Vol. 149, No. 16 — August 12, 2015
SOR/2015-200 July 22, 2015
EXPORT AND IMPORT PERMITS ACT
General Export Permit No. 41 — Dual-use Goods and Technology to Certain Destinations
The Minister of Foreign Affairs, pursuant to subsections 7(1.1) (see footnote a) and 10(1) (see footnote b) of the Export and Import Permits Act (see footnote c), issues the annexed General Export Permit No. 41 — Dual-use Goods and Technology to Certain Destinations.
Ottawa, July 15, 2015
Minister of Foreign Affairs
GENERAL EXPORT PERMIT NO. 41 — DUAL-USE GOODS AND TECHNOLOGY TO CERTAIN DESTINATIONS
1. (1) The following definitions apply in this Permit.
« destination admissible »
“eligible destination” means Australia, Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, the Republic of Korea, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom or the United States.
“Export Controls Division”
« Direction des contrôles à l’exportation »
“Export Controls Division” means the Export Controls Division of the Department of Foreign Affairs, Trade and Development.
« Guide »
“Guide” has the same meaning as in section 1 of the Export Control List.
(2) In this Permit, “composite”, “development”, “matrix”, “production”, “software” and “user-accessible programmability” have the same meaning as in the Guide under the heading “Definitions of Terms Used in Groups 1 and 2”.
2. Subject to sections 3 to 5, any resident of Canada may, under this Permit, export or transfer from Canada any good or technology referred to in
- (a) any item in Group 1 of the Guide; or
- (b) items 5504.2.a. to 5504.2.g. of the Guide.
3. (1) This Permit does not authorize the export or transfer of goods or technology to a country
- (a) that is not an eligible destination;
- (b) that is listed in the Area Control List; or
- (c) in respect of which an order or regulation has been made under section 4 of the Special Economic Measures Act or section 2 of the United Nations Act.
Unauthorized goods or technology
(2) This Permit does not authorize the export or transfer of goods or technology that
- (a) are intended to be used in a country that is not an eligible destination;
- (b) are referred to in the schedule to this Permit;
- (c) are referred to in any item of the Guide other than those referred to in section 2, unless the export or transfer is also authorized by another permit issued under subsection 7(1.1) of the Export and Import Permits Act; or
- (d) are referred to in any of subparagraphs 3(2)(c)(i) to (iii) of the Export Permits Regulations.
Other unauthorized goods or technology
(3) This Permit does not authorize the export or transfer of
- (a) software that is specially designed or modified for the development or use of the goods or technology referred to in item 5504.2.h. or 5504.2.i. of the Guide; or
- (b) technology that is specially designed or modified for the development or production of the goods or technology referred to in item 5504.2.h. or 5504.2.i. of the Guide.
4. A resident of Canada who exports or transfers goods or technology under this Permit must
- (a) provide in writing to the Export Controls Division, before making their first export or transfer under this Permit in a calendar year, the following information:
- (i) their name, address, telephone number and, if any, their facsimile number and electronic mail address, and
- (ii) if the resident of Canada is a corporation, the business number assigned to the corporation by the Minister of National Revenue, the name of a contact person, the contact person’s address, telephone number and, if any, facsimile number and electronic mail address;
- (b) provide to the Export Controls Division, within 30 days after each six-month period ending on January 31 or July 31, a report containing the following information in respect of any export or transfer made under this Permit during that period:
- (i) the name, address and telephone number of each consignee and, if any, the consignee’s facsimile number and electronic mail address,
- (ii) if the consignee is a corporation, the name and title of a contact person who has knowledge of the export or transfer, and the contact person’s telephone number and, if any, facsimile number and electronic mail address,
- (iii) a description of each good or technology exported or transferred and the item number of the Guide in which it is referred to, and
- (iv) the quantity and value of each good or technology exported or transferred by country of destination;
- (c) within 15 days after receipt of a request from the Export Controls Division, provide to the Export Controls Division the records referred to in section 5 in respect of any export or transfer made during the period specified in the request;
- (d) insert the term “GEP-41” or “LGE-41” in the appropriate field of the form prescribed under the Customs Act if the good exported is required to be reported under that Act; and
- (e) obtain, before the export or transfer, a written statement from each consignee that
- (i) identifies the country of end use of the good or technology, and
- (ii) indicates whether the consignee is an end-user or a distributor or, if the consignee is neither, describes the consignee’s role in relation to the export or transfer.
