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Canada Issues General Export Permit for Dual-Use Goods and Technology to Some Destinations

Tuesday, August 18, 2015
Sandler, Travis & Rosenberg Trade Report

Canada’s Ministry of Foreign Affairs has issued general export permit 41, which generally allows residents of Canada to export or transfer certain dual-use goods and technology to consignees in any of 32 eligible destinations. As a result, such exports or transfers will no longer require the submission of an individual application.

Eligible Shipments. GEP 41 covers the export or transfer of most goods and technology referred to in Group 1 and item number 5504 of the Export Control List/Guide to Canada’s Export Controls, with certain exceptions. These shipments will be allowed to the following countries that are members of multiple multilateral export control regimes and have implemented effective export control systems: Australia, Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

Ineligible Shipments. Transactions that are ineligible to use GEP 41 include the following.

- goods and technologies intended to be used in a country that is not an eligible destination

- goods and technologies requiring United States export authorization under the International Traffic in Arms Regulations, as described in section (3)(2)(c)(i) to (iii) of the Export Permit Regulations

- eligible goods and technology that are also concurrently controlled in a group or item other than those deemed to be eligible goods and technology under GEP 41 and that are not covered by another GEP

Conditions. Exporters wishing to utilize GEP 41 must, prior to their first export or transfer in a calendar year, provide the following information in writing to the Export Controls Division of Foreign Affairs, Trade and Development Canada: (1) name, address, telephone number and, if any, fax number and email address, and (2) in the case of a corporation, the name of a contact person who has knowledge of the exports or transfers occurring under this GEP and their address, telephone number, fax number and email address as well as the business number assigned to the corporation by the Minister of National Revenue.

In addition, exporters must retain the following records for six years after the year in which an

export is made under GEP 41.

- name and address of each consignee

- item number in the Guide in which the good or technology is referred to and a comparison of the technical specifications set out in the item number with those of the good or technology

- the name and any part number or unique identifier of the good or technology as well as a description of the good or technology and its technical specifications

- the quantity and value of the export or transfer

- a written statement from each consignee that identifies the country of end-use of the good or technology and an indication as to whether or not the consignee is the end-user or a distributor; if neither, a description of the consignee’s role in the transaction

- the date of export or transfer

- a copy of any contract between the resident of Canada and each consignee and any invoice or export or shipping document relating to the export or transfer

Within 30 days of Jan. 31 and July 31 each year, exporters must provide to the Export Controls Division a report containing the following information with respect to any export or transfer made under the authority of GEP 41 for the previous six-month period: (1) the name, address and telephone number and, if any, fax number and email address of each consignee, (2) if the consignee is a corporation, the name, title, phone number and, if any, fax number and email address of a contact person who has knowledge of the export or transfer, (3) a description of each good or technology exported or transferred and the item number in the Guide in which it is referred to, and (4) the quantity and value of each good or technology exported or transferred identified by country of destination. When requested by the Export Controls Division, exporters must also provide this information within 15 days with respect to any export or transfer made using GEP 41 during the time period specified in the request.

Finally, exporters must insert the term “GEP-41” (“LGE 41”) in the appropriate field of the form prescribed under the Customs Act if the item exported under this permit is required to be reported under that Act.

Penalties. Exporting or transferring controlled goods and technology except in accordance with the terms and conditions of the GEP or in accordance with an individually issued export permit can result in prosecution under the Export and Import Permits Act.

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