Export and Import Permits Act
Amendments to the Act
Transitional Provision
Amendment to the Criminal Code
Coming into Force
Explanatory Notes
First Session, Forty-second Parliament,
64-65-66 Elizabeth II, 2015-2016-2017
HOUSE OF COMMONS OF CANADA
BILL C-47
An Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments)
FIRST READING, April 13, 2017
MINISTER OF FOREIGN AFFAIRS
90821
SUMMARY
This enactment amends the Export and Import Permits Act to
(a) define the term “broker” and to establish a framework to control brokering that takes place in Canada and that is undertaken by Canadians outside Canada;
(b) authorize the making of regulations that set out mandatory considerations that the Minister is required to take into account before issuing an export permit or a brokering permit;
(c) set May 31 as the date by which the Minister must table in both Houses of Parliament a report of the operations under the Act in the preceding year and a report on military exports in the preceding year;
(d) increase the maximum fine for a summary conviction offence to $250,000;
(e) replace the requirement that only countries with which Canada has an intergovernmental arrangement may be added to the Automatic Firearms Country Control List by a requirement that a country may be added to the list only on the recommendation of the Minister made after consultation with the Minister of National Defence; and
(f) add a new purpose for which an article may be added to an Export Control List.
The enactment amends the Criminal Code to include, for interception of private communications purposes, the offence of brokering in the definition of “offence” in section 183.
Available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca
1st Session, 42nd Parliament, 
64-65-66 Elizabeth II, 2015-2016-2017
HOUSE OF COMMONS OF CANADA
BILL C-47
An Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.‍S.‍, c. E-19
Export and Import Permits Act
Amendments to the Act
2004, c. 15, s. 52
1 The long title of the Export and Import Permits Act is replaced by the following:
An Act respecting the export, transfer and brokering of goods and technology and the import of goods
2 The heading before section 2 of the French version of the Act is replaced by the following:
Définitions et interprétation
2004, c. 15, s. 53(2)
3 (1) The definition “‍technology‍” in subsection 2(1) of the Act is replaced by the following:
technology includes technical data, technical assistance and information necessary for the development, production or use of an article included in an Export Control List or a Brokering Control List; (technologie) 
(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
broker means to arrange or negotiate a transaction that relates to the movement of goods or technology included in a Brokering Control List from a foreign country to another foreign country, including a transaction referred to in subsection (1.‍1); (courtage)
Brokering Control List means a list of goods and technology established under section 4.‍11; (liste des marchandises de courtage contrôlé)
foreign country means a country other than Canada; (pays étranger)
organization has the same meaning as in section 2 of the Criminal Code; (organisation)
(3) Section 2 of the Act is amended by adding the following after subsection (1):
Transaction — brokering
(1.‍1) For the purpose of the definition “‍broker‍”, a transaction that relates to the movement of goods or technology includes a transaction that relates to its acquisition or disposition, and a transaction that relates to the movement of technology also includes a transaction that relates to the disclosure of its contents.
4 Subsection 3(1) of the Act is amended by striking out “or” at the end of paragraph (e), by adding “or” at the end of paragraph (f) and by adding the following after paragraph (f):
(g) to facilitate the collection of information in respect of the exportation of goods that were, are, or are likely to be, the subject of trade investigations or trade disputes.
1995, c. 39, s. 171
5 Section 4.‍1 of the Act is replaced by the following:
Automatic Firearms Country Control List
4.‍1 The Governor in Council may, on the recommendation of the Minister made after consultation with the Minister of National Defence, establish a list of countries, to be called an Automatic Firearms Country Control List, to which the Governor in Council considers it appropriate to permit the export of any of the following that is included in an Export Control List, or any component or part of any such thing:
(a) a prohibited firearm described in paragraph (c) or (d) of the definition “‍prohibited firearm‍” in subsection 84(1) of the Criminal Code;
(b) a prohibited weapon described in paragraph (b) of the definition “‍prohibited weapon‍” in that subsection; or
(c) a prohibited device described in paragraph (a) or (d) of the definition “‍prohibited device‍” in that subsection.
