On May 17, 2011, Canada's Controlled Goods Directorate (division of Public Works and Government Services Canada) issued notice "NOTICE TO CONTROLLED GOODS PROGRAM REGISTRANTS REGARDING INTERNATIONAL TRAFFIC IN ARMS REGULATIONS AMENDMENTS". Please go to the following link to view the notice - http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/vedette-features/itar-eng.html
I received this notice because McMillan LLP is registered with the Controlled Goods Directorate and I am familiar with the requirements of the Controlled Goods Program first hand.
The Controlled Goods Directorate will implement its ENHANCED SECURITY STRATEGY very soon. It is likely that Canadian law will change. What is certain - a new matrix will be imposed on Canadian businesses. Canadian businesses need to get ready to adjust their compliance.
The most significant requirement of the Controlled Goods Program is that certain Canadian entities must register with the program (even if they do not export controlled goods). In order to be accepted for registration, the entity must have in place a Security Plan. That Security Plan involves the appointment of a Designated Officer and the conduct of security assessments of relevant personnel. The Designated Officer must maintain specified records (recording all dealings with controlled goods).
The new Security Assessment process of the ENHANCED SECURITY STRATEGY involves a risk matrix which is intended to identify individuals at risk of unauthorized transfer of controlled goods (e.g. foreign agents, front companies and diverters who threaten company proprietary data and/or interest of Canada). A questionnaire is being developed that will have to be completed for each individual who will have contact with the controlled goods. The questions solicit information about (i) contacts with foreign government officials, agencies or proxies, (ii) business and family contacts in foreign jurisdictions, (iii) continuing allegiance to a foreign country, (iv) relationships with a foreign governments, (v) travel, (vi) residences and bank accounts in foreign jurisdictions, and (vi) affiliations within and outside Canada (to name a few). The Controlled Goods Directorate has indicated that persons exceeding "the risk threshold are subject to broader security assessment" with the assistance of Canadian government departments.
The ENHANCED SECURITY STRATEGY will tighten certain existing security requirements and will add categories of persons that must play by the rules. The Controlled Goods Directorate are going to add coverage to persons, such as students, interns, collectors (of controlled goods), foreign temporary workers and visitors, transportation companies, etc. As a result, universities, colleges and other educational institutions will need to consider whether they must registered with the Controlled Goods Directorate. More transportation companies will need to register or lose the business of registered persons with respect to transportation of controlled goods.
Canada's Controlled Goods Program is recognized by the United States Department of State as an enhanced security program. Canada has worked cooperatively with the United States to ensure North American security is protected. The Controlled Goods Program is legislated in the Defence Production Act and requires Canadian companies to register if they manufacture or handle in any way with certain controlled goods and the technical data.
For more information about the Controlled Goods Directorate and the Defence Production Act, please go to Trade Lawyers Blog article Controlled Goods Directorate Part 1 - http://www.tradelawyersblog.com/blog/article/controlled-goods-directorate-part-1/
Canada Takes North American Security Re Controlled Goods Very Seriously - http://tradelawyersblog.com/blog/archive/2011/january/article/canada-takes-north-american-security-re-controlled-goods-very-seriously/?tx_ttnews%5Bday%5D=19&cHash=20e99efb86
Common Reasons for a Failing Grade By Controlled Goods Directorate Security Compliance Inspector - http://www.tradelawyersblog.com/blog/article/common-reasons-failing-grade-by-controlled-goods-directorate-security-compliance-inspector/
If you require more information or assistance to get ready, please contact Cyndee Todgham Cherniak at 416-307-4168 http://www.mcmillan.ca/aerospace-and-defence