Defence Production Act
The Controlled Goods Program (CGP) enforces the Defence Production Act (DPA), which, in addition to registration, provides for the exemption or exclusion of certain persons. Anyone who examines, possesses or transfers controlled goods in Canada is required to register with the CGP.
Responsibilities of the CGP:
The administration of the program is the responsibility of the Minister of Public Works and Government Services Canada (PWGSC). Through a delegation of authority, the Minister of PWGSC has authorized the CGP to act on her behalf. In accordance with the regulations and on the basis of a mandatory security assessment prescribed by regulation, the CGP has the authority to register any person or, to deny, suspend, amend or revoke a registration. The CGP may also exempt an individual from registration or, deny, suspend, amend or revoke an exemption. Furthermore, for the purposes of registration or exemption, the CGP may request any information, which is deemed necessary, for conducting a security assessment.
Consequences:
The CGP has the authority to inspect registered companies to ensure compliance. Companies must be ready for inspection at all times and produce any required records upon request. The CGP also has the authority to detain or remove any controlled good until it is satisfied that the requirements of the DPA are met. Anyone who is not registered, excluded or exempt from registration with the CGP is not permitted to examine, possess or transfer controlled goods in Canada.
Companies that fail to comply with the DPA can have their registration with the CGP suspended or revoked. Companies and individuals can also face prosecution for failing to comply with the CGP. As per the DPA , fines vary from $25,000 to $2,000,000 daily or an imprisonment not exceeding 10 years, or both.
Top of Page Controlled Goods Regulations
The Controlled Goods Program (CGP) is governed by the Controlled Goods Regulations (CGR). Its objective is to safeguard controlled goods in Canada and prevent controlled goods from being accessed by unauthorized persons. More specifically, the CGR provides detailed information with respect to the requirements for registration such as who can apply, how to apply, what specific information is required to apply, and which factors are considered when deciding whether or not to register a person.
Once registration is approved, every registered person (i.e. an individual, corporation, partnership or any other business enterprise, registered under the CGP) is subject to the following conditions:
•Keep and maintain a record of controlled goods, security assessments and supporting documentation, information on the identities of exempt individuals and evidence regarding the classes of exempt individuals;
•Appoint an individual as a Designated Official (DO);
•Establish and implement a security plan;
•Provide training programs and security briefings in respect of the secure handling of controlled goods; and
•Advise the CGP of any security breaches in relation to controlled goods.
Furthermore, the CGR provides information on the DO's responsibilities within his/her organization, with respect to the CGP. The DO must conduct security assessments that take into account the following, although not limited to: personal references, criminal history, places of residence, employment and educational histories. The CGR also gives particulars on which classes of individuals are eligible for an exemption (visitors, temporary workers) or, who is exempt (ITAR, US government officials) from registration. In this regard, it also details what kind of evidence is required to obtain such an exemption.
Top of Page Export Control List
The Export Control List (ECL), published by the Department of Foreign Affairs and International Trade Canada, identifies specific goods that are controlled for export from Canada to other countries. For the purpose of the Controlled Goods Program (CGP), anyone dealing with the following controlled goods in Canada identified in the ECL is required to register with the CGP:
All items under Group 2 (item 2-1 to 2-22):
These items are munitions specifically designed or modified for military use such as:
•Weapons and ammunitions (machine guns & anti-tank weapons);
•Bombs, torpedoes, mines and missiles;
•Warning systems;
•Military vehicles (tanks), vessels (submarines) and combat aircraft;
•Chemical, biological and radioactive material which is used in war; and
•Protective equipment (armoured plate and body armour).
Item 5504 under Group 5:
The goods listed under this item are considered as strategic goods such as:
•Global navigation satellite systems;
•Ground control stations; and
•Nuclear weapons design and testing equipment.
All items under Group 6:
These items include missile technology such as:
•Complete delivery systems (rocket, ballistic & cruise missile);
•Propulsion equipment (turbojet, turbofan & pulse jet engines);
•Navigation & stealth equipment (flight instrument systems);
•Avionics (radar & Global Positioning System);
•Launch support equipment (gravity meters & precision tracking); and