5. A resident of Canada who exports or transfers a good or technology under this Permit must retain, for a period of six years after the year in which the export or transfer is made, the following records in respect of that export or transfer:
- (a) the date of the export or transfer;
- (b) the name and address of each consignee;
- (c) the quantity and value of the export or transfer;
- (d) the name and any part number or unique identifier of the good or technology, as well as a description of the good or technology and its technical specifications;
- (e) the item number of the Guide in which the good or technology is referred to, and a comparison of the technical specifications set out in the item with the technical specifications of the good or technology;
- (f) the written statement obtained from each consignee under paragraph 4(e); and
- (g) a copy, if available, of any contract between the resident of Canada and each consignee and any invoice or export or shipping document relating to the export or transfer.
6. General Export Permit No. Ex. 30 — Certain Industrial Goods to Eligible Countries and Territories (see footnote 1) is cancelled.
7. General Export Permit No. Ex. 29 — Eligible Industrial Goods (see footnote 2) is cancelled.
COMING INTO FORCE
8. This Permit comes into force on the day on which it is registered.
|Item||Goods or technology|
|1.||those referred to in item 1-1.A.2.a. of the Guide that are composite structures or laminates consisting of an organic matrix and materials specified by item 1-1.C.10.c. or 1-1.C.10.d. of the Guide|
|2.||those referred to in item 1-1.C.1. of the Guide|
|3.||those referred to in item 1-1.C.12. of the Guide|
|4.||those referred to in item 1-1.E.1. of the Guide that are for the development or production of composite structures or laminates consisting of an organic matrix and materials specified by items 1-1.C.10.c. or 1-1.C.10.d. of the Guide or materials specified by item 1-1.C.1. or 1-1.C.12. of the Guide|
|5.||those referred to in item 1-4.A.5. of the Guide|
|6.||those referred to in item 1-4.D.4. of the Guide|
|7.||those referred to in item 1-4.E.1.c of the Guide|
|8.||those referred to in item 1-5.A.1.b.5. of the Guide|
|9.||those referred to in item 1-5.A.1.h. of the Guide|
|10.||those referred to in item 1-5.A.1.j of the Guide|
|11.||those referred to in item 1-5.D.1.a. of the Guide that are software specially designed for the development or production of equipment, functions or features specified by item 1-5.A.1.b.5., 1-5.A.1.h., 1-5.A.1.j. or 1-5.E.1.a. of the Guide|
|12.||those referred to in item 1-5.E.1.a. of the Guide that are for the development or production of equipment, functions, features or software specified by item 1-5.A.1.b.5., 1-5.A.1.h., 1-5.A.1.j. or 1-5.D.1.a. of the Guide|
|13.||those referred to in item 1-5.A.2. of the Guide|
|14.||those referred to in item 1-5.B.2. of the Guide|
|15.||those referred to in item 1-5.D.2. of the Guide|
|16.||those referred to in item 1-5.E.2. of the Guide|
|17.||those referred to in item 1-6.A.1.a.1.b.1. of the Guide that are object detection or location systems and have a sound pressure level exceeding 210 dB (reference 1 μPa at 1 m) and an operating frequency in the band from 30 Hz to 2 kHz;|
|18.||those referred to in item 1-6.A.1.a.2.a.1. of the Guide|
|19.||those referred to in item 1-6.A.1.a.2.a.2. of the Guide|
|20.||those referred to in item 1-6.A.1.a.2.a.3. of the Guide|
|21.||those referred to in item 1-6.A.1.a.2.a.5. of the Guide|
|22.||those referred to in item 1-6.A.1.a.2.a.6. of the Guide|
|23.||those referred to in item 1-6.A.1.a.2.b. of the Guide|
|24.||those referred to in item 1-6.A.1.a.2.c. of the Guide that are processing equipment that are specially designed for real time application with towed acoustic hydrophone arrays and have user-accessible programmability and time or frequency domain processing and correlation, including spectral analysis, digital filtering and beamforming that uses Fast Fourier or other transforms or processes|
|25.||those referred to in item 1-6.A.1.a.2.e. of the Guide|
|26.||those referred to in item 1-6.A.1.a.2.f. of the Guide that are processing equipment, specially designed for real time application with bottom or bay cable systems, having user accessible programmability and time or frequency domain processing and correlation, including spectral analysis, digital filtering and beamforming using Fast Fourier or other transforms or processes|
|27.||those referred to in item 1-6.A.2.a.1.c. of the Guide|
|28.||those referred to in item 1-6.B.8. of the Guide|
|29.||those referred to in item 1-6.D.1. of the Guide that are software specially designed for the development or production of equipment specified by item 1-6.B.8. of the Guide|
