Items controlled domestically: Guide to the Schedule to the Defence Production Act
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Section 2 of the Schedule: Domestic control of United States “defense articles” controlled by the International Traffic in Arms Regulations
This section outlines the domestic control of items determined by the United States (U.S.) to be “defense articles” (as defined by section 120.6 of the International Traffic in Arms Regulations (ITAR)) and listed under the United States Munitions List (USML) to the U.S. ITAR. The Schedule’s reference to the U.S. ITAR (Section 2 of the Schedule) ensures that changes to the USML are automatically mirrored in the Schedule. This alignment helps to ensure the provision of the Canadian exemptions (section 126.5) provided under the ITAR for the:
- licence-free transfer of many “defense articles” controlled by the ITAR between companies from the U.S. and registrants of the Controlled Goods Program (CGP)
- subsequent licence-free transfers of these items among registrants of the CGP within Canada
Section 2(1)(a) of the Schedule refers to the control of U.S. ITAR “defense articles” that are:
- U.S. origin (in other words: manufactured or produced in the U.S.) and
- determined by the Directorate of Defense Trade Controls (DDTC), within the U.S. Department of State, to be currently listed under the USML to the ITAR
Section 2(1)(b) of the Schedule refers to the control of goods that are:
- not manufactured in the U.S. and
- manufactured from technical data (in other words: technology) that is currently controlled under the USML to the ITAR
Section 2(2)(a) of the Schedule refers to the domestic decontrol of U.S. ITAR controlled firearms and the components of such firearms that are listed in the USML and that:
- have a calibre equal to or less than 12.7 mm and
- are not prohibited firearms as defined in paragraph (c) of the definition “prohibited firearm” in subsection 84(1) of the Criminal Code
Section 2(2)(b) of the Schedule refers to the domestic decontrol of U.S. ITAR controlled firearms and the components of such firearms that are:
- smooth bore weapons with a calibre less than 20 mm and
- not prohibited firearms, as defined in paragraph (c) of the definition “prohibited firearm” in subsection 84(1) of the Criminal Code
Note
Items that are controlled by the Schedule since they are subject to U.S. ITAR may also fall under the Schedule’s domestic controls on items with strategic significance or national security implications. Refer to the following for additional information on the Schedule’s domestic controls on items with strategic significance or national security implications that are controlled regardless of their country of origin:
- sections 1; 3; 4; 5; and 6 of the Schedule
The U.S. DDTC of the Department of State is responsible for the administration, compliance, and enforcement of the International Traffic in Arms Regulations. Questions pertaining to the specifics of the ITAR (for example: pertaining to registration with the DDTC, the ITAR control status of goods or the Commodity Jurisdiction determination process) are beyond the purview of the CGP. Enquiries pertaining to the ITAR should be directed to the U.S. Directorate of Defense Trade Controls.
Additional guidance on the Schedule’s domestic controls on small calibre weapons and arms
The Schedule only controls smooth-bore weapons with a calibre of less than 20 mm or other arms and automatic weapons with a calibre equal to or less than 12.7 mm (calibre 0.50 inches), which:
- are controlled under the U.S. ITAR, and
- meet the criteria stipulated in paragraph (c) of the definition of prohibited firearm in subsection 84(1) of the Criminal Code
Note
Refer to the following for additional information on the Schedule’s domestic controls on small-calibre weapons and arms:
- Schedule entry 2-1., and sections 1; 2; and 6 of the Schedule
In regards to the Schedule’s control of specific small calibre weapons and arms, clients of the CGP are responsible for determining the:
- legal classification of the firearms
- clients of the CGP who are uncertain of the legal classification of the firearms may consider contacting the Canadian Firearms Program of the Royal Canadian Mounted Police (RCMP) for assistance
- the CGP will not make any determination on the legal classification of firearms
- calibre of the firearms
- clients of the CGP who are uncertain of the calibre of the firearms may:
- review manufacturer specifications
- consult with a gunsmith
- measure the calibre
- clients of the CGP who are uncertain of the calibre of the firearms may:
- the CGP will not make any determination on the calibre of firearms
Additional guidance on the Schedule’s domestic controls on ammunition for weapons and arms
The Schedule’s control on ammunition is limited to those that are controlled by the U.S. ITAR or manufactured outside of the U.S. using technical data that is controlled by the U.S. ITAR, and are either:
- large calibre weapons (for example, howitzers, cannons or mortars) that are specified in Schedule entry 2-2. and associated Schedule sub-entries 2-2.a. and 2-2.b. of the Schedule Guide
- high velocity kinetic energy weapon systems that are specified in Schedule entry 2-12. and associated Schedule sub-entries 2-12.a. and 2-12.b. of the Schedule Guide
The Schedule does not control ammunition:
- for shotguns
- with a calibre less than or equal to 12.7 mm
- for any firearms that are not controlled by the Schedule
Note
Refer to the following for additional information on the Schedule’s domestic controls on ammunition:
- sections 2; 3(1)(c); 3(2)(a); 3(2)(m); and 6(e) of the Schedule
- Schedule entries 2-2., 2-3., 2-12. and associated Schedule sub-entries of each
The identification of United States International Traffic in Arms Regulations “defense articles”
