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Canada’s Controlled Goods Program (and a little bit on ITAR)

David PhippsOffice of Research Services

CAURA WebinarApril 19, 2012

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Airplane maker admits selling microchips with military applicationsThe Associated PressUpdated: 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/

Boeing to pay $15 million arms control fine

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What is the Intent of the Program?

“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.”

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Consequences

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 detainor 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.

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Controlling Goods

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What is a “Controlled Good or Technology”?

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)

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Oh, you’re a university?

You’re different…

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Basic Research

Basic Research is Exempt

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Definition of Basic 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.”

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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.

Basic Research @ York?

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Controlling faculty

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Who Needs to be Included in the Program?

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

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Registering for CGP

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

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Designated Official – Why me?

• Controlling people as well as goods• Controlling information in grant applications

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Develop and Implement Security Plan

The Security Plan must include the following sections:

-People records

-Goods & technologies records

-Records of visitors

-Reporting

-Training program

-Security briefings

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Maintaining Records: public

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

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Maintaining Records: private

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

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The Questionnaire

http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/form/inscrptn-rgstrtn/es-sa-eng.html

Biographic Info, consent, references, security assessment statements

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Reference Checks

• 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?

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Appendix 4

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Appendix 6

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Training & Briefings

Provide regular training programs for the secure handling of CGs

Provide briefings to visitors and other peripheral personnel as well as qualified program participants

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Word of warning…

Be careful what you say to faculty council meetings…

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Audits and Inspections

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

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ITARs

http://www.pmddtc.state.gov/regulations_laws/itar.html

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Prof. Roth – U. Tennessee

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Potential for Human Rights Challenge

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

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Scared yet?

Don’t be…ask questions