Canada Gazette, Part I, Volume 160, Number 17: Order Amending the Export Control List

April 25, 2026

Statutory authority
Export and Import Permits Act

Sponsoring department
Department of Foreign Affairs, Trade and Development

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Government of Canada administers a system of permits that controls the export of sensitive goods and technologies. This system plays an important role in helping the Government advance international peace and security, honour Canada’s international agreements, and prevent harm to Canada. Controls must be updated from time to time to reflect advances in technology or changes in the use of goods and technology, or to address gaps in the export controls framework that could result in harm.

The Order Amending the Export Control List (proposed Order) would add new controls related to semiconductors and assemblies containing them as well as to advanced manufacturing, including controls on lithography equipment, epitaxial depositioning equipment, semiconductor manufacturing deposition equipment, boards containing field programmable logic devices, advanced computing integrated circuits and electronic assemblies, and specialized powders used in additive manufacturing.

The establishment of these new controls is necessary to address the growing risk that these items could be exported or diverted to uses contrary to Canada’s security and foreign policy interests. In recent years, rapid advances in high-performance computing and semiconductor manufacturing have increased the potential for these technologies to be used in the development of military systems, including artificial intelligence, aerospace, and precision weapons applications. In parallel with these advances, Canada, its partners and allies are contemplating and implementing national measures separate from traditional multilateral export controls. The proposed amendments to the Export Control List would ensure that Canada keeps pace with developments, prevents harmful transfers, and upholds its long-standing stance on safeguarding peace and security.

The proposed Order would also consolidate and streamline existing controls related to semiconductor manufacturing equipment so that they are easier to read and understand.

Background

Regulatory framework

The Export Control List (ECL) is a regulation made under the Export and Import Permits Act (EIPA). The ECL identifies specific goods and technologies that are controlled for export from Canada to other destinations. Exports of items controlled in the ECL may only be made under the authority of a permit issued by the Minister of Foreign Affairs to a resident of Canada.

Multilateral export control and non-proliferation regimes

The ECL is usually automatically amended through incorporation by reference to align with international arrangements made with partners in four multilateral export control and non-proliferation regimes designed to prevent the spread of weapons of mass destruction and related military capabilities and to provide a common framework for identifying sensitive goods and technologies and help ensure that national measures are coherent and effective.

The four regimes each have a distinct focus. The regimes are the Wassenaar Arrangement, which covers conventional arms and dual-use items;footnote 1 the Nuclear Suppliers Group, which covers nuclear materials, equipment, and technology; the Missile Technology Control Regime, which covers ballistic missile and drone delivery systems; and the Australia Group, which covers chemical and biological weapons–related items.

National controls

Because multilateral regimes operate by consensus, their ability to update control lists in a timely manner has sometimes been limited. Furthermore, the rapid evolution of sensitive technologies with potential military applications has heightened the need for more agile responses.

To address these challenges, Canada, together with allies and partners, has been introducing coordinated national controls outside the formal regime structures, ensuring that export control frameworks remain current and effective. For example, Canada amended the ECL in 2024 and 2025, adding new items under Group 5 (Miscellaneous Goods and Technology), which aligns the ECL with controls advanced by partners and allies in North America, Europe, the South Pacific, and Asia. These new controls govern the export of sensitive and emerging goods and technologies, including quantum computers and advanced semiconductor manufacturing equipment, 3D printing technologies, and high temperature coatings usable in military applications.

Semiconductor technologies and advanced manufacturing

Canada is now moving ahead alongside allies and partners to develop controls related to semiconductors and assemblies containing them, as well as to advanced manufacturing. These technologies are of concern because they underpin the production of leading-edge semiconductors and advanced manufactured components that can enhance military capabilities. Lithography and deposition equipment are critical to fabricating the smallest and fastest microprocessors, which are increasingly used in artificial intelligence, command-and-control, and surveillance systems. Boards and integrated circuits enable high-performance computing applications that can be applied to aerospace and weapons development. Specialized additive manufacturing powders facilitate the production of advanced parts with military or dual-use applications.

Objective

The objective of the proposed Order is to ensure that Canada’s export control framework keeps pace with — and controls the export of — rapidly evolving technologies that can be used for military purposes. By controlling the export of these goods and technologies, Canada seeks to prevent and deter their export to unauthorized end-users and their potential use in ways that could undermine international security. The proposed Order would also align Canada’s framework with those of allies and partners.

