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Vol. 144, No. 11 — May 26, 2010

Registration

SOR/2010-106 May 13, 2010

NUCLEAR SAFETY AND CONTROL ACT

P.C. 2010-572 May 13, 2010

The Canadian Nuclear Safety Commission, pursuant to subsection 44(1) (see footnote a) of the Nuclear Safety and Control Act (see footnote b), hereby makes the annexed Regulations Amending the Nuclear Non-proliferation Import and Export Control Regulations.

Ottawa, December 15, 2009

MICHAEL BINDER
President of the Canadian Nuclear
Safety Commission

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to subsection 44(1) (see footnote c) of the Nuclear Safety and Control Act (see footnote d), hereby approves the annexed Regulations Amending the Nuclear Non-proliferation Import and Export Control Regulations made by the Canadian Nuclear Safety Commission.

REGULATIONS AMENDING THE NUCLEAR NON-PROLIFERATION IMPORT AND EXPORT CONTROL REGULATIONS

AMENDMENTS

1. Section 3 of the Nuclear Non-proliferation Import and Export Control Regulations (see footnote 1) is renumbered as subsection 3(1) and is amended by adding the following:

(2) The Commission or any designated officer who is authorized to carry out the duties set out in paragraphs 37(2)(c) and (d) of the Act may request any other information that is necessary to enable the Commission or that officer to form the opinion referred to in subsection 24(4) of the Act.

2. (1) Subsection 4(1) of the Regulations is amended by striking out “or” at the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e):

(f) export the controlled nuclear substance referred to in paragraph A.1.4. of the schedule that is not for use in a nuclear reactor to any Participating Government of the Nuclear Suppliers Group.

(2) Section 4 of the Regulations is amended by adding the following after subsection (2):

(3) Every person who exports a controlled nuclear substance under paragraph (1)(f) shall, by January 31, submit to the Commission a written report that includes the following information regarding every export of the controlled nuclear substance in the previous calendar year:

(a) the exporter’s name, address and telephone number;

(b) a description of the controlled nuclear substance, including the quantity exported and country of origin;

(c) the date of export;

(d) the name and address of each consignee; and

(e) the intended end-use and end-use location of the controlled nuclear substance as stated by the final consignee.

3. The portion of the schedule to the Regulations after the heading “CONTROLLED NUCLEAR SUBSTANCES, EQUIPMENT AND INFORMATION” and before Part A is replaced by the following:

The following lists are reproduced, in rearranged form and with some modifications, from International Atomic Energy Agency Information Circulars INFCIRC/254/Rev.9/Part 1, INFCIRC/254/ Rev.7/Part 2 and INFCIRC/209/Rev.2.

4. (1) Paragraph A.1.1.(a) of Part A of the schedule to the Regulations is replaced by the following:

(a) plutonium and all isotopes, alloys and compounds and any material that contains any of these substances; and

(2) Paragraph A.1.1.(b) of Part A of the schedule to the English version of the Regulations is replaced by the following:

(b) uranium 233, uranium enriched in the isotopes 235 or 233 and all alloys and compounds and any material that contains any of these substances.

(3) Paragraph A.1.1. of Part A of the schedule to the Regulations is amended by adding the following after paragraph (b):

NOTE

Paragraph A.1.1. does not include

(a) special fissionable material occurring as contaminants in laundry, packaging, shielding or equipment;

(b) special fissionable material used as a sensing component in instruments in quantities of four effective grams or less; or

(c) plutonium 238 that is contained in heart pacemakers.

5. (1) The portion of paragraph A.1.2. of Part A of the schedule to the English version of the Regulations before paragraph (a) is replaced by the following:

A.1.2.  Source material

The following source materials in any form, including ore, concentrate, compound, metal or alloy, or incorporated in any substance, other than medicinals, and in which the concentration of source material is greater than 0.05 weight %:

(2) Paragraph A.1.2. of Part A of the schedule to the Regulations is amended by adding the following after paragraph (c):

NOTE

Paragraph A.1.2. does not include

(a) source material occurring as contaminants in laundry, packaging, shielding or equipment; or

(b) depleted uranium used as shielding for Class II Prescribed Equipment, within the meaning of section 1 of the Class II Nuclear Facilities and Prescribed Equipment Regulations, for radiation devices or for transport packaging.

6. Paragraph A.1.3. of Part A of the schedule to the Regulations is amended by adding the following after that paragraph:

NOTE

Paragraph A.1.3. does not include

(a) deuterium contained in deuterium lamps;

(b) deuterium occurring as a contaminant in laundry or equipment; or

(c) any deuterium compound that is used for labelling purposes.