|30.||those referred to in item 1-6.D.3.a. of the Guide|
|31.||those referred to in item 1-6.E.1. of the Guide that are for the development of equipment or software specified by any item in this schedule that is also specified by item 1-6.A., 1-6.B. or 1-6.D. of the Guide|
|32.||those referred to in item 1-6.E.2. of the Guide that are for the production of equipment specified by any item in this schedule that is also specified by item 1-6.A. or 1-6.B. of the Guide|
|33.||those referred to in item 1-7.D.3.a. of the Guide|
|34.||those referred to in item 1-7.D.3.b. of the Guide|
|35.||those referred to in item 1-8.A.1.b. of the Guide|
|36.||those referred to in item 1-8.A.1.d. of the Guide|
|37.||those referred to in item 1-8.A.2.o.3.b. of the Guide|
|38.||those referred to in item 1-8.D.1. of the Guide that are software specially designed for the development or production of equipment specified by item 1-8.A.1.b., 1-8.A.1.d., or 1-8.A.2.o.3.b. of the Guide|
|39.||those referred to in item 1-8.E.1. of the Guide that are for the development or production of equipment specified by item 1-8.A.1.b., 1-8.A.1.d. or 1-8.A.2.o.3.b. of the Guide|
|40.||those referred to in item 1-9.A.11. of the Guide|
|41.||those referred to in item 1-9.D.1. of the Guide that are software specially designed or modified for the development of equipment or technology specified by item 1-9.A.11., 1-9.E.3.a.1. or 1-9.E.3.a.3.a. of the Guide|
|42.||those referred to in item 1-9.D.2. of the Guide that are software specially designed or modified for the production of equipment specified by item 1-9.A.11. of the Guide|
|43.||those referred to in item 1-9.E.1. of the Guide that are for the development of equipment or software specified by any item in this schedule that is also specified in item 1-9.A.11., 1-9.D.1. or 1-9.D.2. of the Guide|
|44.||those referred to in item 1-9.E.2. of the Guide that are for the production of equipment specified by item 1-9.A.11. of the Guide|
|45.||those referred to in item 1-9.E.3.a.1. of the Guide|
|46.||those referred to in item 1-9.E.3.a.3.a. of the Guide|
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Permit.)
As a result of Canada’s status as a participating state in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (the Wassenaar Arrangement) and a bilateral arrangement with the United States, certain dual-use and strategic goods and technology are subject to export permit requirements implemented under the Export and Import Permits Act (EIPA).
In representations made to Foreign Affairs, Trade and Development Canada (the Department), industry stakeholders have indicated that Canada’s major trading partners have implemented procedures to administratively streamline processes for the export/transfer of certain controlled goods and technology. These stakeholders have further indicated that in order to maintain a level playing field compared to their competitors, the Government of Canada should introduce similar administratively streamlined processes. After reviewing the export control regimes of certain major trading partners, the Department believes that the implementation of certain streamlined export/transfer processes would be appropriate and consistent with Canadian foreign and defence policies.
The EIPA authorizes the Governor in Council to establish a list of goods and technologies called the Export Control List (ECL), which identifies goods and technology that are controlled for export or transfer from Canada to other countries. Most items on the ECL derive from Canada’s commitments to like-minded countries which participate in multilateral export control regimes or from Canada’s obligations as a signatory to multilateral or bilateral international agreements.
The principal objective of Canada’s export control regime is to ensure that exports of goods and technology included on the ECL are done in accordance with Canada’s foreign and defence policies. Unless otherwise stated, exports or transfers of goods and technology included on the ECL require a permit issued under the authority of the Minister of Foreign Affairs in order to be lawfully exported or transferred from Canada.
Subsection 7(1.1) of the EIPA authorizes the Minister of Foreign Affairs to issue to all residents of Canada a general permit to export or transfer goods or technology included in the ECL, subject to such terms and conditions, as described in the permit. These General Export Permits (GEPs) allow the export or transfer of certain specified items from Canada to certain eligible destinations by means of a simplified administrative procedure as opposed to the standard, lengthier process of applying for an individual export permit.
