Canada Gazette, Part I, Volume 158, Number 26: Possession and Export of Elvers Regulations

June 29, 2024

Statutory authority
Fisheries Act

Sponsoring department
Department of Fisheries and Oceans

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: The Fisheries Act and regulations prohibit fishing for American eel without a licence. High levels of harvesting without the required licence (henceforth referred to as unlawful harvesting) have prompted closures of the commercial American eel elver fishery in Nova Scotia and New Brunswick. Additional oversight is needed to better manage the fishery and conserve the species.

Description: New regulations are proposed to require a licence to possess elver, subject to certain exceptions, and a licence to export elver, and to require, through the conditions of these licences, the keeping of records to enable the traceability of elvers in Canada, as well as the sealing and labelling of containers of elver for export.

Rationale: The aim of the proposed regulations is to disincentivize and reduce unlawful harvesting by making it harder to possess, sell, and export unlawfully caught elver. Expanding oversight of the post-harvest export supply chain, enabling traceability, and introducing measures to differentiate legal versus illegal export shipments are intended to make it harder for unlawfully caught elver to enter the licensed export supply chain and easier to identify and act on illegal shipments. New regulatory requirements would allow a fishery officer to promptly determine whether an offence has occurred when someone is found to be in possession of elvers without a licence, which would help waterside enforcement as well.

Costs: The proposed regulations would impose incremental costs to businesses of approximately $2.2 million in the 10 years following the coming into force of the regulations, and government costs of $25.8 million over the same 10-year time frame, including for enforcement, training, administration, and the development of an information management system to support elver traceability.

Issues

The elver fishery is a highly lucrative industry that has experienced high levels of unlawful harvesting in recent years, resulting in fishery closures. Improved traceability is required to minimize the introduction of unlawfully harvested elver into the legal market and deter the possession and export of this elver.

A secondary issue proposed to be addressed by this regulatory initiative is the gap in the Maritimes Provinces Fishery Regulations (MPFR) that has hindered DFO’s ability to use variation orders to adjust close times for the elver fishery without those close times collaterally affecting close time for fishing of larger eels.

Background

Elvers are juvenile eels, defined in the MPFR as being eels of the species Anguilla rostrata (commonly known as the American eel) less than 10 centimetres in length.

Over the past decade, the value of the elver fishery has increased exponentially and was valued at $38.5 million in 2022. It is now the most valuable fish sold in Canada, selling at over $5,000 per kg at its peak.

The commercial elver fishery takes place in Nova Scotia and New Brunswick and fishing is authorized by way of a licence issued under the MPFR or the Aboriginal Communal Fishing Licences Regulations (ACFLR). In 2023, commercial licences were issued to the nine original licence holders of the fishery, eight under the MPFR and one under the ACFLR, and two interim licences were issued under the ACFLR to the Kespukwitk District First Nations in Nova Scotia and the Wolastoqey Nations in New Brunswick. Licence holders can name individuals authorized to fish under the licence; in 2023, more than 900 individuals were authorized to legally harvest elver under the 11 licences.

There have been increasing levels of elver harvesting without a licence in Nova Scotia and New Brunswick and widespread unauthorized sale and export. With this unlawful activity has come reports of violence, including assault and gun violence, robberies, death threats, property damage, and intimidation of local property owners. There have also been allegations of organized crime having an increasing influence in unlawful elver activities.

Several factors attract people to unlawfully fish elvers, most notably the high market value of elvers, even on the black market. Harvesting can be done at night, relatively easily with low-cost fishing gear, and harvest is easy to conceal. DFO estimates that, in recent years, as much or more elver has been caught unlawfully during a harvest season than the amount of the legal catch. Managing the unlawful harvest through riverside enforcement is challenging given the number of unlicensed harvesters fishing in a broad geographic area, and fishing predominately undertaken during the night in remote locations.

The market for elvers is driven by the export market to Asian countries. Elvers are typically shipped live, by air, within a short amount of time of harvest, and grown in aquaculture facilities in Asia for human consumption.

In 2020 and 2023, fisheries management orders were issued to shut down the licensed elver fishery partway through the harvest season due to conservation concerns for the species and violent confrontations posing a threat to the proper control and management of the fishery, as well as human safety. No elver fishing licences are being issued for the 2024 season in anticipation of the same lawlessness and in the absence of new regulatory authorities. While the closures allow federal officials to more easily identify unauthorized fishers and seize unlawfully caught elver, they also mean that licensed harvesters, both Indigenous and non-indigenous, miss out on their expected income from catching their allocated quota of the resource.

Post-harvest export supply chain

The operators of holding facilities where elvers are deposited immediately after catch may themselves arrange the export of their elver to Asia, work with a commercial exporter, or decide to sell to intermediary buyers and exporters of elver. Most exports currently fly out of Nova Scotia, Quebec, and Ontario airports to Asia.

Objective

The objective of the proposed regulations is to improve the management of the elver fishery by providing additional oversight and strengthening the traceability of elver post-harvest until export and to increase enforcement options throughout the supply chain.

The intended outcome is to disincentivize and ultimately reduce unlawful harvesting by making it more difficult for an unauthorized harvester to possess, sell, and export their elver. Reducing unlawful harvesting would also help support the conservation of this species.

A secondary objective of the regulatory proposal is to enable DFO to use variation orders to adjust close times for elver fishing that do not collaterally affect fishing for larger eels.