7. Paragraph A.1.5. of Part A of the schedule to the English version of the Regulations is replaced by the following:

A.1.5.  Tritium

Tritium, tritium compounds or mixtures containing tritium in which the ratio of tritium to hydrogen by atoms exceeds 1 part in 1000 and products that contain any of these substances.

8. Paragraph A.2.1.3. of Part A of the schedule to the French version of the Regulations is replaced by the following:

A.2.1.3.  Machines pour le chargement et le déchargement du combustible nucléaire

Équipements de manutention spécialement conçus ou préparés pour introduire ou extraire le combustible d’un réacteur nucléaire.

9. Paragraph A.2.2. of Part A of the schedule to the French version of the Regulations is replaced by the following:

A.2.2.  Usines de retraitement d’éléments combustibles irradiés et équipements spécialement conçus ou préparés à cette fin, notamment :

10. Paragraphs A.2.2.5. and A.2.2.6. of Part A of the schedule to the Regulations are repealed.

11. Paragraph A.2.4. of Part A of the schedule to the Regulations is replaced by the following:

A.2.4.  Plants for the separation of isotopes of natural uranium, depleted uranium or special fissionable material and equipment, other than analytical instruments, especially designed or prepared for that purpose, including

12. Paragraphs A.2.4.2.3. and A.2.4.2.4. of Part A of the schedule to the Regulations are renumbered as paragraphs A.2.4.2.4. and A.2.4.2.5., respectively.

13. Part A of the schedule to the Regulations is amended by adding the following before paragraph A.2.4.2.4.:

A.2.4.2.3.  Special shut-off and control valves

Especially designed or prepared bellows-sealed shut-off and control valves, manual or automated, made of or protected by materials resistant to corrosion by UF6, with a diameter of 10 mm to 160 mm (0.4 in. to 6.3 in.), for use in main or auxiliary systems of gas centrifuge enrichment plants.

14. The portion of paragraph A.2.4.2.5. of Part A of the schedule to the French version of the Regulations before paragraph (a) is replaced by the following:

A.2.4.2.5.  Changeurs de fréquence

Changeurs de fréquence (également connus sous le nom de convertisseurs ou d’inverseurs) spécialement conçus ou préparés pour l’alimentation des stators de moteurs décrits au paragraphe A.2.4.1.2.d) ou parties, composants et sous-assemblages de changeurs de fréquence ayant toutes les caractéristiques suivantes :

15. Paragraphs A.2.6. and A.2.6.1. of Part A of the schedule to the Regulations are replaced by the following:

A.2.6.  Plants for the conversion of uranium and plutonium for use in the fabrication of fuel elements and the separation of uranium isotopes, as set out in paragraphs A.2.3. and A.2.4., respectively, and equipment especially designed or prepared for such plants, including

A.2.6.1.  Plants for the conversion of uranium and equipment especially designed or prepared for that purpose, including

A.2.6.1.1. Especially designed or prepared systems for the conversion of uranium ore concentrates to UO3.

16. Paragraphs A.2.6.2., A.2.6.3., A.2.6.4., A.2.6.5., A.2.6.6., A.2.6.7. and A.2.6.8. of Part A of the schedule to the Regulations are renumbered as paragraphs A.2.6.1.2., A.2.6.1.3., A.2.6.1.4., A.2.6.1.5., A.2.6.1.6., A.2.6.1.7. and A.2.6.1.8., respectively.

17. Part A of the schedule to the Regulations is amended by adding the following after paragraph A.2.6.1.8.:

A.2.6.1.9. Especially designed or prepared systems for the conversion of UO2 to UCl4.

A.2.6.2.  Plants for the conversion of plutonium and equipment especially designed or prepared for that purpose, including

A.2.6.2.1. Especially designed or prepared systems for the conversion of plutonium nitrate to oxide.

A.2.6.2.2. Especially designed or prepared systems for plutonium metal production.

18. Paragraph A.4.1. of Part A of the schedule to the Regulations is replaced by the following:

A.4.1.  Technology

Technical data, including, but not limited to, technical drawings, models, photographic negatives and prints, recordings, design data and technical and operating manuals, whether in written form or recorded on other media or devices such as disk, tape and read-only memories for the design, production, construction, operation or maintenance of any item in this Part, except data available to the public (e.g. in published books or periodicals, or that which has been made available without restrictions on its further dissemination).

