Order Amending the Export Control List: SOR/2019-92
Canada Gazette, Part II, Volume 153, Number 8
SOR/2019-92 April 8, 2019
EXPORT AND IMPORT PERMITS ACT
P.C. 2019-269 April 5, 2019
Whereas the Governor in Council deems it necessary to control the export of goods and technology to ensure that arms, ammunition, implements or munitions of war, naval, army or air stores or any articles deemed capable of being converted into those things or made useful in the production of those things or otherwise having a strategic nature or value will not be made available to any destination where their use might be detrimental to the security of Canada and to implement an intergovernmental arrangement or commitment;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to paragraphs 3(1)(a) and (d) and section 6 footnote a of the Export and Import Permits Act footnote b, makes the annexed Order Amending the Export Control List.
Order Amending the Export Control List
1 The definitions Guide and Wassenaar Arrangement in section 1 of the Export Control List footnote 1 are replaced by the following:
- Guide means A Guide to Canada’s Export Control List – December 2016, published by the Department of Foreign Affairs, Trade and Development. (Guide)
- Wassenaar Arrangement means the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies that was reached at the Plenary Meeting in Vienna, Austria held on July 11 and 12, 1996 and amended by WA-LIST (16) 1 Corr. 1 at the Plenary Meeting held from December 6 to 8, 2016. (Accord de Wassenaar)
2 Paragraph (b) of Group 3 of the schedule to the List is replaced by the following:
- (b) in accordance with the procedures referred to in the Guidelines for Nuclear Transfers (INFCIRC/254/Rev.13/Part 1), issued by the Nuclear Suppliers Group and adopted at the Plenary Meeting held on June 23 and 24, 2016.
3 Paragraph (b) of Group 4 of the schedule to the List is replaced by the following:
- (b) in accordance with the procedures referred to in the Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Materials, Software, and Related Technology (INFCIRC/254/Rev.10/Part 2), issued by the Nuclear Suppliers Group and adopted at the Plenary Meeting held on June 23 and 24, 2016.
4 Group 6 of the schedule to the List is replaced by the following:
Missile Technology Control Regime
Goods and technology, as described in Group 6 of the Guide, the export of which Canada has agreed to control under bilateral arrangements concluded on April 7, 1987, in accordance with the Guidelines for Sensitive Missile-Relevant Transfers, issued by the Missile Technology Control Regime to control the export of missile equipment and technology referred to in the MTCR/TEM/2016/Annex that was adopted at the Plenary Meeting held from October 17 to 21, 2016.
5 Paragraph (a) of Group 7 of the schedule to the List is replaced by the following:
- (a) under a bilateral arrangement concluded on December 24, 1992, between Canada and the United States, this arrangement having been made in accordance with the Guidelines for Transfers of Sensitive Chemical or Biological Items, issued by the Australia Group to control the export of chemical and biological weapons, the list of which was amended at the Plenary Meeting held from June 6 to 10, 2016; and
Coming into Force
6 This Order comes into force on the 30th day after the day on which it is published in the Canada Gazette, Part II.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
The Export Control List (ECL), made pursuant to the Export and Import Permits Act, identifies items that are controlled for export or transfer from Canada to another country. Items listed on the ECL require a permit, issued by the Minister of Foreign Affairs, prior to being exported from Canada.
The ECL is amended on a regular basis in order to implement Canada’s international arrangements and commitments undertaken in accordance with the four multilateral export control and non-proliferation regimes in which Canada participates, namely the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Nuclear Suppliers Group, the Missile Technology Control Regime and the Australia Group. These bodies negotiate common lists of goods and technology that are implemented by participating states, according to their respective national legislation. By updating the ECL on an annual basis, Canada ensures that its control list remains up to date with respect to the regime lists and to the controls of its international partners. This is critical to ensure multilateral adherence in preventing the proliferation of controlled goods and technologies, and also helps to ensure that Canadian exporters are not placed at a competitive disadvantage internationally. The ECL was last updated in 2017 to reflect the Government of Canada’s commitments with respect to these regimes up to December 31, 2015.
