Export Controls Handbook

F. Administrative Procedures and Other Issues

F.1. Processing Time

When possible and depending on the total volume of export permit applications, from the date a complete export permit application is received, every effort is made to process an application within a reasonable time frame. The following service standards apply:

For Export Permits:

• Complete the processing of applications for permits to export controlled strategic goods from eligible exporters, who have provided all required supporting documentation, within ten (10) business days, where consultations outside the Trade Controls Bureau are not required (usually to an “Open Policy Country” destination); and within forty (40) business days where consultation is required (usually to a “Non-Open Policy Country” destination). The service target for this deliverable is 90 percent.
• Complete the processing of applications for permits to import controlled strategic goods for eligible importers, who have provided all required supporting documentation, within ten (10) business days. Please note import permits for strategic goods can only be applied for within thirty (30) days of the proposed date of importation. The service target for this deliverable is 90 percent.

Multiple destination permit (MDP) applications will be processed within 40 business days. Permit Amendment Request (PAR) applications will be processed within three (3) business days.

For International Import Certificates

• Complete the processing of applications for international import certificates for applicants, who have properly completed the application and have provided all supporting documentation (if required), within ten (10) business days.  The service target for this deliverable is 90 percent.

For Delivery Verification Certificates

• Complete the processing of applications for delivery verification certificates for applicants, who have properly completed the application and have provided all supporting documentation (if required), within twenty (20) business days.  The service target for this deliverable is 90 percent.

For Destinations subject to Sanctions

• For destinations subject to Canadian economic sanctions, there are no service standards associated with completion of the review of export permit applications.

Open Policy Countries are like-minded countries that are members of the export control regimes to which  Canada is party, and that have implemented  an effective system of export controls.

Incomplete or deficient export permit applications (for instance those without supporting documentation, or those with missing and/or contradictory information) may be returned to the applicant without action.

If at any time before a permit or certificate is issued the Applicant determines that the permit is no longer required, he may request that the application be Withdrawn. Once a permit has been issued, the Applicant may request that it be Cancelled. Withdrawal and Cancellation requests must cite the permit or certificate number, or the reference ID number, and must be submitted in writing to the Export Controls Division at tie.reception@international.gc.ca.

F.2. Status Enquiries

Applicants may obtain information regarding the processing of permit and certificate applications by contacting the Export Controls Division by telephone at (343) 203-4331 or by email to tie.reception@international.gc.ca and citing the Ref ID number generated by EXCOL.  Applicants  should allow at least 10 business days from the time of submission of an export permit application before enquiring as to its status.

F.3. Policy Review

Once the control status of the goods or technology proposed for export is determined, each export permit application is reviewed for consistency with Canada’s foreign and defence policies.

If, in the course of this review, it is determined that the items proposed for export are not controlled and/or that no export permit is required, the applicant will be notified in writing and the application will be closed.

Export permit applications are examined in detail, with particular attention being given to the country of destination, the purpose and intended use of the goods and technology, and the consignees and/or end-users of the product.  Where concerns exist about a proposed export, the application may be referred to the Minister of Foreign Affairs for decision.

F.4. Consultations

The purpose of intra- and inter-departmental consultations is to fully assess the risks and implications of proposed exports with respect to Canada’s foreign and defence policy considerations (see section B).  Various Canadian government departments and agencies, including various divisions within Foreign Affairs, Trade and Development Canada, may be involved in the consultation process.

F.5. Military Goods and Technology

With respect to military goods and technology, Canadian export control policy has, for many years, been restrictive.  Under present policy guidelines set out by Cabinet in 1986, Canada closely controls the export of military items to:

• countries which pose a threat to Canada and its allies;
• countries involved in or under imminent threat of hostilities;
• countries under United Nations Security Council sanctions; or
• countries whose governments have a persistent record of serious violations of the human rights of their citizens, unless it can be demonstrated that there is no reasonable risk that the goods might be used against the civilian population.

F.6. General Export Permits

General Export Permits (GEPs) are, by order, issued generally to all residents of Canada by the Minister of Foreign Affairs.  General Export Permits allow the export of certain items from Canada to certain eligible destinations by means of a simplified administrative procedure as opposed to the standard procedure of having to obtain an individual export permit.

When exporting items listed on the Export Control List where a General Export Permit applies, the exporter must abide by all the associated terms and conditions of the GEP, which can vary from regulation to regulation. However, in most cases, the exporter must cite the appropriate General Export Permit number in the relevant box on the appropriate form prescribed by the Canada Border Services Agency (see section H).   In some cases, the use of a General Export Permit is conditional upon an exporter undertaking to report on actual volumes of exports or on specific final consignees made against the General Export Permit.

Certain General Export Permits require exporters to inform the Export Controls Division in writing and on an annual basis, of their intention to utilize the General Export Permit  (i.e. GEP 43 (Nuclear Goods and Technology to Certain Destinations), GEP 44 (Nuclear-Related Dual-Use Goods and Technology to Certain Destinations), GEP 45 (Cryptography for the Development or Production of a Product) and GEP 46  (Cryptography for the Use by Certain Consignees)). These GEPs may require a detailed report of exports made as a condition for their use.

General Export Permits have been issued for specific items and specific destinations. The complete list of General Export Permits is available on the internet at: http://www.international.gc.ca/controls-controles/military-militaires/handbook-manuel.aspx?lang=eng&menu_id=78 or by contacting the Export Controls Division.  For additional details on how to use a General Export Permit, please contact the Export Controls Division.

F.7. Multiple Destination Permits

A multiple destination permit (also referred to as “multi-destination permit” or MDP) is an alternative to a single destination permit (which specify consignees in a single country). This type of permit allows exports to multiple destination countries without consignees being specified in the application. MDPs allow greater flexibility to exporters than individual permits, but also impose specific terms and conditions, in particular, the requirement to submit export reports at regular, defined intervals.  MDPs are offered to exporters who have established an exporting history with the Export Controls Division and have implemented defined processes and procedures when planning, marketing and shipping items included in the Export Control List to foreign clients to ensure a reasonable level of assurance (due diligence) that goods or technology will not be exported to unauthorized or illegitimate end-uses or end-users. In order to apply for an MDP, exporters must first contact the Export Controls Division and become a recognized user of EXCOL.

MDPs are available for Dual-Use Items (Group 1 and in Item 5504 of the Export Control List);^{Footnote 27} for Cryptographic Items (Group 1, Category 5, Part 2 of the Export Control List);^{Footnote 28} and for some Munitions List Items (Group 2 of the Export Control List). Exporters should contact their assigned Permit Officer to discuss further options and/or how to apply for a MDP.

F.8. Procedure for exporting parts for use in Aircraft on the Ground (AOG)

Where spare parts must be exported to support or service a civilian/commercial aircraft stranded in a foreign country, an expedited process will be adopted to meet the exporter’s requirement. A complete permit application will be processed within three (3) business days (sensitive destinations such as sanctioned or ACL countries may take longer). Exporters must ensure that the following information is in the permit application:

• The nature of the export transaction and the reason for the urgent request.
• Serial number of the licensable civil aircraft spare part and tail number of the aircraft to be stated in the item description field of the permit application.
• Information if the spare parts have a US content; if the spares to be exported contain US content, such US content must not be ITAR controlled.
• Copy of the Purchase Order (the formal End-Use Statement is waived)

F.9. Controlled Goods Program

The Controlled Goods Program, managed by the Controlled Goods Directorate of Public Works and Government Services Canada, was established in 2001 to administer the Defence Production Act and the Controlled Goods Regulations.  Generally speaking, companies or persons having access to or who possess, examine, or transfer "controlled goods" as defined in the Schedule to the Defence Production Act, including related technology, within Canada, must be registered with the Controlled Goods Directorate. If an exporter is not registered and wishes to export items subject to control under the Controlled Goods Program, an export permit cannot be issued until there is evidence that the exporter has registered (unless proof is provided that a Controlled Goods Directorate exemption applies).

