Export Permits and Export Controls

Multiple destination permit for dual-use items

Summary

This type of permit may be used to export most dual-use items controlled in Group 1 and in Item 5504 of the Export Control List.It may be used to export to any consignee in 26 countries, as long as consignees and end-users of the goods or technology exported are located in those countries. Consignees must be reported twice a year and export records must be maintained and provided to the Export Controls Division if requested.This permit is an alternative to single destination permits (which specify consignees and may be used to export only to single countries).Failure to comply with the terms and conditions of this permit may result in its suspension or cancellation.

The following summarizes the use and conditions of this permit.Exporters should consult Notice to Exporters SER-177 for more details before submitting an application.

Coverage

Multiple destination permits for dual-use items (MDP-Dual-Use) may authorize the export by any means (including electronic transfer) of most of the goods and technology referred to in:

• Group 1 of the Export Control List
• Item 5504 of the Export Control List

However, a limited number of goods and technology may not be exported using an MDP-Dual-Use.The list of such items is found in Notice to Exporters SER-177. In addition:

• Goods and technology that are concurrently controlled in a Group or Item other than Group 1 or Item 5504 and which are not covered by a General Export Permit may not be exported using an MDP-Dual-Use.Such exports must be authorized by a regular single destination export permit.
• In the case of goods and technology controlled by Item 5504, an MDP-Dual-Use may not be used to export any goods and technology that are subject to the requirement for a United States export authorization as described in paragraph 3(2)(c) of the Export Permits Regulations.
• An MDP-Dual-Use may not be used to export goods or technology that are or have become subject to control under Item 5505 of the Export Control List.

Consignees for exports made using an MDP-Dual-Use may only be located in the following 26 countries:

The end-use location of goods and technology made using this permit must be in Canada, the United States, or the countries noted above. The exporter is obliged to establish the end-use location of the goods and technology exported using the MDP-Dual-Use.

An MDP-Dual-Use may be valid for up to 5 years. Like other permits, MDP-Dual-Use may be amended as described in the Export Controls Handbook. However, the validity of an MDP-Dual-Use will not be extended beyond 5 years from the original date of issuance. It is the exporter’s responsibility to submit a new application for an MDP-Dual-Use to ensure that it has a valid permit.

Applications

General information about permit applications may be found in the Export Controls Handbook.

MDP-Dual-Use applications may be submitted using the secure, online system EXCOL. Applicants may select “MDP-Dual-Use” when they are asked to identify the consignee type in the online application form. If this option is not available to you, please contact the Export Controls Division by email at tie.reception@international.gc.ca.
Applicants must meet the following conditions in order to be able to apply for a permit:

• the applicants must be residents of Canada;
• the applicant and the exporter name must be the same; and

Applications for MDP-Dual-Use must include the following:

• a complete application form (generally done through our online system EXCOL);
• a technical description of the goods and technology;
• the estimated quantity and value of exports to be made during the validity period of the permit;
• a cover letter using the template provided and confirming the exporter has export compliance procedures in place and agrees to abide by the terms and conditions of the permit.

In addition to the information in the Export Controls Handbook, applicants should know the following:

• Descriptions of finished products should use the following format: [brand name or name of manufacturer] [model name] [part number, if applicable]. This information should be consistent with packaging labels, invoices, and shipping documents.
• Descriptions of software or technical data should use the following format: [software developer or publisher name] [software name] [version number x.x] and identify the means of export – eg, on a DVD-ROM or by electronic file transfer;
• Item descriptions should not describe the purpose, use, or physical appearance of the product (this should be provided instead in the field “Overall Description of Goods and End-Use” in the EXCOL application form) nor include references to the Export Control List (self-assessments should be provided in the field “ECL No.” in the EXCOL application form);
• The description is how the goods or technology will be identified on the export permit, which will also be verified against the Export Declaration submitted to the Canada Border Services Agency at the time of export.

Compliance

The terms and conditions stated on an MDP-Dual-Use set out some requirements that exporters must fulfill after issuance of this permit. This permit is an alternative to single destination permits (which specify consignees and may be used to export only to single countries). Failure to comply with the terms and conditions of this permit may result in its suspension or cancellation.

Exporters using an MDP-Dual-Use are required to submit a report on consignees every six months. This report includes a statement by the exporter about the role of each consignee. It is recommended that exporters use the following template for these reports: Semi-annual report template MDP Dual-use (XLS^{Note *}, 18KB). These reports should be submitted by uploading them to the Document tab in the relevant file in EXCOL.

Exporters must also maintain records about exports made and provide them to the Export Controls Division of Foreign Affairs and International Trade Canada upon request.

Export Control Compliance Plan

A statement is required in the cover letter that the exporter has implemented an export control compliance plan. Multidestination permits allow greater flexibility to exporters than individual permits, but also impose different conditions on them, in particular the requirement to submit certain reports at regular intervals. Failure to comply with these conditions may result in the suspension or cancellation of a multidestination permit. When this happens, an exporter may not use the permit until full compliance has been restored and must apply for individual permits in the interim. Export control compliance plans may reduce the risk and consequences of non-compliance.

In general terms, an export control compliance plan consists of defined or prescribed processes and procedures to ensure that employees at all levels of a company understand and act in accordance with the letter and spirit of the Export and Import Permits Act, the Customs Act, other trade-related legislation (for example, on economic sanctions) and their related regulations.

The export control compliance plan should establish the steps and due diligence processa company follows when planning, marketing, and shipping items included in the Export Control List to foreign clients, and should also cover download practices (if applicable). An important provision of such a plan is a defined processto provide a reasonable level of assurance (due diligence) that goods or technology may not beexported to unauthorized or illegitimate end-uses or end-users.

Attached to an export permit may be terms and conditions that constitute legal obligations on the company that uses that permit. An export control compliance plan should ensure that those terms and conditions are recorded and that internal company processes reflect and meet those obligations.

Other obligations on exporters of goods and technology subject to export controls are prescribed in the following sections of the Export and Import Permits Act:

• Subsection 10.2 (which requires exporters to make records available for inspection)
• Subsection 10.3 (which requires records to be kept)
• Section 13 (which prohibits exports of goods or technology included in the Export Control List except in accordance with an export permit)
• Section 16 (which prohibits the transfer of an export permit)
• Section 17 (which prohibits the furnishing of false or misleading information or any misrepresentation in relation to an export permit application)
• Section 18 (which prohibits any person from assisting another to contravene the Act or its regulations)

An export control compliance plan should also address a procedure to deal with instances of non-compliance. For example, the Export Controls Division of Foreign Affairs and International Trade Canada should be promptly notified of any failure to comply with the provisions of the Export and Import Permits Act or the terms and conditions of any export permit issued under the authority of that Act.