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

Act current to 2022-11-16 and last amended on 2017-09-21. Previous Versions

PART 1Procurement of Defence Supplies (continued)

Defence Procurement (continued)

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)
 
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