Canada: Consultation on Cryptography Exemption to Licensing of Exports of Information Security Technology

(Mondaq – Blake, Cassels & Graydon LLP)

The Department of Foreign Affairs and International Trade is currently engaged in consultations relating to export controls of goods or technology employing cryptography. The government is seeking information on the way in which different countries are interpreting the scope of an export licence exemption for products sold at the retail level to the general public. The consultation is in regards to those that have obtained a ruling or have received other supplementary information from the U.S., European or other Wassenaar Arrangement participating states on the operation of the exemption in that foreign country. These consultations are ongoing, with submissions by interested parties due by April 30, 2010.

Canada restricts the export of certain goods and technology. Many such restrictions are found in Canada’s Export Control List. When a good or technology is captured by the Export Control List, the exporter must first obtain an export permit before shipping the good or technology abroad, although many restrictions do not apply to exports to the U.S. provided the goods or technology are used in the U.S. and not merely transferred to a third country through the U.S. Among other things, the government uses the Export Control List to bring into force commitments made by Canada as a party to various international agreements regulating the export of goods and technology. Read more here.

Related: Manufacturers Issue Recommendations for Long-Term Export Control Reforms (World Trade Interactive)