Description

The proposed Order would add the following goods and technologies related to semiconductors and assemblies containing them as well as advanced manufacturing to the ECL under Group 5, item 5506 (Miscellaneous Goods and Technology):

  1. Lithography equipment: Equipment used in semiconductor manufacturing to transfer intricate circuit patterns onto silicon wafers, which is a critical step in making microchips.
  2. Epitaxial depositioning equipment: Equipment used in semiconductor manufacturing to grow a thin crystalline layer on top of a wafer. This equipment plays a key role in improving the performance of semiconductor devices.
  3. Semiconductor manufacturing deposition equipment: Equipment used to deposit ultra-thin layers of materials on wafers to build microscopic structures on semiconductors. This equipment is used to manufacture leading-edge processors.
  4. Boards containing field programmable logic devices: Circuit card assemblies, boards or modules that incorporate certain integrated circuits that can be reconfigured after manufacturing. These are often called field-programmable gate arrays (FPGAs).
  5. Advanced computing integrated circuits and electronic assemblies: High performance integrated circuits (computer chips) as well as any computer or electronic assembly that contains them. This category targets only the most advanced microprocessors.
  6. Powders containing inoculants used in additive manufacturing: Powders used in 3D printing (additive manufacturing) that contain special additives (inoculants) used to form stronger, more reliable microstructures during metal printing. These powders can enable the manufacture of high-performance parts that otherwise would be controlled.

The effect of the proposed Order would be to require exporters of these goods and technologies to obtain a permit from Global Affairs Canada before exporting them from Canada. These controls would apply to exports of the physical goods as well as “technology” within the meaning of the EIPA, which includes technical data, technical assistance and information necessary for the development, production or use of an article included on the ECL.

The proposed Order would also consolidate and streamline Group 5 controls related to semiconductor manufacturing equipment so that they would be easier to understand and align with similar controls in ECL Group 1 (Dual Use).

Regulatory development

Consultation

As per long-standing practice, Global Affairs Canada engaged with a range of Canadian stakeholders to assess the potential impacts of the proposed controls. The Department consulted with the majority of stakeholders that would be affected, including more than 15 organizations across industry and academia, with representation from the semiconductor, aerospace and defence, advanced manufacturing, and artificial intelligence research communities. Taken together, consultations confirmed that the proposed controls are unlikely to result in significant impacts for Canadian businesses or research institutions given that the items are either minimally or not at all produced or manufactured domestically. Where applicable, feedback informed refinements to ensure that the controls remain targeted, proportionate, and consistent with measures being adopted by partner countries.

Some stakeholders also noted that firms from the United States might be constrained from exporting to Canada if Canada does not advance controls consistent with the proposed Order. Such constraint could have implications for research collaboration and business opportunities.

Indigenous engagement, consultation and modern treaty obligations

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an analysis was undertaken to determine whether the proposed Order would give rise to modern treaty implications. Global Affairs Canada conducted an initial assessment of the geographical scope and subject matter of the initiative related to modern treaties in effect and did not identify any potential modern treaty impacts.

Instrument choice

While the goods and technologies proposed for addition to the ECL may have legitimate civilian uses, they can also enable military systems, including artificial intelligence–enabled command and control, surveillance systems, advanced aerospace platforms, and precision-guided weapons. If they were permitted to be exported without safeguards, there is a risk that they could be diverted, trafficked, or otherwise used to undermine international security or threaten Canada’s security interests. Adding these items to the ECL would help to ensure that these items are not exported for use in programs that are contrary to Canada’s national and international security interests.

When Canada controls goods and technologies outside of multilateral export control and non-proliferation regimes, an order must be made to amend the ECL to have these items directly listed. The proposed Order would add new controls to Group 5 (Miscellaneous Goods and Technologies), which includes a range of items from softwood lumber to strategic goods and technology.

As Canada has determined that the identified goods and technologies need to be controlled for export because they could be used in military and/or illicit weapons programs, the ECL was determined to be the only option for implementing such controls. No other options were considered.

Regulatory analysis

Benefits and costs

The semiconductor and advanced manufacturing sectors are important economic engines for Canada. Statistics Canada estimates that in 2020, the semiconductor industry generated a total of $28.8 billion in total output and is a growth market, with one private sector forecaster suggesting a compound annual growth rate of 8% to 11% from 2023 to 2030. One private sector research firm suggests that Canada’s additive manufacturing sector could grow from US $1.7 billion in 2023 to US $6.7 billion by 2030, a compound annual growth rate of roughly 22%.

These sectors both rely significantly on imports, so that growth in these sectors depends on the willingness of international partners to trade with Canada on sensitive technologies or to allow them to transit through Canada. For example, in 2020, Canada’s semiconductor industry relied on $7.3 billion worth of imports.

