Notice to Exporters

Multiple destination permit for dual-use items

Serial No. 177
Date: 3 May 2011

Table of Contents

Purpose

1. Subject to certain conditions and limitations, exporters may apply for a permit that allows the export of certain items included in Group 1 and Item 5504 of the Export Control List to consignees in 28 countries. These Multiple Destination Permits for Dual-Use Items (MDP-Dual-Use) are available for use to countries whose governments, like Canada's, participate in four multilateral export control regimes, namely the Wassenaar Arrangement, the Missile Technology Control Regime, the Australia Group and the Nuclear Suppliers Group.

2. An MDP-Dual-Use is an alternative to export permits for individual consignees in individual destinations. This permit is intended for use by exporters that can demonstrate a record of and capacity for compliance with the Export and Import Permits Act and its associated regulations. End-use information and the names of consignees do not have to be provided at the time of application but must be obtained prior to export. Certain information must be reported every six months and records must be retained for inspection upon request.

3. This Notice should be read in conjunction with the current version of “A Guide to Canada's Export Controls”, which is available on Export and Import Controls Website or by request to the Export Controls Division at Foreign Affairs and International Trade Canada.

Eligible goods and technology

4. With the exceptions stated below, an MDP-Dual-Use may be used to export, by any means, including electronic transfer, goods or technology referred to in:

  • Group 1 of the Export Control List, except goods and technology listed in Schedule 1 of this Notice to Exporters; and
  • Item 5504 of the Export Control List, except goods and technology listed in Schedule 1 of this Notice to Exporters.

5. Goods and technology that are concurrently controlled in a Group or Item other than those described above and which are not covered by a General Export Permit may not be exported using an MDP-Dual-Use. Such exports must be authorized by a regular single destination export permit.

6. An MDP-Dual-Use may not be used to export goods or technology that are or have become subject to control under Item 5505 of the Export Control List.

7. In the case of goods and technology controlled by Item 5504, an MDP-Dual-Use may not be used to export any goods and technology that are subject to the requirement for a United States export authorization as described in paragraph 3(2)(c) of the Export Permits Regulations.

Eligible destination countries

8. An MDP-Dual-Use may be used to export goods and technology from Canada to consignees located in the following countries: Argentina, Australia, Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom

9. However, this permit does not authorize the export of goods or technology if the end-use location of those goods or technology is not in Canada, the United States, or any country listed in paragraph 8.

10. Exporters are reminded that no permit is required for the export of the goods and technology covered by this permit to the United States.

Validity

11. An MDP-Dual-Use may be valid for up to 5 years. Like other permits, MDP-Dual-Use may be amended as described in the Export Controls Handbook. However, the validity of an MDP-Dual-Use will not be extended beyond 5 years from original date of issuance. It is the exporter's responsibility to submit a new application for an MDP-Dual-Use to ensure that it has a valid permit.

12. An MDP-Dual-Use is valid for both temporary and permanent exports.

13. The exporter is required to monitor exports made under the authority of the permit. The exporter must ensure that the cumulative total quantity and value of exports made under the authority of this permit do not exceed the total quantity and value stated for each item on the permit. Permits may be amended to increase these quantities and values any time up to 4 weeks before the expiry date of the permit.

14. Permits may not be amended to add or change the goods or technology described therein. A new application must be submitted. Exporters may hold more than one MDP-Dual-Use at the same time. However, if an exporter applies for a new MDP-Dual-Use that includes more items than are described on an existing permit, the existing permit may be cancelled upon issuance of the new permit. If an exporter wishes to cancel an existing permit, this should be clearly stated in the application for a new permit.

Conditions

15. The following definitions apply to permits issued pursuant to this Notice:

  • “distributor” means a person or entity that acquires a good or technology for the purpose of resale or retransfer of that good or technology without effecting any substantial change in form or use of the good or technology.
  • “end-use” in the case of a final product means operation or employment of a good or technology for a purpose for which it was designed or is suited without substantial change and includes activities such as marketing, testing, repair, maintenance and overhaul of such products.
  • “end-use” in the case of an intermediate product means incorporation, integration or installation of such product in the production of a new good or technology, or further processing or manufacturing which results in a substantial change in form or use of the product and includes activities such as marketing, testing, repair, maintenance and overhaul of such products.
  • “end-user” means a person or entity that acquires a good or technology for end-use.

