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Defence Production Act (R.S.C., 1985, c. D-1)

Act current to 2020-01-27 and last amended on 2017-09-21. Previous Versions

Defence Production Act

R.S.C., 1985, c. D-1

An Act respecting defence production

Short Title

Marginal note:Short title

 This Act may be cited as the Defence Production Act.

  • R.S., c. D-2, s. 1

Interpretation

Marginal note:Definitions

 In this Act,

Account

Account means the Defence Production Loan Account established under section 18; (compte)

associated government

associated government means Her Majesty’s Government in the United Kingdom, any other government of the Commonwealth, the government of a country that is a member of the North Atlantic Treaty Organisation or the government of any other country designated by the Governor in Council as being a country the defence of which is vital to the defence of Canada; (gouvernement associé)

construct

construct includes repair, maintain, improve or extend; (construction)

defence contract

defence contract means

  • (a) a contract with Her Majesty or an agent of Her Majesty, or with an associated government, that in any way relates to defence supplies or to defence projects or to the designing, manufacturing, producing, constructing, finishing, assembling, transporting, repairing, maintaining, servicing or storing of, or dealing in, defence supplies or defence projects, and

  • (b) a defence subcontract; (contrat de défense)

defence projects

defence projects means buildings, aerodromes, airports, dockyards, roads, defence fortifications or other military works, or works required for the production, maintenance or storage of defence supplies; (ouvrages de défense)

defence subcontract

defence subcontract means a contract or arrangement between any persons whomever,

  • (a) to perform all or any part of the work or service or make or furnish any article or material for the purpose of any other defence contract,

  • (b) under which any amount payable is contingent on the entry into of any other defence contract or determined with reference to any amount payable under or otherwise by reference to any other defence contract, or

  • (c) under which any part of the services performed or to be performed consists of soliciting, attempting to negotiate or negotiating any other defence contract or soliciting or negotiating for the purchase or sale of any articles, materials or services required to fulfil any other defence contract,

and, for greater certainty but not so as to limit the foregoing, for the purposes of this definition the expression other defence contract includes a defence subcontract; (sous-contrat de défense)

defence supplies

defence supplies means

  • (a) arms, ammunition, implements of war, vehicles, mechanical and other equipment, watercraft, amphibious craft, aircraft, animals, articles, materials, substances and things required or used for the purposes of the defence of Canada or for cooperative efforts for defence being carried on by Canada and an associated government,

  • (b) ships of all kinds, and

  • (c) articles, materials, substances and things of all kinds used for the production or supply of anything mentioned in paragraph (a) or (b) or for the construction of defence projects; (matériel de défense)

Department

Department means the Department of Public Works and Government Services; (ministère)

government issue

government issue means machinery, machine tools, equipment or defence supplies furnished by the Minister or by an agent of Her Majesty on behalf of Her Majesty or on behalf of an associated government or acquired or purchased on behalf of Her Majesty or on behalf of an associated government with funds provided by the Minister or by an agent of Her Majesty or by an associated government; (fournitures d’État)

Minister

Minister means the Minister of Public Works and Government Services; (ministre)

order

order means a general or specific order, requirement, direction or prescription in writing made or issued under this Act or a regulation; (arrêté ou décret)

price

price includes rate or charge for any service; (prix)

royalties

royalties includes

  • (a) licence fees and all other payments analogous to royalties, whether or not payable under any contract, that are calculated as a percentage of the cost or sale price of defence supplies or as a fixed amount per article produced or that are based on the quantity or number of articles produced or sold or on the volume of business done, and

  • (b) claims for damages for the infringement or use of any registered topography within the meaning of the Integrated Circuit Topography Act or of any patent, certificate of supplementary protection issued under the Patent Act or registered industrial design; (redevances)

sale

sale includes consignment or other disposition of materials and the supplying of any service. (vente)

  • R.S., 1985, c. D-1, s. 2
  • 1994, c. 47, s. 220
  • 1996, c. 16, ss. 60, 61
  • 2004, c. 25, s. 123(F)
  • 2017, c. 6, s. 126

PART 1Procurement of Defence Supplies

Staff

Marginal note:Appointment and employment

  •  (1) Such officers, clerks and employees as are necessary for the proper conduct of the business of the Department under this Act may be appointed in the manner authorized by law but the Minister may

    • (a) with the approval of the Treasury Board, employ such technical or other temporary employees as the Minister deems necessary and, with its approval, fix the remuneration of, and prescribe the travel or other expenses that may be incurred by, those employees; and

    • (b) employ any person to hold a position under this Act for a period not exceeding sixty days and fix the remuneration of, and prescribe the travel or other expenses that may be incurred by, that person.

  • Marginal note:Exception

    (2) Where the Governor in Council decides that it is not practicable or is not in the public interest to apply subsection (1) to any position or employee or any class thereof, the Governor in Council may exclude that position or employee or that class in whole or in part from the provisions of subsection (1) and may make such regulations as the Governor in Council deems advisable with respect to employment therein, including appointment, organization, classification, rates of compensation and terms and conditions of employment.

  • R.S., c. D-2, s. 3

Marginal note:Minister’s functions dischargeable by persons deputed by Minister

 The Minister may authorize any person, on behalf and under the control and direction of the Minister, to do any act or thing or to exercise any power that the Minister may do or exercise under this Act.

  • R.S., c. D-2, s. 4

Marginal note:Appointment of persons to advise and aid Minister

 The Governor in Council may appoint advisers and establish advisory and other boards, composed of such members as the Governor in Council may appoint, to advise or aid the Minister, which advisers and boards are to perform such duties and exercise such powers as he may designate, and may fix the remuneration and expenses to be paid to persons appointed under this section.

  • R.S., c. D-2, s. 5

Marginal note:Corporations

  •  (1) If the Minister considers that it is likely to facilitate the carrying out of the purposes and provisions of this Act, the Minister may, with the approval of the Governor in Council, procure the incorporation of any one or more corporations for the purpose of undertaking or carrying out any acts or things that the Minister is authorized to undertake or carry out under this Act.

  • Marginal note:Removal and appointment

    (2) The Minister may remove any members, directors or officers of a corporation incorporated under this section at any time and may appoint others in their stead or may appoint additional persons as members thereof.

  • Marginal note:Agent of Her Majesty

    (3) A corporation incorporated under this section is for all purposes an agent of Her Majesty and it may exercise its powers only as an agent of Her Majesty.

  • R.S., c. D-2, s. 6

Marginal note:Legal proceedings

 Actions, suits or proceedings in respect of any right or obligation that a corporation incorporated under section 6 acquires or incurs on behalf of Her Majesty, whether in its name or in the name of Her Majesty, may be brought or taken by or against the corporation in the name of the corporation in any court that would have jurisdiction if the corporation were not an agent of Her Majesty.

  • R.S., c. D-2, s. 6

Marginal note:Audit

 The accounts of a corporation incorporated under section 6 shall be audited by the Auditor General of Canada.

  • R.S., c. D-2, s. 6
  • 1976-77, c. 34, s. 30(F)

Marginal note:Minister may contract with corporation

  •  (1) Notwithstanding that a corporation is an agent of Her Majesty, the Minister may, on behalf of Her Majesty, enter into a contract under this Act with the corporation as if it were not an agent of Her Majesty.

  • Marginal note:Contract with person to act as agent of Her Majesty

    (2) The Minister may, with the approval of the Governor in Council, enter into a contract with a person authorizing that person to act, under the control and direction of the Minister, as an agent of Her Majesty, for any of the purposes for which the Minister is authorized to act on behalf of Her Majesty under this Act.

  • R.S., c. D-2, s. 7

Powers and Duties of the Minister

Marginal note:Powers relating to all departments

  •  (1) Subject to this Act, the Minister may exercise the powers conferred by this Act on the Minister in relation to defence supplies or defence projects required for the purposes of any department in, or portion of, the federal public administration.