19. Paragraph B.1.1.5. of Part B of the schedule to the Regulations is replaced by the following:

B.1.1.5. Boron and boron compounds, mixtures, loaded materials, and waste or scrap of any of these substances, in which the boron-10 isotope is more than 20% by weight of the total boron content.

20. Paragraphs B.1.1.10. to B.1.1.12. of Part B of the schedule to the Regulations are replaced by the following:

B.1.1.10. Hafnium metal, alloys, compounds of hafnium containing more than 60% hafnium by weight, and their manufactures, and waste or scrap of any of these substances.

B.1.1.11. Helium-3 or helium enriched in the helium-3 isotope; alloys, compounds or mixtures containing helium enriched in the helium-3 isotope; and helium conforming to this description contained in products or devices, except a product or device containing less than 1 g of helium-3.

B.1.1.12. Lithium enriched in the lithium-6 isotope (6Li) to greater than 7.5 atom per cent; alloys, compounds, mixtures, and waste or scrap of lithium enriched in the lithium-6 isotope; and lithium conforming to this description contained in products or devices, except thermoluminescent dosimeters.

NOTE

The natural occurrence of the 6 isotope in lithium is 7.5 atom per cent.

21. Paragraph B.1.1.19. of Part B of the schedule to the Regulations is replaced by the following:

B.1.1.19. Zirconium with a hafnium content of less than 1 part hafnium to 500 parts zirconium by weight, in the form of metal, alloys containing more than 50% zirconium by weight, and compounds and manufactures of these things; except zirconium in the form of foil having a thickness not exceeding 0.10 mm (0.004 in.).

NOTE

Paragraph B.1.1.19. applies to waste and scrap containing zirconium as defined above.

B.1.1.20. Any substance not otherwise included in paragraph B.1. if the substance is intended, or there are reasonable grounds to suspect that it is intended, in whole or in part, for use in connection with the design, development, production, handling, operation, maintenance or storage of nuclear weapons or other nuclear explosive devices.

22. Paragraphs B.2.1.2. and B.2.1.3. of Part B of the schedule to the Regulations are replaced by the following:

B.2.1.2.  Machine tools and specially designed software as follows:

(a) machine tools, as set out below, and any combination of them, for removing or cutting metals, ceramics or composites, which, according to the manufacturer’s technical specifications, can be equipped with electronic devices for simultaneous contouring control in two or more axes:

(1) machine tools for turning, that have positioning accuracies with all compensations available better (less) than 0.006 mm according to ISO 230/2 (1988) along any linear axis (overall positioning) for machines capable of machining diameters greater than 35 mm;

NOTE

Paragraph B.2.1.2.(a)(1) does not include bar machines (Swissturn) limited to machining only bar feed thru, if the maximum bar diameter is equal to or less than 42 mm and there is no capability of mounting chucks. Machines may have drilling and/or milling capabilities for machining parts with diameters less than 42 mm.

(2) machine tools for milling having any of the following characteristics:

(i) positioning accuracies with all compensations available are better (less) than 0.006 mm according to ISO 230/2 (1988) along any linear axis (overall positioning);

(ii) two or more contouring rotary axes; or

(iii) five or more axes that can be coordinated simultaneously for contouring control;

NOTE

Paragraph B.2.1.2.(a)(2) does not include milling machines having the following characteristics:

(a) x-axis travel greater than 2 m; and

(b) overall positioning accuracy on the x-axis worse (more) than 0.030 mm according to ISO 230/2 (1988).

(3) machine tools for grinding having any of the following characteristics:

(i) positioning accuracies with all compensations available are better (less) than 0.004 mm according to ISO 230/2 (1988) along any linear axis (overall positioning);

(ii) two or more contouring rotary axes; or

(iii) five or more axes that can be coordinated simultaneously for contouring control; and

NOTE

Paragraph B.2.1.2.(a)(3) does not include the following grinding machines:

(a) cylindrical external, internal and external-internal grinding machines having all of the following characteristics:

(i) limited to a maximum workpiece capacity of 150 mm outside diameter or length; and

(ii) axes limited to x, z and c; and

(b) jig grinders that do not have a z-axis or a w-axis with an overall positioning accuracy less (better) than 0.004 mm (positioning accuracy is according to ISO 230/2 (1988)).