For information on the Controlled Goods Program, please refer to:

Controlled Goods Directorate (CGD)
Public Works and Government Services Canada
c/o Central Mail Room
Place du Portage, Phase III OB3
11 Laurier Street, Gatineau, Quebec, K1A 0S5
(Visitors go to: 2745 Iris Street, Ottawa, Ontario)
Telephone: 1 (866) 368-4646 (toll-free)
Fax:            (613) 948-1722
Internet:         http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd

F.10. Canadian Nuclear Safety Commission

In addition to export controls imposed under the Export and Import Permits Act, the exports of nuclear and nuclear-related items are also controlled by the Canadian Nuclear Safety Commission under the Nuclear Safety and Control Act and Regulations. Therefore, certain exports of Export Control List Groups 3 and 4 items also require licences from the Canadian Nuclear Safety Commission.  There are also nuclear and nuclear-related items not listed in the Guide that are controlled under the Nuclear Safety and Control Act and Regulations and require licences from the Canadian Nuclear Safety Commission prior to exportation.  Information on the Canadian Nuclear Safety Commission’s export licensing requirements may be obtained by contacting:

Office of International Affairs
Non-Proliferation, Safeguards and Security Division
Canadian Nuclear Safety Commission
280 Slater Street
P.O. Box 1046, Station B
Ottawa, ON  K1P 5S9
Telephone:   (613) 995-0369 or 1 (800) 668-5284
Fax:            (613) 995-5086
Internet:         www.cnsc-ccsn.gc.ca

Exports of Group 3 and 4 items that are also subject to control under the Nuclear Safety and Control Act can only occur when export authorizations are obtained from both the Export Controls Division and the Canadian Nuclear Safety Commission.

It should be noted that as export permits are processed separately by two licensing authorities, exporters must liaise with both departments separately.

F.11. Canadian National Authority for the Chemical Weapons Convention (CWC)

The Canadian National Authority for the Chemical Weapons Convention is responsible for the collection and monitoring of Canadian data relating to the import and export of items identified in Schedules 1, 2 and 3 of the Chemical Weapons Convention which correspond to item 74 of the Import Control List, Chemicals and Precursors, and item 7-3  of  the Export Control List.  For further information, please contact the Canadian National Authority at 343-203-3183.   Information about the Import Control List is available on the internet at: www.exportcontrols.gc.ca.

F.12. Natural  Resources Canada (Explosives Regulatory Division)

The export of many types of explosives are also controlled by Natural Resources Canada (Explosives Regulatory Division) under the Explosives Act and regulations. Therefore, the export of certain items on the Export Control List also requires licences from the Explosives Regulatory Division. Information on the Explosives Regulatory Division export licensing requirements may be obtained by contacting:

580 Booth Street, 10th Floor
Ottawa, ON K1A 0E4
Tel: 613-948-5200
Fax: 613-948-5195
E-mail: ERDmms@nrcan.gc.ca

F.13. Other Government Departments

It is possible that export authorizations may be required from other government departments or entities for other goods.  These entities include, but are not limited to: Agriculture and Agri-Food Canada, Canadian Nuclear Safety Commission, Canadian Wheat Board, Environment Canada, Fisheries and Oceans Canada, Health Canada, Heritage Canada, and Natural Resources Canada.  Exporters may obtain information relating to such controls by contacting the appropriate department or agency.

G. After Issuance of an Export Permit: Compliancewith Export Controls

It is the responsibility of exporters to ensure that they are aware of and comply with Canadian export controls.

G.1. Permit Issuance and Distribution

Once issued, export permits are sent to the applicant depending on the selected method of distribution, including by courier or surface mail.  Recognized Users of EXCOL may download and print valid export permits directly from EXCOL.

Paper copies of valid export permits must be presented with other export reporting documents to the Canada Border Services Agency when the goods or technology are presented for export.

If a permit has been issued for multiple shipments, a copy of the export permit must be presented with every shipment.  The exporter must quote the export permit number on the appropriate export reporting documentation at time of export.  This and other requirements under the Customs Act administered by the Canada Border Services Agency are further described in section H.

The exporter must maintain records of, and retain copies of all documents with respect to, each shipment or transfer made under the authority of an export permit for a period of six years from the expiry date of the permit.

G.2. Terms and Conditions

Exports may be made under the authority of an export permit up to a point no later than the expiry date of that permit.

Unless otherwise stated, an export permit may authorize multiple shipments, up to the expiry of the permit and as long as the cumulative total of the quantity or value of items exported does not exceed the quantity or value stated on the permit.

Some export permits are issued with special, mandatory terms or conditions of use.  Exporters must review their permits to determine whether or not any conditions apply.

A persistent or repeated failure to fulfill the obligations of an export permit may result in a number of consequences, including suspension or cancellation of export permits.

Two of the more common reporting conditions are described below.

G.2.1. Quarterly Reporting

Export permits issued for Group 2 items authorize the export of a maximum quantity and value of the goods and technology identified, to specific customers in specific countries.  Multiple shipments are allowed.  A report on actual shipments made against each export permit must be submitted on a quarterly basis; exporters should refer to the instructions on their export permit for more information (some exceptions may apply).

Recognized Users of EXCOL may enter reports on-line.  To view a list of permits that have been issued and that have reporting conditions, users should select “My Reporting Conditions” from the EXCOL Menu and may choose to view a list of all permits with reporting conditions or a list of only those permits with conditions that require immediate action.  The last column displays an icon which indicates the status of reporting on a permit:

• a red icon indicates that immediate action is required;
• a yellow icon indicates that the relevant reporting period has ended and that you should report within a deadline set on your permit (typically, within 30 days of the end of the reporting period);
• a green icon indicates that no action is required at this time.

An electronic form for entering the required information is available by clicking on the Permit Utilization tab.  Step-by-step instructions are also provided there.

Exporters who are not Recognized Users of EXCOL should contact the Export Controls Division to request a quarterly reporting form.  Information about becoming a Recognized User is available in section E.2.2 above.

G.2.2. Reporting the Return of Temporary Exports(including Demonstration Conditions)

All exports authorized by an export permit must be declared to the Canada Border Services Agency at the time of export using either a completed B13A Export Declaration or other acceptable form of export report (see www.cbsa-asfc.gc.ca for more information).  Temporary exports of controlled goods or technology, including those that are carried by hand, must also be reported in this way.

In some cases, a permit covering a temporary export will contain the following condition:

The exporter must report to the Export Controls Division (TIE), Foreign Affairs, Trade and Development Canada, 125 Sussex Drive, Ottawa, Ontario, K1A 0G2 the return of the goods to Canada and provide proof of re-entry no later than four weeks after the return of the goods to Canada.

The report of return consists of a copy of the completed CBSA Import Declaration (i.e. B3 Canada Customs Coding Form or the CI1 Canada Customs Invoice).  When temporary exports authorized by an export permit return to Canada, permit holders must ensure that they obtain an official proof of return from the Canadian customs authorities.  Presentation of a completed B13A Export Declaration or other acceptable document showing that the goods originated in Canada facilitate processing of the custom’s proof of return for returning temporary exports.  A copy of the proof of return should then be provided to the Export Controls Division to fulfill the reporting requirement.

G.3. Amendments of Export Permits

A recognized EXCOL user must  submit a Permit Amendment Request using the on-line EXCOL system no later than 30 days before the expiry of an export permit (see section E.2.2 for information on how to become a Recognized User).

The following amendments may be requested through a Permit Amendment Request.  Applicants should attach an electronic document that requests and provides a justification for the amendment, as well as attaching any other relevant supporting documents.