  • Marginal note:Powers relating to National Defence

    (2) The Minister shall have exclusive authority to buy or otherwise acquire defence supplies and construct defence projects required by the Department of National Defence, except

    • (a) defence projects to be constructed by persons in the employ of Her Majesty; and

    • (b) such defence supplies or defence projects as the Minister of National Defence or any other Minister designated by the Governor in Council may procure or construct at the request of the Minister.

  • Marginal note:Powers conferred by other Acts

    (3) The Minister may exercise powers and carry out duties and functions conferred or imposed on the Minister by or pursuant to any other Act.

  • R.S., 1985, c. D-1, s. 10
  • 2003, c. 22, s. 158(E)

Marginal note:Acts on behalf of associated government

 The Minister, if authorized by the Governor in Council to do so, may do or undertake, on behalf of an associated government, any act or thing that the Minister is authorized to do or undertake by this Act on behalf of Her Majesty.

  • R.S., c. D-2, s. 9

Organization of Industry for Defence

Marginal note:Duties of Minister

 The Minister shall examine into, organize, mobilize and conserve the resources of Canada contributory to, and the sources of supply of, defence supplies and the agencies and facilities available for the supply thereof and for the construction of defence projects and shall explore, estimate and provide for the fulfilment of the needs, present and prospective, of the Government and the community with respect thereto and generally shall take steps to mobilize, conserve and coordinate all economic and industrial facilities in respect of defence supplies and defence projects and the supply or construction thereof.

  • R.S., c. D-2, s. 10

Marginal note:Minister may require returns to be made

  •  (1) The Minister may, by notice in writing, require any person referred to in subsection (2) to make periodical or other returns, at such times and containing such particulars as may be specified in the notice, with respect to defence supplies produced, dealt in or controlled by the person or that the person holds, has contracted for or contemplates acquiring, and the sources of supply thereof, and with respect to the facilities or accommodation that the person has available for or that are adaptable to the production or storage of defence supplies or the construction of defence projects.

  • Marginal note:Persons who are to make returns

    (2) The Minister may require the returns referred to in subsection (1) to be made by any person who

    • (a) produces, deals in or has control of defence supplies or constructing defence projects; or

    • (b) carries on a business or possesses accommodation or facilities that, in the opinion of the Minister, is or are suitable for or can be adapted to producing, dealing in or storing defence supplies or constructing defence projects.

  • R.S., c. D-2, s. 11

Marginal note:Other departments to assist Minister in obtaining information

 Where a Government department has, under or pursuant to any Act, power to obtain, for any purpose, information as to matters with respect to which the Minister is empowered to require returns to be made, that department shall, if so required by the Minister, exercise that power for the purpose of assisting the Minister in obtaining any such information.

  • R.S., c. D-2, s. 12

Marginal note:Stock-piling

 The Minister may, on behalf of Her Majesty and subject to this Act, acquire, store, maintain, transport, sell, exchange or otherwise dispose of such materials or substances as may be designated by the Governor in Council as materials or substances essential to the needs of the community of which it is advisable to maintain stocks in order to safeguard against possible shortages thereof.

  • R.S., 1985, c. D-1, s. 15
  • 2004, c. 25, s. 124(F)

Defence Procurement

Marginal note:Ministerial powers of procurement and disposal

 The Minister may, on behalf of Her Majesty and subject to this Act,

  • (a) buy or otherwise acquire, utilize, store, transport, sell, exchange or otherwise dispose of defence supplies;

  • (b) manufacture or otherwise produce, finish, assemble, process, develop, repair, maintain or service defence supplies or manage and operate facilities therefor;

  • (c) construct or acquire defence projects and sell, exchange or otherwise dispose of them;

  • (d) arrange for the performance of professional or commercial services;

  • (e) purchase or otherwise acquire, sell, exchange or otherwise dispose of real or personal property or any interest in real or personal property, or an immovable or a movable or any right in an immovable or a movable, that, in the opinion of the Minister, is or is likely to be necessary or desirable for any of the purposes mentioned in paragraph (a), (b) or (c);

  • (f) make loans or advances to or guarantee repayment of loans or advances made to a person

    • (i) for the purpose of providing assistance for the construction, acquisition, extension or improvement of capital equipment or works by, or to provide working capital for, that person for the manufacture, production, finishing, assembling, processing, development, storage, transportation, repairing, maintenance or servicing of defence supplies or for the construction or operation of defence projects, or

    • (ii) by way of advance payment on account of or to enable that person to carry out any contract entered into with the Minister under this Act or any defence contract; and

  • (g) do all such things as appear to the Minister to be incidental to or necessary or expedient for the matters referred to in the foregoing provisions of this section or as may be authorized by the Governor in Council with respect to the procurement, construction or disposal of defence supplies or defence projects.

  • R.S., 1985, c. D-1, s. 16
  • 2004, c. 25, s. 125

Marginal note:Expenditures from C.R.F.

 There may be expended from the Consolidated Revenue Fund amounts for the following purposes:

  • (a) to pay the cost of acquisition, storage, maintenance or transportation of stocks of materials or substances purchased pursuant to section 15, or stocks of defence supplies acquired under section 16, that the Minister deems it is advisable to maintain; and

  • (b) to pay the cost of acquisition, storage or maintenance of defence supplies requisitioned for payment out of an appropriation or by an agent of Her Majesty or to be paid for by an associated government, such amounts if paid to be recovered from the appropriation or from the agent or associated government.

  • R.S., c. D-2, s. 15
  • 1980-81-82-83, c. 17, s. 12

Marginal note:Expenditures from C.R.F.

  •  (1) There may be paid from the Consolidated Revenue Fund amounts for loans or advances authorized under this Act for any purpose other than to assist in the construction, acquisition, extension or improvement of capital equipment or works by any person.

  • Marginal note:Defence Production Loan Account

    (2) There shall be established in the accounts of Canada, for the purposes of this section, an account to be known as the Defence Production Loan Account and to which shall be charged all moneys to be paid pursuant to subsection (1).

  • 1980-81-82-83, c. 17, s. 12

Marginal note:Limitation on amount expended from C.R.F.

  •  (1) The aggregate of expenditures made pursuant to section 17 and subsection 18(1) shall not at any time exceed by more than one hundred million dollars the aggregate of amounts

    • (a) received by the Receiver General from the disposition by the Minister of materials, substances or defence supplies referred to in paragraph 17(a);

    • (b) charged to another appropriation in respect of costs referred to in paragraph 17(a), where the materials, substances or defence supplies may be acquired under that appropriation;

    • (c) charged to an appropriation or paid by an agent of Her Majesty or by an associated government to pay costs incurred in respect of defence supplies payment for which was made out of the Fund under paragraph 17(b); and

    • (d) received in repayment of a loan or advance referred to in subsection 18(1).

  • Marginal note:No credit of loss against expenditure without appropriation

    (2) No loss sustained in respect of the acquisition and subsequent disposition of any defence supplies or on account of any loan or advance or otherwise may be credited against any expenditure made pursuant to section 17 or subsection 18(1), except pursuant to an appropriation by Parliament for that purpose.

  • R.S., 1985, c. D-1, s. 19
  • 2004, c. 25, s. 126

Marginal note:Title to government issue or building

 If, by the terms of a defence contract, it is provided that title to any government issue or building furnished or made available to a person or obtained or constructed by the person with money provided by Her Majesty or an agent of Her Majesty or an associated government remains vested or vests in Her Majesty or in an associated government free and clear of all claims, liens, prior claims or rights of retention within the meaning of the Civil Code of Québec or any other statute of the Province of Quebec, charges or encumbrances, then, despite any law in force in any province,

  • (a) the title to the government issue or building remains vested or vests in accordance with the terms of the contract free and clear of all claims, liens, prior claims or rights of retention within the meaning of the Civil Code of Québec or any other statute of the Province of Quebec, charges or encumbrances; and

  • (b) subject to any provisions in the contract, Her Majesty or the associated government in whom the title is vested is entitled at any time to remove, sell or dispose of the government issue or building.

