant ivory, in particular walrus and narwhal ivory for which the Inuit have protected Indigenous rights to harvest. The Amendments increase restrictions solely on the import and export of elephant tusk and rhinoceros horn and do not apply to Canadian wildlife.

The fur association, the hunting organization and two of the conservation organizations indicated that sufficient protection already exists through the controls established under CITES, which Canada already implements. The Department notes that while the controls established by CITES came into effect in 1975 for elephants and 1977 for rhinoceros, global populations of elephants and rhinoceros have continued to decline.footnote 12,footnote 13 The Amendments will reduce Canada’s participation in the global trade of elephant ivory and rhinoceros horn and will encourage a more concerted global effort to do more to protect these species.

The association of antique dealers highlighted that government should be cautious of unintended consequences of new restrictions and the historic importance of ivory in the manufacture of art and artefacts. The import and export of elephant ivory and rhinoceros horn art, artefacts, and antiques will not see increased restrictions by the Amendments. Items of worked elephant ivory and worked rhinoceros horn imported for commercial purposes currently require a permit. This requirement has been maintained with the Amendments. However, raw elephant ivory and raw rhinoceros horn are prohibited from import or export into and from Canada.

One of the conservation organizations also noted that regulated trade via CITES brings positive economic benefits for African communities. The Amendments do not prevent participation in legal elephant and rhinoceros hunts, the revenues of which have the potential to bring economic benefits to African communities. Recent research examined the economic impact of trophy hunting in South Africa.footnote 14 Of the survey respondents, only 6% were Canadian and the most popular species being hunted were impala, warthog and springbok. These results suggest that the Amendments will have a negligible impact on any potential economic benefits derived from Canadian hunters.

Summary of comments received during prepublication in the Canada Gazette, Part I

The proposed Regulations Amending the Wild Animal and Plant Trade Regulations were published in the Canada Gazette, Part I on June 24, 2023, for a 30-day public comment period. A total of 95 comments were received from various partners and stakeholders, including conservation and animal welfare organizations, a hunting organization, government representatives, and individuals. Comments opposing the Amendments were received from a letter-writing campaign (consisting of 47 letters) 19 individuals, as well as a hunting organization. The main concern raised in these submissions was the restriction on the import and export of hunting trophies, given the claim that trophy hunting provides a large source of revenue to rural communities and conservation efforts in Africa. The Amendments do not prevent the participation in legal hunts or the acquisition of other forms of legally obtained trophies from these species.

Another concern raised by the hunting organization, and some individuals, was that the Department did not consult with the range States (a state whose territory is within the natural distribution range of a species) of the species concerned ahead of drafting the Amendments. The African Elephant Coalition, however, did send their comments during the consultations in 2021. The Coalition represents 32 countries making up 76% of the CITES recognized African elephant range States. The comments received from the Coalition showed support for the stricter measures being proposed by Canada. There are also ten countries, making up 24% of the African elephant range States in Southern Africa, that are not members of the Coalition. These range states, which include the elephant populations that are less endangered and are sustainably managed for hunting and ivory trade (i.e. the most impacted by this regulation), were not directly consulted. However, ivory trade was heavily discussed at the 19th Conference of the Parties held in November 2022 and the views of the Southern African countries in support of ivory and hunting trophy trade were communicated during the meeting. It can be expected that these range states would object to the stricter measures being proposed by Canada.

Comments were received from seven national and international conservation or animal welfare organizations, all of which were supportive of the Amendments overall. One organization included the names of over 33 000 individuals who had signed onto their submission in support of the Amendments. Submissions from these organizations also included additional amendments for the Department’s consideration.

First, it was recommended that the Department prohibit elephant ivory and rhinoceros horn from passing through Canada in transit to another country. CITES Article VIIfootnote 15 states that the provisions regulating the trade in species listed in the Appendices do not apply to the transit of specimens through or in the territory of a party country while the specimens remain in customs control. The onus is on the exporting country and importing country to ensure that all necessary permits are in place. As such, Canadian import and export permits are not required for these in transit specimens that come into Canada, remain in customs control, and are in the process of shipment to their final destination country.

