What are controlled goods

Is your organization working with controlled goods regulated by federal law? Not sure? To find out, consult the list of controlled goods administered by the Controlled Goods Program. Learn how they are regulated and the legal responsibilities associated with controlled goods.

Definition of controlled goods

Controlled goods are primarily goods, including components and technical data that have military or national security significance, which are controlled domestically by the Government of Canada and defined in the Defence Production Act.

In summary, controlled goods are:

• goods, including components and technology (for example, blueprints and technical specifications in paper or electronic format), with strategic significance or national security implications, regardless of where they are manufactured
• defense articles originating from the United States that are controlled by the United States Munitions List—part 121 of the United States International Traffic in Arms Regulations, as amended from time to time
• goods, regardless of where they are manufactured, that are manufactured from technical data originating from the United States and are controlled by the International Traffic in Arms Regulations, as amended from time to time

Controlled Goods List

Unless excluded or exempt from registration, individuals and organizations must be registered in the Controlled Goods Program. The program, managed by Public Services and Procurement Canada, allows registrants to legally examine, possess, or transfer controlled goods listed in the Schedule (section 35) of the Defence Production Act.

The Guide to the Schedule to the Defence Production Act provides a simplified listing of the items that are identified as controlled goods in the Defence Production Act. This guide helps identify whether or not an item is included on the Controlled Goods List. The Schedule takes precedence over the Schedule Guide.

The Controlled Goods List is partially based on Global Affairs Canada’s Export Control List, which identifies specific goods that are controlled for export from Canada. All questions about export controls should be made directly to Global Affairs Canada.

How controlled goods are safeguarded in Canada

Under the authority of the Defence Production Act and the Controlled Goods Regulations, the Controlled Goods Program ensures compliance of more than 4000 registrants (including companies, organizations and individuals) who examine, possess or transfer controlled goods in Canada. The Department of National Defence is also responsible to safeguard controlled goods in its possession.

The Defence Production Act governs the procurement of defence supplies and identifies the controlled goods regulated by the Controlled Goods Program and the Controlled Goods Regulations.

The Controlled Goods Program is managed by Public Services and Procurement Canada and carries out regulatory duties specified under the Controlled Goods Regulations. The program assists companies in achieving and maintaining compliance with the requirements in safeguarding controlled goods in Canada and supporting Canada’s export control regime. The program is responsible for:

• registering individuals and organizations who examine, possess or transfer controlled goods
• performing security assessments
• processing exemption from registration applications
• conducting inspections and ensuring compliance with controlled goods legislation
• training and certifying designated officials
• investigating security breaches
• issuing suspensions and revocations of registration
• working with law enforcement agencies for enforcement-related actions of the Defence Production Act

The Controlled Goods Regulations:

• require individuals and companies that possess, examine or transfer controlled goods in Canada to register with the Controlled Goods Program
• specify the registration requirements for organizations and individuals who examine, possess or transfer controlled goods
• define and provide authority for regulatory duties to administer the program, including for inspections, registrations, security assessments, administration of exemptions, suspension or revocation of registrations

Further reading

Key events that shaped the Controlled Goods Program

What this means for your organization: registration and compliance in the Controlled Goods Program

Individuals or organizations examining, possessing, or transferring controlled goods must:

• register in the Controlled Goods Program or be exempt from registration
• comply with the requirements of the Defence Production Act and the Controlled Goods Regulations

Any person who fails to comply with the Defence Production Act may:

• have their registration in the Controlled Goods Program suspended or revoked
• face prosecution for failing to comply and be subject to a fine not exceeding $2,000,000 and/or imprisonment not exceeding 10 years

More information

• Registering in the Controlled Goods Program
• Exemptions from registration in the Controlled Goods Program