  • R.S., 1985, c. D-1, s. 20
  • 2001, c. 4, s. 72
  • 2004, c. 25, s. 127(F)

Marginal note:Premature rescission, resolution or termination of contract

 No person is entitled to damages, compensation or other allowance for loss of profit, direct or indirect, arising out of the rescission, resolution or termination of a defence contract at any time before it is fully performed if it is rescinded, resolved or terminated under a power contained in the contract or under a power conferred by or under an Act of Parliament.

  • R.S., 1985, c. D-1, s. 21
  • 2004, c. 25, s. 128

Marginal note:Relief from claims and proceedings for royalties

  •  (1) The Minister may, on behalf of Her Majesty, contract with any person that Her Majesty will relieve that person from any claims, actions or proceedings for the payment of royalties for the use or infringement of any patent, certificate of supplementary protection, registered industrial design or registered topography by that person in, or for the furnishing of any engineering or technical assistance or services to that person for, the performance of a defence contract.

  • Marginal note:Relief from royalty payments

    (2) A person with whom the Minister has contracted under subsection (1) is not liable to pay royalties under any contract, statute or otherwise by reason of the use or infringement of a patent, certificate of supplementary protection, registered industrial design or registered topography in, or in respect of engineering or technical assistance or services furnished for, the performance of a defence contract and to which the contract under subsection (1) applies.

  • Marginal note:Compensation for use

    (3) A person who, but for subsection (2), would be entitled to a royalty from another person for the infringement or use of a patent, certificate of supplementary protection, registered industrial design or registered topography or in respect of engineering or technical assistance or services is entitled to reasonable compensation from Her Majesty for the infringement, use or services and, if the Minister and that person cannot agree as to the amount of the compensation, it shall be fixed by the Commissioner of Patents.

  • Marginal note:Appeal

    (4) Any decision of the Commissioner of Patents under subsection (3) is subject to appeal to the Federal Court under the Patent Act.

  • Marginal note:Definitions

    (5) In this section, certificate of supplementary protection has the same meaning as in section 2 of the Patent Act and registered topography has the same meaning as in subsection 2(1) of the Integrated Circuit Topography Act.

  • R.S., 1985, c. D-1, s. 22
  • 1994, c. 47, s. 220
  • 2017, c. 6, s. 127

Marginal note:Accounts records and documents of contractor

 A person who has entered into a defence contract shall

  • (a) keep detailed accounts and records of the cost of carrying out the contract and retain those accounts and records until the expiration of six years after the end of the calendar year in which the contract is terminated or completed; and

  • (b) on demand, produce to any person thereunto authorized by the Minister every account, record or document of any description with respect to the contract and with respect to his other business that may be required by the person so authorized and permit him to examine, audit and take copies of and extracts from the accounts, records or documents.

  • R.S., c. D-2, s. 19
  • 1980-81-82-83, c. 102, s. 2

Marginal note:Re-assessment of costs and profits

  •  (1) Where the Minister is satisfied, either before or after the performance, in whole or in part, of a defence contract, that the total amount paid or payable thereunder to any person is in excess of the fair and reasonable cost of performing the contract together with a fair and reasonable profit, the Minister may

    • (a) by order, reduce the amount that the person is entitled to retain or receive thereunder to such amount as the Minister may fix as the fair and reasonable cost of performing the contract together with a fair and reasonable profit thereon; and

    • (b) direct the person to pay to the Receiver General forthwith any amount that the person has received under the contract in excess of the amount so fixed.

  • Marginal note:Where person a party to two or more contracts

    (2) Where a person is a party to two or more defence contracts, the Minister may,

    • (a) by one order, reduce the total amount that the person is entitled to retain or receive under any two or more or all of the contracts to such amount as the Minister may fix as the fair and reasonable cost of performing the contracts together with a fair and reasonable profit thereon, or

    • (b) by order, fix the amount that the person is entitled to retain or receive in respect of defence contracts, during such period as may be designated by the Minister, as the fair and reasonable cost of performing the contracts together with a fair and reasonable profit thereon during that period,

    and the Minister may direct the person to pay to the Receiver General forthwith any amount that the person has received under the contracts or in respect of defence contracts during that period in excess of the amount so fixed in respect thereof.

  • Marginal note:Contractor carrying on other business

    (3) In determining a person’s fair and reasonable cost of performing defence contracts, or the fair and reasonable profit thereon, during any period, the Minister may, if during that period the person has carried on business other than the performance of defence contracts, determine for the purposes of this section such share or part of the gross income of, or the cost incurred by, the person during that period as is to be regarded as being attributable to that other business.

  • Marginal note:Minister not limited or bound by contractor’s accounts or records

    (4) Where the Minister is satisfied that the accounts or records kept by a person with respect to the performance of a defence contract, or of defence contracts during any period referred to in paragraph (2)(b) or subsection (3), are insufficient to enable the cost of performance of the contract or contracts to be determined or that the cost as shown by the accounts or records is not fair and reasonable, the Minister is not limited or bound by the accounts or records in fixing the fair and reasonable cost of performance of the contract or contracts.

  • Marginal note:Recovery of repayments directed by Minister

    (5) An amount payable to the Receiver General pursuant to a direction of the Minister under this section is recoverable in the Federal Court or any other court of competent jurisdiction, with full costs of suit, as a debt due to Her Majesty.

  • R.S., c. D-2, s. 19
  • R.S., c. 10(2nd Supp.), s. 64

Marginal note:Appeal to Federal Court

  •  (1) A person affected by an order or direction made by the Minister under section 24 may, within the period of thirty days after the receipt of a copy of the order or direction, inform the Minister of the intention of that person to appeal against the order or direction to the Federal Court and shall, within that period, file a notice of the intention in the Court and, on the giving and filing of the notice, all proceedings under the order or direction shall be stayed pending disposition of the appeal by the Federal Court.

  • Marginal note:Appellant may be ordered to give security

    (2) Where a person has appealed under this section against an order or direction, a judge of the Federal Court may, on application made on behalf of the Minister, order the person to give security to the satisfaction of the Court for payment of the amount payable under the order or direction, or of such part of that amount, as the judge deems advisable in the circumstances, if it appears to the judge that the person has assets to pay the amount required to be paid by the person under the order or direction in whole or in part but that the assets may be disposed of or converted, before the appeal is decided, in such way that assets may not be available to pay any amount that may be owing as a result of the appeal.

  • Marginal note:Proceedings on appeal

    (3) Where a notice of appeal has been filed in accordance with subsection (1), the Federal Court shall, on the application of the Minister or the appellant, give directions relative to the disposition of the appeal and, on the hearing of the appeal, shall have jurisdiction to review any order or direction of the Minister and may confirm the Minister’s order or direction or vary the same as it deems just and the decision of the Court is final and conclusive.

  • R.S., 1985, c. D-1, s. 25
  • 2004, c. 25, s. 129(F)

 [Repealed, 2000, c. 31, s. 2]

General

Marginal note:Non-disclosure of information

 No information with respect to an individual business that has been obtained under or by virtue of this Act shall be disclosed without the consent of the person carrying on that business, except

  • (a) to a government department, or any person authorized by a government department, requiring the information for the purpose of the discharge of the functions of that department; or

  • (b) for the purposes of any prosecution for an offence under this Act or, with the consent of the Minister, for the purposes of any civil suit or other proceeding at law.

  • R.S., c. D-2, s. 23

Marginal note:Powers of specific government companies

 The Canadian Commercial Corporation or a company to which the Government Corporations Operation Act applies has capacity and power to make arrangements to act on behalf of the Minister under this Act or to enter into contracts to act as agent of Her Majesty under this Act and the making of those arrangements or the entry into those contracts and the carrying out thereof shall be deemed to be included in the objects and purposes for which the Corporation or the company was incorporated.

  • R.S., c. D-2, s. 24

Marginal note:Paramount powers under this Act

 The powers conferred by this Act may be exercised notwithstanding anything contained in the Public Works Act.

  • R.S., c. D-2, s. 25

Marginal note:Orders and regulations

 The Governor in Council may make orders and regulations to carry out the purposes and provisions of this Part.

