Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Common Reasons For Failing Grade By Controlled Goods Directorate Security Compliance Inspector

In Canada, persons who knowingly examine or possess a Controlled Good or transfers a Controlled Good to another person must be registered with the Controlled Goods Directorate. (See section 37 of the Defence Production Act).

The term "Controlled Good" is defined in the Defence Production Act (Section 35 and Schedule) to mean "goods listed in the schedule to the Export Control List ...

(a) Group 2: goods listed in item 2001 that are prohibited firearms ...;

(b) Group 2: goods listed in items 2002 and 2004 to 2022;

(d) Group 5: goods listed in item 5504; and

(e) Group 6: all goods listed."

When a person registers with the Controlled Goods Directorate, the must undergo a Compliance Inspection. Often a newly registered person has not adequately reviewed the compliance requirements and is not adequately prepared for the inspection. Often, a newly registered person fails the inspection.

Some of the reasons given by a Controlled Goods Directorate inspector for failing the compliance inspection are as follows:

  • Failure to complete a Security Plan;
  • Security Plan is inadequate;
  • A Training Program and Security briefings have not been developed;
  • Security Assessments of each officer, director and employee who may access controlled goods have not been completed or conducted;
  • Adequate records and documentation regimes have not been established;
  • Records and documentation have not been made available to the inspector;
  • Adequate procedures have not been established to deal with electronic documentation and records;
  • Adequate documentation has not been completed to Temporary Workers;
  • Adequate documentation has not been completed for Visitors
  • Evidences of a person's ITARS status has not been maintained or made available to the inspector; and
  • Information provided is inaccurate or incomplete or cannot be verified.

If you do not wish to fail an inspection, a professional who is experienced with the Controlled Goods Directorate can help. Please call Cyndee Todgham Cherniak at 416-307-4168. It takes time to put the Security Plan and documentation regimes in place - so, call as early in the registration process as possible.

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