Second, stakeholders expressed concern with the inclusion of zoos in the proposed Amendments, and recommended they be removed from the list of bodies able to import raw elephant ivory and rhinoceros horn. The Department recognizes that zoos in Canada vary significantly in terms of accreditation and are not federally regulated. However, although zoos are able to apply for a permit for raw elephant ivory or rhinoceros horn, it does not necessarily follow that one will be granted. Any application for import of raw elephant ivory or rhinoceros horn will be scrutinized closely by CITES permitting officials in the Department to make sure they are comfortable with the purpose of import and the facility.

Third, it was suggested that Canada should go beyond the proposed amendments and suspend all trade in elephant ivory for commercial purposes, including trade in pre-Convention ivory.

Fourth, it was recommended that amendments be made to ensure that any permit issued for personal and household effects contain a condition that the item covered by the permit cannot enter commercial trade in the future. The regulation of domestic sale falls within the jurisdiction of the provinces and territories. As such, these amendments are only focused on regulating Canada’s international trade of elephant ivory and rhinoceros horn.

The remaining 21 comments from individuals were either supportive of the amendments or neutral. Comments received from 5 musicians were neutral on the Amendments but wanted to see a facilitated process for the movement of musical instruments containing elephant ivory. Canada currently issues Temporary Movement Certificates for musical instruments that contain elephant ivory. A Temporary Movement Certificate is a form of multi-entry permit to applicants in Canada who intend to export and reimport instruments into Canada within a three-year period. Temporary Movement Certificates are issued by the Department to musicians travelling from Canada to other countries that do not recognize the personal effects exemption. The removal of Canada’s personal effects and household effects exemption for worked elephant ivory and rhinoceros horn means that all individuals travelling with an instrument that contains ivory or horn from these species will now require import and export permits. Individuals are responsible for verifying the entry requirements of their destination country as each country sets its own import conditions and requirements. The cross-border movement of musical instruments is part of ongoing discussions at CITES Conferences of the Parties, and Canada is working to find ways to help all musicians with this process.

Modern treaty obligations and Indigenous engagement and consultation

An Assessment of Modern Treaty Implications (AMTI) was conducted for the Amendments to the Regulations. The AMTI examined the geographical scope and subject matter of the Amendments in relation to modern treaties in effect and did not identify any potential modern treaty impacts. The Amendments increase restrictions solely on the import and export of elephant ivory and rhinoceros horn and do not apply to Canadian wildlife. Therefore, the Amendments are not expected to affect modern treaty agreements or result in any new restrictions or prohibitions that affect the recognized and affirmed rights of local Indigenous communities. However, the Department will continue to communicate the sustainable management of Canadian species in international forums.

Section 35 of the Constitutional Act, 1982 recognizes and affirms Aboriginal and treaty rights of Indigenous Peoples of Canada, including rights related to activities, practices, and traditions of Indigenous Peoples that are integral to their distinctive culture. The Government of Canada has a duty to consult, and where appropriate, to accommodate Indigenous groups when it considers conduct that might adversely affect potential or established Aboriginal or treaty rights.

Departmental officials met with the National Inuit Wildlife Committee on February 25 and July 5, 2021, as an early engagement and to ask for comments on a draft of the discussion document on the potential actions to increase trade controls in elephant ivory trade in Canada. Participants from the National Inuit Wildlife Committee included representatives of the Inuit Circumpolar Council, Inuit Tapiriit Kanatami, Nunavut Tunngavik Incorporated, the Inuvialuit Game Council, the Makivik Corporation, the Nunatsiavut Government, and the Inuvialuit Corporate Group. A second meeting was held before the initial public consultations were launched in July 2021. Comments and feedback were provided during these two meetings.

The National Inuit Wildlife Committee raised concerns with potential future implications of the proposed Amendments. They noted that Inuit hold constitutionally recognized and protected Indigenous rights to harvest walrus and narwhal (species that both have ivory tusks) and expressed concern with the precedent Canada may set if introducing additional elephant ivory trade controls without providing evidence of a direct conservation benefit. The result could be that other countries may be more likely to take unilateral action to impose trade restrictions on Canadian species. While the amendments do not apply to Canadian wildlife, the Department recognizes this concern and will continue to communicate the sustainable management of Canadian species in international forums.

Indigenous organizations and stakeholders were again invited to provide comments on the proposed Amendments published in the Canada Gazette, Part I, on June 24, 2023.

