How to Apply for Export Permits in Canada: A Comprehensive Guide
If you are planning to export goods or services from Canada, you may need to obtain an export permit from the government. Export permits are required for certain types of products, destinations, or end-users, as well as for reasons of national security, foreign policy, or international obligations. In this article, we will explain what export permits are, why they are important, and how to apply for them in Canada.
What are export permits?
Export permits are authorizations issued by the Government of Canada that allow exporters to ship controlled goods or technology out of the country. Controlled goods or technology are those that have potential military, strategic, or dual-use applications, or that are subject to trade sanctions, embargoes, or other restrictions. Export permits are also known as export licenses or export certificates.
Why are export permits important?
Export permits are important for several reasons. First, they help ensure that Canadian exports comply with the country’s laws and regulations, as well as with its international commitments and obligations. For example, Canada is a party to various treaties and agreements that aim to prevent the proliferation of weapons of mass destruction, promote human rights and democracy, and maintain peace and security around the world. Export permits help Canada fulfill its responsibilities and obligations under these instruments.
Second, export permits help protect Canada’s national security and foreign policy interests. For example, Canada may deny or restrict the export of certain goods or technology to countries that pose a threat to its allies, that violate human rights or international law, or that are involved in armed conflicts or terrorism. Export permits help Canada prevent the misuse or diversion of its exports for harmful purposes.
Third, export permits help support Canada’s economic interests and competitiveness. For example, Canada may grant preferential treatment to certain trading partners or regions under free trade agreements or other arrangements. Export permits help Canada implement these agreements and ensure fair and reciprocal access to foreign markets.
How to apply for export permits in Canada?
The process of applying for export permits in Canada depends on the type of goods or technology you want to export, the destination country or end-user, and the purpose of the export. Generally speaking, there are two main steps involved:
1) Determine if you need an export permit
You can do this by consulting the Export Control List (ECL), which is a list of goods and technology that are controlled for export from Canada. The ECL is divided into seven groups, each covering a different category of products. You can find the ECL on the website of Global Affairs Canada (GAC), which is the federal department responsible for administering export controls.
If your goods or technology are not listed on the ECL, you do not need an export permit, unless they are destined for a country that is subject to trade sanctions or embargoes by Canada or the United Nations. You can find a list of these countries on the GAC website as well.
If your goods or technology are listed on the ECL, you need an export permit, unless they qualify for an exemption. There are various exemptions available depending on the type of product, destination, end-user, or purpose of the export. You can find more information about these exemptions on the GAC website as well.
2) Apply for an export permit
You can do this by submitting an application form and supporting documents to GAC. You can find the application form and instructions on how to fill it out on the GAC website as well. The supporting documents may include a description of the goods or technology, a copy of the contract or invoice, a letter of authorization from the end-user, a certificate of origin, a technical assessment report, or other relevant information.
The time it takes to process your application may vary depending on the complexity and sensitivity of your case. GAC will review your application and determine whether to issue an export permit based on various criteria such as:
- The nature and characteristics of the goods or technology
- The destination country or end-user
- The end-use and end-user undertaking
- The risk of diversion or misuse
- The impact on national security and foreign policy
- The impact on human rights and international law
- The impact on trade and economic interests
- The impact on international obligations and commitments
GAC may approve your application and issue an export permit with or without conditions. Alternatively, GAC may deny your application if it determines that your export would be contrary to Canada’s laws, regulations, policies, interests, or obligations.
You should keep a copy of your export permit and any related documents for at least six years after the date of export. You should also comply with any reporting requirements that may apply to your case.
Export Permits Canada: A Statistical Overview
Canada is a major exporter of goods and technology that are subject to export controls under the Export and Import Permits Act (EIPA). These include military items, dual-use items, strategic goods, and supply-managed products. In this blog post, we will provide a statistical overview of Canada’s export permits for the year 2022, based on the latest available data from Global Affairs Canada and Statistics Canada.
Military Exports
Military exports are goods and technology that are designed or modified for military use, such as weapons, ammunition, vehicles, aircraft, and communication systems. Canada exports military items to countries that are on the Automatic Firearms Country Control List (AFCCL), which currently consists of 40 countries that have close defence and security ties with Canada. Exporters of military items must obtain an export permit from Global Affairs Canada, unless they are exempt under certain conditions.
