General Export Permit No. 41 (“GEP 41”) should
reduce compliance burdens on Canadian exporters of controlled dual
use goods and technology when the goods are exported to an eligible
The Eligible Destinations
The eligible destinations are listed in the regulation and are
Australia, Austria, Belgium, the Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy,
Latvia, Lithuania, Luxembourg, the Netherlands, New Zealand,
Norway, Poland, Portugal, the Republic of Korea, Slovakia,
Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom
and the United States of America. This is a positive list –
meaning GEP 41 can be used only when a country is listed as an
“eligible destination”. Canadian exporters
selling to these countries should review the new rules to see
whether they apply to their exports.
What is a GEP?
As a general rule, an exporter must obtain an export permit
prior to exporting goods/items on Canada’s Export Control
List (ECL). An export permit application is submitted to the
Export Controls Division of the Department of Foreign Affairs,
Trade and Development. The application must be processed and an
export permit issued with respect to specific goods before the
goods can be exported. If an export permit is not obtained,
the goods may be seized by the Canada Border Services Agency upon
export. In limited circumstances, the obligation to obtain an
export permit is altered by a General Export Permit. Canada
has promulgated a number of General Export Permits covering a
variety of lower-risk goods and goods shipped to lower-risk
destination in lower risk environments.
What Does GEP 41 Do?
Section 2 of the GEP 41 Regulation provides as a general
rule that any resident of Canada may export or transfer from
Canada any good or technology referred to in (a) Group 1 of the
Guide; and (b) items 5504.2.a to 5504.2.g of the Guide. Section 3
of GEP 41 Regulation restricts the application of the general
rule. In particular, GEP 41 does not authorize the export or
transfer of goods or technology:
to a country that is not an eligible
to a country that is listed in the
Area Control List;
to a country in respect of which an
order or regulation has been made under section 4 of theSpecial
Economic Measures Act or section 2 of the United Nations
that are intended to be used in a
country that is not an eligible destination;
that are referred to in the Schedule
of GEP 41 Regulation (which can be amended);
that are referred to in any item in
the Guide other than those referred to in Section 2, unless the
export or transfer is so authorized by another GEP;
that are referred to in any of
subparagraphs 3(2)(c)(i) to (iii) of the Export Permits
that is software that is specifically
designed or modified for the development or use of the goods or
technology referred to in item 5504.2.h or item 5504.2.i of the
that is technology that is
specifically designed or modified for the development or production
of the goods or technology referred to in item 5504.2.h or item
5504.2.i of the Guide.
Section 4 sets out the what information must be provided to the
Export Controls Division prior to the first use of GEP 41. Section
5 sets out the record keeping requirements – including a 6
years retention requirement. Section 6 of the GEP 41 Regulation
cancels two outdated GEPs, being (i) General Export Permit No. Ex. 30 –
Certain Industrial Goods to Eligible Countries and Territories and
(ii) General Export Permit No. Ex. 29 –
Eligible Industrial Goods.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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