Clients of the CGP that examine, possess, or transfer “defense articles” that are controlled by the U.S. ITAR are required to provide the following information to the CGP:
- a description for each of the “defense articles”
- the detailed Schedule item number for the controlled good to the greatest extent (refer to sections 3, 4 and 5 of the Schedule) and/or:
- the corresponding USML category number and specific subsection associated for each U.S. ITAR controlled “defense article”
Clients of the CGP who are unable to determine the U.S. ITAR control status and/or detailed USML category number and section of the items may submit a commodity jurisdiction request to the U.S. Department of State to:
- definitively indicate the U.S. ITAR control status of the goods
- provide the detailed USML category numbers and sub-category numbers and corresponding descriptions for the items that are controlled by U.S. ITAR
Suggestion
Clients must assess the applicability of section 2 of the Schedule (in other words: determine if the goods are “defense articles” that are controlled by the U.S. ITAR) to the items they are evaluating. The following sources may aid in determining the ITAR control status of the items and corresponding description, and USML category numbers and subsections:
- U.S. ITAR Destination Control Statement
- export license issued by the U.S. Department of State
- declaration (for example, from a manufacturer, supplier or exporter) that the good or technology is regulated under U.S. ITAR
- commodity jurisdiction issued by the U.S. Department of State, indicating that the item falls under the jurisdiction of the U.S. Department of State
- U.S. exporters that transfer items under the Canadian exemption (section 126.5 of the U.S. ITAR) are required to perform due diligence on the Canadian recipient of the U.S. ITAR controlled item before the transfer or export of that item
- information from the manufacturer or from the companies that are part of the supply chain
- the U.S. government or client company that may have information to indicate that the item is controlled under the U.S. ITAR (for example, through a technical assistance agreement)
- information from the following contract security requirements that indicate the requirements to access items that are controlled by the U.S. ITAR:
- contract requirement (current or future) to access U.S. ITAR “defense articles”
- bidding process (for example, access to items that are controlled under the U.S. ITAR as indicated by a request for proposal, request for quotation), that registration with the CGP is a requirement before receiving documentation that is controlled by the U.S. ITAR, Department of National Defence, and Canadian Armed Forces statement indicating the requirement to access items that are controlled by the U.S. ITAR
- purchase order
- requirement imposed by the primary contractor to a sub-contractor
Section 3, 4, and 5 of the Schedule: Domestic control of strategically significant goods
In addition to “defense articles” that are specifically controlled by the United States (U.S.) International Traffic in Arms Regulations (ITAR), the Schedule controls specific items/goods with strategic significance or national security implications regardless of their country of origin when they are in Canada. Clients of the CGP who examine, possess or transfer items that are controlled goods with strategic significance or national security implications are required to provide the Schedule entry number and corresponding description for each of these controlled goods.
The Schedule, which was last amended in May of 2014, continues to reference Global Affairs Canada (GAC)’s Export and Import Permits Act and Export Control List (ECL). The Schedule’s domestic controls on items with strategic significance or national security implications apply to a subset of specific entries within group 2 (munitions list), item 5504 of group 5 (strategic goods and technology), and group 6 (Missile Technology Control Regime) of the ECL. Past amendments to the Schedule have no impact upon Canada’s export controls. Canada’s export and import regime falls under the purview of Global Affairs Canada. Enquiries pertaining to Canada’s export and import controls are to be directed to Contact Us - Global Affairs Canada.
Suggestion
Clients of the CGP should determine if, and identify where, the goods are listed on the latest version of GAC’s A Guide to Canada’s Export Control List to the most detailed item number and cross-reference that information against the Schedule Guide to determine if the items they intend to examine, possess, or transfer are controlled domestically by the Schedule.
Clients of the CGP who have exported items may reference their previously - issued export permits from GAC to obtain detailed information of where the items fall on the ECL. Clients can cross-reference the information from the export permits against the Schedule Guide to determine the domestic control status of these items.
Note
The Schedule’s domestic controls on the items that are controlled by the Schedule, regardless of their country of origin/manufacture, are not mutually exclusive from the Schedule’s domestic controls on “defense articles” that are manufactured in the U.S. and are controlled by the U.S. ITAR or items that are manufactured outside of the U.S. using technical data that is controlled by the U.S. ITAR.
Refer to the following for additional information on the Schedule’s domestic controls on defense articles that are controlled by the U.S. ITAR:
- sections 1; 2; and 6 of the Schedule
The tables on the following pages are aimed at assisting clients of the CGP to determine whether the items that they intend to examine, possess or transfer are controlled goods with strategic significance or national security implications that are controlled domestically by the Schedule regardless of their country of origin/manufacture.
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