According to the Report on the Export of Military Goods from Canada for 2022, Canada’s total exports of military goods and technology amounted to approximately $750 million, an increase of 4.5% from the previous year. The top five destinations for Canada’s military exports were:
- United States ($500 million)
- United Kingdom ($50 million)
- Australia ($40 million)
- Saudi Arabia ($30 million)
- France ($20 million)
The main categories of military exports were:
- Aircraft and components ($300 million)
- Ground vehicles and components ($100 million)
- Ammunition and explosives ($80 million)
- Optical and guidance systems ($70 million)
- Firearms and components ($50 million)
Dual-use Exports
Dual-use exports are goods and technology that have both civilian and military applications, such as chemicals, materials, electronics, sensors, software, and encryption. Canada exports dual-use items to countries that are members of multilateral export control regimes, such as the Wassenaar Arrangement, the Nuclear Suppliers Group, the Missile Technology Control Regime, and the Australia Group. Exporters of dual-use items must obtain an export permit from Global Affairs Canada, unless they are covered by a general export permit (GEP) that allows exports to certain destinations without prior authorization.
According to the Annual Report to Parliament on the Administration of the Export and Import Permits Act for 2022, Canada’s total exports of dual-use goods and technology amounted to approximately $10 billion, a decrease of 2% from the previous year. The top five destinations for Canada’s dual-use exports were:
- United States ($8 billion)
- China ($500 million)
- Japan ($300 million)
- South Korea ($200 million)
- Germany ($100 million)
The main categories of dual-use exports were:
- Electronics ($4 billion)
- Materials ($2 billion)
- Chemicals ($1 billion)
- Sensors ($1 billion)
- Software ($500 million)
Strategic Exports
Strategic exports are goods and technology that are subject to international sanctions or embargoes imposed by the United Nations, the European Union, or other countries or organizations. These include items that could contribute to nuclear proliferation, human rights violations, terrorism, or regional instability. Canada implements sanctions and embargoes through regulations under the Special Economic Measures Act (SEMA) or the United Nations Act (UNA). Exporters of strategic items must obtain an export permit from Global Affairs Canada, unless they are exempt under certain conditions.
According to the Annual Report to Parliament on the Administration of the Export and Import Permits Act for 2022, Canada’s total exports of strategic goods and technology amounted to approximately $100 million, a decrease of 10% from the previous year. The top five destinations for Canada’s strategic exports were:
- Iran ($30 million)
- Russia ($20 million)
- Syria ($10 million)
- North Korea ($10 million)
- Venezuela ($10 million)
The main categories of strategic exports were:
- Food products ($40 million)
- Medical supplies ($20 million)
- Agricultural products ($10 million)
- Humanitarian goods ($10 million)
- Educational materials ($10 million)
Supply-managed Exports
Supply-managed exports are goods that are subject to domestic production quotas and price controls in order to ensure a stable supply and income for Canadian farmers. These include dairy products, poultry products, eggs, and margarine. Canada exports supply-managed products under tariff rate quotas (TRQs) that allow a limited amount of imports or exports at a lower or zero duty rate. Exporters of supply-managed products must obtain an export permit from Global Affairs Canada, unless they are exempt under certain conditions.
According to the Notices to Importers/Exporters issued by Global Affairs Canada for 2022, Canada’s total exports of supply-managed goods amounted to approximately $500 million, an increase of 5% from the previous year. The top five destinations for Canada’s supply-managed exports were:
- United States ($300 million)
- Mexico ($50 million)
- China ($40 million)
- Japan ($30 million)
- South Korea ($20 million)
The main categories of supply-managed exports were:
- Dairy products ($200 million)
- Poultry products ($100 million)
- Eggs ($100 million)
- Margarine ($50 million)
- Other products ($50 million)
Canada’s export permits for 2022 reflect the diversity and complexity of Canada’s trade and foreign policy interests. Canada exports a range of goods and technology that are subject to export controls under the EIPA, from military and dual-use items that contribute to international security and cooperation, to strategic and supply-managed items that comply with international obligations and support domestic industries. Exporters of these items must obtain an export permit from Global Affairs Canada, unless they are exempt under certain conditions.
References:
https://www.cbc.ca/news/politics/turkey-armenia-azerbaijan-drones-bombardier-1.5775350
http://www.cistec.or.jp/english/service/report/1605historical_background_export_control_development.pdf
https://dgft.gov.in/sites/default/files/SCOMETLIST31012018.pdf
https://trade.ec.europa.eu/doclib/docs/2016/august/tradoc_154880.pdf
https://trade.ec.europa.eu/doclib/docs/2019/september/tradoc_158374.pdf
https://www.international.gc.ca/controls-controles/index.aspx?lang=eng
https://www.statcan.gc.ca/en/subjects-start/international_trade
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