DAOD 3003-0, Controlled Goods


1. Introduction

Date of Issue: 2002-12-06

Date of Modification: 2011-08-23

Application: This DAOD is a directive that applies to employees of the Department of National Defence (DND employees) and an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members).

Approval Authority: Assistant Deputy Minister (Materiel) (ADM(Mat))

Enquiries: Director Industry Relations, Analysis and Policy (DIRAP) – Controlled Technology Access and Transfer (CTAT) Office


2. Definitions

controlled goods (marchandises contrôlées)

Has the same meaning as in section 35 of the Defence Production Act. As set out in the schedule to this Act, the following goods listed in the schedule to the Export Control List made under section 3 of the Export and Import Permits Act are controlled goods:

(a) Group 2: goods listed in item 2001 that are prohibited firearms as defined in paragraph (c) of the definition "prohibited firearm" in subsection 84(1) of the Criminal Code;

(b) Group 2: goods listed in item 2003 that are ammunition with a calibre greater than 12.7 mm;

(c) 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.


In general, controlled goods are goods designed or modified for a military or strategic purpose and consist of munitions (Group 2), strategic goods and technology, including goods covered by the International Traffic in Arms Regulations of the United States (item 5504) and missile technology (Group 6). Controlled goods include controlled technology.

controlled technical assistance (assistance technique contrôlée)

Controlled technology in the form of instruction, skills, training, working knowledge or consulting services. Controlled technical assistance may involve the transfer of controlled technical data.

controlled technical data (documentation technique contrôlée)

Controlled technology in the form of blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals and instructions.

controlled technology (technologie contrôlée)

Information necessary for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of controlled goods. This information may take the form of controlled technical data or controlled technical assistance. Controlled technology does not include general scientific, mathematical or engineering principles commonly taught in a school, college or university, information in the public domain, basic marketing information or general system descriptions.

demilitarization (démilitarisation)

An action that renders controlled goods unusable for their intended military or strategic purpose and that is irreversible. This includes, in some cases, destruction to the extent that knowledge of the controlled goods cannot be derived from examination after destruction.

embedded contractor (entrepreneur intégré)

Has the same meaning as in the exchange of letters of May 2007 between the Deputy Minister of the DND and the Deputy Secretary of State of the United States concerning the transfer, access and control of controlled defence articles and services under the International Traffic in Arms Regulations of the United States.


3. Policy Direction

Context

3.1 The Export Control List, administered by the Department of Foreign Affairs and International Trade, includes the following:

  1. defence goods listed in the United States Munitions List in the International Traffic in Arms Regulations of the United States; and
  2. goods subject to similar regulations made by other countries trading defence goods with Canada.

3.2 The schedule of the Defence Production Act (DPA) identifies the goods listed in the schedule to the Export Control List that are controlled goods.

3.3 Unless registered under section 38 of the DPA or exempt from registration under section 39 or 39.1 of that Act, any person who knowingly examines or possesses a controlled good or transfers a controlled good to another person commits an offence under subsection 45(1) of that Act. The registration requirements do not apply to a person who 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.

Policy Statement

3.4 The DND and the CAF are committed to the appropriate management and safeguarding of controlled goods, throughout their entire life cycle, in accordance with applicable statutes, regulations, directives, policies and instructions.

Requirements

3.5 The DND and the CAF must ensure that:

  1. a level one advisor with responsibilities relating to controlled goods has at least one designated controlled goods advisor registered with the CTAT Office;
  2. DND employees, CAF members, embedded contractors and other government department officials working in DND and CAF facilities receive the appropriate training in the management and safeguarding of controlled goods;
  3. controlled goods are considered in business plans, security plans and life cycle management;
  4. action is taken to prevent the unauthorized examination, possession or transfer of controlled goods;
  5. DND employees and CAF members exercise due diligence such that only authorized persons have access to controlled goods;
  6. controlled goods being disposed of are subject to demilitarization if not transferred to an authorized person; and
  7. any loss or compromise of controlled goods is reported to the CTAT Office.

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4. Authorities

Authority Table

4.1 The following table identifies the authorities associated with this DAOD:

The ... has the authority to ...
ADM(Mat)
  • issue policies and instructions in respect of controlled goods; and
  • oversee compliance with respect to applicable statutes, regulations, directives, policies and instructions in respect of controlled goods.
Vice Chief of the Defence Staff (VCDS)
  • initiate an investigation into the loss or compromise of controlled goods.
Canadian Forces Provost Marshal
  • enforce, on behalf of the VCDS, the DPA and other Acts of Parliament when criminal activities involving controlled goods are suspected.
CTAT Office
  • act as the DND and the CAF office of primary interest for the identification and management of controlled goods.

5. References

Other References

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