Vol. 146, No. 11 — May 23, 2012
SOR/2012-90 May 3, 2012
EXPORT AND IMPORT PERMITS ACT
General Export Permit No. 44 — Nuclear-Related Dual-Use Goods and Technology to Certain Destinations
The Minister of Foreign Affairs, pursuant to subsections 7(1.1) (see footnote a) and 10(1) (see footnote b) of the Export and Import Permits Act (see footnote c), hereby issues the annexed General Export Permit No. 44 — Nuclear-Related Dual-Use Goods and Technology to Certain Destinations.
Ottawa, May 2, 2012
Minister of Foreign Affairs
GENERAL EXPORT PERMIT NO. 44 — NUCLEAR-RELATED DUAL-USE
GOODS AND TECHNOLOGY TO CERTAIN DESTINATIONS
1. The following definitions apply in this Permit.
“eligible destination” means Argentina, Australia, Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, the Republic of Korea, Spain, Sweden, Switzerland, Turkey, Ukraine, the United Kingdom or the United States. (destination admissible)
“Guide” has the same meaning as in section 1 of the Export Control List. (Guide)
2. (1) Subject to sections 3 and 4, any resident of Canada may, under this Permit, export from Canada to any eligible destination any good or technology referred to in Group 4 of the schedule to the Export Control List with the exception of any good or technology referred to in
- (a) any other Group of that schedule; and
- (b) item 4-1.B, 4-1.D, 4-1.E, 4-2.C.1, 4-2.C.2, 4-2.C.7, 4-2.C.10, 4-2.C.11, 4-2.C.13, 4-2.C.14, 4-3.B.3 or 4-3.B.4 of the Guide.
(2) Paragraph (1)(a) does not apply if the export of the good or technology referred to in any other Group of the schedule to the Export Control List is authorized by a permit issued under subsection 7(1.1) of the Export and Import Permits Act.
3. This Permit does not authorize
- (a) the export of goods or technology to any country listed in the Area Control List; or
- (b) the export of goods or technology that are not intended for end-use in an eligible destination.
4. It is a condition of this Permit that the exporter
- (a) before making their first export in a calendar year under this Permit, provide in writing to the Export Controls Division of the Department of Foreign Affairs and International Trade their name, address, telephone number and any facsimile number and electronic mail address and, in the case of a corporation, the name of a contact person and their address, telephone number and any facsimile and electronic mail address;
- (b) present to the Canada Border Services Agency, before or at the time of export, a licence issued by the Canadian Nuclear Safety Commission pursuant to the Nuclear Safety and Control Act that authorizes the export of the goods or technology;
- (c) retain, for a period of six years after the year in which an export is made under this Permit, the following records:
(i) the item in the Guide in which the good or technology exported is described,
- (ii) the quantity and value of each good or technology exported,
- (iii) the date of export,
- (iv) the eligible destination to which the good or technology is being exported, and
- (v) the name and address of the person to whom the good or technology is being exported;
- (d) provide to the Export Controls Division, within 15 days after the receipt of its request, the following information in respect of any exports made under this Permit during the period specified in the request:
(i) a description of each good or technology exported and the item in the Guide in which it is described, and
- (ii) the quantity and value of each good or technology exported by country of destination; and
- (e) insert the term “GEP-44” or “LGE-44” in the appropriate field of the form prescribed under the Customs Act if the good exported under this Permit is required to be reported under that Act.
5. General Export Permit No. EX 27 — Nuclear-Related Dual-Use Goods (see footnote 1) is cancelled.
COMING INTO FORCE
6. This Permit comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issue and objectives
Currently, in certain instances, exporters of controlled goods and technology may be subject to dual export permit/licence requirements imposed by the Export and Import Permits Act and the Nuclear Safety and Control Act. This process can be administratively burdensome for the exporting community.
The Department of Foreign Affairs and International Trade is issuing a general export permit, the General Export Permit No. 44 — Nuclear-Related Dual-Use Goods and Technology to Certain Destinations (GEP 44), to allow for the simplified export of certain controlled goods and technology subject to dual requirements to certain eligible destinations.
