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Defence Production Act (R.S.C., 1985, c. D-1) (as amended up to September 21, 2017)

 https://laws.justice.gc.ca/eng/acts/D-1/FullText.html

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:

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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:

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f

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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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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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