Instrument choice

Canada implements wildlife trade controls through the Act and its Regulations. The Act allows for regulations respecting the issuance, renewal, revocation and suspension of import and export permits. Ensuring stringent and tangible trade controls by limiting the circumstances in which permits may be issued is best achieved through regulatory changes; therefore other instruments were not considered.

Regulatory analysis

Benefits and costs

This analysis presents the incremental impacts, both benefits and costs, of the Amendments. Incremental impacts are defined as the difference between the baseline scenario and the scenario in which the Amendments are implemented over the same time period. The baseline scenario consists of the continuity of current elephant ivory and rhinoceros horn trade requirements, whereas the regulatory scenario includes increased restrictions on the import and export of raw elephant ivory and rhinoceros horn as well as additional permit requirements for worked elephant ivory or rhinoceros horn. An analytical period of 10 years has been selected over the 2023–2032 period. Unless otherwise noted, cost estimates over 10 years are shown in present value terms and are discounted at 3%, and all monetary values reported below are in 2023 constant dollars.

Overall, the Amendments are expected to benefit Canadian society by increasing Canada’s contribution to international efforts to preserve elephant and rhinoceros populations, and by improving knowledge of Canada’s participation in the trade.

The Department estimates that the costs associated with the Amendments are approximately $5.8 million over 10 years. The majority of these costs ($5.5 million) are to the Government of Canada, with the greater part being for enforcement activities ($5.3 million), as well as processing permit applications, and conducting compliance and promotion activities.

Benefits

Although Canada is a small market for raw elephant ivory and raw rhinoceros horn trade, the Amendments are expected to contribute to international efforts undertaken to reduce declines of elephant and rhinoceros populations. As the world’s largest terrestrial mammals, and given they are unique-looking and exotic animals, elephants and rhinoceroses, although not endemic to Canada, are amongst the most iconic international species appreciated by Canadians. As evidence, they can be found in multiple zoos across Canada,footnote 16 helping to attract visitors. They can also be found throughout many books and stories for children sold in Canada. Studies conducted in other countries found that citizens of these countries had a positive willingness-to-pay for conservation of foreign species or for restoration of foreign habitat.footnote 17 Therefore, it is reasonable to assume that Canadians likely attribute value to the existence of iconic foreign species such as elephants and rhinoceroses, and may experience satisfaction at attempts to preserve these populations, wherever those may be.

Collection of data on ivory and horn trade

The Amendments will facilitate border controls by removing the requirement to differentiate between types of elephant ivory and rhinoceros horn that require permits and those that do not. Additional permit requirements will also enable the collection of more data and provide a clearer portrait of Canada’s footprint in the elephant ivory and rhinoceros horn international trade. This will ensure the Government of Canada has the data necessary to determine whether it needs to take further steps to help curb the country’s participation in the trade.

Cost savings for stakeholders and Government of Canada from fewer permit applications

As raw elephant ivory and raw rhinoceros horn import/export are restricted under the Amendments and not eligible for permits, stakeholders will no longer need to apply for permits for trading these, which will save them a small amount of time. It will also save time, and thus costs, to the Government of Canada for having to review fewer permit applications. Raw elephant ivory and raw rhinoceros horn known trade represented approximately 14 tusks annually from 2015 to 2021, and approximately 2 horns annually from 2012 to 2021. Using the 2021 average Canadian hourly wage rate,footnote 18 and given that a permit request form takes about 45 minutes to fill on average, cost savings over 10 years are estimated at $4,000 for applicants. The associated decrease in permit applications processing costs is expected to provide cost savings of $3,000 to the Government of Canada over 10 years.

Costs
Costs to stakeholders

Stakeholders currently apply for a permit to import or export items containing worked elephant ivory or rhinoceros horn, unless they qualify for the exemption for personal or household items. The Amendments remove the personal effects and household effects exemption, which will generate additional administrative costs for those individuals or businesses who move these items into or from Canada who previously relied on the exemption. The businesses referred to are almost entirely expected to be moving companies contracted by individuals, who choose to offer their clients the service of applying for the required permits on the clients’ behalf.

According to the CITES database, the known number of personal or household items containing worked/carved elephant tusk and rhinoceros horn imported into or exported from Canada approximated 1 000 items annually between 2015 and 2021. Although many of these items may have been bulked in single permit applications (e.g. piano keys), given the lack of data on annual number of permits, the analysis assumes that all items traded have been subject to independent permit applications as a conservative precaution (i.e. 1 000 per year). It is assumed that clients will have to pay for the service of having the moving company apply for a permit on their behalf. Using the 2021 average Canadian hourly wage rate, and given that a permit request form takes about 45 minutes to fill on average, the expected costs to Canadians for moving personal or household items into or out of Canada associated with the time required for each applicant to fill a new permit application are estimated at a maximum of $240,000 over the next 10 years.