Description

A. Proposed regulations respecting the possession and export of elvers

The proposed regulations define elver as American eel less than 10 centimetres in length.

The proposed regulations would prohibit the possession of elvers without a licence to possess elvers issued under the regulations. This prohibition would not apply to the following exceptions:

The proposed regulations would prohibit any person from obtaining possession of elver from anyone other than

In most cases, a licence would be required to obtain and possess elver from these sources.

The proposed regulations prohibit any person from transferring possession of elver to anyone other than

The proposed regulations would allow a person who possesses elver that they caught under the authority of an elver fishing licence or a licence issued under the Fishery (General) Regulations to capture elvers for experimental, scientific, educational, aquatic invasive species control or public display purposes to transfer possession of those elvers to another person authorized to fish under the same license.

The proposed regulations would allow the Minister to issue a licence authorizing the possession of elver.

The proposed regulations would enable the Minister to specify on an elver possession licence any condition of licence that is consistent with the regulations for the proper management and control of fisheries and the conservation and protection of fish. Licence conditions may include, but are not limited to, the following matters:

The proposed regulations prohibit any person from exporting elver except under the authority of a licence issued under the proposed regulations. There are no proposed exemptions to this requirement.

The proposed regulations would prohibit the export of illegally caught elvers and elvers obtained from a person who is not authorized to possess them under the regulations.

The proposed regulations allow the Minister to issue a licence to export elver.

The proposed regulations would enable the Minister to specify any condition on an elver export licence that is consistent with the regulations for the proper management and control of fisheries and the conservation and protection of fish. This includes, but is not limited to

It should be noted that an export licence would not authorize the licence holder to possess elver. Participants in the elver export supply chain wanting to both possess and export elver would require both a possession licence and an export licence.

The proposed regulations prohibit the combining in the same container of elvers that were lawfully harvested in Canada with elvers that were illegally caught in Canada.

The proposed regulations prohibit the mixing of imported juvenile eels of any eel species with elver caught in Canada.

The proposed regulations prohibit unsealing or tampering with the seal of a container of elver that has been sealed for export subject to conditions of licence that allow licensees to unseal a sealed container under certain conditions.

The proposed regulations require that any records generated under a condition on possession and export licences be retained for at least five years beginning on the day the licence expires or is cancelled.

Application of certain provisions of the Fishery (General) Regulations. The proposed regulations specify that the following provisions and requirements of the FGR would apply for the purposes of the proposed regulations:

B. Amendments to the MPFR

The proposed regulations update the MPFR to add separate tables for the setting of close times for eels larger than 10 centimetres versus elvers.

The proposed amendments to the MPFR explicitly prohibit recreational fishing for elvers.

The proposed regulations amend an existing provision related to eel traps, to clarify that it does not apply to elver.

C. Amendment to the Ontario Fishery Regulations, 2007

The proposed regulations would make a consequential amendment to the Specially Protected Fish section of the Ontario Fishery Regulations, 2007, to include the requirement for any possession of American eel less than 10 centimetres in length to be authorized under the proposed regulations.

D. Amendment to the Fishery (General) Regulations

The proposed regulations would make a consequential amendment to add the proposed regulations to the list of regulations that prevail over the Fishery (General) Regulations in the event of inconsistency between the regulations.

Regulatory development

Consultation

Engagement to date

Prior to pre-publication in the Canada Gazette, Part I, DFO engaged with Indigenous groups, elver and larger eel harvesters, Provinces and Territories, other federal government departments (OGDs) and Canadians on the regulatory proposal. Engagement was conducted in several ways.

In September 2023, DFO discussed the potential for new regulations to control possession and export of elvers with the Elver Fishery Management Review Advisory Group, which represents non-Indigenous and Indigenous elver fishing licence holders, and other industry and environmental non-governmental stakeholders. In December 2023, DFO gave a detailed presentation on the regulatory proposal to the Advisory Group. The feedback during this session was positive, and licence holders shared valuable information about the elver supply chain and their business practices that is relevant to the development of licence conditions for the proposed possession and export licences, such as the information they record about transfers of elvers, how containers of elvers are sealed, and the process to export elvers.

In December 2023, DFO launched a web page to provide Canadians with information about the key elements of the regulatory proposal and seek their feedback by email. The comment period was open from December 8, 2023, to January 23, 2024. DFO promoted this comment period on social media and the Consulting with Canadians website and sent an email to several hundred contacts directing them to the website. The national email list included approximately 55 buyers of American eels in Nova Scotia, New Brunswick, and Quebec, 34 importers and exporters of eels, most in Ontario, and a large number of other organizations and individuals with known business ties to the elver fishery, plus First Nations outside Nova Scotia and New Brunswick who had expressed an interest in the conservation and management of eels through previous DFO-led consultations on the potential listing of American eels under the Species at Risk Act.

DFO received 30 email submissions about the regulatory proposal in response to the mailout and the web page.

The eight holders of 2023 elver fishing licences under the MPFR submitted a joint written response in support of the regulatory proposal but raised concerns about enforcement capacity and the lack of significant charges to deter unlawful fishing and sales. Thirteen other respondents, including the Fisheries Council of Canada, individual elver harvesters, adult eel harvesters, and private citizens, expressed similar concerns about enforcement capacity and penalties. They called on DFO to increase enforcement activities to prevent unlawful fishing activity and they expressed the view that the proposed regulations would only be effective if DFO adequately enforces them and administers penalties and fines that are proportional to the price of elvers. DFO agrees that adequate enforcement and appropriate penalties will be pivotal to the proposed regulations having the desired effect.

