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Canada Proposes to Ease Process to Authorize Exports of Dual-Use Goods

Thursday, November 14, 2013
Sandler, Travis & Rosenberg Trade Report

Canada’s Department of Foreign Affairs, Trade and Development is accepting comments through Dec. 11 on a proposal that would simplify the process for authorizing exports and transfers of dual-use goods and technology in an effort to keep pace with similar efforts by Canada’s major trading partners.

General Export Permit No. 41 would (subject to certain conditions and limitations) eliminate the requirement for residents of Canada to obtain an individual export permit for exports or transfers of most goods and technology included in Group 1 and item 5504 of the Export Control List when they are destined for use in an eligible country. Eligible countries are those who are members of all four multilateral export control regimes: the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Missile Technology Control Regime, the Australia Group and the Nuclear Suppliers Group. Currently the list of such countries comprises Argentina, Australia, Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, Turkey, Ukraine, the United Kingdom and the United States.

However, goods and technology controlled within Group 1 and item 5504 of the ECL that require export authorization from the U.S. and are made in the U.S. or incorporate U.S. goods or technology would not be eligible for export or transfer under GEP 41.

The DFATD notes that GEPs do not require an individual application to be submitted for the export or transfer of covered items. Instead, exporters must simply comply with the terms and conditions of the GEP, which in the case of proposed GEP 41 includes citing it on the Export Declaration form or other export reporting documentation required to be submitted to the Canada Border Services Agency for every export shipment. Noncompliance with conditions of the GEP can lead to prosecution.

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