Vol. 151, No. 14 — July 12, 2017

Registration

SOR/2017-139 June 20, 2017

EXPORT AND IMPORT PERMITS ACT

Order Amending the Export Control List

P.C. 2017-791 June 20, 2017

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, His 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 (see footnote a) of the Export and Import Permits Act (see footnote b), makes the annexed Order Amending the Export Control List.

Order Amending the Export Control List

Amendments

1 The definitions Guide and Wassenaar Arrangement in section 1 of the Export Control List (see footnote 1) are replaced by the following:

Guide means A Guide to Canada’s Export Control List – December 2015, 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 (15) 1 Corr. 1 at the Plenary Meeting in Vienna, Austria held on December 2 and 3, 2015. (Accord de Wassenaar)

2 Paragraph (b) of Group 3 of the schedule to the List is replaced by the following:

3 Paragraph (b) of Group 4 of the schedule to the List is replaced by the following:

4 Group 6 of the schedule to the List is replaced by the following:

GROUP 6
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/2015/Annex of October 8, 2015 that was adopted at the Plenary Meeting held from October 5 to 9, 2015.

5 Paragraph (a) of Group 7 of the schedule to the List is replaced by the following:

Coming Into Force

6 This Order comes into force on the 30th day after the day on which it is published in Part II of the Canada Gazette.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

1. Issues

The Export Control List (the ECL) is amended on a regular basis in order to implement Canada’s international arrangements and commitments undertaken in the various multilateral export controls and non-proliferation regimes in which Canada participates. These amendments ensure that Canada’s export controls on strategic and military goods and technology continue to be effective and are consistent with Canada’s foreign and defence policies.

2. Background

Subsection 3(1) of the Export and Import Permits Act (EIPA) authorizes the Governor in Council to establish a list of goods and technologies called the ECL, which identifies goods and technology that are controlled for export or transfer from Canada to other countries. Section 6 of the EIPA authorizes the Governor in Council to amend the ECL. There are multiple purposes for which the Governor in Council may deem it necessary to include an article on the ECL, including, to implement an intergovernmental arrangement or commitment pursuant to paragraph 3(1)(d) of the EIPA or to ensure that arms, ammunition, implements or munitions of war, naval, army or air stores or any articles deemed capable of being converted thereinto or made useful in the production thereof 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 pursuant to subsection 3(1) of the EIPA.

3. Objectives

The Order Amending the Export Control List (the Order) amends the ECL to reflect the Government of Canada’s arrangements, commitments and policies resulting from Canada’s participation 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 up until December 31, 2015.

4. Description

The Order makes various changes, including amending the definition of the “guide,” and updating the various commitments made at the multilateral export control and non-proliferation regimes in which Canada participates. The changes to the ECL are as follows:

A Guide to Canada’s Export Control List – December 2015

The definition of “guide” in section 1 of the ECL is replaced by “A Guide to Canada’s Export Control List – December 2015” so that it refers to the latest version of the document.

The December 2015 edition of “A Guide to Canada’s Export Control List” incorporates Canada’s 2014 and 2015 obligations and commitments with respect to the four multilateral export control regimes of which Canada is a member. Some of the changes resulting from this Order include the addition of controls over certain laser materials (rare-earth-metal doped double-clad fibres), specific technology for certain flight control systems (fly-by-wire systems), certain satellite goods and technology (spacecraft buses, spacecraft payloads, spacecraft on-board systems, spacecraft-related terrestrial equipment), various aerospace goods and technologies (specific technology for wing-folding systems for fixed-wing aircraft, specific combustion chambers for liquid propellant rocket engines, specific fuel and polymetric substances for rocket propellants), explosive mixture BTNEN, chemical weapons precursor chemical – diethylamine, several human and animal pathogens (classical swine fever virus, reconstructed 1918 influenza virus, SARS-related corona virus).

This Order has also resulted in the removal of controls on certain marine goods and technology (marine surface-effect vehicles and associated equipment, certain hydrofoil vessels and associated equipment), certain small-waterplane-area vessels and associated equipment, certain seals and gaskets, certain hydraulic fluids, certain polymers made from vinylidene fluoride, certain unprocessed fluorinated compounds, certain plasma dry etching equipment, certain laser-based telecommunication test/inspection equipment, certain thermopile arrays, and certain mirrors for terrestrial heliostat installations.

Clarifications have also been made to controls relating to machine tools, certain microwave assemblies (converters and harmonic mixers, oscillators and oscillator assemblies), cryptographic items, sonar acoustic projectors, optical mirrors, unmanned aerial vehicles (UAVs), UAV navigation and control equipment, space launch vehicles, military diving and swimming apparatus, liquid slurry and gel propellant control systems, analogue-to-digital converter integrated circuits, analogue-to-digital converter assemblies, valves, biological weapon agents (Ebola, goat pox), machine tools, measuring systems, high energy devices, digital data recorders, electronically steerable phased array antennae, underwater vision systems, fibre/tow placement machines, centrifugal balancing machines, freeze-drying equipment, biocontainment chambers, and aerosol inhalation chambers.

Various references to international commitments

References to export control texts issued by various multilateral export control regimes to which Canada is a member have been updated to incorporate Canada’s commitments at these export control regimes. These include the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Dual-Use and Munitions Lists), the Nuclear Suppliers Group (Non-Proliferation and Nuclear-related Dual-Use Lists), the Missile Technology Control Regime (Missile Technology Control Regime List) and the Australia Group (Chemical and Biological Weapons Non-Proliferation List).

Detailed list of changes: A detailed document highlighting the changes resulting from the amendment of the ECL will be made available on the Export Controls Division’s website at www.exportcontrols.gc.ca upon the coming into force of the Order.

5. “One-for-One” Rule

The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.

6. Small business lens

This amendment to the ECL is not expected to result in any significant increase in the administrative burden for small businesses within Canada. 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 as it completes the application process.

7. Consultation

Consultations with potentially affected industry stakeholders have taken place in 2014 and 2015. As is customary when dealing with potential changes to Canada’s export controls regime, Global Affairs Canada also consults with private industry and various other Canadian government departments and agencies, including the National Defence; Innovation, Science and Economic Development Canada; and the Public Health Agency of Canada in the elaboration of its positions prior to entering into international negotiations and undertaking commitments.

8. Rationale

The Order consists of various changes that are a direct result of Canada’s participation in various multilateral export control regimes, 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.

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.

9. 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 EIPA is prohibited.

10. Contact

Judy Korecky
Deputy Director
Export Controls Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343-203-4332
Fax: 613-996-9933
Email: judy.korecky@international.gc.ca