The proposed controls are similar to those applied by international partners and have been scoped to provide confidence to international partners while minimizing the burden on Canadian industry.

Benefits

The proposed Order would help protect Canada and its allies from adverse consequences for international security by limiting the export of these advanced goods and technologies and ensuring careful review and oversight of proposed export transactions. This would help to ensure that Canada would not be used as a transit point for exporters in other jurisdictions seeking to circumvent their national legislation. It would also help avoid a situation where other governments decline to export semiconductors or advanced manufacturing goods or technologies to Canada because of inadequate export controls.

Costs

Exporters of newly controlled items would need to obtain a permit prior to exporting to all destinations other than the United States.

The majority of costs of applying for permits would apply to businesses in the semiconductor and advanced manufacturing sectors. It is expected that only a small number of universities and researchers would apply for permits to export technical information related to the development of newly controlled items, as the controls do not apply to technology in the public domain, basic scientific research or to the minimum necessary information for patent applications.

Although the semiconductor and advanced manufacturing sectors are growing in Canada, this proposal is not expected to have significant impacts on Canadian businesses because most of the items (advanced semiconductor manufacturing equipment, advanced microprocessors and computers, and the powder of high entropy alloys and refractory metals) are not currently produced, manufactured, or used in Canada. As stakeholders have noted, Canada’s ability to expand manufacturing or trade in these technologies depends on controls that are aligned with key allies and partners.

With this in mind, it is projected that Global Affairs Canada would receive 15 new applications from industry in Year 1, increasing to a total of 22 additional applications in Year 10.

Costs to government

Global Affairs Canada would incur costs to process up to 22 additional permit applications per year. This is a minimal incremental administrative cost for the Department, which processed an average of 5 693 applications for strategic and military goods and technology applications per year between 2014 and 2024. Likewise, given the low number of anticipated exports, there would also be a minimal incremental cost to the Canada Border Services Agency for enforcing export controls (e.g. validating permits at border crossings, detaining non-compliant exports). It is also anticipated that some of these exports would not take place at the border but rather via transfer by intangible means, such as via email or the cloud.

Accordingly, the proposed Order is not expected to require new resources, specialized infrastructure, or significant changes to existing practices.

Costs to industry

Exporters would bear costs to apply for an export permit to export (to non-U.S. destinations) any of the items added to the ECL under the proposed Order. The incremental administrative cost for exporters is expected to be $18.91 per application, assuming the average time spent per application is 30 minutes and the average wage per hour (including overhead) for applicants is $37.82. These figures are presented in 2024 dollars.

Additional costs may also be carried and would vary on a case-by-case basis. For example, applicants would need to wait for the application to be processed. In most cases, a 10-business-day service standard would apply. As these items are not yet manufactured for sale, costs would likely be minimal. Any non-residents seeking to export these items would require that a custom broker or a resident apply on their behalf. This typically impacts less than 2.5% of applications. As well, applicants may also bear a cost for lost business if an export permit is denied and another buyer cannot be found. This cost would vary depending on the value of the proposed export. This being said, denial rates are typically below 1%.

Small business lens

Analysis under the small business lens concluded that the proposed Order would impact small businesses that work with the goods and technologies proposed to be added to the list.

It was determined that there are no practical opportunities to reduce regulatory burden on small business (e.g. by exempting permit requirements or shortening service standards for small businesses) because new controls are driven by security considerations. Instead, Global Affairs Canada supports small businesses by providing assistance support during the application process via a dedicated telephone helpline, a dedicated mailbox, as well as online assistance in the electronic permitting system, and by ongoing engagement with the permit officer assigned to individual applications.

One-for-one rule

The one-for-one rule applies because there would be an incremental increase in administrative burden on business. The proposal is, therefore, considered burden IN under the rule. The proposed Order would not add or remove regulatory titles under the one-for-one rule.

It is estimated that the proposed Order would result in an annualized total administrative cost of $128 for affected businesses, based on the assumption that up to 14 companies would cumulatively submit up to 22 permit applications per year by Year 10. Exporters are expected to spend an average of 30 minutes per application, which is longer than other applications, because these new controls would need to be precisely described in an application. It is assumed that the average wage of export permit applicants (including overhead) is $35.75/hour.

As per the Red Tape Reduction Regulations, the assessment of administrative impacts was conducted for a period of 10 years. Values in this section are presented in 2012 dollars, discounted to 2012 at a rate of 7%.

Regulatory cooperation and alignment

The controls in the proposed Order have been specifically negotiated and scoped to ensure alignment with Canada’s allies and partners. These partners are at various stages of implementing national controls consistent with those described in the proposed Order. For example, in September 2025, the European Commission published draft controls aligned with the proposed Order that would apply in its 27 Member States. It is expected that consistent controls will be adopted in as many as 40 countries, strengthening the overall effectiveness of the controls in preventing diversion and unauthorized use.