16. Issuance of an MDP-Dual-Use requires that the exporter submit reports to the Export Controls Division of Foreign Affairs and International Trade Canada that identify each consignee to which exports were made using this permit or a statement that no exports were made using this permit in the applicable period. Reports shall relate to exports made during the six-month periods from January 1 to June 30 and July 1 to December 31 and the reports shall be submitted within one month of the end of the period to which they pertain. Each report shall include:

  • in the case of a consignee that is a corporation, the name, address, and telephone number of the corporation and, where applicable, the corporation's internet site address, and the name and title of a responsible contact person, a telephone number and, where applicable, a facsimile number and electronic mail address for that person; or
  • in the case of a consignee that is a natural person, their name, address, telephone number and, where applicable, their facsimile number and electronic mail address; and
  • identification of the role of each consignee as being (i) final consignee and end-user, (ii) final consignee and distributor, or (iii) final consignee with other role.

View a suggested template for this report.

17. Issuance of an MDP-Dual-Use requires that the exporter submit to the Export Controls Division of Foreign Affairs and International Trade Canada, within fifteen (15) working days from the date of a request by that Division, the following information in respect of any exports made using this permit during the time period specified in the request:

  • a description (as stated on the export permit) of the goods or technology exported to each consignee;
  • the quantity and value of goods or technology exported to each consignee;
  • the date and means of export;
  • any record specified in condition 6 of this permit.

18. Pursuant to the Export Permits Regulations, this permit requires that the exporter retain records of each export made using this permit for a period of six (6) years after the year in which the export was made. Such records shall comprise:

  • a written statement made by or correspondence received from the final consignee that establishes the end-use location of the goods or technology, and the role of each consignee as stated in paragraph 18(c) of this Notice;
  • a written statement by the exporter which describes, to the best of the exporter's knowledge, the intended end-use of the goods or technology by the final consignee and the intended end-use location of the goods or technology if different from the location of the final consignee;
  • where applicable, the name and address of the person from whom the exporter acquired the goods or technology;
  • where applicable, a copy of the contract of sale between the exporter and the person to whom the exporter sold the goods or technology for export;
  • where applicable, a copy of the commercial invoice which relates to the export;
  • where applicable, a bill of lading which relates to the export;
  • where applicable, a copy of the letter of credit or other financial documentation which identifies the Canadian and foreign financial institutions involved in the export; and
  • where applicable, a copy of the customs declaration form presented at the time of export from Canada. 

Administration

19. An MDP- Dual-Use may be issued to an applicant which is also the exporter. In other words, the applicant and the exporter must be the same.

20. In deciding whether or not to issue an MDP-Dual-Use, the Minister of Foreign Affairs may, among other things, consider whether the exporter has been subject to an export-related seizure or an ascertained forfeiture by the Canada Border Services Agency in the year preceding the date of the application.

21. Applications may be submitted using the secure, online system EXCOL. Applicants may select “MDP-Dual-Use” when they are asked to identify the consignee type in the online application form. If this option is not available to you, please contact the Export Controls Division by email to tie.reception@international.gc.ca.

22. General information about permit applications may be found in the Export Controls Handbook, available on Export and Import Controls Website. Applications for MDP-Dual-Uses must include the following:

  • a complete application form (generally done through our online system EXCOL);
  • a technical description of the goods and technology;
  • the estimated quantity and value of exports to be made during the validity period of the permit;
  • a cover letter confirming that the exporter has export compliance procedures in place and agrees to abide by the terms and conditions of the permit. View cover letter template

23. The service standard for the review of applications for MDP- Dual-Uses is 10 working days from the submission date of a complete application. Every effort will be made to ensure that the review of applications is finalized within this time.

Suspension or cancellation

24. An MDP-Dual-Use is an alternative to single destination permits (which specify consignees and may be used to export only to single countries). An MDP-Dual-Use may be suspended or cancelled upon written notice if the exporter fails to comply with the terms and conditions of the permit. Exporters are free to apply for export permits for individual destinations if they do not meet the qualifications required to apply for this permit.

25. Issuance of a permit does not constitute a precedent for any other application to export.

General

26. This Notice has been prepared for guidance and convenience of reference only. Foreign Affairs and International Trade Canada does not provide legal advice on the foregoing. For all purposes of interpreting and applying the law, readers should consult the Export and Import Permits Act and its associated regulations. These publications are available on the internet at the site noted below and in most public libraries.

27. General enquiries about this Notice may be directed to:

Export Controls Division (TIE)
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa, Ontario K1A 0G2
Telephone 613-996-2387
Email: tie.reception@international.gc.ca
Internet: www.exportcontrols.gc.ca