• an increase in the quantity and/or unit value of exports defined on the export permit, up to a maximum increase of 50% (indicate per line item, if necessary)
• extension of the expiry date by up to one year from the date of expiry of the original permit
• minor changes to the addresses and contact details provided for consignees (for example, to correct typographical errors on the original application)

The following amendments may be requested through the Permit Amendment Request when the country of final destination is an Open Policy Country:

• addition of  other consignees in the same country of final destination as stated on the original permit (appropriate end-use assurances should be attached; see section E.4.2 for more information)

Amendments are authorized at the discretion of the Export Controls Division.  Amendments may be refused, for example, in cases where the exporter has not yet fulfilled conditions imposed on the original permit.

Only one (1) permit amendment request can be submitted during the validity period of an issued permit. The permit amendment request may cover one or more of the allowable changes as outlined above.

Export permit amendments will not typically be issued to add new goods or technology.  Exporters who wish to amend export permits in these circumstances should submit a new export permit application.  Export permit amendments shall not be granted for export permits that have expired.

A Permit Amendment Request cannot be used to change information about the Applicant or Exporter.  Changes in the name, address, or other contact details of the Applicant and Exporter must be requested in writing with appropriate supporting documents to the Export Controls Division (see Section G.3.1, below).  Any existing export permits that need to be updated must be clearly identified so that new export permits may be issued with the new corporate details.

Export permits are only valid for use by the Exporter named therein.  Inconsistencies between the export permit and other customs or shipping documents, such as different exporter names and addresses, different goods or technology being exported and so on, may cause the export shipment to be subject to detention and/or penalties at the point of export under the authority of the Customs Act.  Exporters must ensure they are in possession of a legally amended export permit before any export takes place.

Non-Recognized EXCOL users must submit a Permit Amendment Request in the form of a letter to the attention of “Permit Section” quoting the Exporter’s EIPA Number and the existing permit number, with the title “Permit Amendment Request”, no later than 30 days before the expiry of an export permit (see section E.2 for information on how to become a Recognized User). Requests may be faxed to (613) 996-9933.

G.3.1. Changes to Applicantor Exporter name and/or address

Section 16 of the Export and Import Permits Act prohibits the transfer of a permit to another party who is not named on the permit.  For this reason, when the Exporter’s or Applicant’s name and/or address have changed, the Export Control Division must be informed of these changes in writing and a new permit issued.

To request such changes, Applicants/Exporters should provide the Export Controls Division with a letter on company letterhead which contains the following information:

• a brief overview which explains the reason for the requested change (for example, corporate acquisition, company relocation , etc.)
• current company name, EIPA and Business numbers
• new name, address and, if applicable, new Business number
• the effective date of the change.

All changes must meet the requirements set out in Section E of the Handbook (for example, as detailed under section E.3.1, an Applicant must be a resident of Canada).  Requests should be submitted well in advance of the required change to ensure sufficient time for processing. Upon receiving such requests, the Export Control Division regenerates active permits to reflect the required changes. Active permits will be replaced with a permit ending in a new version number and the original permits will be automatically cancelled.

G.4. Inspection and Record-Keeping

Section 10 of the Export and Import Permits Act^{Footnote 29} specifies important requirements related to record-keeping and to the inspection, audit, and examination of such records.

G.5. Offences and Penalties

Violations of the prohibitions defined in Sections 13-18 of the Export and Import Permits Act^{Footnote 29} may result in prosecution.  Some examples of offences under the Act are:

• Exporting or attempting to export any goods or technology included on the Export Control List except under the authority of and in accordance with an export permit, such as:
  • Export of goods or technology in excess of the quantities or values declared on the applicable export permit
  • Export of goods or technology to destinations or to consignees that are not listed on the applicable export permit
  • Failure to respect conditions included in an export permit
• Exporting or attempting to export any goods or technology to any country included on the Area Control List except under the authority of and in accordance with an export permit.
• Knowingly doing anything in Canada that causes or assists or is intended to cause or assist any shipment, transhipment, diversion or transfer of any goods and technology included in the Export Control List to be made from Canada or any other place, to a country included on the Area Control List.
• Exporting or attempting to export prohibited firearms, or certain prohibited weapons and devices, to any country that is not included on the Automatic Firearms Country Control List, except under the authority of and in accordance with an export permit.
• Knowingly doing anything in Canada that causes or assists or is intended to cause or assist any shipment, transhipment or diversion of any prohibited firearm, prohibited weapon or prohibited device referred to in paragraphs 4.1(a) to (c) of the Export and Import Permits Act (EIPA), or any part of component designed exclusively for assembly into such a thing, that is included on the Export Control List , from Canada or any other place, to any country that is not included on the Automatic Firearms Country Control List.
• Furnishing false or misleading information or knowingly making any misrepresentation in an application for an export permit for the purpose of procuring its issue or in connection with any subsequent use of the export permit.

Penalties for contraventions of the Export and Import Permits Act or the Regulations are set out in Section 19 of the Act.  Penalties can be, for an offence punishable on summary conviction, a fine of up to $25,000 or imprisonment for up to 12 months, or both; and for an indictable offence, a maximum fine set by the court or imprisonment for a maximum of 10 years, or both.

In accordance with Section 20 of the Act, where a corporation commits an offence under the Act, any officer or director of the corporation who directed, authorized, assented to, acquiesced in, or participated in the commission of the offence, is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

In accordance with Section 21 of the Act, the export permit applicant, who must be a Canadian resident, may be held responsible for any offences committed by a non-resident exporter.

G.6. Report Illegal Exports

If you wish to pass on information about possible violations of the Export and Import Permits Act, please contact the Export Controls Division, a local detachment of the Royal Canadian Mounted Police, or a Canada Border Services Agency office.  Telephone numbers can be found at the front of this document or in the blue pages of your local telephone book under “Government of Canada”. Your call will be handled in confidence.

G.7. Disclosures of Non-Compliance

The Export Controls Division recognizes that, on occasion, responsible exporters inadvertently fail to comply with the Export and Import Permits Act.  We encourage all exporters finding themselves in such a situation to disclose any incidents of non-compliance to us as soon as possible.

The Export Controls Division looks favourably upon disclosures if, after considering the information provided, we are satisfied that the exporter has fully cooperated and that no further action is warranted.  Depending on the gravity or overall circumstances of a case, we may nonetheless refer disclosures to the Canada Border Services Agency or the Royal Canadian Mounted Police for further review.

G.7.1. Disclosure Procedures

Any voluntary disclosure must be accompanied by a cover letter, signed by a senior company officer and addressed to the Director, Export Controls Division, Foreign Affairs, Trade and Development Canada, 125 Sussex Drive, Ottawa, Ontario K1A 0G2, which clearly states that its purpose is to disclose non-compliance with the Export and Import Permits Act.  Included in the cover letter or in accompanying documentation must be the following:

• Details of the products concerned (including technical specifications for assessment of export control status); exporters should provide their self-assessment against the Export Control List on the control status of the goods or technology that was exported, including the rationale for such assessment.
• Dates of all shipments, mode of transport, and port of exit
• Quantities and values of each shipment for each product concerned (including copies of the B13A or Canadian Automated Export Declaration submitted to the Canada Border Services Agency, as well as copies of bills of lading, freight forwarding, shipping or commercial invoices)
• Contract of sale between the exporter and the final consignee
• For each export shipment in question, a statement as to whether the export took place intentionally
• Description of the circumstances underlying each export shipment in question
• Description of steps taken or processes and procedures put in place to ensure that where required, export permits will be obtained in future, and
• Any other documentation that the exporter believes is relevant to the purpose of the disclosure.

Disclosures must be submitted in writing.  You should contact the Export Controls Division for advice on the most appropriate means of submitting a disclosure of non-compliance.

H. Customs Procedures (Canada Border Services Agency)

For detailed information about Canada Border Services Agency (the Agency) procedures, please consult the following documents published by the Agency which are available on the internet at www.cbsa-asfc.gc.ca:

• Exporting Goods from Canada, A Handy Guide for Exporters^{Footnote 30}
• Memorandum D20-1-1, Export Reporting^{Footnote 31}
• Export Reporting^{Footnote 32}

Exporters must report electronically or in writing to an export reporting office all goods being exported from Canada.  Certain exceptions may apply.  It is the responsibility of the exporter to cite the permit number in the appropriate field of the Export Declaration (Form B13A) or other export reporting documents.

