AMENDMENT TO THE CONTROLLED GOODS REGULATIONS

Policy Statement on the Amendment to the Controlled Goods Regulations: International Traffic and Arms Regulations Registered Persons and United States Government Officials

Introduction:

The Controlled Goods Directorate (CGD) is a domestic industrial security program responsible for regulating the possession, examination or transfer of controlled goods within Canada's borders. The CGD is legislated by the Defence Production Act (DPA) and the Controlled Goods Regulations (CGR), which provides for the exemption from registration of certain classes of persons as prescribed by regulation. This policy statement is intended to be an explanatory document detailing the amendment to the CGR that concern individuals originating from the United States who will be examining, possessing or transferring controlled goods within Canada.

ITAR Registered Person:

The CGR currently exempts from registration a director, an officer or an employee of a person registered to access controlled goods under ITAR as long as they provide evidence of their status as a director, an officer or any employee of the person registered under International Traffic and Arms Regulations, as well as evidence of registration of that person under ITAR, to the person registered under CGD from whom they will obtain access to the controlled goods.

An amendment has been made to CGR 16(2)(b) and is applicable to those who are registered under ITAR and, consequently, are exempt from registration under CGD. This amendment is in regard to the evidence that will be provided by the ITAR registered person to the CGD registered person from whom they will access controlled goods.

Amended CGR 16(2)(b) will now require additional information from the ITAR registered person when accessing controlled goods within Canada. In addition, they will need to provide evidence of the eligibility of the person (company/firm) and the individual to access controlled goods under CGD. The required proof may be in the form of a letter from the empowered official of the ITAR registered company stating that:

• The company is registered and eligible under ITAR
• The individual is a director, officer or employee and eligible under ITAR

Eligibility means not debarred or suspended under ITAR and therefore able, under ITAR, to participate directly or indirectly in the export or import of defence related articles, including technical data or in the furnishing of defence services for which a license or approval is required.

United States Government Officials:

New CGR 16(2) will exempt from registration those who are an officer, an employee, an elected or appointed official of the United States federal government, or of a state or territorial government of the United States. This is somewhat similar to paragraph 36(a) of the DPA, which excludes persons occupying a position in the federal public service or a federal Crown corporation or is employed by Her Majesty in right of a province and new CGR 1.1(b) which excludes from registration elected and appointed officials of the Canadian federal or provincial governments.

Therefore, the requirement to register will no longer apply to the above-mentioned United States governmental officials who will subsequently examine, possess or transfer controlled goods within Canada's borders.

 May 11, 2004 (Canada Gazette) - REGULATIONS AMENDING THE CONTROLLED GOODS REGULATIONS

 View the CONTROLLED GOODS REGULATIONS in its entirety

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Last Updated: 2006-07-12