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Section 7 of the Export and Import Permits Act requires that the Applicant be a resident of
Canada (defined as “…in the case of a natural person, a person who ordinarily resides in
Canada and, in the case of a corporation, a corporation having its head office in Canada
or operating a branch office in Canada”).
The Applicant and Exporter do not need to be identical.
If the Applicant is a business, the Applicant must hold a resident Business Number
(formerly known as a GST Number) issued by the Canada Revenue Agency (more
information on the internet at www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/menu-eng.html). A
Business Number is not necessary for an application by an individual. The Applicant must
hold an EIPA Number issued by Foreign Affairs, Trade and Development Canada
(application forms are available on the internet at www.exportcontrols.gc.ca) before the
export permit application can be processed. However, export permit applications
submitted through EXCOL by businesses that do not already have an EIPA Number will
be assigned one upon receipt of the export permit application by Foreign Affairs, Trade
and Development Canada.
Please note that Canadian telephone numbers should be separated by a dash (e.g., 613-
996-2387).
E.3.2.
EXCOL Field: Exporter information
In most instances, the applicant would also be the exporter of the controlled goods or
technology. In a case where the applicant and exporter are different entities (e.g. the
exporter is a non-resident of Canada), the Client Name provided must be the Exporter, the
business or individual which exports the goods or technology or has the legal right to
cause them to be exported. The wording “cause them to be exported” does not mean the
person involved in the transportation (carriage) of the goods. For more information, please
consult the publication “Exporting Goods from Canada, A Handy Guide for Exporters”,
available on the internet at www.cbsa.gc.ca.
The Exporter address must be the location from which the goods or technology will be
shipped at the time of export. Where the exporter is a non-resident of Canada, the address
to be listed in the application will be its foreign address. The exporter name and address
provided must match the exporter information as stated in the Export Declaration (B13A)
or other documentation which is presented to customs authorities when the goods are
presented for export.
The exporter may be a non-resident of Canada but the applicant must always be a
resident of Canada. In the case of a non-resident exporter, the applicant accepts legal
responsibility for the use of the export permit if issued and is responsible for the export and
potential violations.
If the Exporter is a business, the Exporter must hold a resident or non-resident Business
Number (formerly known as a GST Number) issued by the Canada Revenue Agency
(more information on the internet at www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/menu-
eng.html). A Business Number is not necessary for an exporter who is an individual. The
Exporter must hold an EIPA Number issued by Foreign Affairs and International Trade
Canada (application forms available at www.exportcontrols.gc.ca) before the application
can be processed. However, applications submitted through EXCOL by businesses that
do not have an EIPA Number will be assigned one upon receipt of the application in the
Export Controls Division.
E.3.3.
EXCOL Field: Consignee information
Foreign parties (individuals, companies or other entities) that must be identified in an
export permit application typically fall into the following categories:
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Consignees
End-Users
Information on other foreign parties involved in the export, if any, such as freight
forwarders and financial institutions, may be provided by the applicant, or requested in
certain circumstances by the Export Controls Division, but does not usually appear on the
export permit.
Accurate and complete information about the foreign parties involved in the export of
goods and technology from Canada is essential to the Export Control Division’s review of
an application. Verification of the legitimacy of the foreign parties to the transaction is one
of the factors used to determine whether the proposed transaction is consistent with
Canada’s foreign and defence policies.
Such verification is also a responsibility of the applicant. It is expected that Canadian
exporters of controlled goods and technology will make appropriate enquiries as to the
intended end-use of the export and to fully declare this end-use when making an
application. Furthermore, any relevant information pertaining to the proposed export
should also be disclosed in the application (see Box 3: Evaluating Foreign Clients below,
for more information). In other words, an applicant/exporter should exercise due diligence
and know who the foreign parties are, including the end-users.
E.3.3.1.
Consignee
The term “consignee” refers to the foreign party or parties to whom the Canadian exporter
will be shipping the goods or technology to directly.
In many cases, there are only two parties named in an export contract: the Exporter and
the Consignee. The Canadian exporter has signed a contract directly with and will deliver
the goods or technology to a foreign customer, for their own use. In this case, the
customer is the Consignee.
In cases where the Canadian exporter is carrying or shipping goods or technology to
several countries (for example, for demonstrations at trade shows or visits to customers),
the location in the first country of destination should be used for the Consignee. Other
destinations should be described in the Overall Description of Goods and End-Use (see
Section E.3.4 below). The Canadian export permit will cover the movement from Canada
to the first country of destination and subsequent movements between countries may be
subject to foreign export controls.
A “carnet” is a “cargo control document (CCD)” issued by the Canadian Chamber of
Commerce. This document may help facilitate subsequent movements between countries.