Brokering Control List
4.‍11 (1) The Governor in Council may establish a list of goods and technology, to be called a Brokering Control List, including in it any article that is included in an Export Control List the brokering of which the Governor in Council considers it necessary to control.
Conditions
(2) The description of any article set out in the Brokering Control List may contain conditions that are based on approvals, classifications or determinations made by specified persons or specified government entities, including foreign government entities. For greater certainty, those conditions may differ from any conditions set out in the description of that article in the Export Control List.
1991, c. 28, s. 3
6 Section 6 of the Act is replaced by the following:
Amendment of lists
6 The Governor in Council may revoke, amend, vary or re-establish any Area Control List, Automatic Firearms Country Control List, Brokering Control List, Export Control List or Import Control List.
2004, c. 15, s. 56
7 Subsection 7(1.‍01) of the Act is repealed.
8 The Act is amended by adding the following after section 7:
Brokering permits
7.‍1 (1) The Minister may issue to any person or organization, on application by them, a permit to broker in relation to any goods or technology specified in the permit, subject to the terms and conditions specified in the permit or in the regulations.
General permit to broker
(2) Despite subsection (1), the Minister may, by order, issue generally to all persons and organizations a general permit to broker in relation to any goods or technology specified in the permit, subject to any terms and conditions specified in the permit.
Security considerations — export and brokering
7.‍2 Subject to regulations made under paragraph 12(a.‍2) or (a.‍3), in deciding whether to issue a permit under subsection 7(1) or 7.‍1(1), the Minister may, in addition to any other matter that the Minister may consider, have regard to whether the goods or technology specified in an application for the permit may be used for a purpose prejudicial to
(a) the safety or interests of the State by being used to do anything referred to in paragraphs 3(1)‍(a) to (n) of the Security of Information Act; or
(b) peace, security or stability in any region of the world or within any country.
2006, c. 13, s. 112
9 Section 8.‍5 of the Act is replaced by the following:
Retroactive permits
8.‍5 An export permit, import permit or brokering permit issued under this Act may, if the permit so provides, be retroactive.
2006, c. 13, s. 114
10 (1) Subsection 10.‍2(1) of the Act is replaced by the following:
Inspection
10.‍2 (1) An inspector may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records of any person or organization that has applied for a permit, an import allocation, an export allocation, a certificate or another authorization under this Act in order to determine whether that or any other person or organization is in compliance with this Act.
2006, c. 13, s. 114
(2) Paragraph 10.‍2(2)‍(a) of the Act is replaced by the following:
(a) enter any place in which the inspector reasonably believes the person or organization keeps records or carries on any activity to which this Act applies; and
2006, c. 13, s. 114
11 (1) Subsection 10.‍3(1) of the Act is replaced by the following:
Keeping records
10.‍3 (1) Every person or organization that applies for a permit, import allocation, export allocation, certificate or other authorization under this Act shall keep all records that are necessary to determine whether they have complied with this Act.
2006, c. 13, s. 114
(2) Subsections 10.‍3(4) to (8) of the Act are replaced by the following:
Electronic records
(4) Every person or organization that is required to keep a record and that does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.
Inadequate records
(5) If a person or organization fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require them to keep any records that the Minister may specify, and they shall keep the records specified by the Minister.
General period for retention
(6) Every person or organization that is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed by regulation.
Demand by Minister
(7) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or sent by mail, require any person or organization that is required to keep records to retain those records for any period that is specified in the demand, and the person or organization shall comply with the demand.
Permission for earlier disposal
(8) A person or organization that is required to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister.