The objective of General Export Permit No. 41 — Dual-use Goods and Technology to Certain Destinations (GEP 41) is to provide a streamlined process for the export and transfer of certain controlled goods and technology to certain eligible destinations.
GEPs are used to facilitate trade in defined circumstances, with such permits not requiring an individual application to be made to the Department prior to export/transfer. The relevant GEP must, however, be cited on the export declaration form that is provided to the Canada Border Services Agency at the time of export.
GEP 41 authorizes, subject to certain terms and conditions, the export or transfer of most goods and technology listed in Group 1 and item 5504 of the ECL to consignees when destined for use in an eligible destination. These destinations include like-minded countries that are members of multiple multilateral export control regimes of which Canada is a member and have implemented an effective system of export controls. The selection of eligible goods and technology and destinations, along with the terms and conditions imposed on the use of the GEP, ensure that this streamlined process does not represent a strategic risk to Canada’s security or that of our allies. Goods and technology controlled within Group 1 and ECL item 5504 requiring United States export authorization, under the United States International Traffic in Arms Regulations, as described in subparagraphs (3)(2)(c)(i) to (iii) of the Export Permit Regulations are not eligible for export or transfer under this Permit.
The introduction of GEP 41 will also cancel two outdated GEPs that were originally issued in 1994: General Expert Permit No. Ex. 29 — Eligible Industrial Goods and General Expert Permit No. Ex. 30 — Certain Industrial Goods to Eligible Countries and Territories.
The “One-for-One” Rule does not apply to this Permit, as its introduction will not increase administrative costs to stakeholders.
The introduction of GEP 41 will replace a similar regulation the utility of which has decreased significantly in the past number of years, as it has become increasingly outdated. This decreased use has resulted in an increased number of stakeholders being required to obtain an individual export permit in order to export certain goods and technology. Though GEP 41 has more terms and conditions than the GEP it is replacing, it represents an overall significant improvement for the exporting community through its decrease in administrative burden.
Prior to the prepublication of this Permit in the Canada Gazette, Part I, the Department consulted with various industry stakeholders regarding the proposed introduction of this GEP. These stakeholders have indicated that they are supportive of any measures to administratively streamline the export/transfer process for lower risk transactions.
The proposed Permit was prepublished in the Canada Gazette, Part I, on November 9, 2013, and a 30-days period was provided for interested parties to register comments with the Department. Written comments were received from eight external entities and while all commenters were supportive of the administrative streamlining of export controls, they believed that improvements could be made to the proposed Permit. All comments and concerns received during the prepublication exercise were taken under consideration by the Department.
As is customary when dealing with potential regulatory changes, consultations have been held with the various Government of Canada organizations that are partners in the administration and enforcement of Canada’s export controls regime. Recommendations made by these organizations have been taken into consideration in the drafting of this GEP.
Small business lens
The introduction of GEP 41 is not expected to result in any significant increase in the administrative burden for small businesses within Canada.
Canada’s export control regime aims to balance national and international security concerns associated with the export/transfer of strategic and military goods and technology with Canada’s interests as a trading nation. The introduction of this streamlined export/transfer process for lower-risk transactions allows the Government of Canada to provide residents of Canada with a mechanism to compete more efficiently in the global marketplace while maintaining a robust system of export controls.
The issuance of GEP 41 will simplify the process for authorizing exports/transfers of eligible goods and technology to eligible destinations, as identified in the Permit, and will reduce the overall regulatory burden associated with export controls for Canadian industry.
Implementation, enforcement and service standards
Exports or transfers of goods and technology listed on the ECL to any destination, except as otherwise provided in the ECL, must be accompanied by an export permit. There are certain conditions associated with GEP 41, and exporters must comply with those conditions in order to lawfully export/transfer under this GEP. It is a condition of GEP 41 that it be cited by exporters on the export declaration form, and that other export reporting documentation required be submitted to the Canada Border Services Agency, with every export shipment. Non-compliance with any condition of the GEP can lead to prosecution under the relevant provisions of the EIPA.
The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of export controls.
Export Controls Division
Trade Controls Bureau
Foreign Affairs Trade and Development Canada
125 Sussex Drive