The exporter is responsible for ensuring that export permits are submitted to the Canada Border Services Agency when items are tendered for export, i.e. for each shipment.  Each shipment will be recorded by the Agency until the export permit expires or the quantity/value of the export permit has been reached, whichever comes first.  However, it should be noted that it is the responsibility of the exporter to keep records and not to ship beyond the quantity or value limits of the export permit.

If no permit is required (e.g. if an export permit application has been made and the technical assessment has determined that the items are not controlled), this should be stated on the export documentation.  In this case, the Export Controls Division may issue a letter stating that the technology or goods are not controlled for export under the Export and Import Permits Act (EIPA).

For more information, please refer to the Canada Border Services Agency’s “Exporting Goods from Canada: A Handy Guide for Exporters” available on the internet at www.cbsa-asfc.gc.ca.  Appendix 4 “Quick Reference Table” outlines documentary requirements for exporters.

H.1. Enforcement

Border Services Officers, before allowing the export of any item, must satisfy themselves that the exporter has fully complied with, and not contravened, the provisions of the Export and Import Permits Act and Regulations, or any other Act of Parliament.

Under the authority of the Customs Act^{Footnote 33}, Border Services Officers may exercise certain powers, respecting search, detention, seizure and forfeiture with respect to any goods that are tendered for export or exported or otherwise dealt with contrary to this Act, to the Export and Import Permits Act and to relevant Regulations or any other Act of Parliament that controls the export of goods from Canada.

H.2. Examination and Detention

The Canada Border Services Agency has the authority to examine goods that are about to be exported.  If an examination is required, the exporter or the person in control of the goods at the time of the request (normally the freight forwarder or the exporting carrier) will be asked to bring the goods to a sufferance warehouse.  In all cases, destuffing for examination purposes and other related fees are costs to the exporter.

Some shipments may be detained to confirm whether export controls apply to such shipments and if proper export permits have been obtained.  Export shipments of goods or technology subject to export controls will be detained in the following circumstances:

• additional information is required from the exporter and/or a controlling entity to determine if the goods or technology are controlled for export;
• verification that the export permit presented is valid for the goods being exported or that a declaration of “No Permit Required” is valid;
• the required export permit has not been presented;
• discrepancies exist between the information provided on the export declaration and the export permit with regard to the description of the goods, quantity and unit of measure, or the destination;
• the required export permit is not yet effective or has expired.

Items that have been detained by the Canada Border Services Agency may be referred to the Export Controls Division for a determination of control status.  The Export Controls Division evaluates the export documentation submitted by the exporter at time of export and in many instances will contact the exporter to request additional documents or information.  It is in the best interest of the exporter to make all requested information available as quickly as possible.

Exporters may enquire about the status of the control status determination process by contacting the Export Controls Division at telephone (343) 203-4331 and providing the appropriate detention reference number assigned to the case by the Canada Border Services Agency.

Upon finalizing the control status of the items tendered for the specific export, the Export Controls Division will advise the Canada Border Services Agency of its findings.  However, the exporter must contact the Agency regarding any further information or actions required on the specific detention.

Exporters with items under detention may apply for a permit to export the same items.  Applications must be made through the normal channels as described, for example, in section E above, and must state clearly that goods had been detained in a prior shipment.  However, issuance of an export permit for such items does not necessarily cause detained goods to be released to the exporter, nor does it absolve the applicant or exporter of any infractions or offences that may have been committed.  Where a permit is subsequently issued, it will contain the following standard condition:

This export permit has been issued without prejudice to the resolution of any detention by the Canada Border Services Agency and does not absolve the exporter of any infractions or offences that may have been committed under the Export and Import Permits Act or any other legislation.

Detentions may be lifted when the Canada Border Services Agency receives:

• a valid export permit;
• proof that an export permit was not required;
• adequate clarification of the discrepancy between the export declaration and the export permit.

H.3. Administrative Monetary Penalty System, Seizures and Ascertained Forfeiture

The Administrative Monetary Penalty System is a penalty regime designed to encourage compliance with customs legislation.  The penalties are intended to be corrective rather than punitive.  The initial amount and increments of these monetary penalties are established after giving due consideration to the type, frequency, and severity of each infraction.  Most penalties are graduated and take the compliance history of the client into consideration.

Most contraventions will be dealt with using the Administrative Monetary Penalty System. However, because legislative requirements provide that certain goods may enter or leave Canada only under controlled conditions and that some infractions require greater deterrence, seizures and ascertained forfeitures continue to form part of the measures needed to address certain serious offences which may also include criminal prosecution.

A seizure is a legal action, the result of which calls for certain goods taken from offenders to become the property of the Government of Canada.  It is invoked when reasonable grounds exist to conclude that legislative requirements pertaining to a suspected infraction call for the goods or the conveyance to be seized or when the mere possession of those goods without due justification is deemed to be unlawful.  Seizures are subject to appeal within 90 days.  Nearly all seized goods are ultimately destroyed or otherwise disposed of as prescribed by the relevant public authorities.

Ascertained forfeiture is the legal process used when seizure constitutes excessive punishment, or would be impractical or impossible, as in the case of goods that have already been exported. Used under basically the same conditions as a seizure, an ascertained forfeiture normally results in a monetary penalty equivalent to seizure of the goods.  However, the Minister of Public Safety may prescribe a reduced penalty amount under certain circumstances. Like seizures, ascertained forfeitures are subject to a 90-day appeal period.  Any outstanding amount not paid on time is subject to interest.

Seizure and ascertained forfeiture are the responsibility of the Canada Border Services Agency and the Export Controls Division will not enter into correspondence with exporters about such actions.  Exporters whose shipments are subject to such legal action may apply for permits to export similar items.  Applications must be made through the normal channels as described, for example, in section E above, and must state clearly that goods had been detained in a prior shipment.  However, issuance of an export permit for such items does not absolve the applicant or exporter of any infractions or offences that may have been committed.

H.4. Useful Internet Pages

• Exporting Goods From Canada -- A Handy Guide for Exporters (www.cbsa-asfc.gc.ca/publications/pub/bsf5081-eng.html)
• Information for Exporters (www.cbsa.gc.ca/export/menu-eng.html)
• Memorandum D20-1-1 -- Export Reporting (www.cbsa.gc.ca/publications/dm-md/d20/d20-1-1-eng.html)
• Memorandum D19-10-3 Export and Import Permits Act (Exportations) (www.cbsa.gc.ca/publications/dm-md/d19/d19-10-3-eng.html)
• The Administrative Monetary Penalty System (http://www.cbsa-asfc.gc.ca/trade-commerce/amps/menu-eng.htmlDirectory of Canada Border Services Agency Offices (www.cbsa.gc.ca/do-rb/menu-eng.html)

I. Applications to Export Cryptographic items

I.1. Introduction

Permits are not required to export cryptography and information security goods or technology from Canada to the United States. Exports of Canadian goods or technology from the United States or other countries are subject to export controls of that country. However, foreign consignees who intend to re-export such goods or technology should state that in the end-use statement, if one is required.

I.2. General Export Permits

Pursuant to the Export and Import Permits Act, the Minister of Foreign Affairs has issued two (2) General Export Permits (GEPs) relating to the export or transfer of cryptography.

GEPs are intended to facilitate trade in defined circumstances and are issued generally to all residents of Canada to allow the export or transfer of specific goods and technology that are included in the Export Control List (ECL) to certain specified destinations, subject to terms and conditions. GEPs do not require an individual application to be submitted to Foreign Affairs, Trade and Development Canada for purposes of export or transfer.