Five private citizens recommended that DFO not open the elver fishery in 2024 to help rebuild the American eel population, and because, in their view, it is unlikely that the unlawful fishing and sales of elvers can be controlled even with new regulations. Fishery closures and other fishery management decisions are outside the scope of this proposal.

The remaining 11 respondents, which included adult eel licence holders and associations, aquaculture industry representatives, and private citizens, recommended in-season fisheries management changes related to gear and fishing times, called on DFO to prioritize conversations with Indigenous communities about access and rights-based fishing, requested that adult eel harvesters and aquaculture operations receive priority access to fish elvers, and requested more information about the regulatory proposal. Discussions about access and in-season fishery management decisions are outside the scope of this proposal. DFO will continue to consult with Indigenous groups and stakeholders on these topics through established processes.

Throughout December 2023 and January 2024, DFO also sent targeted emails to 13 First Nations in Nova Scotia, 15 in New Brunswick, and 2 in Prince Edward Island that described the regulatory proposal, requested feedback on the proposal, and offered to meet to discuss the proposal. The recipient list included First Nations who have licences to fish elvers and those who have expressed an interest in elvers but to date have not had a licence to harvest them.

DFO met separately with 2023 fishing licence holders, Wolastoqey Nations in New Brunswick (WNNB) and the Kwilmu’kw Maw-klusuaqn Negotiation Office (KMKNO), as well as Millbrook First Nation and the Peskotomuhkati Nation at Skutik, which have expressed an interest in the elver fishery, to present the regulatory proposal.

Through these consultation activities, two First Nations, one in New Brunswick and one in Prince Edward Island who are not involved in the elver supply chain, had no objections to the regulatory proposal.

WNNB expressed in writing that DFO should not introduce new regulations without first addressing their demand, as rights holders, for more access to the fishery. Other First Nations shared this view and told DFO in email exchanges or in meetings that before they consider discussing the proposed regulations, they want to discuss increased access to the elver fishery. The topic of access is outside the scope of this proposal and will be addressed through separate consultation activities.

Some First Nations also expressed the general view that the proposed possession and export licences would infringe their treaty rights to fish and to sell elvers and create a disproportionate burden on their elver fishing operations. DFO requires more details from First Nation partners on the anticipated impact to treaty rights and fishing operations to inform the regulatory design. Further, some representatives have indicated that DFO’s effort to engage with them to date have not constituted consultations and advised that draft regulations needed to be made available for comment to facilitate consultation. DFO will continue to engage First Nation representative organizations and member communities directly to seek their views on the proposed regulations and better understand possible impacts. Some First Nations expressed frustration with DFO’s management of the elver fishery in past seasons, specifically the early closure of the fishery in 2023, which meant they were not able to catch their full quota.

DFO held three cross-agency meetings in 2023, with representatives of the CBSA, the Canadian Food Inspection Agency (CFIA), Environment and Climate Change Canada (ECCC), Transport Canada (TC) and the Provinces of Nova Scotia and New Brunswick to discuss ways to strengthen the oversight of the elver supply chain, including new regulations to control possession and export of elvers. The other federal government departments and the Provinces expressed support for a traceability system for the elver supply chain to deter sale and export of unlawfully harvested elvers.

In December 2023, DFO presented the regulatory proposal to the Provinces and Territories at a meeting of the Canadian Council of Fisheries and Aquaculture Ministers (CCFAM) Interjurisdictional Working Group (IWG). Provincial and territorial representatives expressed general support for the regulations. Their key points were to ensure adequate enforcement of the proposed regulations and to find ways to better enforce the elver fishery to control the unlawful fishing activity. DFO also met with representatives of the Province of Quebec to discuss the Province’s American eel Action Plan and their desire to ensure the regulatory proposal would not inadvertently impact the Province’s plan to stock elvers in provincial rivers. Provincial representatives were satisfied that the proposed exception to the prohibition on possessing elvers for the purpose of transfer and release into fish habitat adequately accommodates their restocking program goals.

Modern treaty obligations and Indigenous engagement and consultation

American eel is broadly distributed on Canada’s east coast, as far north as the mid-Labrador coast to English River near Postville. This overlaps with a modern treaty, the Labrador Inuit Land Claims Agreement (LILCA). It is unclear whether elvers, the juvenile life stage of American eel, are present in Labrador, or whether the American eel’s distribution in Labrador Inuit territory occurs solely at later life stages through migration. At present, there is no commercial licence to harvest elvers issued within Nunatsiavut.

As per the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an assessment of modern treaty implications was conducted on this regulatory proposal. The assessment concluded that implementation of this regulatory proposal would likely not have an impact on the rights, interests or self-government provisions of the Labrador Inuit Land Claims Agreement. On December 18, 2023, DFO sent a letter to the Torngat Joint Fisheries Board inviting them to provide feedback on the regulatory proposal and requesting a response by January 5, 2024. No response was received by the requested response date, nor in the following month. DFO will continue to respect the consultation obligations set out in this implicated modern treaty.

