Order Amending the Automatic Firearms Country Control List: SOR/2025-41

Canada Gazette, Part II, Volume 159, Number 6

Registration
SOR/2025-41 February 26, 2025

EXPORT AND IMPORT PERMITS ACT

P.C. 2025-166 February 25, 2025

Whereas, under section 4.1footnote a of the Export and Import Permits Act footnote b, the Minister of Foreign Affairs has consulted with the Minister of National Defence;

And whereas the Governor in Council considers it appropriate to permit the export of any thing that is referred to in any of paragraphs 4.1(a) to (c)footnote a of that Act and that is included in an Export Control List, or any component or part of any such thing, to the countries listed in the annexed Order;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Order Amending the Automatic Firearms Country Control List under sections 4.1footnote a and 6footnote c of the Export and Import Permits Act footnote b.

Order Amending the Automatic Firearms Country Control List

Amendment

1 The Automatic Firearms Country Control List 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.)

Issues

Canada maintains a list of countries to which it may consider appropriate to permit the export of certain prohibited firearms, weapons and devices (or components or parts thereof). The purpose of this list, known as the Automatic Firearms Country Control List (AFCCL), is to serve as an additional vetting and control mechanism for exports of prohibited firearms, weapons and devices (or components or parts thereof). These prohibited items, referred to here as AFCCL items, can be used independently or can be integrated into other military and related platforms.

The determination of whether a country is an appropriate destination includes an assessment of consistency with overall Canadian foreign and trade policy priorities and objectives for the country or region concerned, the nature of the defence and overall bilateral relationship, whether the export of these items would be consistent with Canada’s international obligations, the country’s peace, stability and security relationships with the wider region, potential risk to national security, whether there is potential to expand commercial ties in the defence sector, and whether or not there is a significant risk of diversion of AFCCL exports.

Further to broad consultation on the above criteria with a range of experts at Global Affairs Canada and at the Department of National Defence, it has been determined that Brazil and Montenegro are countries that meet the criteria for addition to the AFCCL, which makes possible enhanced government-to-government defence cooperation and may create potential opportunities for Canadian defence exporters.

Background

The Export and Import Permits Act (the Act) places strict controls on the export of prohibited firearms, prohibited weapons and prohibited devices (as defined in the Criminal Code). Export permit applications for these items are only considered to countries on the AFCCL.

The AFCCL was established in 1991 and currently lists 46 countries: Albania, Australia, Austria, Belgium, Botswana, Bulgaria, Chile, Colombia, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Republic of Korea, Kuwait, Latvia, Lithuania, Luxembourg, Netherlands, New Zealand, North Macedonia, Norway, Peru, Poland, Portugal, Qatar, Romania, Saudi Arabia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom and the United States.

The Minister of Foreign Affairs is required by the Act to consult the Minister of National Defence before recommending to the Governor in Council the addition of a country to the AFCCL.

Inclusion on the AFCCL does not guarantee the approval of exports of prohibited firearms, prohibited weapons and prohibited devices (and components thereof). As usual, an export permit issued by Global Affairs Canada must be obtained in order to lawfully export these items from Canada. All applications to export controlled items are rigorously evaluated on a case-by-case basis and the exportation of these items is limited only to consignees that are government or authorized by government.

Any permit application is assessed against considerations laid out in the Act (including the Arms Trade Treaty [ATT] assessment criteria and the substantial risk test) and in policy. The ATT criteria include considerations as to whether the proposed export could be used to commit or facilitate a serious violation of international human rights or humanitarian law, an act of terrorism or transnational organized crime, or a serious act of gender-based violence or violence against women and children. If, after considering any available mitigating measures, the Minister of Foreign Affairs determines that there is a substantial risk that an export of military items would result in any of these negative consequences, then the Minister is legally obligated to deny a permit for that export. For more information on Global Affairs Canada’s export permit application assessment process, please consult the Export and Brokering Controls Handbook.

Objective

The purpose of the Order Amending the Automatic Firearms Country Control List (the Order) is to add countries to the AFCCL that are considered appropriate destinations for the export of AFCCL items, with a view of building on positive defence and security relationships and expanding defence cooperation and trade ties.

Description

The Order adds Brazil and Montenegro to the AFCCL.

Regulatory development

Consultation

From November 4 to December 3, 2024, the Government of Canada consulted Canadians on the proposal to add Brazil and Montenegro to the AFCCL on the Consulting with Canadians web platform, a dedicated consultation platform that facilitates more efficient consultations. Six comments were received from five participants, including three industry members, an official of the Brazilian police and one resident of Canada.

Of the five respondents, four were supportive of the addition of Brazil to the AFCCL and raised no concerns.

The three industry members noted the Canada-Brazil Defence Cooperation Agreement signed in June 2023, aims to enhance cooperation between the two countries across several key areas, including the acquisition of defence products and services. They also noted that the Brazilian Army is in the process of implementing a force modernization program aimed at the development of comparable capabilities to NATO, specifically for the purpose of multinational stability-ops and interoperability with western nations. They also commented that adding Brazil to the AFCCL will enable closer ties with Brazil as a partner in defence and will enable Canadian defence industry access to an important market for select defence goods that would ultimately support Brazil and Canada’s economic, trade and security interests. One industry member, in addition to signalling their support for Brazil, also expressed their support for Montenegro’s addition to the AFCCL noting it remains the only NATO member country not included on the AFCCL and is a European ally. They noted that adding both Montenegro and Brazil to the AFCCL would strengthen relations with these partners and enhance global security with Canadian exports.