(4) non-wire type electrical discharge machines that have two or more contouring rotary axes and that can be coordinated simultaneously for contouring control; and

NOTE

Paragraph B.2.1.2.(a) does not include special purpose machine tools limited to the manufacture of any of the following parts:

(a) gears;

(b) crankshafts or camshafts;

(c) tools or cutters; and

(d) extruder worms.

(b) software:

(1) software specially designed or modified for the development, production or use of equipment referred to in paragraph B.2.1.2.(a); and

(2) software for any combination of electronic devices or systems enabling those devices to function as a numerical control unit capable of controlling five or more interpolating axes that can be coordinated simultaneously for contouring control.

NOTE

1. Software is controlled whether exported separately or residing in a numerical control unit or any electronic device or system.

2. Software specially designed or modified by the manufacturers of the control unit or machine tool to operate an uncontrolled machine tool is not controlled.

B.2.1.3.  Dimensional inspection machines, instruments or systems, as follows, and software specially designed for them:

(a) computer controlled or numerically controlled dimensional inspection machines having both of the following characteristics:

(1) two or more axes; and

(2) a one-dimensional length measurement uncertainty equal to or better (less) than (1.25 + L/1 000) µm tested with a probe of an accuracy of better (less) than 0.2 µm (L is the measured length in millimeters) (Ref. VDI/ VDE 2617, parts 1 and 2);

(b) linear displacement measuring instruments, as follows:

(1) non-contact type measuring systems with a resolution equal to or better (less) than 0.2 µm within a measuring range of up to 0.2 mm;

(2) linear variable differential transformer systems having both of the following characteristics:

(i) linearity equal to or better (less) than 0.1% within a measuring range of up to 5 mm; and

(ii) drift equal to or better (less) than 0.1% per day at a standard ambient test room temperature of ± 1 K; or

(3) measuring systems that have both of the following characteristics:

(i) contain a laser; and

(ii) maintain for at least 12 hours over a temperature range of ± 1 K around a standard temperature and a standard pressure:

(A) a resolution over their full scale of 0.1 µm or better; and

(B) a measurement uncertainty equal to or better (less) than (0.2 + L/2 000) µm (L is the measured length in millimeters);

NOTE

Paragraph B.2.1.3.(b)(3) does not include measuring interferometer systems, without closed or open loop feedback, containing a laser to measure slide movement errors of machine tools, dimensional inspection machines or similar equipment.

(c) angular measuring instruments having an angular position deviation equal to or better (less) than 0.00025°; and

NOTE

Paragraph B.2.1.3.(c) does not include optical instruments, such as autocollimators, using collimated light (e.g. laser light) to detect angular displacement of a mirror.

(d) systems for simultaneous linear-angular inspection of hemishells, having both of the following characteristics:

(1) measurement uncertainty along any linear axis equal to or better (less) than 3.5 µm per 5 mm; and

(2) angular position deviation equal to or less than 0.02°.

NOTE

Specially designed software for these systems includes software for simultaneous measurements of wall thickness and contour.

NOTE

With respect to paragraph B.2.1.3.:

(a) machine tools that can be used as measuring machines are included if they meet or exceed the criteria specified for the machine tool function or the measuring machine function;

(b) machines are included if they exceed the control threshold anywhere within their operating range;

(c) the probe used in determining the measurement uncertainty of a dimensional inspection system shall be as described in VDI/ VDE 2617, parts 2, 3 and 4; and

(d) all parameters of measurement values in paragraph B.2.1.3. represent plus/minus, i.e. not total band.

23. (1) Paragraph B.2.2.5.(a) of Part B of the schedule to the English version of the Regulations is replaced by the following:

(a) multiphase output capable of providing a power of 40 W or more;

(2) The portion of paragraph B.2.2.5. of Part B of the schedule to the Regulations after paragraph (b) is replaced by the following:

(c) total harmonic distortion better (less) than 10%; and

(d) frequency control better (less) than 0.1%.

NOTE

Frequency changers and generators especially designed or prepared for the gas centrifuge process are controlled under paragraph A.2.4.2.5.