Instrument choice

Only a regulatory solution was considered because of its enforceability. Regulations allow DFO to impose enforceable requirements, including via licence conditions, and impose consequences for non-compliance. When selecting the proposed approach for the regulatory solution, DFO examined what the State of Maine did in response to their similar issue of widespread unauthorized elver harvesting. In discussions with DFO, Maine officials credited their post-harvest control framework as a primary cause for successfully bringing control to their fishery, a framework that is similarly focused on regulating the possession of elver by dealers (buyers, sellers and exporters), tracking inventories and transfers, and inspecting and sealing exports.

Regulatory analysis

The socio-economic impacts related to the proposed regulations on the possession and export of elvers are framed around the concept of cost and benefit analysis, regional economic impacts, and the distribution of economic impacts. This approach is consistent with the one followed in other analyses undertaken by DFO and is aligned with Treasury Board of Canada Secretariat (TBS) requirements for a regulatory impact analysis. Incremental impacts are estimated by comparing a baseline scenario against the regulatory scenario.

Reference hereafter to the “proposed regulations” encompasses both the proposed regulations and the expected requirements stemming from licence conditions.

Benefits and costs

Analytical framework

Due to data limitations and uncertainties, not all of the identified costs are quantified and monetized and are discussed qualitatively as appropriate. The general Cost-Benefit Analysis (CBA) framework for the present analysis is based on the following:

The cost-benefit analysis report is available upon request.

Baseline and regulatory scenario

The baseline scenario includes existing regulations for commercial fishing which govern the 11 commercial fishing licences to allow elver harvesting. Subsequent to harvest, elvers are deposited in holding facilities, where facility operators arrange for their export by air to Asian countries or sell them to intermediary buyers or exporters. However, under the baseline scenario, there are no licences that manage the possession of elvers at the holding facilities and the export of elvers.

Under the regulatory scenario, additional licences would be required for businesses and individuals to possess and export elvers. The proposed regulations also impose requirements to keep elvers harvested in Canada and imported elvers in separate tanks at the holding facilities. Therefore, these requirements would impose incremental costs.

Incremental costs
Industry

Incremental costs of the proposed regulations would be borne primarily by possession licence holders which includes holding facility operators, while a minor portion would be incurred by export licence holders. The incremental costs to be borne by each group are presented below.

Possession licences

Individuals needing to obtain a possession licence to possess elvers would incur administrative costs to complete the licence application. It is estimated that a total of 93 possession licences would be issued based on the following assumptions:

Further the cost estimate of the proposed regulations on possession licence holders is based on the time to complete the licence application of ½ hour at an average wage of $33.55/hour.

The present value of the total incremental costs for possession licence holders is estimated to be approximately $11,700 for 93 possession licences over the 10-year analysis period, with an annualized value of approximately $1,700.

Holding facilities

Some possession licence holders would likely operate a holding facility, such as a permanent structure with tanks to keep the elver alive. All holding facilities would be operated under the authority of a possession licence. The incremental costs to holding facilities would include: (a) upgrades to the facility necessary to keep Canadian-caught and imported elvers separate, (b) reporting costs including daily reports and seasonal record-keeping, and (c) labelling costs.

The key assumptions for the analysis of the impacts of the proposed regulations on possession licence holders to operate holding facilities are as follows:

Based on the above, Table 1 presents the detailed incremental costs that would be incurred by holding facilities.

Table 1: Present value of incremental costs to holding facilities
(in 2023 $, discounted at 7% over 10 years)
Description of costs Estimated costs
Upgrades to holding facilities $12,000
Reporting costs $1,891,020
Recordkeeping costs $151,282
Labelling costs $6,000
TOTAL COST $2,060,302

Note: Values may not sum to total due to rounding.

In addition, holding facilities may incur negligible maintenance costs for the additional tanks. This would comprise testing and monitoring water parameters, periodic water changes, and tank cleaning. These activities would be carried out on all tanks not just the newly installed ones, therefore the costs to the facility operators are anticipated to be marginal.

The present value of the total incremental costs for holding facilities is estimated to be approximately $2.1 million for the 60 facilities over the 10-year analysis period with an annualized value estimated to be approximately $293,300.

Export licences

Elver exporters would incur costs related to the completion of the export licence application, the purchase of extra containers for the export of foreign elvers, and reporting costs related to exporting activities.

The estimated number of exporters is 35 comprised of 29 existing exporters, 3 potential new exporters, and 3 of the 11 commercial harvesters. The key assumptions for the analysis of the impacts of the proposed regulatory requirements for export licence are as follows:

Table 2 presents the detailed incremental costs that would be incurred by export licence holders.

Table 2: Present value of incremental costs to export licence holders (in 2023 $, discounted at 7% over 10 years)
Description of costs Estimated costs
Licence application completion cost $4,412
Container cost $8,004
Reporting cost $142,205
TOTAL COST $154,621

Note: Values may not sum to total due to rounding.

The present value of total incremental cost to 35 export licence holders is estimated to be $0.1 million over the 10-year period with an annualized value of approximately $22,000.

Government costs

DFO would incur costs to administer the proposed regulations and to conduct compliance and enforcement activities, and CBSA will incur negligible incremental costs to assist DFO in these activities as needed. The present value of the total cost to government is estimated to be $25.8 million over the 10-year analysis period with an annualized value of $3.7 million.