Under the previous Regulations, musicians travelling with instruments containing elephant ivory or rhinoceros horn were able to import and export those instruments into and from Canada under the personal and household effects exemption. As this exemption is removed through the Amendments, all musicians exiting and reentering Canada with instruments containing elephant ivory or rhinoceros horn will have to obtain import and export permits. Musicians can apply for either single-use CITES import and export permits, or a multi-use import and export permit, called the Temporary Movement Certificate (TMC). The Department will issue TMCs as a form of multi-entry permit to applicants in Canada who intend to export and reimport instruments into Canada within a three-year period. However, individuals are responsible for verifying the entry and exit requirements of their destination country as each country sets its own import conditions and requirements and not all recognize a TMC as a valid import and export permit.

Since a multi-use permit in the form of the TMC is more convenient than single-use import and export permits, it is assumed that musicians in Canada will choose to apply for the TMC. The musicians will have to make formal applications to obtain the TMC, which will translate into moderate new administrative costs for them. There is no data on how many people have used the personal effects and household effects exemption, but data on TMC is available. For the purpose of this analysis, it is assumed that there are as many musicians currently using the personal item exemption as there are using the TMC, or approximately 13 a year.footnote 19 Accounting for the certificate’s 3-year validity period and assuming that these musicians travel with their instrument once a year on average, these musicians will incur administrative costs of approximately $4,000 over 10 years.footnote 20

Musicians (independent or with orchestras), scientific institutions, and museum exhibitions who are currently using musical instrument certificates, scientific certificates, or travelling exhibition certificates from other CITES countries to bring their item into Canada will now have to apply for Canadian import and export permits prior to visiting the country. The import and export permits, obtained in advance from Canadian CITES officials, will need to be shown at the border together with the appropriate certificate issued by their country of residence.

To facilitate the process, musicians, scientific institutions, and exhibitions seeking to import and export elephant ivory or rhinoceros horn to and from Canada can apply for import and export permits using their travelling exhibition certificate, musical instrument certificate, or scientific certificate issued by the CITES authorities of their country. This certificate will be verified by Canadian CITES officials and used to issue Canadian import and export permits. This added requirement means some foreign travellers temporarily importing items containing elephant ivory or rhinoceros horn may incur moderate new administrative costs. Although foreign nationals are not a target of this analysis, and therefore are not included in the total of costs associated with the Amendments, potential impacts have been monetized for indicative purposes. Based on available data and conservative assumptions,footnote 21 foreigners falling under this scenario will overall incur approximately $3,000 in incremental administrative costs over 10 years.

The increased restrictions on import and export of raw elephant ivory and raw rhinoceros horn could discourage Canadians from booking hunting trips abroad in the hope of bringing back elephant ivory and rhinoceros horn trophies specifically. Although this could affect activities of certain outfitters, taxidermists and travel agencies that specialize in organizing such hunting trips, it is assumed that hunters will most likely substitute these trips for other hunting trips and bring other trophies back of different species. Additionally, statistics on imports of raw elephant ivory and raw rhinoceros horn in Canada show that very few Canadians engage in these overseas activities. As a result, the impacts on companies and the inconvenience caused to Canadian hunters are expected to be negligible overall. Nevertheless, some of these Canadians may incur moderate losses of well-being from not being able to bring elephant ivory or rhinoceros horn trophies back from their hunting trips.

There may also be impacts to Canadians who currently own raw elephant ivory or raw rhinoceros horn and are planning to move out of Canada with these products. They will not be permitted to take the raw product outside the country. However, it is unknown how many individuals would be emigrating from Canada with raw products. Individuals who own these items may derive welfare from the possession of such a product, especially if they acquired it through a hunt themselves. As such, no longer possessing the item will lower the welfare of these individuals, the value of which cannot be assessed.

