DAOD 3003-0, Controlled Technology Access and Transfer

Table of Contents

1. Introduction
2. Definitions
3. Abbreviations
4. Policy Direction
5. Consequences
6. Authorities
7. References

1. Introduction

Date of Issue: 2002-12-06

Date of Modification: 2022-09-28

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 General International and Industrial Programs (DGIIP) – Controlled Technology Access and Transfer (CTAT) Office

2. Definitions

access (accès)

In respect of a controlled good or dual-use good, the ability to examine, possess or transfer the good. 

Note – In this definition:

• a) “examine” means to consider a good in detail or to subject it to analysis, in order to discover its essential features or meaning;
• b) “possess” means the actual physical possession or custody of the good, or its constructive possession, i.e. the ability to exercise control over the good at any given time either directly or through a third party; and
• c) “transfer” means to dispose of a good or disclose its content in any manner. (Defence Terminology Bank record number 696451)

controlled good (marchandise contrôlée)

A good referred to in the schedule to the Defence Production Act. (Based on section 35 of the Defence Production Act)

Note – Controlled goods include munitions, missile technology, as well as technical data and items that have military significance. (Defence Terminology Bank record number 48276)

controlled technology (technologie contrôlée)

In relation to controlled goods and dual-use goods, technical assistance and service associated with their design, development, production, manufacture, assembly, modification, repair, maintenance, testing, operation or use. (Defence Terminology Bank record number 696525)

dual-use good (marchandise à double usage)

A product or technology that has both civilian and military applications and that is subject to Canadian and/or foreign export regulations. (Defence Terminology Bank record number 696454)

retransfer (retransfert)

The permanent or temporary transfer of a controlled good or dual-use good to a previously unauthorized end-user or destination or for a previously unauthorized end use. (Defence Terminology Bank record number 696456)

3. Abbreviations

4. Policy Direction

Context

4.1 Canada is committed to preventing the proliferation of strategic goods and technologies. As a signatory to international non-proliferation arrangements, such as the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies and similar bilateral and multilateral arrangements on export controls, Canada has agreed to protect strategic goods and technologies, both those originating from Canada and those from its trading partners.

4.2 In support of this effort, Canada created the CGP in 2001 in order to control access to CGs in Canada. Since its inception, the CGP has continued to evolve to reflect changes to statutes and regulations in both Canada and the U.S.

4.3 The schedule to the DPA identifies CGs listed in part 121.1 of the U.S. ITAR and select goods identified on the ECL. A government review of export control regulations in the U.S. resulted in the transfer of many defence articles from the United States Munitions List to the “500 and 600” series of the U.S. Commerce Control List of the Export Administration Regulations. Consequently, Canada reviewed the schedule to the DPA, resulting in a reduction in the number of items listed as CGs under part 2 of the DPA.

Note – In this DAOD, “defence article” refers to “defense article” as this term is defined in article 120.6 of the ITAR.

4.4 The items that have been removed from the DPA are still controlled for export under the Export and Import Permits Act and are listed on the ECL. These items that are no longer identified as CGs are DUGs, and their management requires proper handling in accordance with Canadian and U.S. statutes, regulations, policies, instructions and directives. DND and CAF direction and guidance in respect of CGs and DUGs are provided by the following DAODs.

1. for CGs, DAOD 3003-1, Management, Security and Access Requirements Relating to Controlled Goods; and
2. for DUGs, DAOD 3003-2, Management, Security and Access Requirements Relating to Dual-Use Goods.

4.5 Items identified as CGs and DUGs in the Canadian Government Cataloguing System (CGCS) or other pertinent materiel management systems are  subject to foreign export control statutes and regulations, significantly restricting any retransfer from DND to unauthorized third parties. Further, the DND and the CAF must protect information and provide or restrict their access in accordance with applicable statutes, regulations, international arrangements, policies, instructions and directives. Specific security measures for CGs and DUGs are set out in DAOD 3003-1 and 3003-2 respectively.

Policy Statement

4.6 The DND and the CAF are committed to the appropriate management and safeguarding of CGs and DUGs throughout their entire life cycle in accordance with applicable statutes, regulations, international arrangements, policies, instructions and directives.

Requirements

4.7 The DND and the CAF must ensure that:

1. level one advisor and level two advisor organizations with responsibilities relating to CGs and DUGs have at least one designated CTAT advisor registered with the CTAT Office;
2. DND employees, CAF members, employees of other government departments and agencies working in the DND and the CAF, and embedded contractors working in DND or CAF facilities, receive appropriate training in the management and safeguarding of CGs and DUGs;
3. the requirements related to CGs and DUGs are considered in business plans, security plans and life cycle management decisions;
4. measures are taken to prevent the unauthorized examination, possession, transfer or retransfer of CGs and DUGs;
5. DND employees and CAF members exercise due diligence such that only authorized persons have access to CGs and DUGs;
6.  any loss or compromise of a CG or DUG is reported to the CTAT Office within 48 hours; and
7. DND employees and CAF members examining CGs or having access to their technical data have a Level II security clearance and a need to know.

5. Consequences

General

5.1 Should clarification of the policy statement, requirements or authorities set out in this DAOD be required, DND employees and CAF members may seek direction through their channel of communication or chain of command, as appropriate. The anticipated results set out in the policy statement may not be achieved by the DND and the CAF if the requirements specified in this DAOD are not properly implemented. Not achieving the anticipated results could affect the ability of the DND and the CAF to ensure that the CAF is prepared to undertake missions for the protection of Canada and Canadians and the maintenance of international peace and stability.

6. Authorities

Authority Table

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

7. References

Acts, Regulations, Central Agency Policies and Policy DAOD

• Criminal Code
• Defence Production Act
• Export and Import Permits Act
• Security of Information Act
• Security Offences Act
• Controlled Goods Regulations
• Export Control List
• Framework for the Management of Compliance, Treasury Board
• Controlled Goods Directive, Treasury Board
• Directive on the Management of Materiel, Treasury Board
• DAOD 1000-4, Policy Framework for Materiel and Asset Management
• DAOD 1000-8, Policy Framework for Safety and Security Management

Other References

• DAOD 3000-0, Materiel Acquisition and Support
• DAOD 3003-1, Management, Security and Access Requirements Relating to Controlled Goods
• DAOD 3003-2, Management, Security and Access Requirements Relating to Dual-Use Goods
• A-LM-007-100/AG-001, Supply Administration Manual, Chapter 6.4, Loans
• C-01-008-000/MD-000, Generic Demilitarization Process – For Controlled Goods Recorded With a Demilitarization Code (DMC) of “D”
• C-02-007-000/AG-001, Controlled Technology Access and Transfer (CTAT) Manual
• C-02-005-009/AM-000, Maintenance Policy Inspection and Conditioning of Materiel Returned to And Held in Supply System
• National Defence Security Orders and Directives
• Exchange of Letters (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 (available in English only)
• Wassenaar Arrangement, on Export Controls for Conventional Arms and Dual-Use Goods and Technologies.
• Controlled Goods Management, ADM(Mat) intranet site

U.S. References

• Export Administration Regulations, United States Department of Commerce (available in English only)
• The International Traffic in Arms Regulation, U.S. Department of State (available in English only)
• Commerce Control List, U.S. Department of Commerce (available in English only)
• The United States Munitions List, United States Department of State (available in English only)