The government costs would include

Other proposed amendments to MPFR, Ontario Fishery Regulations (OFR) and Fishery (General) Regulations (FGR)

The proposed amendment to the MPFR to enable DFO to close rivers to elver fishing by variation order without the closure affecting larger eel fishing is expected to benefit DFO by facilitating the separate management of these two fisheries. It is not expected to bring a quantifiable benefit to the large eel fishery because DFO has not used section 37(1) of the MPFR to close elver fishing in recent years owing to the collateral impacts it would have had on larger eel fishing. Introducing the prohibition on recreational fishing for elver would not have an impact on anyone because recreational fishing is not currently allowed nor was it anticipated in the future. The other proposed consequential amendments to the OFR and FGR do not result in any incremental impacts on stakeholders as they are being proposed to ensure that the requirements under the proposed regulations are aligned with the requirements of these other regulations.

Summary of the cost-benefit analysis

In summary, the proposed regulations would impose total incremental costs of approximately $2.2 million with an annualized value of $0.3 million to industry, and $25.8 million with an annualized value of $3.7 million to the government.

The proposed regulations would not result in any incremental benefits.

Tables 3 summarizes the incremental costs of the proposed regulations.

Table 3: Monetized incremental costs (in 2023 $, discounted at 7% over 10 years)
Impacted stakeholder Description of cost Base year Mid year Final year Total present value Annualized value
Government Total $2,794,074 $1,811,796 $1,291,786 $25,765,513 $3,668,429
Industry Time to complete possession licence application $1,560 $1,190 $849 $11,724 $1,669
Holding facility upgrades $12,000 - - $12,000 $1,709
Holding facility reporting costs $251,625 $191,964 $136,867 $1,891,020 $269,239
Holding facility record-keeping $20,130 $15,357 $10,949 $151,282 $21,539
Holding facility container labelling costs $6,000 - - $6,000 $854
Time to complete export licence application $587 $448 $319 $4,412 $628
Extra export containers $1,065 $812 $579 $8,004 $1,140
Export licence reporting costs $18,922 $14,436 $10,292 $142,205 $20,247
Total Industry Costs $311,889 $224,207 $159,856 $2,226,647 $317,024
All stakeholders TOTAL COSTS $3,105,963 $2,036,003 $1,451,642 $27,992,160 $3,985,454

Note: Values may not sum to total due to rounding.

Sensitivity analysis

Due to the uncertainty around the number of estimated possession licence holders and the number of holding facilities requiring an upgrade, an analysis was undertaken to assess the impact of changes to these two groups. To account for this uncertainty, we extended the analyses to 139 possession licence holders (46 more possession licence holders than the ones estimated above). These include 59 buyers in Nova Scotia and New Brunswick, 41 buyers in Ontario, 35 exporters, and 4 commercial fishing licence holders. In addition, the number of holding facilities that may need upgrades was doubled, from 12 to 24, to account for the uncertainty.

As a result of the changes to possession licence and holding facility upgrades, the total incremental cost to industry would increase by a minimal amount of $18,000, an increase of less than one percent. The main contributor to the increase in total costs to businesses is due to the increase in the number of holding facilities needing upgrades which accounts for 67% of the increase in costs.

Small business lens

Businesses to be regulated under the proposed regulations all fall in the category of small businesses. The incremental costs anticipated from the proposed regulations on small businesses would include costs incurred for application of possession and export licences, reporting and recordkeeping. However, these costs would not impose any significant burden on small businesses (see Table 4 below). The proposed regulations are the least burdensome option for small businesses as they would allow for the opportunity for continued involvement in the elver fishery, without undermining the objectives of the proposed regulations.

Table 4: Costs (in 2023 $, discounted at 7% over 10 years)
Administrative or compliance Description of cost Present value Annualized value
Administrative Time to complete licence application for possession and export licences, export licence reporting costs, holding facility recordkeeping costs $2,200,643 $313,322
Compliance Holding facility upgrades, holding facility container labelling, extra export containers $26,004 $3,703
Total Total costs $2,226,647 $317,025

One-for-one rule

The one-for-one rule applies as the proposed regulations would impose administrative costs on businesses, and a new regulatory title (title in) is introduced. The administrative costs would be associated with requirements to complete licence applications, as well as with reporting costs and recordkeeping costs for holding facility operators, and with shipping reporting costs for export licence holders. The total administrative cost to businesses as per the TBS Regulatory Cost Calculator over a 10-year period would be approximately $2.1 million (in 2022 $). Details of the administrative costs using the Regulatory Costs Calculator are shown in Table 5.

Table 5: Administrative Costs (Constant 2012 Canadian $, PV Base Year 2012)
Description Amount
Annualized Administrative Costs $107,892
Annualized Administrative Costs
Per Business
$573.89

Regulatory cooperation and alignment

The regulatory initiative is not related to a work plan or commitment under a formal regulatory cooperation forum.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan was completed to determine whether the implementation of the regulatory proposal may result in important environmental effects. It was determined that the regulatory proposal may result in important positive environmental effects if the intended outcome of reduced unlawful fishing is achieved.