2006, c. 13, s. 115
12 (1) Paragraph 12(b) of the Act is replaced by the following:
(a.‍2) respecting the considerations that the Minister must take into account when deciding whether to issue an export permit under subsection 7(1) in respect of goods or technology included in the Export Control List;
(a.‍3) respecting the considerations that the Minister must take into account when deciding whether to issue a brokering permit under subsection 7.‍1(1) in respect of goods or technology included in a Brokering Control List;
(b) respecting information to be supplied by persons and organizations that have been issued or granted permits, import allocations, export allocations, certificates or other authorizations under this Act and any other matter associated with their use;
2004, c. 15, s. 58
(2) Paragraph 12(e) of the Act is replaced by the following:
(e) exempting any person or organization, any goods or technology or any class of persons or organizations, goods or technology from the operation of any or all of the provisions of this Act;
(e.‍1) specifying activities or classes of activities that do not constitute brokering for the purposes this Act; and
13 The Act is amended by adding the following after section 14.‍1:
Broker or attempt to broker
14.‍2 (1) No person or organization shall broker, or attempt to broker, except under the authority of and in accordance with a brokering permit issued under this Act.
Exception
(2) A person or organization does not contravene subsection (1) if, at the time of the alleged contravention, they would have brokered under the authority of and in accordance with a brokering permit issued under this Act had they applied for it, and if, after the alleged contravention, the permit is issued.
Act or omission outside Canada
(3) Every person or organization that commits an act or omission outside Canada that, if committed in Canada, would constitute a contravention of subsection (1) — or a conspiracy to commit, an attempt to commit, being an accessory after the fact in relation to, or any counselling in relation to, such a contravention — is deemed to have committed that act or omission in Canada if they are
(a) a Canadian citizen;
(b) a “‍permanent resident‍” as defined in subsection 2(1) of the Immigration and Refugee Protection Act who, after the commission of the act or omission, is present in Canada; or
(c) an organization that is incorporated, formed or otherwise organized under the laws of Canada or a province.
Jurisdiction
(4) If a person or organization is alleged to have committed an act or omission that is deemed to have been committed in Canada under subsection (3), proceedings for an offence in respect of that act or omission may, whether or not they are in Canada, be commenced in any territorial division in Canada. The person or organization may be tried and punished for that offence as if the offence had been committed in that territorial division.
Appearance at trial
(5) For greater certainty, the provisions of the Criminal Code relating to the requirements that a person or organization appear at and be present during proceedings and the exceptions to those requirements apply to proceedings commenced in any territorial division under subsection (4).
Previously tried outside Canada
(6) If a person or organization is alleged to have committed an act or omission that is deemed to have been committed in Canada under subsection (3) and they have been tried and dealt with outside Canada for an offence in respect of the act or omission so that, if they had been tried and dealt with in Canada, they would be able to plead autrefois acquit, autrefois convict or pardon, they are deemed to have been so tried and dealt with in Canada.
Exception for foreign trials in absentia
(7) Despite subsection (6), a person or organization may not plead autrefois convict to a count that charges an offence in respect of the act or omission if
(a) the person or organization was not present and was not represented by counsel acting under the person or organization’s instructions at the trial outside Canada; and
(b) the person or organization was not punished in accordance with the sentence imposed on conviction in respect of the act or omission.
2004, c. 15, s. 61
14 Section 16 of the Act is replaced by the following:
No transfer or unauthorized use of permits
16 No person or organization that is authorized under a permit issued under this Act to export or transfer goods or technology, to import goods or to broker shall transfer the permit to, or allow it to be used by, a person or organization that is not so authorized.
2006, c. 13, ss. 117 and 125
15 Sections 17 and 18 of the Act are replaced by the following:
False or misleading information, and misrepresentation
17 No person or organization shall knowingly furnish any false or misleading information or knowingly make any misrepresentation in any application for a permit, import allocation, export allocation, certificate or other authorization under this Act or for the purpose of procuring its issue or grant or in connection with any subsequent use of the permit, import allocation, export allocation, certificate or other authorization or the exportation, importation, brokering, transfer or disposition of goods or technology to which it relates.
