New Rules for Explosives & Bank Risk
The latest Canada Gazette proposes a new transport permit for explosives, fixes a legal paradox for invasive species, and cuts red tape for banks.
The Canada Gazette, Part I, is where the federal government publishes its intentions. It’s the official notice board for new regulations, and this week’s edition provides a clear snapshot of the government’s modernization agenda.
The November 1, 2025, publication contains three major proposed regulatory packages. They reveal a government focused on technical fixes: one set of proposals adds new security layers for transporting explosives, another fixes a legal paradox for managing invasive species, and a third cuts red tape for Canadian banks to align them with international peers.
Here is a breakdown of what the government is planning.
Explosives: New Permits, Fewer Fees
The largest proposal is a sweeping amendment to the Explosives Regulations, 2013. This is the second omnibus bill in a comprehensive review. It aims to enhance safety in some areas while reducing administrative burdens in others.
A New Transport Security Layer
To close what the government calls a “safety and security gap,” a new transport permit regime is being proposed for explosives.
What does this mean? Currently, the rules for transporting explosives by road are less formalized. The new rules would require carriers to hold a specific “transport permit” issued by Natural Resources Canada.
This creates a new chain of responsibility. Shippers will be required to verify that any carrier they hire holds a valid permit. Carriers, in turn, will be required to ensure their drivers are trained, security-screened, and keep records to prove it.
Streamlining for Sellers and Users
While adding new rules for transport, the proposal simultaneously cuts red tape for sellers and users.
Propellant Powder: The current requirement for retailers (like sporting goods stores) to provide a written notice that they sell propellant powder has “low compliance.” The government plans to replace this with a mandatory registration system. Retailers will need a registration number from NRCan, and distributors will be required to verify that number before selling to them.
Fireworks Assistants: The proposal eliminates the requirement for “display assistants” (the support staff at a fireworks show) to obtain a formal fireworks operator certificate and pay the associated fee. This reduces a significant administrative and financial burden on the industry. Instead, assistants will only be required to complete a “display fireworks safety and legal awareness course.”
Rocket Motor Imports: For hobbyists, the proposal increases the number of model rocket motors that can be imported without a permit from the current limit (six) to 40.
Fixing a Legal Paradox for Invasive Species
The government is also moving to fix a critical contradiction in the Aquatic Invasive Species Regulations (AISR).
The Pesticide Problem
Right now, managers trying to control invasive species face an impossible legal choice.
To control an invasive species, the AISR allows a regulator to authorize the use of a pesticide (a “deleterious substance”). However, some pesticides, like rotenone, require a second substance, a “deactivating agent,” to be used safely and to prevent unintended harm downstream.
Here is the paradox: the pesticide’s label (under the Pest Control Products Act) may require the use of this deactivating agent. But the Fisheries Act doesn’t clearly allow for the authorization of that second substance. This means a person following the pesticide’s safety label could be in violation of the Fisheries Act, while a person complying with the Fisheries Act (by not using the agent) could be in violation of the Pest Control Products Act.
The Solution
The proposed amendments fix this loophole. They will explicitly allow regulators to authorize the “other substances that are identified on the label of a pest control product,” including “detoxifying or neutralizing agents, agents to remove taste and odours, reactants and utility modifier adjuvants.”
The proposal also tightens two other areas. First, it will explicitly state that all “directions” (conditions) on an authorization must be followed, which the government notes will increase its ability to take enforcement action. Second, it gives regulators the new power to “amend, suspend or cancel” an authorization after it has been issued.
Easing the Burden on Canadian Banks
The Canada Deposit Insurance Corporation (CDIC) is proposing to ease a specific administrative burden on Canadian banks.
The proposal deals with “stay provisions” in large financial contracts. These provisions are crucial for financial stability. They temporarily stop a bank’s counterparties (like other international banks or funds) from terminating all their contracts the moment a bank enters resolution (fails). This prevents a bank run.
The CDIC By-law requires Canadian banks to include these stay provisions in their international contracts. The problem, according to the Gazette, is that Canada’s rules are stricter than those of its peers.
Other countries frequently exempt major international bodies, like foreign governments, central counterparties, and multilateral development banks (MDBs), from this requirement. By not offering the same exemptions, Canadian banks face an “enhanced administrative burden” when competing internationally.
The proposal fixes this by exempting these specific entities. It also significantly extends the compliance deadline for other contracts from October 1, 2024, to October 1, 2028.
In Brief: Procurement Watch
Finally, the Gazette includes two noteworthy items from the Canadian International Trade Tribunal (CITT), which handles complaints about federal procurement.
A Win for “Undisclosed Criteria”: The CITT determined that a complaint from École de langues Eagle Inc. was valid. The company alleged that Public Works and Government Services (PWGSC) used “undisclosed criteria” when it evaluated its bid for a language training contract for the Department of National Defence.
An Inquiry into “Prescribed Solutions”: The CITT is launching a formal inquiry into a complaint from Equifax Canada against Export Development Canada (EDC). Equifax alleges that for a contract for business data, EDC “wrongly prescribed a competitor’s solution as a technical specification,” effectively sole-sourcing the contract.
The Data Brief
Explosives: A new, mandatory “transport permit” will be required for carriers transporting explosives by road. Shippers will be responsible for verifying the permit.
Fireworks: The requirement for “display assistants” to hold a formal operator certificate and pay a fee is being eliminated and replaced with a one-time safety course.
Rocketry: The personal import limit for model rocket motors (without a permit) is set to increase from 6 to 40.
Invasive Species: A legal loophole is being closed to allow regulators to authorize the “deactivating agents” required for the safe use of certain pesticides.
Banking: Canadian banks will no longer be required to include “stay provisions” in contracts with foreign governments, central counterparties, or multilateral development banks.
Procurement: The CITT has found PWGSC (PSPC) used “undisclosed criteria” in a DND contract and is launching an inquiry into allegations that EDC “prescribed a competitor’s solution” in a data contract.
Source Documents
Canada Gazette, Part I, Vol. 159, No. 44 (2025, November 1).