The fourth respondent, an official from the Police of Rio de Janeiro, also spoke to the high quality of Canadian products and noted they could help combat crime and the drug cartels in Rio de Janeiro.

The last respondent was an individual who expressed concerns with the import, export and use of automatic firearms in general but did not raise any concerns related to the specific destinations that were the subject of the public consultation.

Modern treaty obligations and Indigenous engagement and consultation

The Order is not expected to impact treaties with the Indigenous peoples of Canada. Global Affairs Canada conducted an initial assessment that examined the geographical scope and subject matter of the initiative in relation to modern treaties in effect and did not identify any potential modern treaty impacts.

Global Affairs Canada officials are also not aware of any First Nations-led businesses that export AFCCL items that would be impacted by this Order.

Instrument choice

The authority to amend the AFCCL lies with the Governor in Council, as per section 4.1 of the EIPA. Therefore, no other instrument, including a policy instrument, would have been suitable.

Regulatory analysis

Benefits and costs

The addition of Brazil and Montenegro to the AFCCL will enable closer bilateral relations with these countries as a partner in defence and enable the Canadian defence industry to support Brazil, Montenegro and Canada’s economic, trade and security interests.

Further, the Order would result in commercial opportunities for a narrow segment of Canadian industry. Adding Brazil and Montenegro to the AFCCL will create opportunities for Canadian companies seeking to export AFCCL items to markets that were previously prohibited, and thereby contribute to economic growth within Canada.

The Canadian companies that export these items are well established, regularly apply for permits, and understand the export permit application process. Apart from the cost in time and labour to apply for a permit to export AFCCL items to the newly listed destinations, there are no costs to industry as a result of the Order. There is no fee to apply for a permit to export AFCCL items.

The Order is not expected to result in a significant increase in export permit applications processed over the long term. In 2023, the last year for which public data is available, Global Affairs Canada issued zero export permits for Montenegro and 17 export permits for Brazil for military goods and technology (out of a total of 2 846 export permit applications processed for military goods and technology to all destinations).

Small business lens

Analysis under the small business lens concluded that the Order will not impact Canadian small businesses. Given the value of the items typically being exported, it is unlikely that any of the businesses would meet the definition of “small business” that is set out in the Policy on Limiting Regulatory Burden on Business. A small business is one that has fewer than 100 employees or less than $5 million in annual national revenue.

One-for-one rule

The one-for-one rule applies since there is a small incremental increase in administrative burden on businesses, and the Order is considered a burden “in” under the rule; no regulatory titles are repealed or introduced. The addition of the two countries to the list broadens its reach, and the administrative burden associated with applications for export permits is incremental and must be calculated and offset as required by the Red Tape Reduction Act. It is assumed that there would be approximately 20 new export permit applications in the 10 years following registration of the amending Order, with an estimated annualized cost of $55 (figure in 2012 dollars and discounted to 2012 using a 7% discount rate).

Regulatory cooperation and alignment

The AFCCL is a provision that is unique to Canada. The Order aligns Canada more closely with other like-minded countries by adding destinations to which it is possible to export prohibited firearms, weapons and devices, subject to the issuance of a valid export permit.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a SEEA is not required.

Gender-based analysis plus

No substantial gender-based analysis plus (GBA+) impacts have been identified in relation to this Order.

Canada assesses all export permit applications against the potential risk of gender-based violence or violence against vulnerable groups. Canada has also acceded to the ATT, which is the first international treaty that specifically mentions gender-based violence as an outcome to prevent when determining whether to allow the export of arms. The Act was amended on December 13, 2018, to include the ATT criteria in permitting decisions in respect of arms, ammunition, implements or munitions of war. The fact that the Minister of Foreign Affairs must deny an export permit for AFCCL items if the proposed export would result in a substantial risk to vulnerable groups mitigates the potential negative consequences of the Order.

The addition of the Brazil and Montenegro to the AFCCL could result in new commercial opportunities for Canadian businesses in the security and defence industries. If this were to occur, such economic benefits may not be shared evenly between the genders as those identifying as women comprise only 27% of the workforce in the defence industry. The disparity in employment between men and women is most acute in the occupations related to science, technology, engineering, and mathematics (STEM occupations), where those identifying as women account for only 17% of all employees. However, the economic benefits could be distributed throughout the country (Western Canada, including the Territories, Ontario, Quebec and the Atlantic Provinces), as Canada’s defence and security industry operates in all those regions.

Implementation, compliance and enforcement, and service standards

Implementation

The Order comes into force on the day it is registered. From that day forward, the Export Controls Operations Division at Global Affairs Canada, which is responsible for issuing export permits, will be able to assess export permit applications for AFCCL items to the newly listed destinations, on a case-by-case basis and in accordance with assessment considerations laid out in legislation and policy.

Compliance and enforcement

All exports or transfers of prohibited firearms, weapons and devices (or components and parts thereof) that are listed on the Export Control List 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. Exporting, transferring, or attempting to export or transfer goods and technology identified on the Export Control List without a permit as required by the Act is prohibited and may lead to prosecution.

Service standards

Complete applications for low-risk destination countries are generally reviewed within 10 business days, while destination countries that require broader consultation are generally reviewed within 40 business days. For more information on the processing times for permit applications to export controlled items, please consult the latest version of the Export and Brokering Controls Handbook.

Contact

Jason Mounzer
Policy Analyst
Export Controls Policy Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Fax: 613‑996‑9933
Email:  expctrlpol@international.gc.ca