Reduced total fishing pressure on elvers would help to conserve the population of American eels. Unauthorized fishing activity is more likely to damage sensitive fish habitat and disregard the mitigating measures imposed on licensed elver fishers, including caps on the amount of elver that can be taken from any individual river and gear placement restrictions intended to reduce bycatch and allow some elvers to pass. Therefore, reducing unauthorized fishing activity may have a positive ecological impact beyond just reducing the total amount of elver harvested in Canada. The proposed regulations would help support Goal 15 of the Federal Sustainable Development Strategy, which is to protect and recover species and conserve Canadian biodiversity. They would also help support Goal 14: Preserve and protect Canada’s oceans, in particular target 14.4 about effectively regulating harvesting and ending overfishing, illegal, unreported, and unregulated fishing activities.

Gender-based analysis plus

The demographic group that is anticipated be most impacted by the proposed regulations is predominantly male, over the age of 45, and does not hold a post-secondary diploma or degree. The other key demographic group would be Indigenous communities, particularly as discussions about access and allocation in this fishery continue. These groups would also benefit from the anticipated result of the proposed regulations, which is to return proper control and management to the fishery.

Rationale

The immediate impact of the proposed regulations would be to establish a clear, enforceable offence relating to the unauthorized possession of elvers in Canada. The proposed regulations would make it an offence to possess elver without a possession licence, with limited exemptions primarily for those harvesting elvers under a fishing licence. This is expected to have an immediate impact because fishery officers and other enforcement personnel can promptly determine whether an offence has occurred when someone is found to be in possession of elvers. In contrast, currently, with the existing offence of possession of fish caught in contravention of the Fisheries Act or its regulations, enforcement personnel must engage in time and resource-intensive investigation activities to prove that the possessed elvers were caught unlawfully. The proposed regulations are expected to result in more possession-related infractions, which will provide a general deterrent to anyone operating outside the regulated fishery.

Implementation of the proposed regulations is expected to make it harder for unauthorized harvesters to find willing buyers for their elver, because licensed participants in the elver distribution chain would become subject to inspection and verification, making it riskier for them to handle unlawfully harvested elver. Unlicensed exporters who try to operate outside the proposed new licensing framework would also find it harder to export their containers which lack the new measures (e.g. sealing, unique identifier) being introduced to differentiate legal versus illegal elver exports arriving at the airport. As unauthorized harvesters experience challenges finding willing buyers and exporters, it is assumed that this may cause many unauthorized harvesters to cease harvesting elver. These losses are not considered in the cost-benefit analysis because they lack standing as they arise from an unlawful activity.

Applicability of the proposed regulations to imported juvenile eels

Elvers are imported into Canada from other countries, such as Haiti, the Dominican Republic, and Cuba, predominantly for re-export to Asian markets. The proposed regulations include requirements and prohibitions applicable to imported elver because the transit of foreign elvers through Canada provides an opportunity to launder and disguise elvers that were caught unlawfully in Canada, as unlawfully caught elver could be mixed in with these exports of imported elver. Under the proposed regulations, imports of juvenile eels from other countries could continue but imported elver would be subject to the proposed regulations, including requirements related to needing possession and export licences. To facilitate traceability and tracking of Canadian-caught elvers, licence holders would be required to keep domestic elver and imported eels less than 10 centimetres in length, regardless of species, separated within their facilities and during export, and separately track inventories and transfers of domestic versus imported elver.

Implementation, compliance and enforcement, and service standards

Implementation

The proposed regulations respecting the possession and export of elver and the proposed amendments to the MPFR, Ontario Fishery Regulations, 2007 and Fishery (General) Regulations would come into force upon registration.

Interested parties would be able to apply to DFO for an elver possession or export licence immediately following the coming into force of the final regulations. More information on the application process and obligations of licensees would be available on DFO’s website at that time.

DFO intends to issue possessions and export licences for a validity period of one year, and licensees would need to obtain a new licence each year.

DFO proposes not to limit the number of new possession and export licences, which means they will be issued to all eligible applicants. At this time, two criteria to apply for a licence are that an applicant must not be in default of a payment for a fine in relation to a contravention under the Fisheries Act, and that any holding facilities to be identified on a possession licence must be located at a fixed location and may not be a private dwelling.

Conditions of licence

Some elements of the new possession and export control framework would be implemented through specifying terms and conditions on licences. This approach allows flexibility and adaptability as the industry changes and oversight needs evolve.

On coming into force of the regulations, DFO proposes to impose conditions on possession licences that would

On coming into force of the regulations, DFO proposes to impose conditions on export licence holders that would require exporters to notify DFO 48 hours in advance of when they expect to prepare a shipment for export, and require exporters to provide, in advance of each shipment, the location of the holding facility where elvers will be packaged, the anticipated weight of elvers, anticipated date of export, and the anticipated transporter and airport of export. DFO intends to provide alternative directions to the licence holder on how to proceed with the export packaging event in the absence of DFO attendance.

The performance of the proposed new regulations would primarily be assessed by monitoring levels of observed and reported unlawful fishing activity, which inform DFO’s estimates of the level of unauthorized harvests. These data would be compared to baseline levels of observed and reported unlawful fishing activity in the years before the proposed regulations came into effect to assess the impact of the new licensing scheme on unlawful harvest. The reporting conditions of possession and export licences would also be used to track and compare the quantity of elvers reported for export against reporting data from fishing licence holders on harvest quantities. These data, and any additional management measures targeting the elver harvest, would be used to assess whether traceability and enforcement efforts are effective at deterring the introduction of unlawfully harvested elver into the regulated supply chain.