Currently, there are two types of GEPs for the export or transfer of cryptography:

• GEP 45 -  Cryptography for the Development or Production of a Product
• GEP 46 -  Cryptography for Use by Certain Consignees

Please consult the corresponding regulations within the Export and Import Permits Act pertaining to the above GEPs.

Exporters wishing to utilize these GEPs must, prior to their first export in any calendar year, provide in writing to the Export Controls Division of Foreign Affairs, Trade and Development Canada:

• their name, address, telephone number, facsimile number and electronic mail address
• in the case of a corporation, the name of a contact person and their address, telephone number, facsimile number and electronic mail address, the business number assigned to the corporation by the Minister of National Revenue, and
• (in the case of GEP 45) a description of the products whose production and development will be facilitated by the exports or transfers.

I.3. Individual Export Permits

An individual export permit allows exports of goods and technology described therein to specified consignees in a single country. Individual permits may authorize exports of any cryptographic items controlled in Group 1: Category 5 – Part 2 of the Export Control List (ECL). An application must be submitted to the Export Controls Division in order to obtain an individual permit. Once it has been issued to an applicant, this type of permit generally does not require that actual exports be reported (in contrast to some other permit types).

I.3.1. Applications

Export permit applications for information security goods/technology and goods/technology employing cryptography consist of the following:

• complete application form (generally done through our online system EXCOL)
• Cover letter or notes in the “Applicant/exporter comments” field of the EXCOL application form explaining the overall nature of the proposed transaction, including the roles of the parties involved and the end-use of the product. This information informs the Export Controls Division's review of the application by providing a clear picture of the particulars of the proposed export.
• a completed cryptography and information security product questionnaire
• technical description of the goods/technology. The Export Controls Division undertakes a technical assessment of the goods or technology listed in the export permit application to determine under which Export Control List Item(s) they fall. For this purpose, technical specifications of the export must be detailed and adequately describe the characteristics of the goods and services. Enough details must be provided to establish the true nature of the items. These could be provided in the form of drawings, data sheets, manuals, component lists, and so on. Marketing brochures may also provide useful additional information. The information that is submitted should make clear the type and function of the goods and provide key technical parameters.
• signed end-use statement from the final consignee to whom the export shipment is destined – exporters may use the template provided or submit other documents which contain the same information required in the template. When alternative end-use documents are provided, the applicant must clearly indicate in their application where in those documents each of the elements of the end-use statement template are met.

As noted above, general information that is required in an export permit application form submitted through EXCOL can be found in the Export Controls Handbook.

Exporters of information security goods/technology and goods/technology employing cryptography should note the following guidelines on identifying items in an export permit application:

• Descriptions of finished products should use the following format: [brand name or name of manufacturer] [model name] [part number]. This information should be consistent with packaging labels, invoices, and shipping documents.
• Descriptions of software should use the following format: [software developer or publisher name] [software name] [version number x.x] [means of export – e.g., on CD or by FTP]. This format assumes that, in the version number, changes to the right of the decimal (e.g., from version 3.0 to 3.1) will only be updates, patches, or fixes with no change to the cryptographic functionality, and that any other change to the software, including a change to the cryptographic functionality, will result in a change from version 3 to version 4.
• 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.

An export permit issued for software will generally include the version number, as noted above (e.g., version 1.x). Changes to the version number to the left of the decimal (i.e., from version 1.x to version 2.x) require a new permit to be issued. In other words, if a permit is issued for version 1.1, the exporter may also use that permit to export versions 1.2 and 1.3 (assuming there has been no change to the cryptographic functionality). However, that permit may not be used to export version 2.1 of the same software. A new permit application should be submitted.

I.3.2. Application review period

The Export Controls Division makes every effort to review export permit applications as quickly as possible. The Export Controls Division has established service delivery targets for applications to export in order to provide applicants with timely service. Review times may vary according to the complexity of an application, the adequacy and completeness of the information presented in it, and the number of applications under review at any given time. Under normal circumstances:

• complete applications for many destination countries, including most European countries, Japan, South Korea, Australia and New Zealand, will be reviewed within 10 business days from the submit date in EXCOL or from the date of receipt in the Export Controls Division;
• complete applications to other destinations will be reviewed within eight weeks from the submit date in EXCOL or from the date of receipt in the Export Controls Division.

Permits are not required to export cryptography and information security goods or technology from Canada to the United States.

Applicants whose applications are incomplete will be asked to provide additional information within a specific time period. Incomplete applications may be returned without action in order for them to be submitted again at a later date when the required information is available to the applicant.

I.3.3. Validity periods for individual export permits

The default validity period for individual export permits for cryptography is two years. Exporters may request shorter or longer validity periods, up to 5 years. Individual applications may also be amended to extend the validity period by up to one year at a time (applications must be made through EXCOL at least 2 weeks before the expiry date of the existing permit – refer to the Export Controls Handbook for more information).

I.4. Multidestination export permits

The Export Controls Division issues several types of “multidestination” export permits for cryptographic items. These allow for exports to multiple destination countries without consignees being specified in the application. These permits differ according to the cryptography products that are intended to be exported and the terms and conditions that apply to the use of these permits. The following multidestination permits are currently issued by the Export Controls Division:

• EU+5 cryptography permit: this type of permit may authorize exports of hardware, software, source code or other technology controlled under Export Control List Group 1 Category 5 – Part 2: “Information Security”. Eligible destinations include all countries within the European Union (except Cyprus), Australia, Japan, New Zealand, Norway and Switzerland. There are no regular reporting requirements but export records must be maintained and provided to the Export Controls Division if requested.
• Broadbased permit: this type of permit is generally available to those applicants to whom an export permit has been issued in the past. It allows the export of hardware, executable software, and associated information and enhancements to a wide range of countries; it requires that all exports or transfers made using the permit be reported every six months. Applicants who have a history of non-compliance with previously issued export permits may apply for broadbased permits but will be subject to a shorter validity period.

I.4.1. Applications

Please contact the Export Controls Division if you wish to submit an application for a multidestination permit using EXCOL and have not done so before. You should send an email to tie.reception@international.gc.ca and request that your EXCOL profile to be set to enable applications for multidestination cryptography permits.

Applications for multidestination permits must include the following:

• Complete application form (generally done through our online system EXCOL)
• A completed cryptography and information security product questionnaire
• Technical description of the goods/technology. The Export Controls Division undertakes a technical assessment of the goods or technology listed in the export permit application to determine under which Export Control List Item(s) they fall. For this purpose, technical specifications of the export must be detailed and adequately describe the characteristics of the goods and services. Enough details must be provided to establish the true nature of the items. These could be provided in the form of drawings, data sheets, manuals, component lists, and so on. Marketing brochures may also provide useful additional information. The information that is submitted should make clear the type and function of the goods and provide key technical parameters.
• Cover letter using the template provided and confirming the exporter agrees to abide by the terms and conditions of the permit.

Some types of multidestination permits may require other supporting documents or information. Please refer to the detailed descriptions of each for more information.

Applicants/exporters must indicate the approximate quantity for each of the items they intend to export during the validity period of the proposed permit. Such quantity must be reasonable and within the commercial prospects of the intended exports.  The applicant/exporter may be able to further justify their proposed quantity in their Cover Letter. Quantities that merely reflect “inventory numbers”, “catalog inventory” or “maximum possible quantities” will not be accepted and the corresponding application will be returned without action.

I.4.2. Application review period

The Export Controls Division makes every effort to review export permit applications as quickly as possible. The Export Controls Division has established service delivery targets to process permit applications in order to provide applicants with timely service. Review times may vary according to the complexity of an application, the adequacy and completeness of the information presented in it, and the number of applications under review at any given time. Under normal circumstances, complete applications for multidestination permits will be reviewed within 8 weeks from the submit date in EXCOL or from the date of receipt in the Export Controls Division.

Permits are not required to export cryptography and information security goods or technology from Canada to the United States.

