The document discusses Canada's Controlled Goods Program (CGP), which regulates controlled goods and technologies. The CGP aims to safeguard controlled items within Canada and prevent unauthorized access. It has inspection and enforcement powers. Controlled items include military-grade munitions, strategic technologies, and missile systems. Universities must register if handling these goods, designate officials, and implement security plans to track individuals and ensure goods are secure. Records must be maintained and personnel trained. The program audits compliance to enforce export controls and prevent unauthorized access to controlled goods and technologies.

1. Canada’s Controlled Goods Program
(and a little bit on ITAR)
David Phipps
Office of Research Services
CAURA Webinar
April 19, 2012 YORK RESEARCH

2. Boeing to pay $15 million
arms control fine YORK RESEARCH
Airplane maker admits selling microchips with
military applications
The Associated Press
Updated: 8:35 p.m. ET April 8, 2006
CHICAGO - The Boeing Co. has agreed to pay
$15 million to settle federal allegations that it broke
the law by selling commercial airplanes equipped
with a small chip that has military applications.
http://www.msnbc.msn.com/id/12226225/
2

3. What is the Intent of the Program?
YORK RESEARCH
“The objective of the CGD is to safeguard controlled
goods and/or controlled technologies within Canada
and prevent controlled goods and/or controlled
technology from being accessed by unauthorized
persons.”

4. Consequences
YORK RESEARCH
The CGD has the authority to inspect companies to ensure
compliance. Companies must be ready for inspection at all times and
produce all required records. The CGD also has the authority to detain
or remove any controlled good and/or controlled technology, until it is
convinced that the requirements of the DPA (Defense Protection Act)
are met. Anyone who is not registered, excluded or exempt from
registration with the CGD is not permitted to examine, possess or
transfer controlled goods and/or technology within Canada.
Companies that fail to comply with this Act can have their registration
revoked and they can, as well as individuals, be prosecuted for failing
to comply with the CGD. As per the DPA, fines vary from $25,000 to
$2,000,000 daily or an imprisonment not exceeding 10 years, or both.

5. Controlling Goods
YORK RESEARCH

6. What is a “Controlled Good or
Technology”? YORK RESEARCH
Munitions specifically designed or modified for military use (Group
2)
-Lists of specific chemicals are included
Strategic Goods such as (Group 5)
-Global navigation satellite systems;
-Ground control stations;
-Nuclear weapons design and testing equipment
Missile Technology such as (Group 6)
-Complete delivery systems (rocket, ballistic & cruise missile);
-Propulsion equipment (turbojet, turbofan & pulse jet engines);
-Navigation & stealth equipment (flight instrument systems);
-Avionics (radar & Global Positioning System);
-Launch support equipment (gravity meters & precision tracking);
-Test facilities (wind tunnels for speeds of Mach 0.9 or greater)

7. Oh, you’re a university?
YORK RESEARCH
You’re different…

8. Basic Research
YORK RESEARCH
Basic Research is Exempt

9. Definition of Basic Research
YORK RESEARCH
“Experimental or theoretical work undertaken
principally to acquire new knowledge of the
fundamental principles of phenomena or observable
facts, not primarily directed towards a specific
practical aim or objective.”

10. Basic Research @ York?
YORK RESEARCH
York has determined that Basic Research is anything that is not Applied
Research
and
Applied Research is anything that is done for or in conjunction with a
company or agency that can use the outcomes of the research in an
application or product.
In the case of Applied Research the “intent” of the work needs to be
considered also.

11. Controlling faculty
YORK RESEARCH

12. Who Needs to be Included
in the Program? YORK RESEARCH
Anyone exposed to enabling knowledge about the Controlled Goods or
Technologies
•Employees (Faculty, Staff, and Students)
•Visitors
•Contractors from other companies
Exempt individuals need to provide proof of their exemption (ie federal
employee) and this needs to be recorded

13. Registering for CGP
YORK RESEARCH
Application for Registration for the CGP can be
found at the following website:
http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/index-
eng.html.
Propose a Designated Official

14. Designated Official – Why me?
YORK RESEARCH
• Controlling people as well as goods
• Controlling information in grant applications

15. Develop and Implement Security Plan
YORK RESEARCH
The Security Plan must include the following sections:
-People records
-Goods & technologies records
-Records of visitors
-Reporting
-Training program
-Security briefings

16. Maintaining Records: public
YORK RESEARCH
Binder includes:
-Application and approval to the CGP including renewals
-Standard documents and forms
-York’s security plan
-Controlled Goods policies
-Training logs
-Inspection records from the CGP
-Correspondence

17. Maintaining Records: private
YORK RESEARCH
Second Binder includes:
-Records of all people who “examine or posses” the CGs
-Security plans for each piece of good or technology
-Records of CG’s location and movement, including copies of
invoices, POs, shipping and customs documentation
-Site visit information on CG
-Placed in a locked cabinet at all times

18. The Questionnaire
YORK RESEARCH
http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/form/inscrptn-rgstrtn/es-sa-eng.html
Biographic Info, consent, references, security
assessment statements

19. Reference Checks
YORK RESEARCH
• How (well, long, capacity) do you know the subject
• Travel outside of the country (where, how often)
• Honest, reliable, trustworthy
• Criminal history
• Associations
• Are you aware of any associates or associations, which
might be considered to have an adverse affect on the
subject's position of trust?

20. Appendix 4
YORK RESEARCH

21. Appendix 6
YORK RESEARCH

22. Training & Briefings
YORK RESEARCH
Provide regular training programs for the secure
handling of CGs
Provide briefings to visitors and other peripheral
personnel as well as qualified program participants

23. Word of warning…
YORK RESEARCH
Be careful what you say to faculty council
meetings…

24. Audits and Inspections
YORK RESEARCH
ORS schedules site visits to the locations of the CGs to
review log books and to ensure goods are located in
locked facilities
CGP can audit and inspect both the location of the CGs
along with the documentation files at any time
Every 6 months report on list of screened individuals

25. ITARs
YORK RESEARCH
http://www.pmddtc.state.gov/regulations_laws/itar.html

26. Prof. Roth – U. Tennessee
YORK RESEARCH

27. Potential for Human Rights Challenge
YORK RESEARCH
Except for “regular employees” it’s your country of birth not
your actions that determine your risk level.
June 2011: “regular employees” can be screened (=CGP)
Students are not regular employees.
If you accept ITAR controlled goods and/or data (in research
contract or technical assistance agreement (TAA)
DON’T SHARE THEM WITH ANYONE

28. Scared yet?
YORK RESEARCH
Don’t be…ask questions