24. The portion of paragraph B.2.2.6. of Part B of the schedule to the Regulations after paragraph (b) is replaced by the following:

(c) neodymium-doped (other than glass) lasers with an output wavelength of between 1 000 nm and 1 100 nm having either of the following characteristics:

(1) pulse-excited and Q-switched with a pulse duration equal to or greater than 1 ns, and having either of the following characteristics:

(i) single-transverse mode output having an average output power exceeding 40 W; or

(ii) multiple-transverse mode output having an average output power exceeding 50 W; or

(2) frequency doubling incorporated to give an output wavelength of between 500 nm and 550 nm with an average output power at the doubled frequency (new wavelength) of greater than 40 W;

(d) tunable pulsed single-mode dye laser oscillators having all of the following characteristics:

(1) operation at wavelengths of between 300 nm and 800 nm;

(2) average output power greater than 1 W;

(3) repetition rate greater than 1 kHz; and

(4) pulse width less than 100 ns;

(e) tunable pulsed dye laser amplifiers and oscillators, except single mode oscillators, having all of the following characteristics:

(1) operation at wavelengths of between 300 nm and 800 nm;

(2) average output power greater than 30 W;

(3) repetition rate greater than 1 kHz; and

(4) pulse width less than 100 ns;

(f) alexandrite lasers having all of the following characteristics:

(1) operation at wavelengths of between 720 nm and 800 nm;

(2) average output power greater than 30 W;

(3) repetition rate greater than 125 Hz; and

(4) bandwidth of 0.005 nm or less;

(g) pulsed carbon dioxide lasers having all of the following characteristics:

(1) operation at wavelengths of between 9 000 nm and 11 000 nm;

(2) average output power greater than 500 W;

(3) repetition rate greater than 250 Hz; and

(4) pulse width less than 200 ns;

NOTE

Paragraph B.2.2.6.(g) does not include the higher power (typically 1 kW to 5 kW) industrial CO2 lasers used in applications such as cutting and welding, as those lasers are either continuous wave or are pulsed with a pulse width of more than 200 ns.

(h) pulsed excimer lasers (XeF, XeCl, KrF) having all of the following characteristics:

(1) operation at wavelengths of between 240 nm and 360 nm;

(2) average output power greater than 500 W; and

(3) repetition rate greater than 250 Hz; and

(i) para-hydrogen Raman shifters designed to operate at 16 µm output wavelength and at a repetition rate greater than 250 Hz.

25. The portion of paragraph B.2.7.3.(b) of Part B of the schedule to the Regulations before paragraph (1) is replaced by the following:

(b) equipment for those facilities or plants as follows:

26. Part B of the schedule to the Regulations is amended by adding the following after paragraph B.2.7.5.:

B.2.7.6. Any equipment not otherwise included in paragraph B.2. if the equipment is intended, or there are reasonable grounds to suspect that it is intended, in whole or in part, for use in connection with the design, development, production, handling, operation, maintenance or storage of nuclear weapons or other nuclear explosive devices.

27. Paragraph B.3.1. of Part B of the schedule to the Regulations is replaced by the following:

B.3.1.  Technology

Technical data, including, but not limited to, technical drawings, models, photographic negatives and prints, recordings, design data and technical and operating manuals, whether in written form or recorded on other media or devices such as disk, tape and read-only memories for the design, production, construction, operation or maintenance of any item in this Part, except data available to the public (e.g. in published books or periodicals, or that which has been made available without restrictions on its further dissemination).

COMING INTO FORCE

28. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

1. Issue

The Canadian Nuclear Safety Commission (CNSC) regulates the use of nuclear energy and materials to protect the health, safety and security of Canadians and the environment and to respect Canada’s international commitments on the peaceful use of nuclear energy. It does this in accordance with the Nuclear Safety and Control Act (NSCA) and its regulations. The Nuclear Non-proliferation Import and Export Control Regulations (NNIECR) provide regulatory controls on the import and export of controlled nuclear substances, equipment and information in order to ensure that Canada’s nuclear non-proliferation policy and international export control commitments are fulfilled.

Canada’s policy and international commitments on non-proliferation and export controls are founded on the Treaty on the Non-Proliferation of Nuclear Weapons, to which Canada is a signatory. Other international commitments arise from obligations pursuant to United Nations Security Council (UNSC) Resolution 1540 on the non-proliferation of weapons of mass destruction, UNSC resolutions on economic and trade sanctions, and Canadian participation in the Zangger Committee and the Nuclear Suppliers Group (NSG). The latter two groups of nuclear supplier countries seek to contribute to the non-proliferation of nuclear weapons through the harmonization of nuclear export control policies and the implementation of multilateral guidelines for the control of nuclear and nuclear-related dual-use exports.

Since the implementation of the NNIECR in June 2000, the NSG Guidelines have been amended to take into account advances in nuclear and nuclear-related technologies and changing proliferation risks. The NNIECR require amendment to ensure that Canada continues to meet its international non-proliferation obligations and commitments.