Costs to the Government of Canada

The additional permit requirements for worked elephant ivory and rhinoceros horn will lead to new permit applications annually that will need to be processed by the Department. Compliance promotion and communication with affected Canadians and business owners as well as international stakeholders is required to ensure awareness of and compliance with the new restrictions and requirements. This will take the form of targeted letters, social media and web content, posters and/or brochures, and notice to the CITES Secretariat. Intensive efforts in the first year are a priority, targeting musicians, orchestras, museums, international moving companies, auction houses, antique dealers, art collectors, taxidermists, and other regulated communities. Compliance promotion costs will range between $10,000 and $15,000 for the first year of implementation and will be minimal in following years. Permit application processing is estimated to cost $230,000 to the Government of Canada over 10 years,footnote 22 of which $15,000 is attributable to Canadian musicians that will now likely apply for a TMC,footnote 23 and $5,000 is attributable to reviewing import and export applications from other countries.footnote 24

Enforcement activities to ensure compliance with the Amendments include pre-operational activities such as intelligence analysis, enforcement strategy development, engagement with partners, science and technology research, as well as training for government officials. They also include operational activities such as inspections, investigations, operations, prosecution, analysis, administration, and coordination. The Amendments will result in additional verification of required permits at the borders, in addition to expected detection of unlawful exports and imports from individuals and organized crime entities. Due to the difficulty in detecting and identifying items made of ivory, subject matter experts will be required to help verify compliance and conduct criminal investigations, which are time intensive. It is also estimated that expenses associated with carbon-14 testing will be needed to verify compliance and ensure the enforceability of further restrictions. Costs associated with these enforcement activities are estimated at $680,000 in the first year of implementation, and $590,000 in subsequent years, for a total present value of $5.3 million over 10 years. The associated costs will be sourced from existing departmental funds.

Monetized costs summary

Impacted stakeholder

Description of cost

Present value over 10 years

Government

Enforcement activities

$5.3 million

Government

Permit applications processing

$230,000

Government

Compliance promotion

$10,000 to $15,000

Canadians

Administrative burden of applying for permits

$245,000

All stakeholders

Total costs

$5.8 million

Small business lens

Analysis under the small business lens concluded that regulations will impact small businesses. Certain small businesses, such as taxidermists, outfitters, and travel agencies that specialize in organizing hunting trips to locations where elephants and rhinoceroses live, may incur negative impacts from a decrease in their pool of customers using their services, due to the restrictions on imports of raw elephant ivory and raw rhinoceros horn. However, overall impacts are expected to be negligible due to the minimal market sizefootnote 25 and the small number of Canadians engaged in trophy hunting for elephant tusks or rhinoceros horns. Additionally, it is likely that Canadian hunters will choose to substitute with other types of hunting trips instead of not going on hunting trips, therefore mitigating impacts on these stakeholders.

Moving companies can sometimes be contracted to move belongings of individuals into or outside Canada. These companies can offer to their clients the service of applying, on their clients’ behalf, for the permit required to move items containing carved or shaped elephant ivory and rhinoceros horn. However, for moving companies considered to be a small business, it is expected that they will pass on the permit application costs directly to their clients, resulting in no direct impacts on these businesses.

No flexible compliance mechanisms were considered compatible with the regulatory objectives of conservation of elephants and rhinoceros by limiting and monitoring Canada’s participation in the international commercial trade of elephant ivory and rhinoceros horn.

One-for-one rule

The one-for-one rule applies since there is an incremental decrease in administrative burden on business, and the proposal is considered burden out under the rule. No regulatory titles are repealed or introduced.

There is a small decrease in administrative burden expected for those Canadian businesses that currently import or export raw elephant ivory or raw rhinoceros horn, as the Amendments remove the need to apply for a permit for these purposes. According to the CITES database, 9 raw elephant tusks were traded in Canada for commercial purposes between 2015 and 2021. As the database does not detail the purpose of trade of raw rhinoceros horn, the analysis assumes that the entirety of raw rhinoceros horn trade was conducted by businesses, which equals to 13 specimens between 2015 and 2021. As such, it is assumed that there will be a decrease of three permit applications from businesses annually associated with the cessation of raw elephant ivory and raw rhinoceros horn trade. Each application was assumed to take 45 minutes to complete at an hourly cost of labour of $50. This translates into an annualized administrative costs savings to applicants of $54footnote 26 over 10 years.

