Defence Production Act
(R.S.C., 1985, c. D-1)
(as amended up to September 21, 2017)
An Act respecting defence production
Short Title
Short title
1 This Act may be cited as the Defence Production Act.
R.S., c. D-2, s. 1.
Interpretation
Definitions
2 In this Act,
Account means the Defence Production Loan Account established under
section 18; (compte)
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 includes repair, maintain, improve or extend; (construction)
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 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 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 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 means the Department of Public Works and Government Services;
(ministère)
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 means the Minister of Public Works and Government Services;
(ministre)
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 includes rate or charge for any service; (prix)
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 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 1
Procurement of Defence Supplies
Staff
Appointment and employment
3 (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.
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.
Minister’s functions dischargeable by persons deputed by Minister
4 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.
Appointment of persons to advise and aid Minister
5 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.
Corporations
6 (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.
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.
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.
Legal proceedings
7 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.
Audit
8 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).
Minister may contract with corporation
9 (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.
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
Powers relating to all departments
10 (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.
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.
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).
Acts on behalf of associated government
11 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
Duties of Minister
12 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.
Minister may require returns to be made
13 (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.
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.
Other departments to assist Minister in obtaining information
14 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.
Stock-piling
15 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
Ministerial powers of procurement and disposal
16 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.
Expenditures from C.R.F.
17 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.
Expenditures from C.R.F.
18 (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.
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.
Limitation on amount expended from C.R.F.
19 (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).
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.
Title to government issue or building
20 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).
Premature rescission, resolution or termination of contract
21 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.
Relief from claims and proceedings for royalties
22 (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.
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.
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.
Appeal
(4) Any decision of the Commissioner of Patents under subsection (3) is subject
to appeal to the Federal Court under the Patent Act.
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.
Accounts records and documents of contractor
23 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.
Re-assessment of costs and profits
24 (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.
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.
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.
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.
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.
Appeal to Federal Court
25 (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.
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.
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).
26 to 29 [Repealed, 2000, c. 31, s. 2]
General
Non-disclosure of information
30 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.
Powers of specific government companies
31 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.
Paramount powers under this Act
32 The powers conferred by this Act may be exercised notwithstanding anything
contained in the Public Works Act.
R.S., c. D-2, s. 25.
Orders and regulations
33 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.
Regulations to be published
34 (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.
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 2
Regulation of Access to Controlled Goods
Interpretation
Definition of “controlled goods”
35 In this Part, controlled goods means the goods referred to in the schedule.
2000, c. 31, s. 5.
Application
Excluded persons
36 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
Prohibitions
37 (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.
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.
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.
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
By Minister
38 (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.
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.
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.
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
By regulation
39 Individuals of a class prescribed by regulation are exempt from registration.
2000, c. 31, s. 5.
By Minister
39.1 (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.
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.
Denial — security assessment
(3) The Minister may deny, suspend, amend or revoke an exemption on the basis
of a security assessment prescribed by regulation.
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
To Minister
40 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
Designation of inspectors
41 (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.
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.
Inspection of facilities
42 (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.
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.
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
Governor in Council
43 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 3
Offence and Punishment
Other prohibitions
44 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.
Serious offence
45 (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.
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.
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.
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.
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.
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.
Officers, etc., of corporation
46 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 has the same meaning as in section 2 of the Criminal Code. (arme à feu)
full demilitarization means an action that permanently prevents a good’s repair,
restoration or reverse engineering. (démilitarisation complète)
Guide has the same meaning as in section 1 of the Export Control List. (guide)
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 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;
2-2
a
1
2
3
2
a
b
c
(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:
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:
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:
Frames or receivers;
Barrels; or
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:
Specially designed for ‘activities’ relating to any of the following:
Items specified by 2-4.a.;
Improvised Explosive Devices (IEDs); or
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
2-6
a
2-9
1
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:
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:
‘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:
a. Vessels as follows:
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
2-10
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
1
2
3
4
5
6
7
8
9
10
11
12
13
a
Manned “aircraft” and “lighter-than-air vehicles”, and specially
designed components, as follows:
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;
Damage adaptive or failure adaptive flight control systems;
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;
Tail boom, stabilator and automatic rotor blade folding
systems;
Wing folding systems;
Tail hooks and arresting gear;
Threat-adaptive autonomous flight control systems;
Non-surface-based flight control systems and effectors,
(e.g., thrust vectoring from gas ports other than main
engine thrust vector);
Lithium-ion batteries that provide 28 VDC nominal;
Lift fans, clutches and roll posts for short take-off, vertical
landing (STOVL) aircraft;
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));
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));
Radomes or electromagnetic antenna windows specially
designed for aircraft or “unmanned aerial vehicles” “UAVs”
that
incorporate radio frequency selective surfaces,
b
c
d
e
f
g
14
15
16
17
b
operate in multiple or more non-adjacent radar
bands,
incorporate a structure that is specially designed to
provide ballistic protection from bullets, shrapnel or
blast,
have a melting point greater than 1,300 °C and
maintain a dielectric constant less than 6 at a
temperature greater than 500 °C,
are manufactured from ceramic materials with a
dielectric constant less than 6 at any frequency from
100 MHz to 100 GHz,
maintain structural integrity at stagnation pressures
greater than 287.28 kPa (6,000 pounds per square
foot), or
withstand a combined thermal shock greater than
4.184 x 106 J/m accompanied by a peak
overpressure of greater than 50 kPa;
Drive systems and flight control systems specially designed
to function after impact of a 7.62 mm or larger projectile;
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;
Air-to-air refuelling systems and hover-in-flight refuelling
(HIFR) systems; or
Thrust reversers specially designed to be deployed in flight.
