in November 2013, Canada’s Public Works and Government Services Canada (PWGSC) announced consultations concerning the implementation user fees in connection with the Controlled Goods Program (CGP). The Controlled Goods Program is administered by the Controlled Goods Directorate of PWGSC (CGD). The CGD is responsible for administering Canada’s domestic industrial security program relating to the possession and/or examination of controlled goods with Canada’s borders and the transfer (including disposal or disclosing of contents) of any controlled good to another person within Canada. The to-be-proposed user fees will be imposed starting January 1, 2015.
PWGSC is consulting with current and potential CGP registrants. Specifically, PWGSC would like to obtain input from:
- Canadian aerospace businesses and associations
- Canadian defence businesses and associations
- Canadian security businesses and associations
- Canadian space/satellite businesses and associations
- Museums that exhibit controlled goods
- Universities and other educational institutions
- Professional associations
- Other service providers involved with controlled goods (e.g., translators)
- Consultants working with controlled goods.
PWGSC has released a Consultation Paper “Consultations on the introduction of a new user fee for Controlled Goods Program registrants“. The purpose of the user fees to to shift some of the burden of operating the CGP from the Canadian taxpayer to the stakeholders/users of the CGP. Phase 1 of the consultations will occur in January 2014 – but is closed to industry associations and their representatives who are members of its Industry Engagement Committee. Phase 2 will take place in February 2014. In Phase 2, PWGSC will post the User Fee Proposal and bBusinesses and individuals may submit a complaint in order to register a concern.
PWGSC has also released a Consultation Paper “Consultations for Amendments to the Schedule to the Defence Production Act“. PWGSC is also reviewing the Controlled Goods List contained in a Schedule to the Defence Production Act. The Controlled Goods List is Canada’s domestic controlled goods list (which is different than Canada’s Export Control List, but similar because one is based on the other). In particular, the term “controlled goods” is defined in section 35 of the Defence Production Act as those goods listed in Group 2 (with minor exceptions), item 5504 in Group 5, and Group 6 of the Schedule to the Export Control List made under section 3 of the Export and Import Permits Act.
The CGP will undergo significant changes in 2014.