Compliance and enforcement

DFO will continue to allocate its fishery officers, as needed, to and within DFO Regions to ensure the proper management and control of fisheries. To enforce the proposed regulations along the elver distribution chain, reallocated officers would be made available to support the proposed inspections of holding facilities and the packaging of elvers for export. Through implementing this regulatory initiative, DFO would gain additional insight into the overall lawful and unlawful elver supply chain, which will improve its intelligence-gathering efforts and ultimately allowing it to better direct its enforcement resources in future seasons.

Licensed participants

DFO would regularly analyze the records provided by licence holders and periodically conduct on-site inspections and verification activities to verify compliance with the proposed regulations. In particular, DFO, aided by an information management system, would scrutinize the transfer and inventory records of all licence holders together, to track the movement of elver within the licensed supply chain and verify compliance with provisions restricting from whom elvers may be obtained and to whom they may be transferred, among other things. During on-site activities, DFO would verify that the quantity of elvers on-site matches the data reported and would verify compliance with the requirements to keep domestic and imported elver separated. This on-site presence, and DFO’s export sealing event on-site presence, would send a clear message to all industry participants that the proposed regulations will be strictly enforced and serve to promote general regulatory compliance.

DFO would oversee elver export shipment sealing events to verify export quantities through on-site presence at elver holding facilities at this critical stage of the export supply chain. Export shipment sealing events would give DFO first-hand, reliable estimates of the quantity of elvers being exported from Canada to ensure this value aligns with in-season reporting data on harvest and holding facility inventories. Fishery officers would verify the weight and contents of the export shipment, oversee its packaging, apply a tamper-proof seal, and label the shipment container with a unique DFO-issued export shipment number. In the first year of implementation, DFO plans to have fishery officers attend all export sealing events during the Canadian elver season. Outside of the Canadian elver fishing season, during which the export of foreign elver imported into Canada may still occur, and after the first year of implementation, DFO will use an intelligence-led, risk-based approach to determine which packing events to attend.

Those who try to operate outside of the proposed regulations

The proposed regulations would help DFO identify and act against unlawful actors. DFO’s ability to act on information and complaints of unlawful possession and export would be enhanced by being able to lay charges for possession or export of elver without the required licence, compared to relying on existing prohibitions requiring evidence that the elver were originally unlawfully caught. Consistent sealing and labelling standards for export shipments would improve enforcement officer ability to distinguish between legal and illegal elver shipments.

DFO will continue to conduct targeted riverside monitoring and enforcement activities during the elver fishery in Atlantic Canada.

Coordination with CBSA

CBSA will continue to carry out current activities, including sharing intelligence data with DFO, participating in ad hoc examinations including coordinated blitzes with DFO, sharing import and export data to enable DFO to review reporting records from licence holders and conduct post-export compliance verification, and detaining shipments and notifying DFO enforcement officers when suspicious shipments for export are identified. These activities fall within CBSA’s day-to-day operations in fulfillment of their mandate.

Penalties

As regulations pursuant to the Fisheries Act, penalties for offences to the proposed regulations would include fines and imprisonment for repeat offenders. Under the Fisheries Act, non-compliance with terms and conditions of a licence may result in fines of up to $100,000 for an offence punishable on summary conviction or up to $500,000 for an indictable offence. A person who contravenes the regulations may be liable for a fine up to $100,000 for a first offence punishable on summary conviction. Subsequent offences punishable on summary conviction may result in a fine of up to $100,000 or imprisonment for a term not exceeding one year, or both. For an indictable offence, the first offence may result in a fine of up to $500,000, and subsequent offences may result in a fine of up to $500,000 or imprisonment for a term not exceeding two years, or both.

Non-compliance with terms or conditions of licences may result in fines of up to $100,000 for an offence punishable on summary conviction, or up to $500,000 for an indictable offence. A fishery officer also has the option to issue a ticket with a $750 fine to licence holders for contraventions of licence conditions.

Contact

Marc Clemens
Manager
Domestic Fisheries Policy
Fisheries and Oceans Canada
200 Kent Street
Ottawa, Ontario
K1A 0E6
Email: DFO.Elver-Civelle.MPO@dfo-mpo.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Possession and Export of Elvers Regulations under subsection 43(1)footnote a of the Fisheries Act footnote b.

Interested persons may make representations concerning the proposed Regulations within 70 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Marc Clemens, Manager, Domestic Fisheries Policy, Department of Fisheries and Oceans, 200 Kent Street, Ottawa, Ontario K1A 0E6 (email: DFO.Elver-Civelle.MPO@dfo-mpo.gc.ca).

Ottawa, June 25, 2024

Wendy Nixon
Assistant Clerk of the Privy Council

TABLE OF PROVISIONS

Possession and Export of Elvers Regulations

Definitions

1 Definitions

Application

2 Application

Possession of Elvers

Export of Elvers

Containers

Retention of Records

11 Retention period

Application of Fishery (General) Regulations

12 Application of certain provisions

Consequential Amendments

Coming into Force

17 Registration

Possession and Export of Elvers Regulations

Definitions

Definitions

1 The following definitions apply in these Regulations.

CBSA
means the Canada Border Services Agency established under subsection 3(1) of the Canada Border Services Agency Act. (ASFC)
commercial transporter
means a person whose commercial activity includes the transport of goods for others. (entreprise de transport)
Department
means the Department of Fisheries and Oceans. (ministère)
elver
means an American eel that is less than 10 cm in length. (civelle)

Application

Application

2 These Regulations apply to the possession of elvers in Canada and in Canadian fisheries waters, and to the export of elvers from Canada.