  • R.S., 1985, c. D-1, s. 33
  • 2000, c. 31, s. 3

Marginal note:Regulations to be published

  •  (1) Every regulation, as defined in the Statutory Instruments Act, made under the authority of this Part shall be published in the Canada Gazette within 30 days after it is made.

  • Marginal note:Motion to revoke or amend

    (2) Where a regulation has been published in the Canada Gazette pursuant to subsection (1), a notice of motion in either House signed by ten members thereof and made in accordance with the rules of that House within seven days of the day the regulation was published or, if that House is not then sitting, on any of the first seven days next thereafter that that House is sitting, praying that the regulation be revoked or amended, shall be debated in that House at the first convenient opportunity within the four sitting days next after the day the motion in that House was made.

  • R.S., 1985, c. D-1, s. 34
  • 2000, c. 31, s. 4

PART 2Regulation of Access to Controlled Goods

Interpretation

Marginal note:Definition of “controlled goods”

 In this Part, controlled goods means the goods referred to in the schedule.

  • 2000, c. 31, s. 5

Application

Marginal note:Excluded persons

 This Part does not apply to a person who

  • (a) occupies a position in the federal public administration, including a position in a federal Crown corporation, or is employed by Her Majesty in right of a province, who acts in good faith in the course of their duties and employment; or

  • (b) is a member of a class of persons prescribed by regulation.

  • 2000, c. 31, s. 5
  • 2003, c. 22, s. 159(E)

Offences

Marginal note:Prohibitions

  •  (1) No person shall, unless the person is registered under section 38 or exempt from registration under section 39 or 39.1, knowingly examine or possess a controlled good or transfer a controlled good to another person.

  • Marginal note:Offence re person registered or exempt

    (2) No person registered or exempt from registration shall knowingly transfer a controlled good to or permit the examination of a controlled good by a person who is not registered or exempt from registration.

  • Marginal note:Definition of “transfer”

    (3) In this section, transfer means, in respect of a controlled good, to dispose of it or disclose its content in any manner.

  • Marginal note:Scope of registration

    (4) The registration of a person extends to the officers, directors and employees authorized by the registered person in accordance with the regulations.

  • 2000, c. 31, s. 5

Registration

Marginal note:By Minister

  •  (1) The Minister may, in accordance with the regulations, register any person who makes an application for registration and may, for that purpose, request any information that in the opinion of the Minister is necessary.

  • Marginal note:Conditions

    (2) A registration or its renewal is subject to conditions prescribed by regulation and any conditions that in the opinion of the Minister are appropriate.

  • Marginal note:Denial — security assessment

    (3) The Minister may deny an application for registration or suspend, amend or revoke a registration on the basis of a security assessment prescribed by regulation.

  • Marginal note:Certificate of registration

    (4) The Minister shall furnish a registered person with a certificate of that registration in a form that the Minister may specify.

  • 2000, c. 31, s. 5

Exemption

Marginal note:By regulation

 Individuals of a class prescribed by regulation are exempt from registration.

  • 2000, c. 31, s. 5

Marginal note:By Minister

  •  (1) The Minister may, in accordance with the regulations, exempt an individual from registration and may, for that purpose, request any information that in the opinion of the Minister is necessary.

  • Marginal note:Conditions

    (2) An exemption or its renewal is subject to conditions prescribed by regulation and any conditions that in the opinion of the Minister are appropriate.

  • Marginal note:Denial — security assessment

    (3) The Minister may deny, suspend, amend or revoke an exemption on the basis of a security assessment prescribed by regulation.

  • Marginal note:Certificate of exemption

    (4) If an exemption is granted, the Minister shall furnish, in accordance with the regulations, a certificate of exemption in a form that the Minister may specify.

  • 2000, c. 31, s. 5

Report

Marginal note:To Minister

 Every registered person shall provide the Minister with any information prescribed by regulation, in the manner and time prescribed by regulation.

  • 2000, c. 31, s. 5

Inspection

Marginal note:Designation of inspectors

  •  (1) The Minister may designate persons or classes of persons whom the Minister considers qualified to act as inspectors for the purposes of this Part.

  • Marginal note:Certificate of designation

    (2) The Minister shall furnish every inspector with a certificate of designation as an inspector and, on entering any place or inspecting any thing, an inspector shall show the certificate to the person apparently in charge of the place or thing if the person requests proof of the inspector’s designation.

  • 2000, c. 31, s. 5

Marginal note:Inspection of facilities

  •  (1) For the purpose of ensuring compliance with this Part and the regulations, an inspector may at any reasonable time enter and inspect any place.

  • Marginal note:Powers of inspector

    (2) When conducting the inspection, the inspector may

    • (a) require the attendance of and question any person who the inspector considers will be able to assist in the inspection;

    • (b) require any person to produce for inspection or copying any document that the inspector believes contains any information relevant to the administration of this Part or the regulations;

    • (c) detain or remove any controlled good, until the inspector is satisfied that the requirements of this Part and the regulations are met; and

    • (d) require that any individual in charge of a place that is the subject of an inspection take any measures that the inspector considers appropriate.

  • Marginal note:Inspector may be accompanied

    (3) While exercising any authority under this Part, an inspector may be accompanied by any other person chosen by the inspector.

  • 2000, c. 31, s. 5

Regulations

Marginal note:Governor in Council

 The Governor in Council may make regulations for carrying out the purposes and provisions of this Part, including regulations

  • (a) respecting the classes of persons referred to in paragraph 36(b);

  • (b) respecting the procedure, under subsection 37(4), for authorizing officers, directors and employees to examine, possess or transfer controlled goods and the conditions they must satisfy to be authorized;

  • (c) respecting registrations under section 38 and exemptions from registration under sections 39 and 39.1, including

    • (i) the conditions of eligibility,

    • (ii) the procedure to be followed in making applications and the information to be set out in the applications,

    • (iii) the factors to be considered by the Minister when deciding whether a person may be registered or exempted,

    • (iv) the Minister’s powers to renew, suspend, amend or revoke a registration or an exemption,

    • (v) the conditions of registration or the renewal of a registration, including the keeping of records, the requirement to report under section 40, and the establishment and implementation of security plans,

    • (vi) the conditions of exemption or the renewal of an exemption, and

    • (vii) security assessments referred to in subsection 38(3) or 39.1(3); and

  • (d) amending, on the joint recommendation of the Minister and the Minister of Foreign Affairs, the schedule.

  • 2000, c. 31, s. 5
  • 2015, c. 3, s. 74

PART 3Offence and Punishment

Marginal note:Other prohibitions

 No person shall

  • (a) make any false or misleading statement or provide false or misleading information to an inspector or other person carrying out functions under this Act;

  • (b) destroy any record or document required to be kept under this Act or the regulations;

  • (c) make a false entry in a record required to be kept under this Act or the regulations or omit to make any entry in such a record;

  • (d) interfere in any way with any thing detained or removed by an inspector, except with the inspector’s permission; or

  • (e) fail to comply with any reasonable request of an inspector or otherwise obstruct an inspector in the performance of the inspector’s functions.

  • 2000, c. 31, s. 5

Marginal note:Serious offence

  •  (1) Every person who contravenes section 37 is guilty of

    • (a) an offence punishable on summary conviction and liable to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both; or

    • (b) an indictable offence and liable to a fine not exceeding $2,000,000 or to imprisonment for a term not exceeding 10 years, or to both.

  • Marginal note:Other offences

    (2) Every person who contravenes any other provision of this Act or the regulations is guilty of an offence punishable on summary conviction and liable to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months, or to both.

  • Marginal note:Defence of due diligence

    (3) For the purposes of subsection (2), no person shall be found to have contravened section 13 or 44 or the regulations if the person exercised all due diligence to prevent the contravention.

  • Marginal note:Continuing offence

    (4) If an offence is committed or continued on more than one day, the person who commits it is liable to be convicted of a separate offence for each day on which the offence is committed or continued.

  • Marginal note:Factors to be considered when imposing sentence

    (5) If an offender is convicted under subsection (1), the court imposing a sentence on the offender shall, in addition to considering any other relevant factors, consider the nature of the controlled goods that are the subject-matter of the offence.