2. Objectives

The amendments to the NNIECR

  • reflect revisions to the NSG Guidelines on nuclear and nuclear-related dual-use exports since 2000, ensuring that Canada remains in compliance with its international commitments as a participating government of the NSG;
  • reduce regulatory burden with regard to items of very low proliferation concern; and
  • ensure the CNSC maintains strong regulatory oversight in an efficient and effective manner.

3. Description and rationale

3.1 Background

Canada’s nuclear non-proliferation policy seeks to

  • assure Canadians and the international community that Canada’s nuclear exports do not contribute to the development of nuclear weapons or other nuclear explosive devices; and
  • promote a more effective and comprehensive international nuclear non-proliferation regime.

Canada is a member of the NSG and the Zangger Committee, which are multilateral export control regimes that help ensure that exported nuclear and nuclear-related dual-use items are used for peaceful purposes only. Nuclear-related dual-use items are those that can make a major contribution to nuclear weapons programs, but which have peaceful non-nuclear uses as well. States that are members of the multilateral export control regimes agree by consensus on lists of items whose transfer must be controlled, and implement these controls in accordance with their domestic export control laws and practices, including national export licensing requirements.

The CNSC is responsible for implementing measures to ensure Canada meets its international obligations with respect to the non-proliferation of nuclear weapons and nuclear explosive devices. This is accomplished in part through an export and import control program pursuant to the NSCA that takes into account multilateral obligations, standards and best practices as agreed by the NSG and the Zangger Committee.

The NNIECR establish the CNSC’s requirements for the licensing of the export and import of nuclear and nuclear-related dual-use substances, equipment, and technology. The Schedule to the Regulations lists the items that are subject to CNSC regulatory controls. Part A of the Schedule identifies items that are especially designed or prepared for nuclear use, while Part B lists nuclear-related dual-use items.

3.2 Regulatory action

The CNSC is committed to ensuring that its regulatory requirements remain consistent with international standards. The amendments to the NNIECR update the regulations to reflect revisions made to the NSG Guidelines on nuclear and dual-use transfers since 2000, and reduce regulatory burden for items of very low proliferation risk, while continuing to ensure effective and efficient regulatory oversight. In developing the amendments, the CNSC considered the export control policies and practices of the countries with which Canada transfers nuclear items.

Section 3.2.1 outlines the major amendments that reflect changes made to the NSG Guidelines and control lists. Section 3.2.2 identifies amendments that reduce the regulatory burden on industry for items deemed to be of very low proliferation risk and that allow the CNSC to focus its regulatory oversight on those items with greater proliferation risk. Section 3.2.3 describes measures to strengthen regulatory oversight and effectiveness in controlling proliferation risks associated with transfers of nuclear and dual-use items. Finally, some changes are administrative in nature, correcting grammatical and typographical errors and bringing the Regulations into conformity with current legislative drafting standards.

3.2.1 Amendments to the Schedule to reflect changes to the NSG Guidelines since the NNIECR came into effect in 2000

Addition of a “catch-all” provision — Paragraphs B.1.1.20 and B.2.7.6

A “catch-all,” or “end-use,” clause has been added for nuclear-related dual-use items in Part B of the Schedule to the NNIECR. This measure controls nuclear-related dual-use substances and equipment that are not otherwise captured by the Schedule, when such items are, or may be intended, for use in connection with a nuclear weapons program.

The addition of this provision strengthens regulatory oversight by requiring exporters to apply for CNSC authorization of the export of such items. The provision implements the recommendation of the NSG, which agreed to a “catch-all” mechanism in its Guidelines in 2004 (INFCIRC/254/Rev.6/Part 2). Most other NSG countries have established or are in the process of establishing such a mechanism, including the United States and members of the European Community.

New entry for special shut-off and control valves for gas centrifuge enrichment plants — Paragraph A.2.4.2.3

Special shut-off and control valves used in gas centrifuge enrichment plants were added to the NSG Guidelines in 2006. Their addition to Schedule A of the NNIECR ensures that such valves are subject to similar controls as are currently in effect for shut-off and control valves for gaseous diffusion enrichment plants (Paragraph A.2.4.4.4).

Addition of “waste or scrap” materials containing boron, hafnium and lithium — Paragraphs B.1.1.5, B.1.1.10, B.1.12

Amendments to the boron, hafnium, and lithium entries in Schedule B of the Regulations control these substances when contained in waste or scrap materials. Waste or scrap materials could contain significant quantities of these controlled substances and thus represent a proliferation risk not previously captured by the NNIECR. These amendments are consistent with revisions to the NSG Guidelines since 2000.

