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Changes to Guide to Canada’s Export Control List will take effect this month

The Government of Canada has approved a new version of “A Guide to Canada’s Export Control List” (the “Guide”), which will come into effect on December 21, 2022. The current Guide will remain in effect until December 20, 2022.

The Guide is the key document for exporters and those engaged in technology transfers, insofar as it identifies specific goods and technologies that are controlled for export from Canada to other countries, regardless of their means of delivery (including, for example, shipment of goods, electronic transfer or transmission of information, provision of technical or consulting services, etc.).

The Guide is published by Global Affairs Canada (“GAC”) and is incorporated by reference to the Export Control List (“ECL”). The Guide provides a set of technical specifications of the controlled items that are technology-neutral for the most part and that are functional in their description. Listed goods and technologies are categorized into the following Groups: dual-use, munitions, nuclear and nuclear-related dual use, miscellaneous goods and technology – which includes US-origin goods and technology, forest items, agricultural and food products, apparel goods, and certain vehicles – missile technology, chemical and biological weapons, and items controlled under the UN Arms Trade Treaty.

The Guide is regularly updated to ensure continued alignment with Canada's multilateral commitments under various multilateral export control and non-proliferation regimes, including the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Nuclear Suppliers Group, the Missile Technology Control Regime, and the Australia Group. Until recently updates to the Guide required regulatory amendments to the ECL. This process was changed on June 3, 2021, when the ECL was amended to set out that any subsequent annual updates to the common control lists would be incorporated into the ECL without the need for a regulatory amendment. The updated controls will instead come into force 30 days after GAC publishes the latest version of the Guide online (see our previous alert on this topic here).

Key Changes to Controlled Goods and Technology

The updated Guide is available on the Government of Canada’s website. Further, a summary of the more significant changes made up to December 2021 has been published on the Export and Import Controls website.

Specifically, new controls that will be added to Group 1 of the Guide – the Dual-Use List include:

  • Category 3, Electronics - for certain electronic substrates made from Gallium Oxide or Diamond (see Materials, 1-3.C.);
  • Category 3, Electronics - for certain software for the design of integrated circuits that have gate all around field effect transistors (see Software, 1-3.D.6.); and
  • Category 9, Aerospace and propulsion - for certain technology for gas turbine engine combustors utilising pressure gain combustion (see Technology, 1-9.E.3.a.2.e.).

Items that will be removed from Group 1 of the Guide and thus de-controlled include:

  • Category 1, Special Materials and Related Equipment - controls for certain fluorinated silicone lubricating fluids will be deleted (see Materials, 1-1.C.6.b.2.); and
  • Category 2, Materials Processing - controls for certain technical data for material processing will be deleted (see Technology, 1-2.E.3.b.2.).

Additions to Group 2 of the Guide – the Munitions List include:

  • Controls for certain add-on plates for military helmets that provide ballistic protection (see Armoured or protective equipment, constructions and components, 2-13.c.).

Items to be added under Group 7 of the Guide - Chemical and Biological Weapons Non-Proliferation List include:

  • Controls for certain new chemical precursors for chemical weapons (see Dual-use Chemical Manufacturing Facilities and Equipment, Chemical Weapons and Related Software and Technology, AG materials 7-4); and
  • Controls for certain software for nucleic acid assemblers and synthesizers (see Dual-use Biological Equipment, Biological Weapons and Related Software and Technology, Biological test, inspection and production equipment 7-12-10);

In the coming week Canadian exporters should seek to review the updated Guide to ensure ongoing compliance.

Exporters should confirm that their internal classification systems for exported goods and technologies are up to date and correspond with the December 2021 Guide. Companies should also be sure to provide proper training to individuals responsible for facilitating shipments and should ensure that any third parties they deal with are properly informed and operate in compliance with the updated guide.

The McCarthy Tétrault team will continue to canvass new export controls as they are developed and implemented.

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