Notices

Use of NEXCOL to Meet Permit Reporting Conditions

Date: May 10, 2008

1. Summary

1.1 Important changes have been made to the permit reporting functions of the Export Controls On-Line (NEXCOL) website. We have streamlined the information that exporters must provide in permit utilization reports; we have simplified the relevant screens in NEXCOL; and we have instituted automated email and NEXCOL notifications to remind exporters to meet permit conditions.

2. Details

2.1 Some export permits include mandatory conditions, as determined by DFATD's Trade Controls Bureau (TID). Examples of permit conditions include requirements to submit to DFATD:

  • reports of actual exports made under the authority of the permit. This is referred to as “permit utilization reporting”. For example, most permits issued for goods or technology in Group 2 of the Export Control List require a report to be submitted 4 times per year which summarizes the quantity and value of exports made in the preceding quarter.
  • documents to demonstrate that goods temporarily exported have returned to Canada.

2.2 Since its introduction in April 2006, NEXCOL has allowed for permit reports to be submitted electronically. Recent changes have significantly improved this part of NEXCOL. Among the new permit reporting features in NEXCOL are the following:

  • reminders will be sent by email and displayed on NEXCOL to advise exporters when they are required to submit reports;
  • improved tracking of permit utilization – summary and detailed tables display the quantity and value remaining on export permits with utilization reporting conditions;
  • some reporting requirements have been simplified – for example, exporters with permit utilization conditions are no longer required to report the port of exit and exact date of export;
  • the “look and feel” of the relevant NEXCOL screens has been significantly improved: data entry, in particular for nil reports, has been simplified and a clear structure has been imposed in order to minimize data entry errors and ensure that only information that is relevant to the purpose of the condition is provided.

2.4 Only Recognized Users of NEXCOL are able to use these new permit reporting functions. All exporters are strongly encouraged to become Recognized Users. Details on how to do this are available on the NEXCOL website. All information about export permit applications received since April 2006 is available to Recognized Users through NEXCOL.

3. Administration

3.1 Starting in June 2008, NEXCOL users may notice a banner at the top of their NEXCOL page which states that there are permits with unfulfilled reporting requirements. Exporters in this situation are required to enter reports as soon as possible.

3.2 For those permits that include permit utilization report requirements, step-by-step instructions are provided under the Permit Utilization tab. For other types of reports, exporters may attach an electronic document directly in NEXCOL or send the required document to us by fax.

3.3 DFATD will be reviewing all permits with overdue reports over the coming weeks. In the initial stages of the introduction of these new permit reporting functions in NEXCOL, we will not penalize exporters who have not yet met their reporting conditions but who make best efforts to do so within a reasonable time. We advise all exporters who receive notices that reports are overdue to follow the instructions in NEXCOL and to verify whether or not paper reports have been submitted. However, fulfillment of conditions included on export permits is a legal requirement under the Export and Import Permits Act and, in the longer term, appropriate action will be taken to penalize companies that consistently and repeatedly fail to meet reporting deadlines.

4. Frequently Asked Questions

4.1 How do I know what conditions are attached to my export permit?

All conditions are written on the export permit, after the description of the goods.

4.2 The banner on my NEXCOL page states that this is the “Final Notice” but we have not received prior notices. Why is this?

In the latest changes to NEXCOL, we have created a series of notices that will remind exporters that conditions on their export permit require them to submit reports. Notices will be displayed in NEXCOL and sent by email at fixed intervals. The final notice will typically be sent 90 days after the end of the period for which reporting is required.

DFATD will be reviewing all permits with overdue reporting requirements over the coming weeks. In the initial stages of the introduction of these new permit reporting functions in NEXCOL, we will not penalize exporters who have not yet met their reporting conditions but who make best efforts to do so within a reasonable time. We advise all exporters that receive notices that reports are overdue to follow the instructions in NEXCOL and verify whether or not paper reports have been submitted.

4.3 I have already submitted reports by email or fax to the Export and Import Controls Bureau but those reports are not reflected in NEXCOL. What should I do?

