Order Amending Certain Permits Made Under the Export and Import Permits Act: SOR/2019-87

Canada Gazette, Part II, Volume 153, Number 8

Registration
SOR/2019-87 April 4, 2019

EXPORT AND IMPORT PERMITS ACT

The Minister of Foreign Affairs, pursuant to subsections 7(1.1)footnote a, 8(1.1)footnote b and 10(1) footnote c of the Export and Import Permits Actfootnote d, makes the annexed Order Amending Certain Permits Made Under the Export and Import Permits Act.

Ottawa, February 26, 2019

Chrystia Freeland
Minister of Foreign Affairs

Order Amending Certain Permits Made Under the Export and Import Permits Act

General Import Permit No. 108 — CWC Toxic Chemicals and Precursors

1 (1) The definition CWC toxic chemicals and precursors in section 1 of the General Import Permit No. 108 — CWC Toxic Chemicals and Precursorsfootnote 1 is replaced by the following:

(2) The definition Guide in section 1 of the French version of the Permit is replaced by the following:

General Export Permit No. 45 — Cryptography for the Development or Production of a Product

2 (1) The definitions controlled and entity in subsection 1(1) of the General Export Permit No. 45 — Cryptography for the Development or Production of a Productfootnote 2 are replaced by the following:

(2) The portion of the definition gouvernement étranger in subsection 1(1) of the French version of the Permit before paragraph (a) is replaced by the following:

(3) Paragraph (c) of the definition gouvernement étranger in subsection 1(1) of the French version of the Permit is replaced by the following:

3 Paragraph 2(a) of the Permit is replaced by the following:

4 (1) Subparagraphs 5(a)(i) and (ii) of the Permit are replaced by the following:

(2) Subparagraph 5(e)(vii) of the Permit is replaced by the following:

General Export Permit No. 46 — Cryptography for Use by Certain Consignees

5 (1) The definition entity in subsection 1(1) of the General Export Permit No. 46 — Cryptography for Use by Certain Consignees footnote 3 is replaced by the following:

(2) The definition contrôlé in subsection 1(1) of the French version of the Permit is replaced by the following:

(3) Paragraph (c) of the definition gouvernement étranger in subsection 1(1) of the French version of the Permit is replaced by the following:

6 Paragraph 2(2)(a) of the Permit is replaced by the following:

7 (1) Subparagraphs 4(a)(i) and (ii) of the Permit are replaced by the following:

(2) Subparagraph 4(e)(vi) of the Permit is replaced by the following:

General Export Permit No. 41 — Dual-use Goods and Technology to Certain Destinations

8 (1) Subparagraphs 4(a)(i) and (ii) of the General Export Permit No. 41 — Dual-use Goods and Technology to Certain Destinationsfootnote 4 are replaced by the following:

(2) Subparagraphs 4(b)(i) and (ii) of the Permit are replaced by the following:

9 The schedule to the Permit is amended by adding the following in numerical order:

Item Goods or technology
6.1 those referred to in item 1-4.E.1.a of the Guide that are for the development, production or use of equipment or software specified by item 1-4.A.5. or item 1-4.D.4. of the Guide

10 The schedule to the Permit is amended by adding the following in numerical order:

Item Goods or technology
13.1 those referred to in item 1-5.A.3. of the Guide
13.2 those referred to in item 1-5.A.4. of the Guide

Coming into Force

11 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.)

Issues

The Order Amending Certain Permits Made Under the Export and Import Permits Act is a regulatory stock review housekeeping measure. Three of Canada’s General Export Permits (GEPs) will be amended to reference the new numbering scheme in Canada’s updated Export Control List (ECL). One General Import Permit (GIP) will also be amended to reference Canada’s updated Import Control List (ICL).

The general permits included in this Order are the following:

Additionally, GEP 45 and GEP 46 will be updated to correct inconsistencies between the French and English definitions and to give effect to recommendations from the Standing Joint Committee for the Scrutiny of Regulations.

This Order will not change the authorities under the general permits nor will they add new controls or decontrol any additional items.

Background

Subsection 3(1) of the Export and Import Permits Act (EIPA) authorizes the Governor in Council to establish a list of goods and technology, the ECL, which identifies goods and technology that are controlled for export or transfer from Canada to another country.

Subsection 7(1.1) of the EIPA grants the Minister of Foreign Affairs the authority to issue a general permit to all residents of Canada to export or transfer, to any country specified in the permit, any goods or technology included in the ECL that are specified in the permit, subject to such terms and conditions as described in the permit.

Subsection 8(1.1) of the EIPA authorizes the Minister of Foreign Affairs to issue a general permit to all residents of Canada to import any goods included on the ICL that are specified in the permit, subject to such terms and conditions as described in the permit.