Possession of Elvers

Prohibition — possession without a licence

3 (1) Subject to subsection (2), it is prohibited for any person to be in possession of elvers except under the authority of a licence to possess elvers issued under these Regulations.

Exceptions

(2) Subsection (1) does not apply to the following persons in relation to the elvers that they possess in the following circumstances:

Exception — limit

(3) The exception set out in paragraph (2)(c) applies only while the person is in possession of elvers in the course of transporting them from the waters in which they were caught to a holding facility that is specified in the licence referred to in that paragraph.

Obtaining possession

4 It is prohibited for any person to obtain possession of elvers from anyone other than a person who is authorized to possess elvers under

Transferring possession of elvers

5 (1) It is prohibited for any person to transfer possession of elvers to anyone other than a person who is authorized to possess elvers under

Persons authorized under the same licence

(2) Despite subsection (1), a person who possesses elvers that they caught under the authority of a licence referred to in paragraph 3(2)(a) or (c) — or that were caught by another person under the authority of the same licence — may transfer possession of those elvers to any other person who is authorized to fish under the same licence.

Licence to possess elvers

6 (1) The Minister may issue a licence authorizing a person to possess elvers.

Conditions

(2) The Minister may, for the proper management and control of fisheries and the conservation and protection of fish, specify in the licence any condition that is consistent with these Regulations, including conditions respecting any of the following matters:

Export of Elvers

Prohibition — export without a licence

7 (1) It is prohibited for any person to export elvers except under the authority of a licence to export elvers issued under these Regulations.

Prohibition — certain elvers

(2) It is prohibited for any person to export elvers that were caught illegally in Canadian fisheries waters or elvers whose possession was obtained from a person who was not authorized to possess them under these Regulations.

Licence to export elvers

8 (1) The Minister may issue a licence authorizing a person to export elvers.

Conditions

(2) The Minister may, for the proper management and control of fisheries and the conservation and protection of fish, specify in the licence any condition that is consistent with these Regulations, including conditions respecting any of the following matters:

Containers

Prohibition — combining elvers

9 A person must not combine, in the same container

Prohibition — seals, sealed containers

10 Subject to the conditions of a licence issued under these Regulations, a person must not unseal a container of elvers that has been sealed for export or tamper with its seal.

Retention of Records

Retention period

11 Any records that are required to be kept under the conditions of a licence issued under these Regulations must be retained for a period of at least five years after the day on which the licence expires or is cancelled.

Application of Fishery (General) Regulations

Application of certain provisions

12 The following provisions of the Fishery (General) Regulations apply — despite section 3 of those Regulations — for the purposes of these Regulations:

Consequential Amendments

Fishery (General) Regulations

13 Subsection 3(4) of the Fishery (General) Regulations footnote 1 is amended by striking out "and" at the end of paragraph (l), by adding "and" at the end of paragraph (m) and by adding the following after paragraph (m):

Maritime Provinces Fishery Regulations

14 (1) Section 37 of the Maritime Provinces Fishery Regulations footnote 2 is amended by adding the following before subsection (1):

(0.1) Despite any provision in these Regulations, no person shall engage in recreational fishing for elvers.

(2) Section 37 of the Regulations is amended by adding the following after subsection (1.1):

(1.2) Subsection (1.1) does not apply to fishing for commercial purposes for elvers.

(1.3) No person shall engage in fishing for commercial purposes for elvers in the waters set out in column I of the table to this subsection by a method set out in column II during the close time set out in column III.

TABLE
Item

Column I

Waters

Column II

Method

Column III

Close Time

1 Inland and tidal waters of Nova Scotia.
  • (1) Eel trap
  • (2) Dip net
  • (3) Any other method
  • (1) Jul. 31 to Mar. 1
  • (2) Jul. 31 to Mar. 1
  • table 1 note *(3) Jul. 31 to Mar. 1
2 Inland and tidal waters of New Brunswick.
  • (1) Eel trap
  • (2) Dip net
  • (3) Any other method
  • (1) Jul. 31 to Mar. 1
  • (2) Jul. 31 to Mar. 1
  • table 1 note *(3) Jul. 31 to Mar. 1
3 Inland and tidal waters of Prince Edward Island.
  • (1) Eel trap
  • (2) Dip net
  • (3) Any other method
  • (1) Jan. 1 to Dec. 31
  • (2) Jan. 1 to Dec. 31
  • table 1 note *(3) Jan. 1 to Dec. 31

Table 1 Notes

Table 1 Note footnote *

If a close time is in respect of more than one fishing method, that close time is deemed to be separately and individually fixed in respect of each of those fishing methods.

Return to table 1 note * referrer

15 The portion of subsection 37(2) of the Regulations before paragraph (a) is replaced by the following:

(2) Every person who fishes for eels, other than elvers, with an eel trap in the inland waters of Nova Scotia shall, during the period beginning at sunrise and ending at sunset,

Ontario Fishery Regulations, 2007

16 Subsection 7(3) of the Ontario Fishery Regulations, 2007 footnote 3 is replaced by the following:

(3) Despite subsection (1), a person may possess an American eel if

Coming into Force

Registration

17 These Regulations come into force on the day on which they are registered.

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