Canada restricts military exports to Hong Kong

Dear members,

On July 3, 2020, the Government of Canada announced it will review applications for the export of “sensitive military items” or “sensitive goods” destined to Hong Kong with the same considerations as it does for those items destined for the People's Republic of China.

Whether or not to approve a permit will now be a case-by-case political decision taken by the Minister of Foreign Affairs. What constitutes “sensitive military items” and “sensitive goods” will be determined by Global Affair Canada (GAC), on a case-by-case basis, from items that are found on any of the seven Export Control Group Lists (ECL). Permits for what are considered "sensitive military items" will not be approved.

While Canadian firms have exported very little in the way of ECL Group 2 items to Hong Kong in recent years, these changes appear to create a high level of regulatory risk for companies considering new business opportunities that would require exporting items found on the Export Control Group Lists. You are encouraged to review your business development plans and reconsider accordingly.

You can read the details of the:

• July 3 Statement here. (link: canada.ca/en/global-affairs/news/2020/07/canada-takes-action-following-passage-of-national-security-legislation-for-hong-kong.html)
• July 7 Notice to Exporters (Serial No. 1003) here. (link: international.gc.ca/trade-commerce/controls-controles/notices-avis/1003.aspx?lang=eng)
• Canada's Export Control Group Lists (ECL) here. (link: international.gc.ca/controls-controles/about-a_propos/expor/guide-2018.aspx?lang=eng)

CADSI is working with GAC to inform impacted companies. If you have any questions, please contact your GAC Permit Officer and let CADSI know of any impacts on your company by emailing Mindy Pearce, Policy Advisor: mindy@defenceandsecurity.ca.