Control of zirconium in compounds and manufactures — Paragraph B.1.1.19

The amendment to the zirconium entry in Schedule B of the NNIECR modifies the reference from “compounds and manufactures wholly thereof” to “compounds and manufactures of these things.” This amendment ensures regulatory control of compounds and manufactures that have less than 100% zirconium content. The revised control provides for stronger regulatory oversight and reflects changes made to the NSG Guidelines since 2000.

3.2.2 Amendments to reduce regulatory burden for items of minimal proliferation risk

The amendments described in subsection 3.2.2 reduce administrative burden on both industry and the CNSC for items of minimal proliferation concern. An item is considered to be of minimal proliferation concern when its physical or chemical form or small quantity significantly limits its utility in non-peaceful nuclear activities.

Licensing exemption for nuclear-grade graphite — Paragraph 4(1)(f) and subsection 4(3)

The amendment expands the existing exemptions from licensing requirements to include the export of nuclear-grade graphite that is not intended for use in a nuclear reactor. The exemption applies only to exports to countries that are members of the NSG. However, to ensure appropriate regulatory oversight of graphite transfers, exporters are required to submit an annual report to the CNSC on all shipments of this material made under this provision. This amendment is consistent with the NSG Guidelines and the export control practices of other NSG member countries.

Note for special fissionable material — Paragraph A.1.1

The addition of a note to Paragraph A.1.1 of the Schedule exempts from licensing requirements special fissionable material occurring as contaminants in laundry, packaging, shielding or equipment. It also exempts special fissionable material that is used as a sensing component in instruments when the quantity of that material is four effective grams (see footnote 2) or less.

Note for source material — Paragraph A.1.2

The addition of a note to Paragraph A.1.2 of the Schedule removes controls on source material occurring as contaminants in laundry, packaging, shielding or equipment, and for depleted uranium used as shielding in Class II Prescribed Equipment, radiation devices or transport packaging.

Note for deuterium — Paragraph A.1.3

The addition of a note to Paragraph A.1.3 of the Schedule removes controls on deuterium contained in lamps, deuterium occurring as contamination in laundry or equipment, and deuterium compounds used for labelling purposes.

3.2.3 Amendments to strengthen regulatory oversight and effectiveness

Licence application requirements — Subsection 3(2)

The amendment to Section 3 of the NNIECR provides the means for the CNSC to obtain additional information from an applicant in support of a licence application, including information not otherwise prescribed in the application requirements. This can facilitate the provision of case-specific information to the CNSC, upon request, during the technical assessment of the proliferation risk associated with the proposed export or import. It has been drafted using language that is consistent with recommendations of the Standing Joint Committee for the Scrutiny of Regulations.

3.3 Cost/benefit analysis

The amendments represent minimal or no net incremental costs to exporters and importers. The regulatory burden on industry is reduced where items of minimal proliferation concern are exempted from licensing control. Reducing the number of licence applications required of exporters and importers for such items also allows the CNSC to focus its regulatory effort on assessment of items of greater proliferation risk. Harmonizing the licensing requirements of the CNSC with the regulatory control practices of other countries ensures that Canadian industry is subject to similar regulatory requirements as others in the international market.

Some measures strengthen CNSC regulatory oversight, increasing the licensing requirements on applicants consistent with international export control commitments and guidance on best practices. The provision for the applicant to supply additional information upon request is one measure that could entail a modest increased burden on industry. However, this ensures that the CNSC can make risk-informed decisions on licence authorization in a timely manner and consistent with Canadian non-proliferation policy obligations. For the licensing exemption for certain transfers of nuclear-grade graphite, the requirement to report on such transactions is a cost-effective administrative measure that reduces the licensing burden on exporters while retaining an appropriate degree of compliance verification by the CNSC.

4. Consultation

4.1 Consultation process

The CNSC consulted with over 125 licensees and other stakeholders on the proposed changes to the NNIECR at various stages throughout the amendment process. A formal consultation period was held between July and October of 2007 when affected licensees were informed of the amendment initiative and invited to submit written comments on the proposed amendments. The communications plan for the consultation included placing a notice on the CNSC external Web site and mailing a written public notice to licensees and stakeholders.

Interested government departments were also consulted in 2008. A meeting was held with the Export Control Division of Department of Foreign Affairs and International Trade (DFAIT) to discuss issues of mutual concern in the amendment process. In June 2008, a formal interdepartmental meeting was held to hear the views of government stakeholders including DFAIT, the Canada Border Services Agency and the Treasury Board Secretariat.