Subsection 10(1) of the EIPA authorizes the Minister of Foreign Affairs to amend any permit issued or granted under the EIPA.

General permits are administratively streamlined measures that are intended to facilitate trade in defined circumstances, and are issued generally to all residents of Canada. They authorize the export, import or transfer of specified goods and technology that are identified in the ECL or ICL to specified destinations, subject to certain terms and conditions. In certain circumstances, a general permit may be used instead of having to apply for an individual permit with Global Affairs Canada.

The amendments to GEP 41, GEP 45 and GEP 46 are required to bring them into line with updates to the ECL that were made as a result of agreements concluded as part of the Wassenaar Arrangement in 2015 and that have been in effect in Canada since August 30, 2017. The amendment to GIP 108 is required to bring it into alignment with ECL updates made as a result of agreements concluded within the Australia Group. The 2016 ECL update does not require a corresponding amendment to any GEP or GIP.

The purpose of GEP 41 is to allow residents of Canada, subject to certain conditions and limitations, to export or transfer most items included in Canada’s Dual-Use List (Group 1) and certain strategic goods and technology for end use in certain eligible destinations, without requiring an individual permit.

The purpose of GEP 45 is to allow residents of Canada, subject to certain conditions and limitations, to export or transfer certain cryptographic items included on the ECL to eligible consignees, as specified in the GEP, when destined for use in the development or production of a product, without requiring an individual permit.

The purpose of GEP 46 is to allow residents of Canada, subject to certain conditions and limitations, to export or transfer certain cryptographic items included on the ECL to eligible consignees in certain destinations if the cryptography is for internal use by an organization, without requiring an individual permit.

The purpose of GIP 108 is to allow residents of Canada, subject to certain conditions and limitations, to import or transfer certain toxic chemicals and precursors that are of low strategic value, without requiring an individual permit.

Objectives

The Order Amending Certain Permits Made Under the Export and Import Permits Act is a regulatory housekeeping measure that updates GEP 41, GEP 45, GEP 46 and GIP 108 to reflect new numbering in the ECL. It does not change the authorities under the general permits nor does it add new controls or decontrol any additional items.

This Order also corrects inconsistencies between certain English and French definitions used in GEP 45 and GEP 46. The inconsistencies in GEP 45 were raised by the Standing Joint Committee for the Scrutiny of Regulations.

These updates and corrections have been analyzed as having no impact on Canadians.

Description

This Order will implement numbering changes in the schedules of GEP 41, GEP 45 and GEP 46 to reflect numbering changes in the ECL. The ECL was amended to implement changes agreed to under the Wassenaar Arrangement in Canadian law. Specifically, in 2015, the Wassenaar Arrangement reordered a section of their control list for “Information Security” to add a chapeau for each set of controlled items. The changes will not control or decontrol any additional items.

The French definitions for “controlled” and “government of a foreign country” in subsection 1(1) of GEP 45 will be amended to make them consistent with the English definitions.

The French definition for “government of a foreign country” in subsection 1(1) of GEP 46 will be amended to make it consistent with the English definition.

The Order will update the definition of “CWC toxic chemicals and precursors” in GIP 108 to reference item 74 of the ICL. Previously, GIP 108 made reference to ECL item numbers that were out of date. The ECL’s Chemical and Biological Weapons Non-Proliferation List (Group 7) was amended to make the numbering system better reflect the control list published by the Australia Group. The ECL reference in GIP 108 will be removed entirely and will be replaced by an up-to-date reference to item 74 of the ICL. As GIP 108 no longer references the ECL, the definition citing it in the “Interpretation” section will be removed and replaced with a definition citing the ICL.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this Order, as there is no change in administrative costs to businesses since there will be no change to the control status of items in these general permits.

Small business lens

The small business lens does not apply to this Order, as there are no costs to small businesses and small businesses will not be disproportionately affected. Given that the amendments to these general permits will not lead to a change in control status, they are not expected to result in any increase or decrease in the administrative burden for small businesses in Canada.

Rationale

The Order consists of various changes to GEPs and a GIP that are necessary as a result of numbering modifications to the ECL. Changes to the ECL are most commonly made further to agreements in various multilateral export control regimes of which Canada is a member.

The amendments to the French definitions in GEP 45 were undertaken after the Standing Joint Committee for the Scrutiny of Regulations noted translation inconsistencies between the English and French definitions of “controlled” and “government of a foreign country.” An identical inconsistency was identified in the definition of “government of a foreign country” provided in GEP 46 and will be addressed to ensure consistency between the English and French definitions provided in those permits.

Implementation, enforcement and service standards

There are certain conditions associated with the use of a general permit with which exporters must comply. Non-compliance with any condition of a general permit may lead to prosecution under the EIPA.

The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of export and import controls.

Contact

Judy Korecky
Deputy Director
Export Controls Policy 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