Controlled Goods & the Controlled Goods Program
MILLAR KREKLEWETZ LLP is a boutique Canadian law firm with lawyers who have significant expertise in Export Controls, including the application of Canada's Canada's Controlled Goods Program, which is implemented under the federal Defence Production Act ("DPA").
The following is a short introduction to Canada's Controlled Goods Program, and the DPA generally.
Controlled Goods & the Controlled Goods Program
Overview
The Controlled Goods Program (the "CGP") is a Federal Government Program administered by the Department of Public Works and Government Services Canada (PWGSC).
The CGP is a domestic industrial security program that helps strengthen Canada's defence trade controls through registration, prevention, deterrence and detection, and prevents the proliferation of weapons of mass destruction and of conventional weapons. This is done by regulating and controlling the examination, possession, and transfer in Canada of controlled goods and/or controlled technology. Anyone who deals with controlled goods and/or controlled technology in Canada is required to register with the Controlled Goods Directorate (the "CGD". The CGD is legislated by the Defence Production Act (as defined, the "DPA") and the Controlled Goods Regulations (the "CGR").
Some examples of controlled goods and/or controlled technology that are covered by the CGD are global navigation satellite systems, nuclear weapons and design testing equipment, tanks, munitions, ammunitions with a caliber greater than 12.7 mm and some firearms.
The official details on controlled goods and/or controlled technology are found in the Export Control List, published by the Department of Foreign Affairs and International Trade Canada.
Please follow the link below for more information on Export Controls:
What Goods are "Controlled Goods" ?
While the official details on what goods amount to "Controlled Goods" (or "Controlled" technology) is to be found in the Export Control List referred to above, Canada Controlled Goods Program will apply to the following goods and/or technology in the ECL:
- Items under Group 2 (items 2001 to 2022).
These items are munitions specifically designed or modified for military use such as: Weapons and ammunitions (machine guns & anti-tank weapons); Bombs, torpedoes, mines and missiles; Warning systems (weapon sights & surveillance systems); Military vehicles (tanks), vessels (submarines) and aircraft; Chemical, biological and radioactive material which is use in war; and Protective equipment (armoured plate and body armour).
Exceptions - Item 2001: only goods that are prohibited firearms; Item 2003: only goods that are ammunitions with a calibre greater than 12.7mm. - Item 5504 under Group 5.
The goods listed under this item are considered as strategic goods such as: Global navigation satellite systems; Ground control stations; and Nuclear weapons design and testing equipment. - All items under Group 6.
These items include missile technology such as: Complete delivery systems (rocket, ballistic &cruise missile); Propulsion equipment (turbojet, turbofan & pulse jet engines); Navigation & stealth equipment (flight instrument systems); Avionics (radar & Global Positioning System); Launch support equipment (gravity meters & precision tracking); and Test facilities (wind tunnels for speeds of Mach 0.9 or greater). The official details on controlled goods are found in the Export Control List (under the Export and Import Permits Act), published by the Department of International Trade Canada.
Registration under the Controlled Goods Program
Registration with the Controlled Goods Directorate ("CGD") is mandatory for anyone that deals with Controlled Goods and/or Controlled Technology in Canada. Furthermore, to transfer a Controlled Good and/or Controlled Technology outside of Canada, registration with the CGD is a prerequisite for the issuance of an Export Permit by the Foreign Affairs and International Trade Canada.
Registration requirements are as follows:
Individuals - Individuals are eligible to register with the CGD provided they consent to a security assessment and are ordinarily resident in Canada as either a Canadian citizen or a permanent resident.
Businesses - Businesses are eligible to register with the CGD provided they are incorporated or authorized by federal, provincial or territorial law to carry on business in Canada.
Exclusions - To be excluded from registration, you must be employed by a Canadian federal, provincial or territorial government or a federal Crown corporation, and deal with Controlled Goods and/or Controlled Technology in the performance of your official duties. (Generally speaking, these persons would already have requisite security clearances).
Exemptions - To be exempted from registration, you must be a visitor to Canada, a temporary worker, a United States government official, or an employee of a business in the United States, and registered with the International Traffic and Arms Regulations (ITAR).
The process for registration under the Controlled Goods Program is as follows:
How to Register - Individuals or businesses that are eligible to register with the CGD must complete an Application for Registration and submit it along with a Security Assessment application for each proposed Designated Official.
Please contact us for assistance in determining your registration eligibility, and in the registration process.
Personal Liability
It is important to appreciate that directors and officers of corporations are liable to the same punishment above for violations of the DPA (or other export control requirements) committed by the corporation, even if the corporation has not been prosecuted or convicted.
Millar Kreklewetz LLP is well-placed to provide guidance and counsel on Controlled Goods matters, and persons facing criminal prosecution or wishing to understand their Controlled Goods obligations are encouraged to contact us for more infomation on the issues inherent in their files.