Applicants whose applications are incomplete will be asked to provide additional information within a specific time period. Incomplete applications may be returned without action in order for them to be submitted again at a later date when the required information is available to the applicant.

I.4.3. Validity period for multidestination permits

The validity period for multidestination export permits for cryptography is 2 years.. Applicants whose product development cycles are shorter than 2 years may wish to request shorter validity periods since new versions of a cryptography item require the submission of a new application (and these new applications may include all previous versions of the same product).

I.4.4. Export Control Compliance Plan

A statement is required in the cover letter indicating 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 cannot use the corresponding 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 processes a 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 process to provide a reasonable level of assurance (due diligence) that goods or technology may not be exported 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 procedures to deal with instances of non-compliance. For example, the Export Controls Division of Foreign Affairs, Trade and Development 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.

J. Applications to Export Firearms, Related Goods, and Ammunition

J.1. Specific Information

In addition to the general guidance on export permit applications provided in section E, common scenarios for the export of firearms, firearms-related goods, and ammunition are provided at J.4, below, as well as on the internet at www.exportcontrols.gc.ca.

Before starting an export permit application, applicants should have the following information available:

• Firearms licence number (whether a business or an individual).
• Registration certificate number (when applicable).
• The following information for each firearm (if using the on-line application, drop-down menus are available in some fields from which the applicable information may be selected):
  • Make
  • Model
  • Type
  • Action
  • Calibre
  • Barrel Length
  • Serial Number (serial number ranges may be indicated if consecutively numbered firearms are to be exported) and
  • Legal Classification (non-restricted, restricted, or prohibited).
• Descriptions of firearms-related goods include silencers, special gun mountings, clips (magazines), weapons sights and flash suppressors.
• If cartridge magazines are proposed for export, the magazine capacity, the model of firearm and calibre for which the magazine is intended (this is required in order to determine whether the item is a prohibited device under Canadian law).
• If ammunition is proposed for export, ensure that the noted unit value correctly reflects the unit of measure used, i.e. value per box if box is used, value per cartridge if cartridges are used as the unit of measure.

Exporters should be aware of Canada’s Export Control List, in particular Group 2.

• Firearms, their components and certain accessories are controlled under Export Control List Item 2-1 and 2-2;
• Ammunition and related items are controlled under Export Control List Item 2-3; and
• Firearms-related goods including technology may be controlled elsewhere in Group 2.

In filling out your application, please note that optical weapon sights without electronic image processing, with a magnification of 9 times or less, that are not specially designed or modified for military purposes, and do not incorporate any reticles specially designed for military use, do not require an export permit.

It is recommended that exporters apply for export permits to export firearms by using the Export Controls On-line (EXCOL)^{Footnote 34} secure website.   Please refer to section E.2.3 above for more information on making an electronic application.

Paper application forms may also be used.  Please refer to section E.2.4 above for more information on making a paper application.  Forms that are not legible may be returned without action.

Canadian exporters should be aware of the firearms laws of the destination country.  In order to prevent any disappointment or delays, it is strongly recommended that these requirements be thoroughly researched before booking any transport arrangements involving firearms.

If firearms transit a third country on the way to their final destination, whether they are in the possession and control of the owner or are being shipped separately, they may be subject to special requirements imposed by that third country.  It is the exporter’s responsibility to be aware of, and comply with, any such requirements.

J.2. Export Permit Requirements for Firearms

J.2.1. Exports to the United States

Both temporary and permanent exports of either Restricted or Non-Restricted firearms to the U.S. may be made without obtaining an export permit.

All exports of Prohibited firearms to any destination, including the U.S., must be authorized in advance with an export permit.

Applications to export Prohibited firearms to the U.S. must include a copy of the U.S. import permit that specifically identifies the firearm to be exported. Additional supporting documentation, such as a cover letter, registration certification for the firearm(s) in question and valid firearms licence, must be included in the export permit application, as described above.

However, for all types of firearms, a U.S. import permit must have been issued by the Bureau of Alcohol, Tobacco and Firearms (ATF) prior to their entry into the U.S. Forms are available online at the following website: http://www.atf.gov/content/library/firearms-forms.

For temporary imports into the U.S., Canadian applicants must complete Form 6NIA (ATF F 5330.3D), Application and Permit for Temporary Importation of Firearms and Ammunition by Non-immigrant Aliens. It can take up to 12 weeks to process an application, so it is advisable to apply for a permit well in advance.

For permanent imports into the U.S., Form 6 (ATF F 5330.3A) must be completed.

J.2.2. Exports to Countries Other than the United States

In general, both temporary and permanent exports of either Restricted, Non-Restricted, or Prohibited firearms to countries other than the United States must be authorized in advance with an export permit.

Exception: Permanent exports of Restricted and Non-Restricted firearms that were temporarily imported into Canada by individuals who are non-residents of Canada and are returning to the country from which they came from do not require Canadian export permits. However, all such visitors must have a valid Non-Resident Firearm Declaration (CAFC909) for the duration of their stay in Canada.

J.2.3. Other Requirements

Visitors may not, under any circumstances, import or export Prohibited firearms.

Canadian exporters are required to report the permanent export of all firearms to the Canada Firearms Program of the RCMP. It is recommended that copies of the Export Permit, foreign import authorization and any waybill issued by the carrier be provided to the Canada Firearms Program (http://www.rcmp-grc.gc.ca/cfp-pcaf/index-eng.htm) to support the exporter’s claim of permanent export. A photocopy of the foreign import authorization should be included with the package when shipped.

J.3. Additional Considerations

If the firearms, ammunition, or firearms-related goods or technology proposed for export are “controlled goods” as defined in Part 2 of the Defence Production Act, registration under the Controlled Goods Program may be required.

See section F.9. above for more information about the Controlled Goods Program.

See Box 1 and section E.4.3. above for information about “controlled goods” and U.S. Export Authorizations.

J.4. Common Export Scenarios for Firearms, Related Goods, and Ammunition

J.4.1 Temporary Export for Overseas Competition

In addition to the specific information (see J.1, above), please be aware of the following instructions.

You should provide the following with your application:

• A cover letter outlining the proposed travel, to include dates, destinations, and a statement that the exporter is travelling to compete as either a team member or as an individual;
• If competing under the auspices of a sport regulating body (e.g. the Shooting Confederation of Canada), a letter from the regulating body confirming your status and participation at a given competition;
• A copy of the competitor's invitation to attend the event (general/open invitations are acceptable);

Other information:

• For “Consignee”, you may enter your name, “Care of” the event and/or the event coordination authority, listing a physical address and contact name for the competition in the destination country.
• Export type is “Temporary”

J.4.2 Temporary Export for a Hunting Trip

In addition to the specific information (see J.1, above), please be aware of the following instructions.

An export permit is required in order to take hunting firearms and related magazines, riflescopes and ammunition outside Canada. You should provide the following with your application:

• A cover letter outlining the dates of travel and nature of the export (temporary) and some type of confirmation of your travel and its purpose (e.g. booking confirmation or invitation letter issued by your outfitter, flight itinerary, etc.). The letter should also state that the export is being made for personal use on the hunting trip and that the exported articles will return to Canada.
• Confirmation that you have import authority to bring your firearms into the foreign country, or a statement that you will arrange for such permission at the time of import at your destination (your outfitter might be able to assist you).

Some countries now require the presentation of a valid export permit as a pre-condition for their issuance of an import permit. Not having a Canadian export permit in your possession at the time of import to a foreign country may lead to travel delays and/or confiscation of your firearm.