The amendments to the NNIECR were pre-published in the February 7, 2009, edition of the Canada Gazette, Part I, initiating a 75-day period of public consultation. Between February 7, 2009, and April 23, 2009, all interested parties were invited to make representations concerning the amendments. Stakeholders were once again informed about the pre-publication period by way of a notice on the CNSC external Web site and a written public notice that was mailed to licensees.

At the close of the pre-publication period, the CNSC then undertook a final 30-day consultation period during which time the comments received during pre-publication in the Canada Gazette, Part I, were made available on the CNSC external Web site and all interested parties were invited to provide feedback on them. No further feedback was received during this 30-day period and consultations on the amendments to the NNIECR were concluded on June 15, 2009.

4.2 Responses

During the initial consultation period between July and October 2007, written submissions were received from three major licensees (Ontario Power Generation, SGL Canada Inc., Atomic Energy of Canada Ltd.). Industry stakeholders provided constructive input and did not express opposition to any of the amendments. Changes that were suggested primarily addressed the provisions for special fissionable and source material occurring as contaminants, deuterium, and nuclear-grade graphite not for use in a nuclear reactor. Other comments included requests for clarification of the definitions of “technology” and “special fissionable material,” and the proposed removal of controls on contaminated equipment.

Pre-publication of the proposed amendments to the NNIECR in Canada Gazette, Part I, also elicited a positive response from licensees. The CNSC received one formal submission from Cameco Corporation, which addressed the amendment to the application requirements in subsection 3(2) and suggested a new exemption be included in section 4(1) and an additional Note be added to the entry for source material in paragraph A.1.2.

4.3 Changes arising from consultation

A number of changes were made to the proposed amendments to address the comments and concerns raised by stakeholders during each stage of consultation. The following describes the major changes:

  • Regarding export controls on nuclear-grade graphite not intended for use in a nuclear reactor, the CNSC gave further consideration to the implementation of the NSG Guidelines in other NSG member countries for this controlled item and to the regulatory need for verification of end use. As a result, an exemption from licensing requirements under certain conditions was proposed to balance regulatory oversight and the administrative burden on industry. The exemption is accompanied by a reporting obligation, requiring exporters to submit annual reports to the CNSC on all such exports in the previous calendar year. This administrative measure reduces the regulatory licensing burden on exporters while retaining an appropriate capacity for compliance verification by the CNSC.
  • The Note (a) under Paragraph A.1.1 to remove controls on special fissionable material occurring as contaminants in laundry and equipment was expanded to include special fissionable material occurring as contaminants in packaging and shielding.
  • The Note (a) under Paragraph A.1.2 to remove controls on source material occurring as contaminants in laundry and equipment was expanded to include source material occurring as contaminants in packaging and shielding,
  • The Note (b) under Paragraph A.1.2 to remove controls on depleted uranium as shielding was amended to clarify that the Note applies whenever depleted uranium is used as radiation shielding, and not only when used in association with radioactive sealed sources.
  • A typographical error in Part B.2.2.6.(f)(3) was corrected.

5. Implementation, enforcement and service standards

Compliance and enforcement policies and practices do not require any significant modification to accommodate the amendments to the NNIECR. The risk-based regulatory control strategy of annual reporting, licensing, compliance and enforcement used by the CNSC under the NSCA will continue. Some of the amendments provide new measures of compliance verification, thus strengthening regulatory oversight. None of the amendments will significantly affect existing service standards, though there may be some modest easing of administrative pressures given that controls have been removed from some items.

6. Contact

Director
Non-Proliferation and Export Controls Division
Directorate of Security and Safeguards
Canadian Nuclear Safety Commission
P.O. Box 1046, Station B
280 Slater Street
Ottawa, Ontario
K1P 5S9
Fax: 613-995-5086
Email: info@cnsc-ccsn.gc.ca

Footnote a
S.C. 2001, c. 34, s. 61

Footnote b
S.C. 1997, c. 9

Footnote c
S.C. 2001, c. 34, s. 61

Footnote d
S.C. 1997, c. 9

Footnote 1
SOR/2000-210

Footnote 2
“Effective gram” is based on the unit of measure, “effective kilogram,” a special unit used in the safeguarding of nuclear material. The formula for calculating the quantity of nuclear material in effective kilograms is given in paragraph 104 of the IAEA Information Circular INFCIRC/153 (Corrected).