Regulatory cooperation and alignment

Increased restrictions on the import and export of raw elephant ivory and raw rhinoceros horn, beyond what is required by CITES, further limit the number of specimens entering Canada and the global market. Implementing permitting requirements beyond those required by CITES and subjecting all elephant ivory and rhinoceros horn in Canada to import and export permits improves monitoring of elephant tusk and rhinoceros horn trade to provide a more complete picture of Canada’s participation in this trade and facilitate border controls. The amended Regulations more closely align Canada with regulations in place in the United States (U.S.) and the United Kingdom (U.K.). The U.S. and the U.K. have implemented trade controls for elephant ivory that are stricter than those required by CITES. Both have near complete bans on the international trade of elephant ivory for commercial purposes and require permits for import/export of non-commercial ivory.

Strategic environmental assessment

A Strategic Environmental Assessment (SEA) was conducted for the Amendments to the Regulations. The SEA concluded that the Amendments are not likely to result in important environmental effects. Contributions to the 2022–2026 Federal Sustainable Development Strategy (FSDS) of the Amendments are expected to be negligible given that elephants and rhinoceros are not native to Canada. The Amendments will contribute to efforts against poaching and the illicit trade in elephant ivory and rhinoceros horn and help Canada meet its international commitments related to wildlife by supporting the United Nations’ 2030 Agenda Sustainable Development Goals (SDGs), the G7 2030 Nature Compact, and the Kunming-Montreal Global Biodiversity Framework (GBF) 2030 targets.

The Amendments support progress toward SDG (Sustainable Development Goal) 15: Life on Land by contributing to the following SDG 15 targets:

The Amendments contribute to the G7 2030 Nature Compact, which commits to the global mission to halt and reverse biodiversity loss by 2030, by supporting the following pillars:

The Amendments also contribute to the following 2030 targets of the GBF, adopted at the 15th Conference of Parties to the UN Convention on Biological Diversity in December 2022:

Gender-based analysis plus

A gender-based analysis plus (GBA+) was performed to evaluate whether sex, gender, age, ethnicity, sexual orientation, income, education, employment status, language, visible minority status, disability or religion could influence how a person is impacted by the Amendments. As a result of this analysis, two occupations were identified that may be affected, including musicians and hunters.

CITES permitting offices in Canada do not have information on the demographics of individuals travelling with musical instruments. Since the items are either considered as personal effects or household effects, no permits are issued. However, census data found in the report: A Statistical Profile of Artists in Canada in 2016,footnote 27 which combines data on musicians and singers, provides some insight on who might be affected by the Amendments. In Canada, 52% of musicians and singers are female, 54% are younger than 45, and 83% are not in a racialized group or part of the visible minority. While this data does not provide information on the type of instrument the individuals play (i.e. piano with ivory keys), nor does it indicate whether they travel with their instruments, it is possible that the Amendments may affect both male and female musicians evenly across various ages from non-racialized groups.

Demographic data is not collected as part of the permitting process. However, based on a 2014 study by Research Resolutions & Consulting Ltd.,footnote 28 almost all hunters making overnight trips are men (87%). Among tourists, there is evidence that hunting trips across Canada are predominantly undertaken by men. Another study that looked specifically at big-game hunters in Oregonfootnote 29 found that respondents were overwhelmingly male (82%), Caucasian (96%), and more than half of the respondents (55%) belonged to the age group “51 years or older.” A study from 2018footnote 30 that looked specifically at trophy hunters in South Africa surveyed individuals that had hunted for trophies in South Africa during the period 2015/16. The respondents to the questionnaire were predominantly male (97%) with an average age of 60.6 years and 90% had a post-secondary education. The average amount spent per individual for the entire trip was approximately US$28,000 (approximately Can$39,000). Only 6% of respondents were Canadian.

As a result of this analysis, it is possible that older, higher income, Caucasian men will be more negatively impacted by the increased restrictions on import and export of raw elephant tusk and rhinoceros horn. Although the Amendments do not prohibit the legal hunting of elephants and rhinoceros, these restrictions impact the ability to return with elephant tusk and rhinoceros horn hunting trophies as well as move internationally with trophies that were already acquired.

The Amendments are not expected to have any negative impacts on any other populations on the basis of other identity factors such as culture, religion, sexual orientation, or mental or physical disability.