In filling out your application, please note the following:

• You will be exporting the goods to yourself to the foreign address of your outfitter. The consignee information should be listed as: your name, “Care of” the name and address of your outfitter.
• When listing ammunition on your application, indicate the correct calibre, unit of measure, quantity and unit value where required. An example of a description of ammunition might be "375 H&H calibre sporting ammunition.” Ensure that the noted unit value correctly reflects the unit of measure used. Generally, quantities and values are stated “per box” or “per cartridge”.
• You are required to provide your self-assessment of the Export Control List numbers that apply to your export. In this scenario, exporters commonly use the following:
  • Firearms: For rifles, ECL Item 2-1.a; for shotguns, ECL Item 2-1.b
  • Optical weapons sights (riflescopes): ECL Item 2-1.d
  • Additional magazines: ECL Item 2-1.d
  • Ammunition: ECL Item 2-3.a.

J.4.3 Export of a firearm for repair (temporary export) or replacement (permanent export)

In addition to specific information (see J.1, above), please be aware of the following instructions.

A common error with this scenario is that the item to be exported is being sent for an evaluation of whether the item can be repaired or not. If the item is to be repaired and returned to Canada, then the export is of a temporary nature. If, however, the exporter believes that it is likely that the item cannot be repaired and is to be replaced, then the application should be for a permanent export. In this case, an import permit may then be required to have the replacement item enter Canada. Exporters who apply for a temporary permit and who then do not have the original item return to Canada may place themselves in violation of the conditions of their permit. It is the applicant/exporter's responsibility to ensure that the proper type of export is indicated on their application.

For firearms being returned for repair, supporting documentation should include:

• A written statement by the foreign consignee that the items proposed for export are to be repaired and will be subsequently returned to Canada.
• If the consignee is required to obtain an import permit for the firearms, or other permission or authority of their government to receive such items into their care, these documents should also be included with the export permit application.

J.4.4 Permanent export of a firearm by an individual

In addition to specific information (see J.1, above), please be aware of the following instructions.

You should provide the following with your application:

• A cover letter from the exporter clearly outlining the transaction entered into between the exporter and the consignee with regard to the proposed export.
• Documentation from the applicant/exporter showing that the firearms proposed for export are, where required, legally registered in Canada and a clear statement of, or documentary proof that, the exporter has the permission of the owner of the firearm (if on consignment or if the item is estate property) to export the firearm. If the firearms for export bear expired registration certificate information then a letter from the Canada Firearms Centre indicating that the option to export the firearms in question has been extended to the exporter may be required.
• A copy of a valid Firearms Licence held by the exporter for the legal classification of the firearm proposed for export.
• A valid foreign import authorization that clearly identifies the consignee and the firearm being exported. This documentation may take the form of an International Import Certificate, an Import Permit or Import Licence issued to the final consignee by the foreign firearms import authority, or a clear statement by the consignee noting the licencing authority exemption under which they are undertaking to import the firearm proposed for export from Canada.
• In the case of prohibited firearms being exported to the United States, a copy of a completed Form 6 issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives is commonly required as supporting documentation before an export permit may be issued.

J.4.5 Permanent export of a firearm by a business

In addition to the specific information (see J.1, above), please be aware of the following instructions.

You should provide the following with your application:

• A cover letter from the exporter clearly outlining the transaction entered into between the exporter and the consignee with regard to the proposed export.
• A copy of the exporter's Business Licence- Firearms as issued by the Canada Firearms Centre showing the requisite authorizations.
• Documentation from the applicant/exporter that the firearms proposed for export are legally registered in Canada (if required to be) and a clear statement/documentary proof that the exporter has the permission of the owner of the firearm (if held on consignment) to export the noted firearm. If the firearms bear expired registration certificates, then a letter from the Canada Firearms Center indicating that the option to export the firearm in question has been extended to the owner/exporter may be required.
• Clear end-use assurances (see relevant section in the Guide to Canada's Export Controls)
• Clear and complete technical information/specifications on the items proposed for export. In the case of firearms, a valid Firearms Reference Table (FRT) number is required.
• Controlled Goods Program Registration information if required (see the section on CGP in this supplement and in the Guide to Canada's Export Controls).
• US export authorization if required (see the section on CGP and US export above and in the Guide to Canada's Export Controls).
• Clear and correct descriptions of the items proposed for export that follows the parameters given in the Guide to Canada's Export Controls.

J.4.6 Export of prohibited firearms, prohibited weapons, or prohibited devices

In addition to the specific information (see J.1, above), please be aware of the following instructions.

Certain prohibited firearms, weapons, devices, or components thereof that are included on the Export Control List (ECL) may be exported only to destinations in the Automatic Firearms Country Control List (AFCCL). More information about the AFCCL is available on our website.

J.4.7 Export of firearms-related goods or ammunition, without firearms

In addition to the specific information (see J.1, above), please be aware of the following instructions.

The requirements are identical to those noted for firearms, except that firearms registration documentation need not be presented. However, an application to export any item that requires a valid licence to possess in Canada must be accompanied by the appropriate licencing documentation. Items that are not legally possessed in Canada may not be exported from Canada.

K. Import-related Documents

K.1. Import Permits

Canada has a range of goods over which it imposes import controls. The Import Control List^{Footnote 35} of the Export and Import Permits Act lists these goods. More information is available on the internet at www.exportcontrols.gc.ca. Paragraphs 70-73 and 91 of the ICL control Military Goods and Firearms. Paragraph 74 of the ICL controls Chemical Weapons Convention items.

An Import Permit authorizes the import into Canada of certain goods controlled by the Import Control List. Importers must present the Import Permit, for these goods, to Border Services Officers of the Canada Border Services Agency at the time of import. We advise Importers to refer to the Import Control List to determine whether a specific good or goods require an Import Permit for entry into Canada.

Applicants must submit import permit a pplications, for controlled good s, prior to entry into Canada. Applicants must use the New Export Controls Online (NEXCOL) system to submit all Arms and Munitions Import Permit applications.

Current policy allows for the waiver of an import permit for goods defined in paragraphs 70(1)(a) and 70(1)(b), most firearms and their parts, when destined for sporting or recreational use. Imports of all handguns, prohibited firearms (and parts and components specifically designed therefore) and/or prohibited devices are not subject to this administrative forbearance waiver and require an import permit. 

Common scenarios

Return of a handgun following a temporary export to the United States: The handgun can be exported under General Export Permit 47 (GEP 47) which is available in via the NEXCOL system under the "Apply" menu. It is also suggested that prior to exporting the handgun, you also apply for the return import permit, also available under the "Apply" menu in NEXCOL as "Arms and Munitions Import Permit". You must provide a copy of a valid Possession and Acquisition Licence (PAL) with the required permissions and a valid Canadian Firearm Registration Certificate for the firearm you are importing under the documents tab in NEXCOL.

Importing a handgun from countries other than the US: Prior arriving at the Canadian Border, you must have applied for and received an "Arms and Munitions Import Permit" from Global Affairs Canada.  The Arms and Munitions Import Permit is available via the NEXCOL system under the "Apply" menu. You must provide a copy of a valid Possession and Acquisition Licence (PAL) with the required permissions and a valid Canadian Firearm Registration Certificate for the firearm you are importing under the documents tab in NEXCOL.

K.2. International Import Certificates

Important note: An International Import Certificate is meant to allow a foreign supplier to obtain the approvals it needs from its own government to allow the export of goods or technology to Canada. An International Import Certificate IS NOT AN IMPORT PERMIT and does not necessarily authorize the importation of such goods into Canada.  If an Import Permit is required, please consult the following website: www.exportcontrols.gc.ca.

The International Import Certificate is an end-use assurance document that formally recognizes that the Government of Canada is aware of, and has no immediate objections to, the proposed import of specific goods to Canada by the stated importer, for the stated end-use and end-user.

A Canadian-issued International Import Certificate may be required by an exporting country prior to that country authorizing an export permit/licence.  Canadian International Import Certificates are issued to Canadian applicants, who in turn provide a copy to their foreign suppliers, who use the International Import Certificates to obtain a foreign export permit.  The International Import Certificate is used by the export control authorities of the exporting state in their export permit/license issuance process.  Once approved, the International Import Certificate is valid for use only if presented to the authorities of the exporting state within six months of its issuance by Canada.

