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.
Q- What are controlled goods?
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.