Oil Import Compensation Regulations No. 1, 1975 (C.R.C., c. 335)

Allowance for Change in Tanker Freight Costs

• 8 (1) For the purposes of paragraphs 6(1)(a) and 7(1)(a), the amount of the allowance for any change in tanker freight costs incurred by or charged to the importer in the transportation of a quantity of petroleum from its port of loading to its port of entry for Canada is the aggregate of

  • (a) the amount determined by calculating any change in freight costs from those prevailing on September 4, 1973 through application of a scale established from time to time by the Board and based on published commercial indexes of tanker freight costs; and

  • (b) any change since September 4, 1973 in the aggregate of all taxes, tolls or tariffs that do not discriminate on the basis of the destination of the cargo imposed by the host government with respect to marine transportation and borne by the importer.

• (2) Where an eligible importer’s transportation arrangements are such that, by reason of

  • (a) the type or size of vessel used to transport the petroleum,

  • (b) the port from which the petroleum is transported to Canada, or

  • (c) the port of entry for Canada of the petroleum,

  it is impossible to apply the calculation referred to in paragraph (1)(a), the Board may deem the allowance for any change in tanker freight costs to be such amount as it thinks fit, having regard to the allowance calculated for similar voyages.

Time of Payment of Compensation

9 No payment of any import compensation shall be authorized by the Board to be paid to an eligible importer in respect of a quantity of petroleum imported into Canada before the occurrence of the latest of the following events:

• (a) the payment by the importer of the full price for the petroleum under the purchase arrangements,

• (b) the expiration of 30 days from the date of loading of the petroleum, and

• (c) the date unloading of the petroleum was completed for delivery to the importer in Canada or at a port of entry for Canada.

Undertaking

10 No payment shall be made under these Regulations to an eligible importer unless he has

• (a) undertaken in writing to the Board that

  • (i) he will allow any person designated by the Board to enter any premises of the eligible importer in order to examine, take copies of or extracts from, any record, book, paper or other document found thereon that, in the opinion of that person, relates to the payment of import compensation to that eligible importer, and

  • (ii) he will repay to the Receiver General

    • (A) any amount paid to the eligible importer as or on account of any import compensation to which he was not entitled or that is not authorized under these Regulations, and

    • (B) any amount paid to the eligible importer in respect of a quantity of petroleum if he or the persons for whom he imported the petroleum fail to comply with the undertaking given by him or them to the Board pursuant to these Regulations; and

• (b) certified in writing to the Board that

  • (i) all information submitted by him to the Board is correct as to fact and fair and reasonable as to estimates, and

  • (ii) except as may be permitted by the Minister pursuant to section 11, he has complied with all the requirements of an eligible importer set out in subsection 5(1) or (2), as the case may be.

Special Case

11 If, on consideration of an application for payment presented by an eligible importer or by any person whom the Minister on the recommendation of the Board may deem to be an eligible importer, it appears to the Board that the strict application of these Regulations will in the circumstances result in an undue financial hardship to that importer, the Board may recommend to the Minister that a special payment be made to that importer towards relief of all or part of that hardship and the Minister may direct the Board to make such payment.