K.2.1 How to apply for an International Import Certificate

Applications for International Import Certificates may be submitted online using Export Controls On-Line (EXCOL)^{Footnote 36}, click on International Import Certificate on the left-hand menu bar.  Paper application forms are also available on our website^{Footnote 37} .

An application for an International Import Certificate must present an accurate and complete reflection of the proposed transaction.  The International Import Certificate is a stand-alone document, meaning that the issued document will not be supplemented by attachments, invoices, statements, or letters at the time of issuance.  The application should include the following information:

• Description: Name of the goods, including, where possible, models, brand names, part numbers, serial numbers, and so on.  Each type of product should be entered on a separate line on the application.  The Import Certificate Regulations require that item descriptions must “describe the goods concerned in sufficient detail as to disclose their true identity and, in so doing, avoid the use of trade names, technical names or general terms that do not adequately describe the goods”. Quantity: for each line item, state the number of units.  Where quantity is given as a weight or volume, the unit of measure must be stated in the Description field.
• Value: for each line item, state the value of the total quantity of units imported.  Currency used for value must be indicated on the application (e.g. CAD, USD, EUR, GBP, or YEN).
• End-User: applicants must state the End-Use and End-User of the goods in Canada.  Goods imported under an International Import Certificate and incorporated into final goods for re-export may be subject to export controls.

K.2.2 International Import Certificates for Firearms, Firearms-Related Goods, and Ammunition

In addition to the general information above, applications for International Import Certificates relating to firearms, firearms-related goods, and ammunition should include the following information:

• Description: You must include the make, model, type, action, calibre and Canadian legal classification of any firearm proposed for import.  If cartridge magazines are proposed for import, the magazine capacity, and the model of firearm and calibre for which the magazine is intended should be noted in order to determine whether the item is a prohibited device under Canadian law.  Cartridges and reloading components should be clearly noted as such and should also list the applicable calibre.  Parts for firearms must be clearly described.
• Quantity: Units of measure should be noted within the item description to correlate the quantity and value stated on the International Import Certificate application; e.g. quantity of gunpowder for reloading is noted in pounds; cartridge cases are noted as units; ammunition is noted in boxes of 20 (if quantity is expressed in number of boxes), and so on.
• Supporting documents: Applicants may be requested to submit a copy of a valid Firearms Possession and Acquisition License or Firearms Business License to confirm their eligibility to receive the items proposed for import.  International Import Certificates will not be issued to applicants who are unable to legally possess the requested materials in Canada.  This documentation may be attached to the International Import Certificate application at time of submission to expedite the evaluation process.

Incomplete International Import Certificate applications (e.g. without supporting documentation) or those with vague and/or inaccurate item descriptions may take longer to process and/or may be returned to the applicant without action.

K.3. Delivery Verification Certificates

A Delivery Verification Certificate is issued by the Export Controls Division on behalf of the Government of Canada to provide official confirmation that imported goods or technology have been delivered to a consignee in Canada.  A Delivery Verification Certificate may also be issued to confirm delivery of goods identified on an International Import Certificate.  Your foreign supplier of controlled goods or technology may be required to provide a Delivery Verification Certificate to its government in order to fulfill the conditions of a foreign export permit.

Applications for Delivery Verification Certificates may be submitted online using Export Controls On-Line (EXCOL) (from the EXCOL home page on the internet at https://www.nexcol-nceel.canada.ca/en/Home-Accueil, click on Delivery Verification Certificate on the left-hand menu bar).  Paper application forms are also available on our website^{Footnote 38} .

An application for a Delivery Verification Certificate should include the following information:

• Description: Name of the goods, including, where possible, models, brand names, part numbers, serial numbers, and so on.  Each type of product imported should be entered on a separate line in the application.
• Quantity: Number of units of each line item imported.  Where quantity is given as a weight or volume, the unit of measure must be stated in the Description field.
• Value: value of the total quantity of units imported for each line item in the application.  Currency used for value must be as indicated on the application (e.g. CAD, USD, EUR, GBP, or YEN).

An application for a Delivery Verification Certificate should include the following supporting documents:

• B3 Canada Customs Coding Form or CI1 Canada Customs Invoice, as submitted to the Canada Border Services Agency;
• Canada Border Services Agency Customs Entry Recapitulation;
• Entry waybill, manifest, bill of lading or cargo control document; and
• Commercial invoice.

Information provided in the Delivery Verification Certificate application form must match or correspond closely to that provided on all supporting documents.  In certain cases where the documents provided do not correspond exactly with the application, the applicant may be requested to provide additional information.  If the information requested is not provided within a reasonable period of time, the application may be returned without action.

L. Further Information and Reference

L.1. Arms Export Statistics

There are two different sets of statistics on arms exports published by the Government of Canada. The two sets of statistics are collected from different databases, are used for different purposes, and are not compatible.

Foreign Affairs, Trade and Development (DFATD) compiles and releases an annual “Report on the Export of Military Goods from Canada^{Footnote 39} ,” which provides statistics on the export of goods and technology identified on the “Munitions List” section of Canada’s Export Control List (ECL). Items on the “Munitions List” are used mostly by military and police forces for reasons of defence and security.

The Canada Border Services Agency (CBSA) and Statistics Canada collect information on ALL items exported from Canada, and classify these items using categories negotiated by the World Customs Organization (WCO). The WCO chapter on “Arms and Ammunition” includes some items that appear on the “Munitions List.” However, it also includes items not on the “Munitions List” (for example, paintballs, ammunition used to frighten birds at airports, flare guns and certain equipment for oil and gas exploration). CBSA and Statistics Canada information is made available on Industry Canada’s website as “Trade Data Online” and on Statistics Canada’s website as the “Canadian International Merchandise Trade Database.”

L.1.1. Report on Exports of Military Goods from Canada

Statistics relating to the export of military goods and technology, including conventional arms and ammunition, can be found in the "Report on Exports of Military Goods from Canada" published by DFATD.  These statistics are based on the export of military goods and technology as identified in the Munitions List (Group 2) of Canada’s Export Control List, which reflect commitments made in the multilateral Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies and commitments made in the Organization of American States, as well as certain additional unilateral controls implemented by Canada.  Canada’s export control regime, including the Export Control List, is established and administered under the authority of Canada's Export and Import Permits Act.

Other statistics regarding the export of arms and ammunitions can be found on other government sites such as Industry Canada's "Trade Data On-Line" and Statistic Canada’s “Canadian Industrial Merchandise Trade Database”. This data is compiled based on categories of items negotiated at the WCO for the purpose of applying global customs tariff codes. The "Arms and Ammunitions" category of items negotiated via the WCO does not, in many cases, reflect what many countries would consider conventional arms and ammunition. (For example, goods such as flare guns used in oil and gas drilling, ammunition to frighten birds at airports, etc. may be listed under the “Arms and Ammunition” coding). The Canadian Commercial Corporation also generates their own export data based on contracts between Canadian suppliers and military end-users. Again, these statistics may include items which are not strictly military in nature, such as storage containers.

L.2. Websites

Explosives Regulatory Division, Natural Resources Canada
www.nrcan.gc.ca

Export Controls Division Trade Controls and Technical Barriers Bureau (Foreign Affairs, Trade and Development Canada)
www.exportcontrols.gc.ca See in particular links to EXCOL, Notices to Exporters, and Specific Controls

Export and Import Permits Act and regulations
http://laws.justice.gc.ca/en/showtdm/cs/E-19

Canadian economic sanctions
www.international.gc.ca/sanctions

Canada Border Services Agency
www.cbsa-asfc.gc.ca

Canadian Nuclear Safety Commission
www.cnsc-ccsn.gc.ca

Controlled Goods Directorate (Public Works and Government Services Canada)
http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd

L.3. Commonly Used Export Controls Acronyms

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