Implementation, compliance and enforcement, and service standards

Implementation

The Amendments come into force 60 days after registration. In the proposed Amendments published in the Canada Gazette, Part I, the Amendments were anticipated to come into force on the day of registration. This change was made to provide additional time for stakeholders to familiarize themselves with the requirements and obtain necessary permits. Raw items, as well as worked items that previously fell under the personal and household effects exemption, which arrive in Canada (their final destination) after the Amendments come into force will be allowed to be imported/exported if it can be demonstrated by the sender that the original shipment was initiated before the Amendments were published in the Canada Gazette, Part II.

All musicians, orchestras, scientific institutions, and exhibitions travelling with items that contain elephant ivory or rhinoceros horn will need to apply for an import or export permit. To facilitate the process, musicians, scientific institutions, and exhibitions seeking to import and export elephant ivory or rhinoceros horn to and from Canada can apply for import and export permits using their travelling exhibition certificate, musical instrument certificate, or scientific certificate issued by the CITES authorities of their country. This certificate will be verified by Canadian CITES officials and used to issue Canadian import and export permits.

Compliance and enforcement

The Department works in partnership with a broad range of enforcement partners to promote and secure compliance with the Act and the Regulations. These partners include the Canada Border Services Agency, Fisheries and Oceans Canada, Transport Canada, Natural Resources Canada, the Royal Canadian Mounted Police, provincial and territorial law enforcement, and conservation authorities, as well as the United States Fish and Wildlife Service.

The Department also promotes and verifies compliance with CITES on the international stage. It is an active partner with the International Criminal Police Organization (INTERPOL) participating yearly in Operation Thunder, an INTERPOL and World Customs Organization operation targeting the illegal trafficking of CITES species. In anticipation of the Amendments coming into force, the Department has met with its partners, in particular the Canada Border Services Agency’s officers, to ensure that their knowledge is up to date to assist with inspection efforts at border control points.

Compliance with the Act is verified by various means, such as reviewing permits, auditing importers and exporters declarations, conducting inspections at ports of entry, conducting routine or spot inspections of wildlife businesses, sharing information with border officials and other national and international agencies, gathering intelligence, and following up on tips provided by the public. Many of these actions are done by wildlife officers, with peace officer powers under the Act (e.g. inspections, right of passage, search and seizure, custody of things seized) in order to verify compliance with the legislation.

Enforcement activities are generally prioritized based on conservation risk to wildlife and wildlife habitat, as well as the level of risk of non-compliance. They may include pre-operational activities such as intelligence analysis, enforcement strategy development, engagement with partners, science and technology research, as well as training. They may also include operational activities such as inspections, investigations, operations, prosecution, analysis, administration, and coordination. Inspections are either proactively planned or conducted in response to a referral from another federal department or agency, provincial or territorial governments, or the public. Most of the inspections conducted under the Act are focused on foreign species at high conservation risk. This is attributed to the higher demand and volume of foreign species that are imported and exported internationally and inter-provincially. In cases involving minor situations of non-compliance, a warning, or ticket may be appropriate. In cases involving a serious incident of non-compliance, prosecution may be the most appropriate recourse for enforcement purposes.

Compliance promotion initiatives educate Canadians about the impacts of illegal wildlife trade and provide information on the plant and animal species that cannot be moved across Canadian borders without a permit. A compliance strategy has been developed to support implementation of the Amendments. Compliance promotion and communication with business owners and affected Canadians will take place to ensure awareness of and compliance with the new restrictions and requirements. This will take the form of targeted letters, web and social media content, posters and/or brochures. Intensive efforts in the first year will be a priority, targeting musicians, museums, orchestras, international moving companies, auction houses, antique dealers, art collectors, taxidermists, and other regulated communities.

Service standards

Subsection 10(1) of the Act allows individuals to apply for a permit authorizing the importation, exportation or interprovincial transportation of an animal or plant, or any part or derivative of an animal or plant. The Department updated its service standards and performance targets for protected species trade to reflect the additional permit requirements for worked elephant ivory and rhinoceros horn resulting from the current Amendments.

Performance standards for permits issued under the Act are measured annually and posted online no later than June 1 for the preceding fiscal year (April to March).

Contact

Caroline Ladanowski
Director
Wildlife Management and Regulatory Affairs Division
Canadian Wildlife Service
Environment and Climate Change Canada
351 Saint-Joseph Boulevard, 15th Floor
Gatineau, Quebec
K1A 0H3
Email: ReglementsFaune-WildlifeRegulations@ec.gc.ca