Aiding and abetting
18 No person or organization shall knowingly induce, aid or abet any person or organization to contravene any of the provisions of this Act or of the regulations.
1991, c. 28, s. 5(1)
16 (1) The portion of subsection 19(1) of the Act before paragraph (b) is replaced by the following:
Offence and penalty
19 (1) Every person or organization that contravenes any provision of this Act or of the regulations is guilty of
(a) an offence punishable on summary conviction and liable to a fine not exceeding $250,000 or to imprisonment for a term not exceeding 12 months, or to both; or
2004, c. 15, s. 63
(2) Subsection 19(3) of the Act is replaced by the following:
Consent of Attorney General
(2.‍1) No proceedings for an offence in respect of the contravention of subsection 14.‍2(1) that is deemed to have been committed in Canada under subsection 14.‍2(3) may be commenced without the consent of the Attorney General of Canada.
Factors to be considered when imposing sentence
(3) If an offender is convicted or discharged under section 730 of the Criminal Code in respect of an offence under this Act, the court imposing a sentence on or discharging the offender shall, in addition to considering any other relevant factors, consider the nature and value of the exported or transferred goods or technology, or the imported goods, that are the subject-matter of the offence or, in the case of a contravention of subsection 14.‍2(1), the goods or technology to which the offence relates.
17 Sections 20 and 21 of the Act are replaced by the following:
Officers, etc.‍, of organization
20 If an organization commits an offence under this Act, any officer or director of the organization that directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the organization has been prosecuted or convicted.
Applicant for permit for non-resident
21 If a permit, other than a brokering permit, is issued under this Act to a person who has applied for it for, on behalf of, or for the use of, another person who is not a resident of Canada and that other person commits an offence under this Act, the person who applied for the permit is, whether or not the non-resident has been prosecuted or convicted, guilty of the like offence and liable, on conviction, to the punishment provided for the offence, on proof that the act or omission constituting the offence took place with the knowledge or consent of the person who applied for the permit or that the person who applied for the permit failed to exercise due diligence to prevent the commission of the offence.
18 (1) Subsection 22(1) of the English version of the Act is replaced by the following:
Venue
22 (1) Any proceeding in respect of an offence under this Act may be instituted, tried or determined at the place in Canada where the offence was committed or at the place in Canada in which the accused is, resides or has an office or place of business at the time of institution of the proceedings.
(2) Paragraph 22(2)‍(a) of the Act is replaced by the following:
(a) an information may include more than one offence committed by the same person or organization;
19 The Act is amended by adding the following after section 23:
Evidence — Brokering Control List
23.‍1 (1) The original or a copy of a bill of lading, customs form, commercial invoice or other document is admissible in evidence in any prosecution under this Act in respect of any goods or technology included in a Brokering Control List if it appears from the document that
(a) the goods or technology was sent or shipped from a foreign country or the goods or technology was destined for a foreign country;
(b) a person or organization, as shipper, consignor or consignee, sent or shipped the goods or technology from a foreign country or brought the goods or technology into foreign country; or
(c) the goods or technology were sent or shipped to a destination or to a person or organization other than as authorized in the brokering permit relating to the goods or technology.
Proof of the facts
(2) In the absence of evidence to the contrary, a document that is admissible in evidence under subsection (1) is proof of any of the facts set out in paragraph (1)‍(a), (b) or (c) that appear from the document.
R.‍S.‍, c. 1 (2nd Supp.‍), s. 213(1) (Sch. I, subitem 4(2)); amended, 1995, c. 5, par. 26(1)‍(b) and 2013, c. 33, par. 195(1)‍(b)
20 Section 26 of the Act is repealed.
21 Section 27 of the Act and the heading before it are replaced by the following:
Reports to Parliament
Annual reports
27 No later than May 31 of each year, the Minister shall prepare and cause to be laid before each House of Parliament a report of the operations under this Act for the preceding year and a report in respect of arms, ammunition, implements and munitions of war, that were exported in the preceding year under the authority of and in accordance with an export permit issued under subsection 7(1).
