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Vol. 135, No. 2 — January 17, 2001 Registration EXPORT AND IMPORT PERMITS ACT Order Amending the Export Control ListP.C. 2001-9 9 January, 2001 Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to paragraph 3(d) and section 6 (see footnote a) of the Export and Import Permits Act, hereby makes the annexed Order Amending the Export Control List. ORDER AMENDING THE EXPORT CONTROL LIST AMENDMENT 1. The schedule to the Export Control List (see footnote 1) is amended by adding the following after item 5503: Strategic Goods 5504. (1) In this item the terms "development", "production", "software", "spacecraft", "technology" and "use" have the same meaning as in the "Definitions for Terms in Groups 1 and 2" of the Guide. (2) Strategic goods as follows: (a) goods controlled by Group 1 of the Guide as follows:
(b) software that is controlled by Group 1 of the Guide and that is specially designed or modified for the development or use of the goods controlled by paragraphs (d) to (i); (c) technology that is controlled by Group 1 of the Guide and that is specially designed or modified for the development or production of the goods controlled by paragraphs (d) to (i); (d) payloads specially designed or modified for spacecraft, and specially designed components therefor, other than payloads or components that are controlled by paragraph (a) or not controlled elsewhere by Group 1 of the Guide; (e) ground control stations for telemetry and tracking and control of space launch vehicles or spacecraft, and specially designed components therefor; (f) chemiluminescent compounds specially designed or modified for military use, and specially designed components therefor; (g) radiation-hardened microelectronic circuits that meet or exceed all of the following, and specially designed components therefor, namely:
(h) nuclear weapons design and test equipment, namely:
(i) any other articles not specifically set out in paragraphs (a) to (h) or in Group 2 or Group 6 that are United States origin goods, which have been determined under Parts 120 to 130 of Title 22 of the International Traffic in Arms Regulations of the Code of Federal Regulations (United States) as having substantial military applicability, and which have been specially designed or modified for military purposes. COMING INTO FORCE 2. This Order comes into force on April 30, 2001. REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) Description This amendment is designed to ensure that certain Canadian goods and technology, both military and selected dual-use items, are not exported from Canada without the appropriate export approvals. This amendment ensures that the export of certain goods and technology that are contained in the United States Munitions List (USML) and that originate in the United States and are used in the development, production or maintenance of goods in Canada are protected from transfer to other countries without proper authorizations from the appropriate Canadian and United States authorities. The amendment will ensure that Canadian industry continues to receive the technological benefits associated with the use of certain U.S. origin goods and technology contained in the USML without the added impediments of U.S. licensing when for end-use in Canada or return to the United States. Specifically, the changes to Canada's Export Control List relate to goods contained in the USML but which are currently not contained in Canada's Export Control List (ECL). ECL Item 5504 comprises the following individual items: certain software and technology; payloads; ground control stations; chemiluminescent compounds; radiation-hardened microelectronic circuits; nuclear weapons design and test equipment; and, certain miscellaneous goods and technology not controlled elsewhere on the ECL. The export of all goods contained in the Export Control List requires an export permit. Export permits appear in two forms: individual export permits and General Export Permits (GEP). GEPs do not apply to any of the goods noted above. Alternatives If Canada does not implement appropriate export controls to cover the re-export from Canada of certain U.S. origin goods, whether or not incorporated into a finished product, Canadian industry that relies on U.S. origin goods or technology would be subject to stringent U.S. export control licensing before such goods would be permitted to be exported to Canada. This amendment would ensure to a large degree the continued harmonization of export controls in support of the Canada/U.S. defence industrial base for the mutual benefit of both countries. Benefits and Costs The benefits to Canadian defence industry, and to a lesser degree, the civil industry, is obvious. Canadian industry will continue to benefit from access to a wide range of U.S. origin goods and technology without undue U.S. licensing delays. The cost to Canadian industry will be negligible in comparison to the costs associated with broadly-based U.S. licensing. Consultation Consultations were held with selected defence, aerospace and satellite companies, the Aerospace Industries Association of Canada, the Canadian Defence Industries Association, the Department of National Defence, Industry Canada, Public Works and Government Services Canada, various Federal Government Crown Corporations, and various divisions and bureaux within the Department of Foreign Affairs and International Trade. These amendments will be presented to Canadian industry through a series of seminars throughout Canada. Compliance and Enforcement Failure to be in receipt of an export permit required under the Export and Import Permits Act (EIPA) is a violation of that Act and subject to monetary or other penalties. Contact Mr. Thomas E. Jones S.C. 1991, c. 28, s. 3 SOR/89-202 |
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