CRC Canada Company - conviction information for 2016-12-05
| Corporation name: | CRC Canada Company |
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| Address: | 2 – 1246 Lorimar Drive |
| City: | Mississauga |
| Province/territory: | Ontario |
| Postal code: | L5S 1R2 |
| Country: | Canada |
| Sector or industry: | 418 - Miscellaneous merchant wholesalers |
| Location of offense: | 2 – 1246 Lorimar Drive, Mississauga, Ontario |
|---|---|
| Case summary: |
CRC Canada Co. is a distribution company which employs between six and ten people from its location in Mississauga, Ontario. They also have independent sales agents across Canada as well. Their parent company in the United States, CRC Industries, Inc., is a global leader in the development, production, and distribution of specialty chemicals for the industrial, electrical, automotive, aviation, and marine marketplaces. CRC Canada Co. is the sole distributor/importer for their products in Canada. The file originated from Intel in Prairie and Northern Region (PNR) because Enforcement Officers in PNR conducted an inspection at an Edmonton retail store and found that subsequent sampling of the product “HV Switchgear Lubricant” contained hydrochlorofluorocarbons (HCFCs), which were in contravention of the Ozone-Depleting Substances Regulations, 1998 (ODSR). HV Switchgear Lubricant is a cleaner and lubricant used for high voltage switches, like utility poles. Since the product was imported and sold by CRC Canada Co. and their head office was located in Mississauga, Ontario, the file was referred to the Ontario Region. On October 29, 2013, EOs conducted an ODSR inspection at CRC Canada Co. and collected 2 samples/cans of HV Switchgear Lubricant for analysis. It was determined that their parent company in the United States, CRC Industries Inc. manufactured the product and CRC Canada Co. solely imported and sold the product to several retailers across Canada from 2011 to 2013. In total, 32 cases (12 cans/case) were imported into Canada but only 23 cases were sold to retailers across Canada. On December 2, 2013 an email was received from the Organic Chemistry Laboratory Technologist at the Prairie and Northern Laboratory for Environmental Testing and the results showed that the product was positive for HCFC-225ca and HCFC-225cb. Since this company had imported and sold a prohibited product in Canada under the ODSR, an investigation was initiated. On December 1, 2015, a search warrant was executed and 148 cans of the product HV Switchgear Lubricant were seized. |
| Charges: |
2 counts x 23(1) of the ODSR, 1998 and 17 counts x 23(2) of the ODSR, 1998, therefore 19 counts under 272(1)(h) of the Canadian Environmental Protection Act, 1999
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| Enforcement notification: | $225,000 fine for CRC Canada for environmental violations |
| Result: | Guilty Plea |
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| Date of conviction: | 2016-12-05 |
| Court level: | Provincial and Territorial Court |
| Nature of offense(s): |
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| Additional details about the nature of the offense: |
| Act | Regulations | Section(s) |
|---|---|---|
| Canadian Environmental Protection Act, 1999 (CEPA) | Ozone-depleting Substances Regulations, 1998 | s.23(1), s.23(2) |
| Date of sentencing: |
2016-12-05 |
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| Location of sentencing: | Brampton, Ontario |
| Sentence(s): |
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| Amount of fine(s): | $225,000 |
| Sentencing details: |
On December 5, 2016, before the Ontario Court of Justice in Brampton, Ontario, the corporation CRC Canada Co. pleaded guilty to: Count #2 - On or about August 6th, 2013, CRC Canada Co., in the city of Mississauga, in the Province of Ontario, did unlawfully import pressurized containers less than 2 kg, containing hydrochlorofluorocarbons (HCFCs), specifically HCFC-225ca and HCFC-225cb, namely; “HV Switchgear Lubricant”, after July 1, 1999, contrary to subsection 23(1) of the Ozone-Depleting Substances Regulations, 1998, thereby committing an offence contrary to paragraph 272(1)(h) of the Canadian Environmental Protection Act, 1999. Count #19 - On or about August 23rd, 2013, CRC Canada Co., in the city of Mississauga, in the Province of Ontario, did unlawfully sell or offer for sale pressurized containers less than 2 kg, containing hydrochlorofluorocarbons (HCFCs), specifically HCFC-225ca and HCFC-225cb, namely; “HV Switchgear Lubricant”, after January 1, 2000, contrary to subsection 23(2) of the Ozone-Depleting Substances Regulations, 1998, thereby committing an offence contrary to paragraph 272(1)(h) of the Canadian Environmental Protection Act, 1999. All other 17 charges were withdrawn. o Aggravating factors: the offences of importing and selling HV Switchgear Lubricant caused the risk of damage to the environment or environmental quality which constitutes an aggravating factor pursuant to section 287.1(2)(a) of CEPA. Therefore a fine of $12,500 was added to each count. o Mitigating factors: CRC Canada Co. had no previous history of non-compliance, cooperated with investigators and took prompt action to suspend the sales and to recall the product. In summary: o Count #2 was a $112,500 fine with 30 days to pay and count #19 was a $112,500 fine with 30 days to pay for a total of $225,000 (inclusive of aggravating factors), all going to the EDF. As part of sentencing, CRC Canada Co. agreed to pay for all costs associated with the removal and destruction of the 150 seized cans of HV Switchgear Lubricant. |