Frequently asked questions: Regulations

The frequently asked questions below are meant to provide Canadians and businesses with basic information about Public Services and Procurement Canada (PSPC)'s regulations.

Controlled Goods Regulations

1. What is the Controlled Goods Program (CGP)?
   The CGP is a mandatory registration and compliance program established by the government of Canada that regulates the examination, possession and transfer of controlled goods, including United States International Traffic in Arms Regulations (ITAR) controlled articles. The ITAR is a set of United .States government regulations that control the export and import of defence-related articles and services on the United States Munitions List. Registrants in the program are able to examine, possess and transfer controlled goods in Canada.
2. What are the Controlled Goods Regulations?
   The CGP is governed by the Controlled Goods Regulations (CGR), derived from the Defence Production Act. The CGR provides detailed information on registration requirements; sets the security assessment and exemption processes; and, outlines the considerations pertaining to suspensions and revocations of registrations or exemptions. The CGR also details which classes of individuals are eligible for an exemption (visitors, temporary workers) or, who is exempt from registration (ITAR, U.S. government officials).
3. What is the objective of the Controlled Goods Regulations?
   The objective of the CGR is to safeguard controlled goods in Canada and prevent controlled goods from being accessed by unauthorized persons.
4. What are the key elements of the Controlled Goods Regulations?
   Once registration is approved, every registered person is subject to the following conditions:
   • appoint an individual as a designated official (DO)
   • establish and implement a security plan
   • keep and maintain a record of controlled goods, security assessments and supporting documentation, information on the identities of exempt individuals and evidence regarding the classes of exempt individuals
   • provide training programs and security briefings on the secure handling of controlled goods
   • advise the CGP of any security breaches in relation to controlled goods.
     Furthermore, the CGR provides information on the designated official's responsibilities within his/her organization, with respect to the CGP. The designated official is responsible for conducting security assessments of all employees, directors and officers with access to controlled goods
5. Why is PSPC amending the Controlled Goods Regulations?
   PSPC is proposing changes to the Controlled Goods Regulations to:
   • reflect and clarify in the Regulations current program practices implemented in Phase I of the enhanced Security Strategy, launched in October 2011, mainly:
     • security assessment requirements and their applicability
   • address three Enhanced Security Strategy Phase II activities that require regulatory authority in order to be implemented:
     • providing a list of security assessed individuals to the Minister
     • obtain the consent of visitors as part the visitor exemption process
     • allow the minister to provide a recommendation for high risk employee referrals
   • address concerns raised by the Standing Joint Committee for the Scrutiny of Regulations in regards to:
     • prescribing timeframes in instances where "without delay" is used
     • the clarification of section 27 on the minister's power to suspend/ revoke and reinstate a suspension or revocation
6. How does the Controlled Goods Regulations affect Canadian businesses?
   As per the Defence Production Act and CGR, Canadian businesses and individuals who seek to examine, possess or transfer controlled goods in Canada are required to register and comply with the conditions of registration.
7. Which Canadian industries will be most impacted by these changes?
   The industries most affected by the regulatory amendments are primarily Canada's aerospace, defence and security sectors, insofar as they have access to controlled goods.
   Universities, museums, and collectors who, in the course of their activities, have access to controlled goods, will also be affected.
8. Will the amendments affect Canada's privileged relationship with the United States?
   No. Canada enjoys a unique and privileged export control relationship with the United States.
9. When will the amendments to the Controlled Goods Regulations come into force?
   The amendments to the CGR will come into force on the day on which they are registered in the Canada Gazette Part II.
10. Where can I get more information?
    For more information, please contact the Controlled Goods Program.

For more information

• Controlled goods: Examining, possessing or transferring
• Cabinet Directive on Regulatory Management
• Red Tape Reduction Action Plan
• Canada–United States Regulatory Cooperation Council

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.