DFAIT Begins Consultations on Mass Market Exemption to Encryption Controls

(Lexology – Alan Kenigsberg and John O’Connor, Stikeman Elliott LLP)

Canada’s Export Control List contains a list of a wide range of items that may have been created for general commercial use but that may also have a military application (the “Dual-Use List”). Exports of these items to countries other than the United States generally require an export permit. Category 5, Part 2 of the Dual-Use List is of particular importance for many companies as it captures many forms of encryption software, including hardware which uses encryption software and, in some cases, may even apply to the transfer or sharing of information. Due to the potentially broad application of Category 5, Part 2, many innocuous items created for general commercial use, but that may have a relatively small encryption element (such as cell phones, radios, cable modems, etc.), may require an export permit.

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