Order Amending the Export Control List: SOR/2020-48
Canada Gazette, Part II, Volume 154, Number 7
SOR/2020-48 March 16, 2020
EXPORT AND IMPORT PERMITS ACT
P.C. 2020-140 March 13, 2020
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 2018, 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 (18) 1 at the Plenary Meeting in Vienna, Austria, held on December 5 and 6, 2018. (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 1a), issued by the Nuclear Suppliers Group and adopted at the Plenary Meeting held on June 14 and 15, 2018.
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 2a), issued by the Nuclear Suppliers Group and adopted at the Plenary Meeting held on June 14 and 15, 2018.
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/2018/Annex of November 30, 2018 that was adopted at the Reinforced Point of Contact Meeting held on December 18 and 19, 2018.
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 4 to 8, 2018; 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, 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 Export Control List require a permit, issued by the Minister of Foreign Affairs, prior to being exported from Canada.
The Export Control List 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 for export control that are implemented by participating states, according to their respective national legislation.
The Export Control List incorporates by reference A Guide to Canada’s Export Control List (the Guide), which sets out the complete list of items controlled for export, including their technical specifications as negotiated in the four regimes. The Guide is updated regularly to reflect the most recent updated list of goods and technology subject to export controls and requirements.
By amending the Export Control List on an annual basis to incorporate the most recent version of the Guide, Canada seeks to ensure that its control list remains up-to-date with the regime lists and 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 Export Control List was last updated on April 5, 2019, to reflect the Government of Canada’s commitments at these regimes up to December 31, 2016.
Amendments to the Export Control List incorporating the updated Guide, among other changes, are needed to reflect the Government of Canada’s latest commitments in the four multilateral export control regimes until December 2018.
The objective of this Order is to implement the Government of Canada’s arrangements, commitments and policies resulting from Canada’s participation, up until December 31, 2018, 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) updates the reference to the Guide so that the Export Control List incorporates the latest December 2018 version of the Guide.
Specifically, among other additions, the reference to the updated Guide applies export controls on the following items:
- Group 1: magnetic random access memories (MRAMs), high power discrete microwave transistors, electro-optic modulators, mask substrate blanks, software designed to restore microprocessors after electromagnetic pulse or electrostatic discharge, and read-out integrated circuits;
- Group 2: two explosive materials, a binder material, vessels for delivery of divers, and naval nuclear equipment;
- Group 4: target assemblies and components for the production of tritium; and
- Group 7: prefabricated repair assemblies and components for reaction vessels and storage tanks, CWC Schedule 2B precursor, and nucleic acid assemblers and synthesizers.
Specifically, among other deletions, the reference to the updated Guide removes export controls on the following items:
- Group 1: robots capable of full three-dimensional image processing in real time, linear position feedback units, rotary position feedback units, technology for the development of interactive graphics, and high-speed cinema recording cameras;
- Group 2: aero-engines manufactured before 1946; and
- Group 4: water-hydrogen sulphide exchange tray columns.
Specifically, among other modifications, the reference to the updated Guide clarifies, either through grammatical edits or technical notes, the following controls:
- Group 1: Composite structures and laminates, materials designed for absorbing near infrared radiation, standard for ball bearings, numerically controlled machine tools, dimensional inspection or measuring systems, compound rotary tables, digital-to-analogue converters, high-energy devices, signal generators, high resistivity materials, software for digital computers, information security systems, hydrophones, lasers, unmanned submersible vehicles, underwater vision systems, marine gas turbine engines, telemetry and telecommand equipment, and software for testing aero gas turbine engines;
- Group 2: Accessories designed for arms, ground vehicles and components, diesel engines for submarines, and intermodal containers for military use;
- Group 3: Irradiated fuel element decladding equipment; and
- Group 6: Turbojet and turbofan engines, batch and continuous mixers, and propellant substances.
The reference to the updated Guide also includes the new Group 9 which will facilitate reporting on the export of full-system conventional arms that fall under the scope of the Arms Trade Treaty, as defined by the United Nations and in the Wassenaar Arrangement. Group 9 was established in June 2019 under a separate regulation as part of the Arms Trade Treaty Implementation package.
The Order also amends the Export Control List to bring up-to-date the titles of the various control lists established by the regimes.
The Order both adds and removes items from the Export Control List, but it does not affect the export permit process. The administrative burden placed on businesses will shift to the newly controlled items, while the administrative burden on decontrolled items will be lifted. On balance, there is expected to be no increase in administrative burden as a result of this regulatory amendment and as such the “One-for-One” Rule is not triggered.
Small business lens
The amendment to the Export Control List is not expected to result in any 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.
Consultations with industry stakeholders that could be affected by this regulatory change took place in 2017 and 2018. 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. No proposals were ultimately accepted in the multilateral export control regimes in areas where Canada had raised concerns as a result of stakeholder feedback.
The Order implements Canada’s international obligations pursuant to 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 Export Control List 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 Export Control List 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 Export Control List is available on Global Affairs Canada’s export controls website. This document allows exporters to easily identify changes made by the Order that may impact their businesses.
Export Controls Policy Division
Global Affairs Canada
125 Sussex Drive