As items eligible for export under GEP 44 are also subject to export controls under the Nuclear Safety and Control Act, GEP 44 may be used only to fulfill the requirements of the Export and Import Permits Act and does not authorize any exports for which an export licence has not been issued by the Canadian Nuclear Safety Commission (CNSC).
General export permits (GEPs) are intended to be used to facilitate trade in defined circumstances. GEPs are issued generally to all residents of Canada and allow the export of specified goods and technology that are included in the Export Control List (ECL) to any country specified in the permit, subject to certain terms and conditions. Such permits do not require an individual application to be made to the Department of Foreign Affairs and International Trade. The relevant GEP must simply be cited on an export declaration provided to the Canada Border Services Agency at the time of export.
The goods and technology that are eligible to export under GEP 44 are subject in Canada to export controls under the authority of the Export and Import Permits Act (administered by the Department of Foreign Affairs and International Trade).
GEP 44 authorizes the export of most goods and technology in Group 4 (the Nuclear-Related Dual-Use List) of the ECL. It authorizes exports only to those countries that participate, like Canada, in four multilateral export control regimes: the Nuclear Suppliers Group, the Missile Technology Control Regime, the Australia Group and the Wassenaar Arrangement. Countries that participate in these regimes have well-established and effective export controls and have adopted a number of shared licensing practices and policy objectives. As a result, the export of these items to these countries does not represent a strategic risk.
GEP 44 continues the practice initiated by General Export Permit No. EX 27 — Nuclear-Related Dual-Use Goods (GEP 27), to reduce the administrative burden for exporters and to streamline the export permitting process. However, since GEP 27 is outdated, in large part due to changes in Group 4 controls and a new numbering system, a replacement is required. The promulgation of GEP 44 ensures a continued level playing field for Canadian exporters compared to their foreign competitors located in other countries that also use general export licences for nuclear-related dual-use items.
GEP 44 applies to a narrower list of countries than GEP 27. This change is due to the risk of nuclear proliferation and related terrorist activities. As mentioned above, the countries to which exports are authorized by GEP 44 have credible, well-established export controls and a commitment to nuclear non-proliferation, as demonstrated by their participation in four multilateral regimes that provide the basis for Canada’s export controls. The countries named in GEP 44 include many of Canada’s most important trading partners.
With the issuance of GEP 44, GEP 27 will be cancelled.
Without GEP 44, and given that the existing GEP 27 is obsolete, Canadian exporters of eligible items to destinations that do not represent a strategic risk would continue to be subject to two individual licensing processes by the Government of Canada, which imposes an administrative cost on exporters and which may put them at a disadvantage compared to their foreign competitors.
Benefits and costs
GEP 44 simplifies the process for authorizing exports of eligible goods and technology to eligible destinations. This is fully consistent with government policy and will reduce the administrative burden of export controls on exporters by updating and confirming the policy objectives of the existing GEP 27 without any significant impact on national or international security. Exporters using GEP 44 continue to be required to obtain an individual export licence issued by the Canadian Nuclear Safety Commission pursuant to the Nuclear Safety and Control Act.
The cost of implementation of this GEP is negligible. There will be a small reduction in the costs incurred by the Department of Foreign Affairs and International Trade of administering export permits.
Consultations have been held with the Canadian Nuclear Safety Commission which supports the new regulation.
The Department of Foreign Affairs and International Trade remains in close contact with stakeholders and will work toward reducing any unnecessary administrative burden of export controls on exporters.
Compliance and enforcement
Exports of goods and technology listed in the ECL must be authorized by export permits to all destinations except where otherwise stated in each ECL item. There are certain conditions associated with GEP 44 and exporters must comply with those conditions in order to use GEP 44. It is a condition of GEP 44 that it be cited by exporters on the export declaration or other export reporting notification that is required to be submitted to the Canada Border Services Agency with every export shipment. Non-compliance with conditions of a general export permit can lead to prosecution under the relevant provisions of the Export and Import Permits Act.
The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of export controls.
Export Controls Division
Export and Import Controls Bureau
Foreign Affairs and International Trade Canada
125 Sussex Drive
S.C. 2004, c. 15, s. 56
S.C. 2006, c. 13, s. 113
R.S., c. E-19