Vol. 151, No. 25 — December 13, 2017
SOR/2017-248 November 24, 2017
EXPORT AND IMPORT PERMITS ACT
P.C. 2017-1428 November 23, 2017
Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to sections 4.1 (see footnote a) and 6 (see footnote b) of the Export and Import Permits Act (see footnote c), makes the annexed Order Amending the Automatic Firearms Country Control List.
Order Amending the Automatic Firearms Country Control List
1 The Automatic Firearms Country Control List (see footnote 1) is amended by adding the following in alphabetical order:
Coming into Force
2 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
The regulatory amendment to which this regulatory impact analysis statement relates seeks to add Ukraine to the list of countries on the Automatic Firearms Country Control List (AFCCL) established under the authority of section 4.1 of the Export and Import Permits Act (EIPA).
The EIPA requires that a person, prior to a shipment, obtain an export permit from the Minister of Foreign Affairs to export from Canada an item that is found on the Export Control List (ECL). Applications to export goods or technology listed on the ECL are reviewed on a case-by-case basis by the Government of Canada, to ensure that the proposed export is consistent with Canada’s foreign and defence policies.
The AFCCL is an additional export control measure that is unique to Canada. Export of “automatic firearms” is prohibited from Canada unless the country of end-use is listed on the AFCCL. For the purposes of the AFCCL automatic firearms are certain prohibited firearms, prohibited weapons and prohibited devices, and components or parts of such items as defined in the Criminal Code. Examples of these items include fully automatic firearms, electric stun guns and large-capacity magazines. These items are captured under Group 2 of the ECL.
The addition of a country to the AFCCL allows exporters to apply for permits for the commercial export of prohibited firearms, weapons, and devices from Canada to that country. The export of such items must be authorized in advance by an export permit issued by the Minister of Foreign Affairs. The inclusion of a country on the AFCCL does not guarantee the approval of exports of automatic firearms and related components. Once a country has been added to the AFCCL, export permit applications for AFCCL items are reviewed on a case-by-case basis. Applications for export permits for these items are considered for AFCCL government end-users, or for end-users authorized by the government of an AFCCL country.
There are currently 39 countries listed on the AFCCL, consisting mainly of NATO member countries, as well as Australia, Botswana, Chile, the Republic of Colombia, Finland, Israel, Kuwait, New Zealand, Peru, Saudi Arabia, the Republic of Korea and Sweden.
- Support Canada’s bilateral relationship with Ukraine.
- Allow Canadian exporters to apply for export permits for the export of certain prohibited firearms, prohibited weapons and prohibited devices to Ukraine.
Once approved, this regulatory amendment of the AFCCL will add Ukraine to the list of countries that the Governor in Council deems appropriate to export certain prohibited firearms, prohibited weapons and prohibited devices, and their components or parts.
The inclusion of Ukraine on the AFCCL allows Canadian residents to apply for an export permit for these items to Ukraine. Applications for such export permits will be reviewed on a case-by-case basis by the Government of Canada for consistency with Canada’s defence and foreign policies.
The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to these amendments.
Public web-based consultations were held by Global Affairs Canada (simultaneously via the Global Affairs Canada website and the Consulting Canadians website) for 30 days between June 12 and July 11, 2015, regarding the addition of Ukraine to the AFCCL, during which stakeholders were invited to provide comments. There were 11 responses from the public with the majority being supportive of the proposed amendment. The responses came from a range of stakeholders, namely from civil society, industry as well as from individuals. Positive responses to this proposed amendment welcomed Canada’s strong support of Ukraine, while also agreeing with the importance of effective export controls to avoid abuse and diversion of small arms contrary to Canada’s foreign and defence interests and its values. A response that called for a more cautionary approach pointed to alleged serious human rights violations committed by both sides of the conflict in eastern Ukraine, and noted that for this reason it would be important to have strong and explicit re- evaluation mechanisms in place even after a country has been added to the AFCCL to ensure that it meets the required criteria. Global Affairs Canada considers this concern to be mitigated by the fact that each permit must be assessed on a case-by-case basis, including an assessment of the end-user and end-use, and must be found in compliance with Canada’s foreign and defence policies before being issued.
This regulatory amendment builds on the bilateral relationship between Canada and Ukraine, recently strengthened by initiatives such as the entry into force of the Canada–Ukraine Free Trade Agreement (CUFTA) on August 1, 2017, and a Defence Co-operation Arrangement (DCA) on April 3, 2017. It also creates potential new market opportunities for Canadian manufacturers and exporters to provide AFCCL items to AFCCL government end-users and AFCCL government sanctioned end-users. While it is impossible to predict how many AFCCL permits would be applied for and subsequently issued, the potential benefits can range up to dozens of long-term provision contracts for Canadian companies that could lead to support and repair contracts.
Companies seeking to export AFCCL items would incur limited costs in applying for an export permit. However, these costs would be offset by the benefits of the potential export opportunities.
The Government of Canada has determined that Ukraine is an appropriate destination for inclusion on the AFCCL, including further to the signature of a Defence Co- operation Arrangement and consultation with the Minister of National Defence. As stated above, the addition of a country to the AFCCL does not guarantee that the Minister of Foreign Affairs will issue an export permit. All applications are reviewed on a case-by-case basis by the Government of Canada.
Implementation, enforcement and service standards
All items listed on the ECL, including the prohibited firearms, prohibited weapons and prohibited devices to which the AFCCL refers are, unless otherwise stated, subject to export permit requirements. Failure to comply with the EIPA, or its related regulatory or other requirements, may lead to prosecution. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of export controls.
Export Controls Division (TIE)
Foreign Affairs and International Trade Canada
125 Sussex Drive