International obligations

The proposed Order would not affect Canada’s formal international obligations. Canada, its allies, and its partners continue to affirm the importance of cooperation on export controls related to critical and emerging goods and technologies to promote international security, and are committed to working together on implementing the necessary national controls. For example, recent G7 Statements (June 2023, [ARCHIVED] December 2023, [ARCHIVED] June 2024) highlight the need to strengthen efforts on export controls to address risks and to ensure gaps in export controls for dual-use goods and technologies cannot be exploited.

Effects on the environment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

A gender-based analysis plus (GBA+) was conducted. The proposed Order is not expected to result in differential impacts based on gender and/or other identity factors. Under the EIPA, export permit applications for controlled military items must be assessed against the risk that the export could be used to commit or facilitate serious acts of gender-based violence and violence against women and children. The Minister of Foreign Affairs cannot issue a permit if there is a substantial risk that the export would be used to commit or facilitate these acts. This requirement applies to all other controlled items under the Department’s policy.

Implementation, compliance and enforcement, and service standards

Implementation

As per long-standing practice with strategic exports, the proposed Order would come into force 30 days after the day it is published in the Canada Gazette, Part II, to provide time for implicated parties to become aware of the new controls and to apply for an export permit in advance of the coming-into-force date. No permit would be required for exports to the United States. The proposed Order would also be published on the Department’s website, and a notice would also be communicated to stakeholders through the Department’s web application, entitled Export Controls On-Line (NEXCOL).

Compliance and enforcement

All exports or transfers by any means of items, including technical data, technical assistance and information necessary for the development, production, or use of an item controlled under the ECL must be authorized by an export permit. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of export controls. In addition, through the Safeguarding Science Initiative, Global Affairs Canada, in collaboration with Public Safety Canada, performs regular outreach to academia and relevant stakeholders to raise awareness of Canada’s export control regime. This proactive outreach helps ensure that the relevant stakeholders remain up to date with the regulatory requirements and improves compliance.

Service standards

Service standards for evaluating and issuing export permits are set out in Global Affairs Canada’s Export and brokering controls handbook. From the date a complete permit application is received, it is expected that 90% of the time, a decision on an application will be provided within 10 business days, where consultations outside the Export Controls Operations Division are not required, and within 40 business days where consultations are required. These standards are comparable to international regulators that apply similar controls.

Adherence to the service standard depends on the complexity of the proposed export, including the details of the proposed transaction and the broader context. If any part of an application triggers consultation outside of the Export Controls Operations Division, applicants are generally made aware early in the process.

Contact

Charles Thompson
Acting Senior Policy Analyst
Export Controls Policy Division – ITR
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Email: expctrlpol@international.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Order Amending the Export Control List under paragraph 3(1)(a) and section 6footnote a of the Export and Import Permits Act footnote b.

Interested persons may make representations concerning the proposed Regulations within 30 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, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the following email address: expctrlpol@international.gc.ca.

Ottawa, April 16, 2026

Janna Rinaldi
Acting Assistant Clerk of the Privy Council

Order Amending the Export Control List

Amendments

1 (1) Subitem 5506(1) of the schedule to the Export Control List footnote 2 is replaced by the following:

5506 (1) In this item, composite, development, digital computer, electronic assembly, Gate-All-Around Field-Effect Transistor (GAAFET), laser, matrix, production, software, substrate, substrate blanks, technology and use have the same meaning as in the Guide under the heading “Definitions of Terms Used in Groups 1 and 2”.

(2) Subparagraphs 5506(2)(a)(i) and (ii) of the schedule to the List are replaced by the following:

(3) Paragraph 5506(2)(a) of the schedule to the List is amended by striking out “and” at the end of subparagraph (iii) and by repealing subparagraph (iv).

(4) Subparagraph 5506(2)(b)(i) of the schedule to the List is replaced by the following:

(5) Paragraph 5506(2)(b) of the schedule to the List is amended by striking out “and” at the end of subparagraph (iii) and by replacing subparagraph (iv) with the following:

(6) Paragraph 5506(2)(c) of the schedule to the List is amended by adding the following after subparagraph (iv):

(7) Subparagraphs 5506(2)(d)(i) to (viii) of the schedule to the List are replaced by the following:

(8) Paragraph 5506(2)(e) of the schedule to the List is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

Coming into Force

2 This Order comes into force on the 30th day after the day on which it is published in the Canada Gazette, Part II.

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