A carnet is an international customs document used for temporary, duty-free exports (i.e.,
the exported goods will return to Canada after less than 1 year). It is currently accepted in
over 71 countries. Items which enter a country under the authority of a carnet are not to
be sold. For more information about Canadian carnets, please visit a local Chamber of
Commerce or consult the following website:.
http://www.chamber.ca/carnet/
Please note that the possession of a “carnet” does not absolve an exporter or importer
from the requirement to obtain a permit (if required) in order to export or import goods and
technology controlled under the Export and Import Permits Act.
Applicants may submit permit applications with multiple Consignees, provided they are
located in the same country.
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For a Multiple Destination permit (MDP), choose “Multiple” under “Consignee Type” in
EXCOL and then the applicable multiple destination permit type. (For further information
on MDPs, see Section F.7, below).
E.3.3.2.
End-user
When possible, applicants for export permits are required to identify end-users of the
goods or technology proposed for export. In general, the end-user is the entity that
employs or uses the goods or technology that were exported from Canada for the purpose
for which they were intended.
Box 2: Examples of Consignees and End-Users
The following examples may help to distinguish between consignees and end-users in
more complex cases.
Consignee re-sells to end-user: A company in the UK wins a contract to supply
parachutes to the UK Ministry of Defence. The UK company buys the parachutes from
Canada and, according to its contract with the UK company, the Canadian exporter
delivers the parachutes to the UK company. The UK company subsequently sells these
Canadian parachutes to the Ministry of Defence. In this scenario, the UK company is the
consignee and the Ministry of Defence is the end-user.
Canadian exporter delivers to end-user: A company in the UK wins a contract to source
parachutes for the UK Ministry of Defence. The UK company buys these parachutes from
Canada and contracts with the Canadian exporter to deliver them directly to the UK
Ministry of Defence. In this scenario, the Ministry of Defence is both the consignee and
the end-user.
Consignee is a manufacturer: A company in the UK that manufactures pilot ejector seats
buys parachutes from Canada. The Canadian exporter delivers the parachutes to the UK
company. The UK company sells its pilot ejector seats, which include the Canadian
parachutes, to a company in France, which installs the ejector seats on an aircraft. The
Canadian exporter has no direct relationship with the French company. The UK company
is the consignee and the end-user of the goods exported from Canada (the parachutes).
The end-use of the Canadian goods is for the production of pilot ejector seats in the UK,
for subsequent use by the French company in the assembly of an aircraft; this needs to be
fully described in the Canadian export permit application (preferably in a cover letter or in
the “Applicant/Exporter Comments” field, “Items” tab of the permit application).
Parts used for repair overseas: A company in Italy buys spare aircraft parts from a
Canadian exporter. According to its contract, the exporter ships the goods directly to a
company in Portugal which uses the goods to repair an aircraft owned by the Italian
company. In this scenario, the consignee is the Portuguese company and the end-user is
the company in Italy.
Multiple trade shows: A Canadian exporter intends to participate in trade shows in 3
different countries within a period of 2 months. The first trade show is in Germany, the
next one in France and the last in the Netherlands. After that, the goods return to Canada.
The Canadian export permit will identify a consignee in Germany only. The Canadian
exporter should obtain a carnet from the Canadian Chamber of Commerce to cover the
movement of the goods to France and the Netherlands. The details of the full itinerary
must be submitted with the permit application including, if possible, a copy of the carnet.
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Box 3: Evaluating Foreign Clients
The following questions are meant to assist exporters to evaluate the legitimacy and
credibility of foreign customers who wish to acquire goods or technology controlled under
the Export and Import Permits Act. If answers to the following questions raise suspicions
about potential foreign customers, exporters should describe the circumstances in their
export permit application in the EXCOL field "Overall Description of Goods and End-Use".
How well do you know the foreign customer? Is it difficult to obtain information
about that company or entity?
Is the customer reluctant to provide an end-use assurance document or is
information not forthcoming in comparison to past experiences with other
customers? Does the product fit the customer’s business profile?
If you have done business with the customer before, is this a usual request for
him/her to make?
Does the customer seem familiar with the product type and its performance
characteristics or is there an obvious lack of technical knowledge?
Does the customer reject the customary installation, training, or maintenance
services provided?
Is unusual packaging and labelling required?
Is the shipping route unusual?
Is the customer ordering an excessive amount of spare parts or other items that are
related to the product, but not related to the stated end-use?
Is the customer offering unusually profitable payment terms, such as a much higher
price than normal? Is the customer offering to pay in cash?
Is the customer or the end-user tied to the military or the defence industry, or to any
military or governmental research body?
In many cases, the Consignee is the end-user of an exported good or technology. In other
cases, when there are several foreign parties with an interest in a transaction, the end-
user may be more difficult to identify.
A foreign manufacturer that uses goods (such as components, assemblies, etc.) or
technology to produce or develop new products, or which integrates them into new
products, is the end-user of the goods or technology exported from Canada.
Subsequently, the new products may be sold by the foreign manufacturer to a third party.
The foreign manufacturer may consider the buyers of these new products with Canadian
content to be its own end-users.
