GENERAL INFORMATION

Q- Where can I obtain additional information?

A- You can obtain additional information by visiting:

CONTROLLED GOODS DIRECTORATE
c/o Central Mail Room
Place du Portage, Phase III 0B3
11 Laurier Street, Hull
2745 Iris Street
3rd Floor
Ottawa, Ontario
K1A 0S5

Q- What is the Controlled Goods Directorate (CGD)?

A- The Controlled Goods Program (CGD) is a security program that is implemented by Public Works and Government Services Canada (PWGSC).

The CGD establishes a more stringent security regime governing the examination, possession or transfer of controlled goods.

Q- What is the Defence Production Act (DPA) as it relates to the Controlled Goods Program?

A- The relevant amendment to the DPA received royal assent October 20, 2000.

New Part 2 of the amended DPA established a new regime, administered by the Minister of Public Works and Government Services Canada for the regulation of access, in Canada, to controlled goods listed in the schedule to the Export Control List (ECL) made under the Export and Import Permits Act (EIPA). To examine or possess a controlled good or to transfer a controlled good to another person in Canada, a person must be registered or exempt from registration.

New Part 3 of the amended DPA provides for sanctions in respect of offences created under Parts 1 and 2 of the DPA.

Q- What are the Controlled Goods Regulations?

A- PWGSC is implementing the CGD under the authority of the amended Defence Production Act (DPA), which received Royal Assent on October 18, 2000.

The DPA requires all persons examining, possessing or transferring certain controlled goods within Canada to be registered by the Government of Canada or be exempt from such registration. The Act was amended in part to address the ITAR Canadian Exemptions issue with respect to access by persons to controlled goods originating in the U.S., and thus restore meaningful ITAR Canadian Exemptions.

Q- What are the Controlled Goods Regulations designed to do?

A- The regulations support the implementation of a Public Works and Government Services Canada, Controlled Goods Directorate for business enterprises in the Canadian defence, aerospace and satellite sectors. The regulations establish criteria that will be used by PWGSC officials administering the Controlled Goods Directorate to determine whether to approve or deny an application for registration or an application for exemption from registration, In addition, the regulations prescribe appropriate sanctions for any violation of the conditions associated with registration or exemption from registration.

A- Controlled goods are defined as goods and technology that are included on the Export Controls List, which is administered by International Trade Canada.

The following goods listed in the schedule to the Export Control List made under section 3 of the Export and Import Permits Act are controlled goods:

Group 2: goods listed in item 2001 that are prohibited firearms, as defined in paragraph (c) of the definition "prohibited firearm" in subsection 84(1) of the Criminal Code;

Group 2: goods listed in item 2003 that are ammunition with a calibre greater than 12.7 mm;

Group 2: goods listed in items 2002 and 2004 to 2022;

Group 5: goods listed in item 5504; and,

Group 6: all goods listed.

Q- There will be a large cost associated with setting up the infrastructure, procedures etc to implement the new regulations. This cost was not anticipated in the current rates negotiated with the Government for this year. To avoid a large one time cost impact to the rates will PWGSC permit the costs to be spread out over a 3 to 5 year period?

A- A very large majority of corporations dealing with Controlled Goods already have many of the control program elements in place. The main component to be implemented deals with record keeping as well as the reliability, trustworthiness and risk of transfer represented by the employee.

Q- Part of new regulations would indicate that we have to know which of the Government supplied information, software, material and equipment that we presently have in-house are Controlled Goods. These are not presently identified or marked as such. How and when will the Government communicate this information for each contract to each company?

A- All PWGSC and DND contracts dealing with Controlled Goods will be marked as such. The Government is presently in the process of identifying those affected contracts.

Q- How will the Government communicate this information on future requests for proposals and contracts?

A- On future requests for proposals and contracts, the Government will require that Canadian bidders must be registered in the Controlled Goods Directorate.

Q- Does the new Controlled Goods Regulations contravene any other existing Government regulations or laws i.e. Human Rights, and if so, who will cover the costs of any lawsuit brought against industry when it implements the new Government regulations?

A- No. The Controlled Goods Regulations do not contravene any other existing Government regulations or laws.

Q- When working with U.S. companies in the preparation of export permits, TAA's etc., does a company, once registered under the new program just provide to the U.S. Company its Controlled Goods registration number or does the Company still have to provide citizenship information for its dual and foreign national/born employees?

A- You only need to supply proof of registration with CGD.

Q- Will the foreign company to which we have supplied our Controlled Goods Registration number have the ability to confirm its legitimacy with the Canadian Government i.e. Web site?

A- The foreign company can confirm the legitimacy of the Controlled Goods registration on our Web site: Registration Search, by telephoning our information desk Toll Free at 1-866-368-4646, or by faxing a request for authentication.

Q- How will CGD audit all of industry and its multiple sites at the same time? How soon will the audits commence and end? Is there a risk we will be shut down if we are not audited within the next few months?

A- Inspections are discretionary to CGD.