Transitional Provision
Automatic Firearms Country Control List
22 Every country that is included in the “‍Automatic Firearms Country Control List‍”, as defined in subsection 2(1) of the Export and Import Permits Act, immediately before the day on which section 5 of this Act comes into force is deemed to have been included in that list, on that day, under section 4.‍1 of the Export and Import Permits Act, as enacted by that section 5.
Amendment to the Criminal Code
23 Paragraph (h) of the definition “‍offence‍” in section 183 of the Criminal Code is amended by adding the following after subparagaph (ii):
(ii.‍1) section 14.‍2 (broker or attempt to broker),
Coming into Force
Order in council
24 The provisions of this Act, other than section 20, come into force on a day or days to be fixed by order of the Governor in Council.
Published under authority of the Speaker of the House of Commons
explanatory notes
Export and Import Permits Act
Clause 1: Existing text of the long title:
An Act respecting the export and transfer of goods and technology and the import of goods
Clause 2: Existing text of the heading:
Interpretation
Clause 3: (1) Existing text of the definition:
technology includes technical data, technical assistance and information necessary for the development, production or use of an article included in an Export Control List; (technologie)
(2) New.
(3) New.
Clause 4: Relevant portion of subsection 3(1):
3 (1) The Governor in Council may establish a list of goods and technology, to be called an Export Control List, including therein any article the export or transfer of which the Governor in Council deems it necessary to control for any of the following purposes:
.‍.‍.  
Clause 5: Existing text of section 4.‍1:
4.‍1 The Governor in Council may establish a list of countries, to be called an Automatic Firearms Country Control List, including therein only countries with which Canada has an intergovernmental defence, research, development and production arrangement and to which the Governor in Council deems it appropriate to permit the export of
(a) a prohibited firearm described in paragraph (c) or (d) of the definition “prohibited firearm” in subsection 84(1) of the Criminal Code,
(b) a prohibited weapon described in paragraph (b) of the definition “prohibited weapon” in subsection 84(1) of the Criminal Code, or
(c) a prohibited device described in paragraph (a) or (d) of the definition “prohibited device” in subsection 84(1) of the Criminal Code,
or any component or part of any such thing, that is included in an Export Control List.
Clause 6: Existing text of section 6:
6 The Governor in Council may revoke, amend, vary or re-establish any Area Control List, Automatic Firearms Country Control List, Export Control List or Import Control List.
Clause 7: Existing text of subsection 7(1.‍01):
(1.‍01) In deciding whether to issue a permit under subsection (1), the Minister may, in addition to any other matter that the Minister may consider, have regard to whether the goods or technology specified in an application for a permit may be used for a purpose prejudicial to
(a) the safety or interests of the State by being used to do anything referred to in paragraphs 3(1)‍(a) to (n) of the Security of Information Act; or
(b) peace, security or stability in any region of the world or within any country.
Clause 8: New.
Clause 9: Existing text of section 8.‍5:
8.‍5 An import permit or export permit issued under this Act may, if the permit so provides, have effect from a day earlier than the day on which it is issued.
Clause 10: (1) Existing text of subsection 10.‍2(1):
10.‍2 (1) An inspector may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records of any person who has applied for a permit, an import allocation, an export allocation, a certificate or another authorization under this Act in order to determine whether that or any other person is in compliance with this Act.
(2) Relevant portion of subsection 10.‍2(2):
(2) For the purposes of an inspection, audit or examination, an inspector may
(a) enter any place in which the inspector reasonably believes the person keeps records or carries on any activity to which this Act applies; and
Clause 11: (1) Existing text of subsection 10.‍3(1):
10.‍3 (1) Every person who applies for a permit, import allocation, export allocation, certificate or other authorization under this Act shall keep all records that are necessary to determine whether they have complied with this Act.
(2) Existing text of subsections 10.‍3(4) to (8):
(4) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.