Not used since 2011;
(j) item 2-10.c of the Guide is to be read as follows:
2
c
1
2
3
d
1
2
“Unmanned aerial vehicles” (“UAVs”) and related equipment,
specially designed or modified for military use, as follows:
“Unmanned aerial vehicles” (“UAVs”) including remotely
piloted air vehicles (RPVs), autonomous programmable
vehicles and “lighter-than-air vehicles”;
Associated launchers and ground support equipment;
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:
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:
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);
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:
2-11
a
1
2
3
4
5
6
7
8
9
10
11
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:
Miscellaneous electronics, auxiliary equipment or
“spacecraft” for military use, as follows:
“Spacecraft”, components for “spacecraft”, and
ground control equipment for “spacecraft”;
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;
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;
Electronic countermeasure (ECM) and electronic
counter-countermeasure (ECCM) equipment;
Frequency agile tubes;
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;
Underwater countermeasures, including acoustic
and magnetic jamming and decoy, equipment
designed to introduce extraneous or erroneous
signals into sonar receivers;
Cryptographic equipment;
Guidance and navigation equipment;
Digital demodulators specially designed for signals
intelligence; or
“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.
2-12
a
b
2-14
(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:
Kinetic energy weapon systems specially designed for
destruction or effecting mission-abort of a target;
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:
2-15
a
b
c
d
e
f
i
ii
iii
iv
2-17
Imaging or countermeasure equipment specially designed for
military use as follows:
Recorders and image processing equipment;
Cameras, photographic equipment and film processing
equipment;
Image intensifier equipment;
Infrared or thermal imaging equipment;
Imaging radar sensor equipment;
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:
Infrared image converter tubes;
Image intensifier tubes, other than first generation image
intensifier tubes;
Detector arrays; or
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
2-18
a
b
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:
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;
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:
2-19
a
b
c
d
e
f
a
c
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:
“Laser” systems specially designed for destruction or
effecting mission-abort of a target;
Particle beam systems capable of destruction or effecting
mission-abort of a target;
High power Radio-Frequency (RF) systems capable of
destruction or effecting mission-abort of a target;
Equipment specially designed for the detection or
identification of, or defence against, systems specified by
2-19.a. to 2-19.c.;
Physical test models for the systems or equipment
specified by 2-19.;
“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:
“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:
“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
ii
b
c
“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:
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:
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.
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.
g
(c) item 5504.2.g of the Guide before item 5504.2.g.i is to be read as follows:
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
1
2
c
d
e
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:
Heat shields fabricated of ceramic or ablative materials;
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:
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 10 Ns;
(e) the portion of item 6-2.A.1.d of the Guide before the “Technical Notes” is to
be read as follows:
‘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:
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:
6
f
2
3
4
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:
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:
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:
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:
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2
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2
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:
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:
“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.
“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:
“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:
“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.
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(p) item 6-3.E.1 of the Guide is to be read as follows:
“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:
“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.
“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:
“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:
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:
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.
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(u) item 6-6.E.1 of the Guide is to be read as follows:
“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:
“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:
“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:
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:
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:
“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.
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(z.1) the portion of item 6-18.A.2 of the Guide before the “Technical Note” is to
be read as follows:
‘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:
Radomes designed to withstand a combined thermal shock
greater than 4.184 x 10 J/m 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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