  • Marginal note:Limitation period for summary conviction offences

    (6) Proceedings by way of summary conviction may be instituted at any time within, but not later than, three years after the day on which the subject-matter of the proceedings arose.

  • 2000, c. 31, s. 5

Marginal note:Officers, etc., of corporation

 An officer or a director, or an agent or a mandatary, of a corporation that commits an offence under this Act is liable to be convicted of the offence if he or she directed, authorized, assented to, acquiesced in or participated in the commission of the offence, whether or not the corporation has been prosecuted or convicted.

  • 2000, c. 31, s. 5
  • 2004, c. 25, s. 130(E)

SCHEDULE(Section 35)Controlled Goods List

INTERPRETATION
  • 1 The following definitions apply in this schedule.

    firearm

    firearm has the same meaning as in section 2 of the Criminal Code. (arme à feu)

    full demilitarization

    full demilitarization means an action that permanently prevents a good’s repair, restoration or reverse engineering. (démilitarisation complète)

    Guide

    Guide has the same meaning as in section 1 of the Export Control List. (guide)

    prohibited firearm

    prohibited firearm has the same meaning as in paragraph (c) of the definition prohibited firearm in subsection 84(1) of the Criminal Code. (arme à feu prohibée)

    restricted firearm

    restricted firearm has the same meaning as in subsection 84(1) of the Criminal Code. (arme à feu à autorisation restreinte)

“DEFENSE ARTICLE”
    • 2 (1) Subject to subsection (2) and section 6, the following are controlled goods:

      • (a) a good of United States origin that is a defense article as defined in section 120.6 of the International Traffic in Arms Regulations of the United States Code of Federal Regulations, as amended from time to time, or

      • (b) a good, other than a good of United States origin, that is manufactured using technical data of United States origin, as defined in section 120.10 of the International Traffic in Arms Regulations of the United States Code of Federal Regulations, as amended from time to time, if the technical data is a defense article.

    • (2) For the purposes of this section, controlled goods do not include a firearm or its specially designed components if it is not a prohibited firearm and it has

      • (a) a calibre equal to or less than 12.7 mm; or

      • (b) a smooth bore with a calibre less than 20 mm.

GROUP 2 OF THE GUIDE
    • 3 (1) Subject to subsection (2) and section 6, goods set out in Group 2 of the Guide, other than those described in any of the following items, are controlled goods:

      • (a) item 2-1;

      • (b) items 2-2.c or 2-2.d;

      • (c) item 2-3;

      • (d) item 2-4.c;

      • (e) item 2-5.d;

      • (f) item 2-6.b;

      • (g) items 2-7.d to 2-7.i;

      • (h) items 2-8.a or 2-8.b, 2-8.c.1 or 2-8.c.3, 2-8.c.4.a, 2-8.c.4.b or 2-8.c.4.d, 2-8.c.5, 2-8.c.7, 2-8.c.8, 2-8.d.1 to 2-8.d.3, 2-8.d.7, 2-8.d.10, 2-8.e.11, 2-8.e.12 or 2-8.e.14, 2-8.f.4.a to 2-8.f.4.d or 2-8.f.13, 2-8.f.17, 2-8.f.19 or 2-8.f.22;

      • (i) items 2-9.a.2 or 2-9.c to 2-9.g;

      • (j) items 2-10.e to 2-10.i;

      • (k) item 2-13;

      • (l) item 2-16;

      • (m) items 2-17.a.2 or 2-17.b, 2-17.d, 2-17.f, 2-17.h, 2-17.j to 2-17.m, 2-17.o or 2-17.p;

      • (n) item 2-20;

      • (o) item 2-22.b.

    • (2) The following modifications apply to the controlled goods as set out in Group 2 of the Guide:

      • (a) the portion of item 2-2 of the Guide before “Note 1” is to be read as follows:

        • 2-2 
          Smooth-bore weapons with a calibre of 20 mm or more, other weapons or armament with a calibre greater than 12.7 mm (calibre 0.50 inches), projectors and accessories, as follows:
          • a 
            Guns, howitzers, cannon, mortars, anti-tank weapons, projectile launchers, military flame throwers, rifles, recoilless rifles, smooth-bore weapons and signature reduction devices therefor, first manufactured after 1945, and the following components:
            • 1 
              Frames or receivers;
            • 2 
              Barrels; or
            • 3 
              Breech closing mechanisms.
      • (b) the portion of item 2-4.b.2 of the Guide before the “Technical Note” is to be read as follows:

        • 2 
          Specially designed for ‘activities’ relating to any of the following:
          • a 
            Items specified by 2-4.a.;
          • b 
            Improvised Explosive Devices (IEDs); or
          • c 
            Military aircraft missile protection systems (countermeasures).
      • (c) the portion of item 2-5 of the Guide before item 2-5.a is to be read as follows:

        • 2-5 
          Fire control, and related alerting and warning equipment, and related systems, test and alignment and countermeasure equipment, as follows, specially designed for military use:
      • (d) the portion of item 2-6 of the Guide before the note “N.B.” is to be read as follows:

        • 2-6 
          Ground vehicles as follows:
      • (e) the portion of item 2-6.a of the Guide before the “Technical Note” is to be read as follows:

        • a 
          ‘Ground vehicles’, specially designed for military use and first manufactured after 1945;
        • Note A:
          • For the purposes of the schedule to the Defence Production Act, ‘ground vehicles’ are those referred to in paragraphs a to c in Note 1 at the end of item 2-6.b.2.b. of the Guide.
        • Note B:
          • For the purposes of the schedule to the Defence Production Act, the “Technical Note” at the end of item 2-6.a., paragraph d of “Note 1” and “Note 2” at the end of item 2-6.b.2.b. of the Guide do not apply.
      • (f) the portion of item 2-9.a of the Guide before item 2-9.a.2 is to be read as follows:

        • 2-9 
          a. Vessels as follows:
          • 1 
            Vessels (surface or underwater) specially designed for military use, whether or not they contain weapon delivery systems or armour, and armoured hulls or parts of armoured hulls for such vessels;
          • Note A:
            • For the purposes of the schedule to the Defence Production Act, item 2-9.a.1. does not apply to sunken vessels.
      • (g) item 2-9.b of the Guide before item 2-9.b.1 is to be read as follows:

        • 2-9 
          b. Engines and propulsion systems, as follows, specially designed for military use:
      • (h) the portion of item 2-10 of the Guide before the note “N.B.” is to be read as follows:

        • “Aircraft”, “lighter-than-air vehicles”, “unmanned aerial vehicles” (“UAVs”), aero-engines and “aircraft” equipment, specially designed or modified for military use and first manufactured after 1955, as follows:
      • (i) items 2-10.a and 2-10.b of the Guide are to be read as follows:

        • a 
          Manned “aircraft” and “lighter-than-air vehicles”, and specially designed components, as follows:
          • 1 
            Bomb racks, missile launchers, missile rails, weapon pylons, pylon-to-launcher adapters, “unmanned aerial vehicle” (“UAV”) launching systems, and external stores support systems for ordnance or weapons;
          • 2 
            Damage adaptive or failure adaptive flight control systems;
          • 3 
            Face gear gearboxes, split-torque gearboxes, variable speed gearboxes, synchronization shafts, interconnecting drive shafts and gearboxes with internal pitch line velocities exceeding 20,000 feet per minute and able to operate 30 minutes with loss of lubrication;
          • 4 
            Tail boom, stabilator and automatic rotor blade folding systems;
          • 5 
            Wing folding systems;
          • 6 
            Tail hooks and arresting gear;
          • 7 
            Threat-adaptive autonomous flight control systems;
          • 8 
            Non-surface-based flight control systems and effectors, (e.g., thrust vectoring from gas ports other than main engine thrust vector);
          • 9 
            Lithium-ion batteries that provide 28 VDC nominal;
          • 10 
            Lift fans, clutches and roll posts for short take-off, vertical landing (STOVL) aircraft;
          • 11 
            Integrated helmets incorporating optical sights or slewing devices, which include the ability to aim, launch, track or manage munitions (e.g., Helmet Mounted Cueing Systems, Joint Helmet Mounted Cueing Systems (JHMCS), Helmet Mounted Displays, Display and Sight Helmets (DASH));
          • 12 
            Fire control computers, stores management systems, armaments control processors, aircraft-weapon interface units and computers (e.g., AGM-88 HARM Aircraft Launcher Interface Computer (ALIC));
          • 13 
            Radomes or electromagnetic antenna windows specially designed for aircraft or “unmanned aerial vehicles” “UAVs” that
            • a 
              incorporate radio frequency selective surfaces,
            • b 
              operate in multiple or more non-adjacent radar bands,
            • c 
              incorporate a structure that is specially designed to provide ballistic protection from bullets, shrapnel or blast,
            • d 
              have a melting point greater than 1,300 °C and maintain a dielectric constant less than 6 at a temperature greater than 500 °C,
            • e 
              are manufactured from ceramic materials with a dielectric constant less than 6 at any frequency from 100 MHz to 100 GHz,
            • f 
              maintain structural integrity at stagnation pressures greater than 287.28 kPa (6,000 pounds per square foot), or
            • g 
              withstand a combined thermal shock greater than 4.184 x 106 J/m2 accompanied by a peak overpressure of greater than 50 kPa;
          • 14 
            Drive systems and flight control systems specially designed to function after impact of a 7.62 mm or larger projectile;
          • 15 
            Radar altimeters with output power management or signal modulation (i.e., frequency hopping, chirping and direct sequence-spectrum spreading) LPI (low probability of intercept) capabilities;
          • 16 
            Air-to-air refuelling systems and hover-in-flight refuelling (HIFR) systems; or
          • 17 
            Thrust reversers specially designed to be deployed in flight.
        • b 
          Not used since 2011;
      • (j) item 2-10.c of the Guide is to be read as follows:

        • c 
          “Unmanned aerial vehicles” (“UAVs”) and related equipment, specially designed or modified for military use, as follows:
          • 1 
            “Unmanned aerial vehicles” (“UAVs”) including remotely piloted air vehicles (RPVs), autonomous programmable vehicles and “lighter-than-air vehicles”;
          • 2 
            Associated launchers and ground support equipment;
          • 3 
            Related equipment for command and control;
          • The “unmanned aerial vehicles” (“UAVs”) and related equipment, specially designed or modified for military use, include “unmanned aerial vehicle” (“UAV”) flight control systems and vehicle management systems with swarming capability (i.e., “unmanned aerial vehicles” (“UAVs”) that interact with each other to avoid collisions and stay together or, if weaponized, to coordinate targeting).
      • (k) item 2-10.d of the Guide is to be read as follows:

        • d 
          Aero-engines specially designed or modified for military use for the propulsion of combat aircraft or “unmanned aerial vehicles” (“UAVs”), and the following specially designed components:
          • 1 
            Hot section components (i.e., combustion chambers and liners; high pressure turbine blades, vanes, disks and related cooled structure; cooled low pressure turbine blades, vanes, disks and related cooled structure; cooled augmenters; and cooled nozzles);
          • 2 
            Digital engine controls (e.g., Full Authority Digital Engine Controls (FADEC) and Digital Electronic Engine Controls (DEEC) designed after Jan. 1, 1970 for military use);
      • (l) the portion of item 2-11 of the Guide before the “Note” is to be read as follows:

        • Electronic equipment, not specified elsewhere as a controlled good of Group 2 of the Guide as set out in the schedule to the Defence Production Act, as follows:
          • a 
            Miscellaneous electronics, auxiliary equipment or “spacecraft” for military use, as follows:
            • 1 
              “Spacecraft”, components for “spacecraft”, and ground control equipment for “spacecraft”;
            • 2 
              Analogue-to-digital converter “microcircuits”, which are “radiation-hardened” or are rated for operation in the temperature range from below -54° C to above +125° C;
            • 3 
              Electrical input type analogue-to-digital converter printed circuit boards or modules, that are rated for operation in the temperature range from below -45° C to above +55° C and that incorporate “microcircuits” that are described in 2-11.a.2. as set out in the schedule of the Defence Production Act;
            • 4 
              Electronic countermeasure (ECM) and electronic counter-countermeasure (ECCM) equipment;
            • 5 
              Frequency agile tubes;
            • 6 
              Electronic systems or equipment, designed either for surveillance and monitoring of the electro-magnetic spectrum for intelligence or security purposes or for counteracting such surveillance and monitoring;
            • 7 
              Underwater countermeasures, including acoustic and magnetic jamming and decoy, equipment designed to introduce extraneous or erroneous signals into sonar receivers;
            • 8 
              Cryptographic equipment;
            • 9 
              Guidance and navigation equipment;
            • 10 
              Digital demodulators specially designed for signals intelligence; or
            • 11 
              “Automated Command and Control Systems”.
            • Note A:
            • For the purposes of the schedule to the Defence Production Act, the “Note” at the end of item 2-11.a. of the Guide does not apply.
      • (m) the portion of item 2-12 of the Guide before the note “N.B.” is to be read as follows:

        • High velocity kinetic energy weapon systems and related equipment as follows and the specially designed systems listed in Note 1 at the end of item 2-12.b. of the Guide:
          • a 
            Kinetic energy weapon systems specially designed for destruction or effecting mission-abort of a target;
          • b 
            Specially designed test and evaluation facilities and test models, including diagnostic instrumentation and targets, for dynamic testing of kinetic energy projectiles and systems.
      • (n) the portion of item 2-14 of the Guide before the “Technical Note” is to be read as follows:

        • ‘Specialised equipment for military training’ or for simulating military scenarios, and specially designed components and accessories therefor.
      • (o) the portion of item 2-15 of the Guide before the “Note” is to be read as follows:

        • Imaging or countermeasure equipment specially designed for military use as follows:
          • a 
            Recorders and image processing equipment;
          • b 
            Cameras, photographic equipment and film processing equipment;
          • c 
            Image intensifier equipment;
          • d 
            Infrared or thermal imaging equipment;
          • e 
            Imaging radar sensor equipment;
          • f 
            Countermeasure or counter-countermeasure equipment, for the equipment specified by 2-15.a. to 2-15.e.
          • The imaging or countermeasure equipment include the following components:
            • i 
              Infrared image converter tubes;
            • ii 
              Image intensifier tubes, other than first generation image intensifier tubes;
            • iii 
              Detector arrays; or
            • iv 
              Cooling systems for imaging systems.
          • Note A:
            • For the purposes of the schedule to the Defence Production Act, “Note 1”, “Note 2” and the second note “N.B.” before item 2-16. of the Guide do not apply.
      • (p) the portion of item 2-17 of the Guide before item 2.17.a is to be read as follows:

        • Miscellaneous equipment and materials as follows:
      • (q) item 2.17.n of the Guide is to be read as follows:

        • n 
          Test models specially designed for the “development” of items specified by 2-4.a., 2-4.b., 2-6.a., 2-9.a.1., 2-9.b, 2-10.a., 2-10.b. or 2-10.c.
          • Note A:
            • For the purposes of the schedule to the Defence Production Act, section 1 of the “Technical Note” at the end of item 2-17.p. of the Guide does not apply.
      • (r) item 2-18 before the “Technical Note” is to be read as follows:

        • Production equipment as follows:
          • a 
            Specially designed or modified ‘production’ equipment for the ‘production’ of products that are deemed to be controlled goods of Group 2 of the Guide for the purposes of the schedule to the Defence Production Act;
          • b 
            Specially designed environmental test facilities and specially designed equipment therefor, for the certification, qualification or testing of products that are deemed to be controlled goods of Group 2 of the Guide for the purposes of the schedule to the Defence Production Act.
      • (s) the portion of item 2-19 of the Guide before the “Note 1” is to be read as follows:

        • Directed energy weapon systems (DEW), related or countermeasure equipment and test models, as follows, and the specially designed systems listed in Note 2 at the end of 2.19.f. of the Guide:
          • a 
            “Laser” systems specially designed for destruction or effecting mission-abort of a target;
          • b 
            Particle beam systems capable of destruction or effecting mission-abort of a target;
          • c 
            High power Radio-Frequency (RF) systems capable of destruction or effecting mission-abort of a target;
          • d 
            Equipment specially designed for the detection or identification of, or defence against, systems specified by 2-19.a. to 2-19.c.;
          • e 
            Physical test models for the systems or equipment specified by 2-19.;
          • f 
            “Laser” systems specially designed to cause permanent blindness to unenhanced vision, i.e., to the naked eye or to the eye with corrective eyesight devices.
      • (t) item 2-21.a of the Guide is to be read as follows:

        • a 
          “Software” specially designed or modified for the “development”, “production” or “use” of equipment, materials or “software” that are deemed to be controlled goods of Group 2 of the Guide for the purposes of the schedule to the Defence Production Act;
      • (u) item 2-21.c of the Guide is to be read as follows:

        • c 
          “Software”, not specified by 2-21.a. or 2-21.b., specially designed or modified to enable equipment not specified as a controlled good of Group 2 of the Guide that is set out in the schedule to the Defence Production Act to perform the military functions of equipment deemed to be a controlled good of Group 2 of the Guide for the purposes of that schedule.
      • (v) Item 2-22.a of the Guide is to be read as follows:

        • a 
          “Technology” “required” for the “development”, “production” or “use” of items that are deemed to be controlled goods of Group 2 of the Guide for the purposes of the schedule to the Defence Production Act.
GROUP 5 OF THE GUIDE
    • 4 (1) Subject to subsection (2) and section 6, goods set out in item 5504 of Group 5 of the Guide, other than any of those described in items 5504.2.a.i or 5504.2.d to 5504.2.f or 5504.2.i, are controlled goods.

    • (2) The following modifications apply to the controlled goods set out in Group 5 of the Guide:

      • (a) item 5504.2.a.ii of the Guide is to be read as follows:

        • ii 
          propulsion and space-related equipment referred to in 1-9.A.4. to 1-9.A.11. of the Guide, the associated software referred to in 1-9.D. of the Guide, and the associated technology referred to in 1-9.E. of the Guide;
          • Note A :
            • For the purposes of the schedule to the Defence Production Act, the text of item 1-9.A.4. referred to in item 5504.2.a.ii. of the Guide is to be read as “Space launch vehicles”.
          • Note B :
            • For the purposes of the schedule to the Defence Production Act, the text of item 1-9.A.6.d. referred to in item 5504.2.a.ii. of the Guide is to be read as “High pressure (exceeding 17.5 MPa) turbo pumps or their associated gas generator or expander cycle turbine drive systems”.
      • (b) items 5504.2.b and 5504.2.c of the Guide are to be read as follows:

        • b 
          subject to the General Software Note in Group 1 of the Guide, software that is specially designed or modified for the development or use of the goods or technology referred to in 5504.2.g. or 5504.2.h.
        • c 
          subject to the General Technology Note in Group 1 of the Guide, technology that is specially designed or modified for the development or production of the goods or technology referred to in 5504.2.g. or 5504.2.h.
      • (c) item 5504.2.g of the Guide before item 5504.2.g.i is to be read as follows:

        • g 
          radiation-hardened microelectronic circuits that meet or exceed all of the following:
GROUP 6 OF THE GUIDE
    • 5 (1) Subject to subsection (2) and section 6, goods set out in Group 6 of the Guide, other than those described in any of the following items, are controlled goods:

      • (a) item 6-1.C;

      • (b) item 6-2.C;

      • (c) items 6-3.A.1, 6-3.A.6, 6-3.A.7, 6-3.A.9, 6-3.B.3 or 6-3.C;

      • (d) items 6-4.A, 6-4.B.3 or 6-4.C.1, 6-4.C.2.c to 6-4.C.2.f, 6-4.C.3, 6-4.C.4.a.2, 6-4.C.4.b.1, 6-4.C.4.b.3 or 6-4.C.4.b.5, 6-4.C.5.c, 6-4.C.6.b or 6-4.C.6.d, 6-4.C.6.e.1 or 6-4.D;

      • (e) item 6-5;

      • (f) items 6-6.B, 6-6.C.1 to 6-6.C.4, 6-6.C.6 to 6-6.C.9, 6-6.D or 6-6.E.2 or 6-6.E.3;

      • (g) items 6-7 to 6-11;

      • (h) items 6-12.A.3, 6-12.A.5.a, 6-12.A.6, 6-12.B or 6-12.C or 6-12.D.2;

      • (i) items 6-13 to 6-15;

      • (j) items 6-16.B or 6-16.C;

      • (k) items 6-18.A.1 or 6-18.B to 6-18.D;

      • (l) items 6-19.A.3 or 6-19.C;

      • (m) item 6-20.C.

    • (2) The following modifications apply to the controlled goods set out in Group 6 of the Guide:

      • (a) the heading of item 6-2 of the Guide is to be read as follows:

        • 6-2 COMPLETE SUBSYSTEMS SPECIALLY DESIGNED FOR COMPLETE DELIVERY SYSTEMS

      • (b) the portion of item 6-2.A.1 of the Guide before item 6-2.A.1.a is to be read as follows:

        • 1 
          Complete subsystems specially designed for the systems specified in 6-1.A., as follows:
      • (c) items 6-2.A.1.b.1 and 6-2.A.1.b.2 of the Guide are to be read as follows:

        • 1 
          Heat shields fabricated of ceramic or ablative materials;
        • 2 
          Heat sinks fabricated of light-weight, high heat capacity materials;
      • (d) the portion of item 6-2.A.1.c of the Guide before the “Note” is to be read as follows:

        • c 
          Solid propellant rocket motors, hybrid rocket motors or liquid propellant rocket engines, specially designed for the systems specified in 6-1.A., having a total impulse capacity equal to or greater than 1.1 x 106 Ns;
      • (e) the portion of item 6-2.A.1.d of the Guide before the “Technical Notes” is to be read as follows:

        • d 
          ‘Guidance sets’, specially designed for the systems specified in 6-1.A., capable of achieving system accuracy of 3.33% or less of the “range” (e.g., a ‘CEP’ of 10 km or less at a “range” of 300 km), except as provided in the Note at the end of 6-2.A.1. for those designed for missiles with a “range” under 300 km or manned aircraft;
      • (f) the portion of item 6-2.A.1.e of the Guide before the “Technical Note” is to be read as follows:

        • e 
          Thrust vector control sub-systems, specially designed for the systems specified in 6-1.A., except as provided in the Note at the end of 6-2.A.1. for those designed for rocket systems that do not exceed the “range”/“payload” capability of systems specified in 6-1.A.;
      • (g) the portion of item 6-2.A.1.f of the Guide before the “Note” is to be read as follows:

        • f 
          Weapon or warhead safing, arming, fuzing, and firing mechanisms, specially designed for the systems specified in 6-1.A., except as provided in the Note at the end of 6-2.A.1. for those designed for systems other than those specified in 6-1.A.
        • Note A:
          • For the purposes of the schedule to the Defence Production Act, the “Note” at the end of item 6-2.A.1.f. of the Guide does not apply.
      • (h) the portion of item 6-3.A.2 of the Guide before the “Technical Note” is to be read as follows:

        • 2 
          Ramjet/scramjet/pulse jet/combined cycle engines, including devices to regulate combustion, specially designed for the systems specified in 6-1.A. or 6-19.A.2, and specially designed components therefor.
      • (i) the portion of item 6-3.A.3 of the Guide before the “Technical Note” is to be read as follows:

        • 3 
          Rocket motor cases and nozzles therefor, specially designed for the systems specified in 6-1.A. or 6-19.A.1.
        • Note A:
          • For the purposes of the schedule to the Defence Production Act, the “Technical Note” and “Note” at the end of item 6-3.A.3. of the Guide do not apply.
      • (j) item 6-3.A.4 of the Guide is to be read as follows:

        • 4 
          Staging mechanisms, separation mechanisms, and interstages therefor, specially designed for the systems specified in 6-1.A.
      • (k) the portion of item 6-3.A.5 of the Guide before the “Notes” is to be read as follows:

        • 5 
          Liquid and slurry propellant (including oxidisers) control systems specially designed for the systems specified in 6-1.A., designed or modified to operate in vibration environments greater than 10 g rms between 20 Hz and 2 kHz.
        • Note A:
          • For the purposes of the schedule to the Defence Production Act, section 2 of the “Notes” at the end of item 6-3.A.5. of the Guide does not apply.
      • (l) item 6-3.A.8 of the Guide is to be read as follows:

        • 8 
          Liquid propellant tanks specially designed for the propellants controlled in 6-4.C.2.a., 6-4.C.2.b., 6-4.C.4.a.1., 6-4.C.4.a.3. to 6-4.C.4.a.6., 6-4.C.4.b.2. or 6-4.C.4.b.4. or other liquid propellants used in the systems specified in 6-1.A.1.
      • (m) items 6-3.B.1 and 6-3.B.2 of the Guide are to be read as follows:

        • 1 
          “Production facilities” specially designed for equipment or materials specified in 6-3.A.2., 6-3.A.3., 6-3.A.4., 6-3.A.5. or 6-3.A.8.
        • 2 
          “Production equipment” specially designed for equipment or materials specified in 6-3.A.2., 6-3.A.3., 6-3.A.4., 6-3.A.5. or 6-3.A.8.
      • (n) item 6-3.D.1 of the Guide is to be read as follows:

        • 1 
          “Software” specially designed or modified for the “use” of “production facilities” specified in 6-3.B.1.
      • (o) The portion of item 6-3.D.2 of the Guide before the “Notes” is to be read as follows:

        • 2 
          “Software” specially designed or modified for the “use” of equipment specified in 6-3.A.2., 6-3.A.4. or 6-3.A.5.
        • Note A:
          • For the purposes of the schedule to the Defence Production Act, section 1 of the “Notes” of 6-3.D.2 of the Guide does not apply.
      • (p) item 6-3.E.1 of the Guide is to be read as follows:

        • 1 
          “Technology”, in accordance with the General Technology Note, for the “development”, “production” or “use” of equipment, materials or “software” specified in 6-3.A.2., 6-3.A.3., 6-3.A.4., 6-3.A.5., 6-3.B.1. or 6-3.B.2. or 6-3.D.
      • (q) items 6-4.B.1 and 6-4.B.2 of the Guide are to be read as follows:

        • 1 
          “Production equipment”, and specially designed components therefor, for the “production”, handling or acceptance testing of liquid propellants or propellant constituents specified in 6-4.C.2.a. or 6-4.C.2.b. or 6-4.C.4.a.1., 6-4.C.4.a.3., 6-4.C.4.a.4., 6-4.C.4.a.5., 6-4.C.4.a.6., 6-4.C.4.b.2. or 6-4.C.4.b.4.
        • 2 
          “Production equipment”, other than that described in 6-4.B.3., and specially designed components therefor, for the production, handling, mixing, curing, casting, pressing, machining, extruding or acceptance testing of solid propellants or propellant constituents specified in 6-4.C.2.a. or 6-4.C.2.b. or 6-4.C.4.a.1., 6-4.C.4.a.3., 6-4.C.4.a.4., 6-4.C.4.a.5., 6-4.C.4.a.6., 6-4.C.4.b.2. or 6-4.C.4.b.4.
      • (r) item 6-4.E.1 of the Guide is to be read as follows:

        • 1 
          “Technology”, in accordance with the General Technology Note, for the “development”, “production” or “use” of equipment or materials specified in 6-4.B.1. or 6-4.B.2., 6-4.C.2.a. or 6-4.C.2.b. or 6-4.C.4.a.1., 6-4.C.4.a.3., 6-4.C.4.a.4., 6-4.C.4.a.5., 6-4.C.4.a.6., 6-4.C.4.b.2. or 6-4.C.4.b.4.
      • (s) item 6-6.A.2.b of the Guide is to be read as follows:

        • b 
          Specially designed for the systems specified in 6-1.A. or 6-19.A.1.
      • (t) item 6-6.C.5 of the Guide is to be read as follows:

        • 5 
          Ceramic composite materials (dielectric constant less than 6 at any frequency from 100 MHz to 100 GHz) for use in missile radomes specially designed for systems specified in 6-1.A. or 6-19.A.1.
      • (u) item 6-6.E.1 of the Guide is to be read as follows:

        • 1 
          “Technology” for the “development”, “production” or “use” of equipment or materials specified in 6-6.A. or 6-6.C.5.
      • (v) item 6-12.D.3 of the Guide is to be read as follows:

        • 3 
          “Software” specially designed or modified for the “use” of equipment specified in 6-12.A.4. or 6-12.A.5.b., specially designed for systems specified in 6-1.A., 6-19.A.1. or 6-19.A.2.
      • (w) item 6-12.E.1 of the Guide is to be read as follows:

        • 1 
          “Technology”, in accordance with the General Technology Note, for the “development”, “production” or “use” of equipment or “software” specified in 6-12.A.1., 6-12.A.2. or 6-12.A.4., 6-12.A.5.b. or 6-12.D.1. or 6-12.D.3.
      • (x) item 6-17.B.1 of the Guide is to be read as follows:

        • 1 
          Systems, specially designed for radar cross section measurement, specially designed for the systems specified in 6-1.A., 6-19.A.1. or 6-19.A.2. or the subsystems specified in 6-2.A.
      • (y) the portion of item 6-17.C.1 of the Guide before the “Notes” is to be read as follows:

        • 1 
          Materials for reduced observables such as radar reflectivity, ultraviolet/infrared signatures and acoustic signatures (i.e., stealth technology), for applications specially designed for the systems specified in 6-1.A. or 6-19.A. or the subsystems specified in 6-2.A.
      • (z) the portion of item 6-17.D.1 of the Guide before the “Note” is to be read as follows:

        • 1 
          “Software” specially designed for reduced observables such as radar reflectivity, ultraviolet/infrared signatures and acoustic signatures (i.e., stealth technology), for applications specially designed for the systems specified in 6-1.A. or 6-19.A. or the subsystems specified in 6-2.A.
      • (z.1) the portion of item 6-18.A.2 of the Guide before the “Technical Note” is to be read as follows:

        • 2 
          ‘Detectors’ specially designed or modified to protect rocket systems and unmanned aerial vehicles against nuclear effects (e.g. Electromagnetic Pulse (EMP), X-rays, combined blast and thermal effects), and specially designed for the systems specified in 6-1.A.
      • (z.2) item 6-18.A.3 of the Guide is to be read as follows:

        • 3 
          Radomes designed to withstand a combined thermal shock greater than 4.184 x 106 J/m2 accompanied by a peak over pressure of greater than 50 kPa, specially designed to protect rocket systems and unmanned aerial vehicles against nuclear effects (e.g., Electromagnetic Pulse (EMP), X-rays, combined blast and thermal effects), and usable for the systems specified in 6-1.A.
EXCEPTIONS
  • 6 The following goods are not controlled goods:

    • (a) a good set out in the schedule that has been fully demilitarized;

    • (b) a firearm that has a calibre greater than 12.7 mm and is not a restricted firearm, other than a howitzer, mortar, anti-tank weapon, projectile launcher, flame thrower, recoilless rifle and their components;

    • (c) a prohibited firearm if an individual holds a licence that authorizes them to possess the prohibited firearm under section 12 of the Firearms Act;

    • (d) specially designed components of a prohibited firearm; and

    • (e) the following types of ammunition:

      • (i) shotgun ammunition of any gauge,

      • (ii) ammunition with a calibre less than or equal to 12.7 mm, and

      • (iii) ammunition for any firearm that is not set out in this schedule.

  • 2000, c. 31, s. 7
  • SOR/2014-126
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