(5) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify, and the person shall keep the records specified by the Minister.
(6) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed by regulation.
(7) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or sent by mail, require any person required under this Act to keep records to retain those records for any period that is specified in the demand, and the person shall comply with the demand.
(8) A person who is required under this Act to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister.
Clause 12: (1) and (2) Relevant portion of section 12:
12 The Governor in Council may make regulations
.‍.‍.  
(b) respecting information to be supplied by persons to whom permits, import allocations, export allocations, certificates or other authorizations have been issued or granted under this Act and any other matter associated with their use;
.‍.‍.  
(e) exempting any person, goods or technology or any class of persons, goods or technology from the operation of any or all of the provisions of this Act; and
Clause 13: New.
Clause 14: Existing text of section 16:
16 No person who is authorized under a permit issued under this Act to export or transfer goods or technology or to import goods shall transfer the permit to, or allow it to be used by, a person who is not so authorized.
Clause 15: Existing text of sections 17 and 18:
17 No person shall wilfully furnish any false or misleading information or knowingly make any misrepresentation in any application for a permit, import allocation, export allocation, certificate or other authorization under this Act or for the purpose of procuring its issue or grant or in connection with any subsequent use of the permit, import allocation, export allocation, certificate or other authorization or the exportation, importation, transfer or disposition of goods or technology to which it relates.
18 No person shall knowingly induce, aid or abet any person to contravene any of the provisions of this Act or the regulations.
Clause 16: (1) Relevant portion of subsection 19(1):
19 (1) Every person who contravenes any provision of this Act or the regulations is guilty of
(a) an offence punishable on summary conviction and liable to a fine not exceeding twenty-five thousand dollars or to imprisonment for a term not exceeding twelve months, or to both; or
(2) Existing text of subsection 19(3):
(3) If an offender is convicted or discharged under section 730 of the Criminal Code in respect of an offence under this Act or the regulations, the court imposing a sentence on or discharging the offender shall, in addition to considering any other relevant factors, consider the nature and value of the exported or transferred goods or technology, or the imported goods, that are the subject-matter of the offence.
Clause 17: Existing text of sections 20 and 21:
20 Where a corporation commits an offence under this Act, any officer or director of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.
21 Where a permit under this Act is issued to a person who has applied for it for, on behalf of, or for the use of, another person who is not a resident of Canada and that other person commits an offence under this Act, the person who applied for the permit is, whether or not the non-resident has been prosecuted or convicted, guilty of the like offence and liable, on conviction, to the punishment provided for the offence, on proof that the act or omission constituting the offence took place with the knowledge or consent of the person who applied for the permit or that the person who applied therefor failed to exercise due diligence to prevent the commission of the offence.
Clause 18: (1) Existing text of subsection 22(1):
22 (1) Any proceeding in respect of an offence under this Act may be instituted, tried or determined at the place in Canada where the offence was committed or at the place in Canada in which the person charged with the offence is, resides or has an office or place of business at the time of institution of the proceedings.
(2) Relevant portion of subsection 22(2):
(2) In any proceedings in respect of offences under this Act,
(a) an information may include more than one offence committed by the same person;
Clause 19: New.
Clause 20: Existing text of section 26:
26 For the purposes of section 108 of the Customs Act, all officers of the Department of Foreign Affairs, Trade and Development employed in the administration of this Act shall be deemed to be officers as defined in subsection 2(1) of the Customs Act.
Clause 21: Existing text of the heading and section 27:
Report to Parliament
27 As soon as practicable after December 31 of each year, the Minister shall prepare and lay before Parliament a report of the operations under this Act for that year.
Criminal Code
Clause 23: Relevant portion of the definition:
offence means an offence contrary to, any conspiracy or attempt to commit or being an accessory after the fact in relation to an offence contrary to, or any counselling in relation to an offence contrary to
.‍.‍.  
(h) any of the following provisions of the Export and Import Permits Act, namely,