Export Control Alert: Canada Announces Changes to its Export and Technology Controls Regime

On December 19, Foreign Affairs and International Trade's Export Controls Division (ECD) announced a number of changes to the Export Control List (ECL) which are effective December 16, 2011. These changes will not be published in the Canada Gazette or on ECD's wesbite until early 2012. A copy of the new Guide to Canada's Export Controls (2010) is available by emailing ECD at [email protected]. Alternatively, you may contact us at [email protected] for a copy. Exporters should be aware that the Guide to Canada's Export Controls (2007) is no longer in force.

The amendments to the ECL include the addition of numerous goods and technology which now require an export permit for their transfer from Canada. The amendments also include the removal of various items from control as well as clarifications regarding existing controlled items. Goods and technology that are affected by these changes include items in the following categories:

(i) dual use items (ECL Group 1)

  • advanced materials
  • materials processing
  • electronics
  • computers
  • telecommunications
  • information security (crypto)
  • sensors and lasers
  • navigation and avionics
  •  marine
  • aerospace and propulsion

(ii) munitions list (military items) (ECL Group 2)

  • weapons
  • fire control
  • ground vehicles
  • agents
  • energetic materials
  • vessels
  • aircraft
  • electronic equipment
  • software

(iii) miscellanous items ( ECL Group 5)

  • pancreas glands of cattle and calves
  • human serum albumin

(iii) miscellanous technology items (ECL Group 6)

  • subsystems for delivery systems
  • propulsion equipment
  • propellants
  • materials
  • instrumentation and navigation
  • flight control
  • avionics
  • launch support
  • test facilities and equipment

(iv) chemical and biological weapons items (ECL Group 7)

  • valves
  • software
  • filtration equipment
  • clinical and pharmaceutical products

More information on these changes can be found at ECD's website. Companies engaged in the transfer of goods or technology cross-border should be carefully reviewing the new ECL to ensure they are fully compliant with these changes, and where necessary, are obtaining permits for exports and technology transfers from Canada.

McCarthy Tétrault’s International Trade & Investment Law Group has extensive experience in dealing with controls over exports and technology transfers and is available to advise on related enforcement, compliance and strategic planning issues.