There are currently a small number of reports that have been received on paper by the Export and Import Controls Bureau but which have not been entered into NEXCOL. We will review these and enter information received over the next few weeks. Exporters are advised to review their permits in NEXCOL immediately and to make any necessary changes to ensure that the information displayed there is accurate.

In future, permit conditions may specify that exporters must enter reports directly using NEXCOL and paper reports may no longer be accepted. This will be stated as a condition on the relevant export permits.

4.4 I am a Recognized User of NEXCOL. How do I get a list of my permits that require reporting?

To view a list of permits that have been issued and that have reporting conditions, select “My Reporting Conditions” from the NEXCOL Menu. You may choose to view a list of all permits with reporting conditions or a list of only those permits with conditions that require your immediate action.

If you choose to view a list of all permits with reporting conditions, you will see a screen entitled “Permits / Certificates with Reporting Conditions”. You may sort the list by clicking on the title of any column. The last column displays an icon which indicates the status of reporting on a permit:

  • a red icon indicates that immediate action is required;
  • a yellow icon indicates that the relevant reporting period has ended and that you should report within a deadline set on your permit (typically, within 30 days of the end of the reporting period);
  • a green icon indicates that no action is required at this time.

If you choose to view a list of all permits with reporting conditions, you will see a screen entitled “Permits / Certificates which Require Action”. You may sort the list by clicking on the title of any column.

4.5 When must I report shipments made on my export permits?

The deadlines for reporting shipments are stated in the Conditions section of each export permit. Please refer to your export permit.

Some permits require reports to be submitted for every quarter. In those cases, a report must be submitted within 30 days after the end of the quarter.

Other permits may require reporting within 30 days of export, or within 30 days of the return of a product to Canada.

4.6 Can I report on future periods?

You may only report on current and past periods.

4.7 I have a permit utilization reporting condition. Do I always have to report shipments made on my export permits?

Yes. Permit utilization reports are required every quarter until the expiry of the permit. Even if no shipments are made in a given reporting period (e.g., quarter, half-year, etc.), you must submit reports until the permit expires. It is relatively simple to submit a “nil shipments” report, that is, to report to DFATD that no shipments were made in a given quarter. Please refer to the instructions available on the permit utilization reporting page.

4.8 Does NEXCOL provide prescribed templates for reporting shipments?

NEXCOL automatically attaches an electronic reporting template to permits with conditions that require periodic reporting of shipments.

4.9 What happens if I am late reporting shipments on my permits?

In the initial stages of the introduction of these new permit reporting functions in NEXCOL, we will not penalize exporters who have not yet met their reporting conditions but who make best efforts to do so within a reasonable time. After 30 days you will receive a warning message when you log into NEXCOL and an email will be automatically sent to you. If you fail to report, you will receive reminders at 60 and 90 days after the end of the applicable reporting period.

A number of actions may be taken to address a persistent or repeated failure to fulfill the obligations of an export permit, including the suspension of export permits.

4.10 Why do some export permits contain reporting conditions and others do not?

There are a variety of reasons that export permits include conditions. However, in essence, reporting and other conditions help to ensure Government that exporters have in place proper and effective procedures to comply with export control legislation and regulations.

Export permits, which are typically valid for 2 years, authorize the export of a maximum quantity and value of the product identified, to specific customers in specific countries. Reporting conditions are therefore imposed on many export permits in order to gather accurate statistics about the actual export shipments that are made under the authority of export permits.

Export permits may also carry conditions in certain situations to verify that the conditions under which the export permit was granted are fully respected.

A number of actions may be taken to address a persistent or repeated failure to fulfill the obligations of an export permit, including the suspension of export permits.

5. General Information

5.1 For further information, exporters may contact:

Export Controls Division (TIE)
Foreign Affairs, Trade and Development Canada
111 Sussex Drive
Ottawa, Ontario K1A 0G2
Telephone: 613-996-2387
Fax: 613-996-9933
Email: tie.reception@international.gc.ca