Amendments are needed to reflect the Government of Canada’s commitments resulting from Canada’s participation in the four multilateral export control regimes, up until December 31, 2016.
The objective of this Order is to reflect the Government of Canada’s arrangements, commitments and policies resulting from Canada’s participation, up until December 31, 2016, in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Nuclear Suppliers Group, the Missile Technology Control Regime and the Australia Group.
The Order Amending the Export Control List (the Order) is amended to add 19 items for control, remove 8 items from control, and to make over 300 textual modifications to existing controls.
More specifically, items added for control are the following:
- Group 1: magnetic random access memory integrated circuits, hybrid integrated circuits with analogue-to-digital conversion and signal processing storage functions, certain transmit/receive monolithic microwave integrated circuits (MMICs) and modules;
- Group 2: furazanotetrazine dioxide (FTDO) [an explosive material], certain reactive materials for warheads;
- Group 4: certain plasma torches, certain electron beam guns;
- Group 6: hydroxyl-terminated glycidyl azide polymer (GAP), isopropyl ferrocene, certain gel propellants, certain ultra-high temperature ceramic composite materials, certain aerothermodynamic test facilities; and
- Group 7: certain equipment for bio-containment facilities.
Items removed from control are the following:
- Group 1: certain parallel mechanism machine tools and certain microwave solid state amplifiers; and
- Group 7: dengue virus (due to the availability now of a vaccine for this virus).
Some items have had their controls clarified, e.g. changes to the definitions with respect to technical descriptions of items, cross-referencing other definitions in the control list, and corrections made to spelling errors and text structures. These include the following:
- Group 1: ceramic matrix composite materials, analogue-to-digital converter integrated circuits, vacuum electron devices, microwave power modules, high performance computers, information security, non-tunable continuous wave lasers, non-tunable pulsed lasers, thermally decoupled liners;
- Group 4: atomization and melting furnaces, shock pressure gauges;
- Group 6: inertial measurement equipment and systems; and
- Group 7: human and animal pathogens and toxins.
The definition of “Guide” in section 1 of the ECL is replaced by “A Guide to Canada’s Export Control List – December 2016” so that it refers to the latest version of the document.
The Order both adds and removes controlled items, but it does not affect the export permit process. On balance, the net administrative burden is expected to remain relatively stable with an insignificant overall increase in administrative burden. However, while the administrative burden on decontrolled items has been lifted, the administrative burden placed on businesses has shifted to the newly controlled items. This triggers the “One-for-One” Rule. Nevertheless, as the amendments to the ECL are made to comply with international obligations, an exemption from the application of the “One-for-One” Rule has been granted.
Small business lens
The amendment to the ECL is not expected to result in any significant increase in the administrative burden for small businesses within Canada, as no small businesses have been identified that currently export the newly controlled items. In the event that this amendment does result in a small business being required to obtain an export permit, Global Affairs Canada will assist the company in the application process.
As is customary when dealing with potential changes to Canada’s export controls regime, consultations with industry stakeholders that could be affected by this regulatory change took place in 2016. Private industry was consulted prior to Canada entering into international negotiations and undertaking commitments in order to ensure a complete understanding of the impacts of certain proposed changes and to inform the development of Canada’s position regarding these changes.
The Order implements Canada’s international obligations pursuant to its participation in the above-mentioned multilateral export control regimes.
As a participating state in these regimes, Canada implements its export controls over goods and technology on the basis of the commonly negotiated lists. Changes to these multilateral lists are typically negotiated on an annual basis. In order for these changes to be implemented in Canadian law, an amendment to the ECL is required.
Implementation, enforcement and service standards
Exports or transfers of goods and technology listed in the ECL must be authorized by export permits to all destinations except where otherwise stated by the Government of Canada. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of export controls. Exporting, transferring, or attempting to export or transfer goods and technology identified on the ECL without a permit as required by the Export and Import Permits Act is prohibited and may lead to prosecution.
A detailed document highlighting the changes resulting from the amendment to the ECL is available on Global Affairs Canada’s export controls website at www.exportcontrols.gc.ca. This document allows exporters to easily identify changes made by the Order that may impact their businesses.
Export Controls Policy Division
Global Affairs Canada
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