Summary
The Explosives Regulations establish a comprehensive framework for authorizing, classifying, licensing, and regulating the manufacture, import, export, storage, transportation, sale, and use of explosives in Canada. Key mechanisms include: mandatory authorization of explosives by the Chief Inspector of Explosives; licensing requirements for manufacturers, storage facilities, and operators; safety standards and operational prohibitions; screening for high-risk explosives; and fee-based administration. The regulations apply to various explosive categories (military, industrial, fireworks, etc.) with specific requirements, while providing exemptions for low-risk items and certain activities.
Reason
Canadians would be worse off without this regulation because explosives pose catastrophic risks of mass casualties, property destruction, and criminal misuse that cannot be adequately priced or prevented by market forces alone due to their massive negative externalities. The regulation achieves its safety outcomes through centralized technical evaluation and classification, which ensures explosives meet safety standards before entering circulation; licensing and screening, which ensure operator competence and prevent malicious actors from accessing explosives; and uniform national standards that prevent regulatory arbitrage and ensure consistent protection across provinces. A private or fragmented system would likely create dangerous gaps, inconsistent oversight, and incentives to cut corners, exposing the public to unacceptable risks of explosions, terrorism, and accidents that would otherwise be borne by victims rather than the responsible parties.