In cases where the Consignee resells or distributes the goods or technology (in their
original form, as they were exported from Canada), the Consignee is not considered to be
the end-user. In this case, the end-user would be the third party who will acquire the
goods or technology.
In the case of repairs, the entity which owns the goods that are being repaired is typically
the end-user.
If the roles of the parties are uncertain, applicants should provide sufficient information
about the transaction for the Export Controls Division to make a determination, including
copies of contracts and invoices.
End-use assurances are an essential part of export permit applications. More information
about end-use assurances can be found in section E.4.2 below.
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E.3.3.3.
Other information about consignees
For the purpose of export permit applications, consignees are located outside Canada.
Export permit applications that list a Canadian consignee address cannot be processed
and will be returned without action.
Consignee addresses should identify the location of the consignees to whom the goods or
technology are to be shipped or conveyed to directly. Consignee addresses must be
complete. Post office boxes alone are not acceptable. Where available, consignee
website addresses should be indicated along with contact e-mail addresses.
When entering telephone and fax numbers, applicants should separate country and area
codes by using a dash between each set of numbers (e.g., 1-613-996-2387). Applicants
should verify all consignee contact information (including telephone and fax numbers, e-
mail addresses, and websites). Information that is found to be incomplete or inaccurate
may result in the return of the export permit application without action.
Exporters may wish to refer to Canada Border Services Agency Memorandum D20-1-1
24
,
which provides a definition of consignee for the purpose of export reporting.
E.3.4.
EXCOL Field: Overall description of goods and end-use
This field is used by the applicant/exporter to share data with their permit officer. It is used
to provide details/clarification on the goods and their end-use
25
.
The exporter should provide general information about the proposed export in this field,
including the following (as applicable):
a description of the goods or technology which is understandable to a layperson;
a description of the exporter’s understanding of the end-use of the exported goods
or technology by the consignee and, if known, subsequently by other parties, if
different from the description provided in the supporting documents (e.g., end-use
statement);
in the case of temporary exports, such as for repair or for demonstration at a trade
show, a detailed explanation of the reason for the export and a statement as to
whether the exported goods or technology will remain in the possession of an
employee of the exporter while outside Canada;
in the case of an export for the purpose of marketing or bidding (such as responding
to a Request for Proposal) prior to a contract being concluded, supporting
documents to this effect must be attached to the application.
Example of how to complete “Overall Description of Goods & End-Use” field:
24
http://www.cbsa-asfc.gc.ca/publications/dm-md/d20/d20-1-1-eng.pdf
25
Data contained in this field will not be on the final permit for customs purposes.
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E.3.5.
EXCOL Field: Applicant/Exporter comments
As illustrated below, in this field the applicant may, if available and desired, include
additional comments which are relevant and which may help understand the application,
such as:
in the case of U.S.-origin goods and technology, a declaration of the U.S. authority
under which the goods and/or their subcomponents or technology, were imported
into Canada. If controlled under the International Traffic in Arms Regulations, under
what authority are the goods, subcomponents or technology being re-exported from
Canada;
shipping date when the export is expected to leave Canada, if known;
requests for extended permit validity (see section E.5 for general guidelines on
permit validity);
justification for urgent requests;
where multiple parties are involved in the transaction, provide details regarding
contractual obligations. The role of the consignee should be specified; and
information about the rate of exchange used to convert value to Canadian dollars
(see Box 7 concerning currency fluctuation) if supporting documents reflect sales
that are not denominated in Canadian dollars.
Where the above listed information is provided in the “Applicant/Exporter Comment”, a
separate cover letter need not be submitted. In complicated transactions, the Applicant
may provide a cover letter clearly detailing the relevant information in order for the Export
Controls Division to fully understand and assess the transaction and the proposed export.
E.3.6.
EXCOL Field: Export type
Indicate the type of export, whether permanent (the items will be exported and are not
intended to return to Canada) or temporary (the items will be exported and are intended to
return to Canada after a period of time).
E.3.6.1.
Permits for Temporary Exports
Permits for temporary exports are common for controlled items exported for trade shows,
exhibitions, demonstrations, provision of services, repair by the original manufacturer, and
other activities after which the items will be returned to Canada. Exporters must apply for
an export permit in the normal manner and must note in the body of the application that
they are asking for a permit for a temporary export (including the required validity date for
the permit). In granting an export permit for a temporary export, the Export Controls
Division may place certain conditions on the export. These conditions may include:
adhering to the expiry date of the export permit (normally 12 months);
ensuring the items are properly supervised while abroad; and
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submitting proof that the items were returned to Canada unchanged (except as
otherwise authorized by the export permit).
Box 4: Applications to Export Goods Temporarily (including for Repairs, Upgrades,
and to Loan Equipment)
In cases where equipment is being temporarily returned to the manufacturer or a foreign
client for repair, maintenance upgrade or on loan, the value on the permit application
should be stated in Canadian dollars as the normal commercial value of the goods or
technology being exported.
For clarity, the Item Description of each good that is being temporarily exported should
contain the following: “(to be repaired.)”, “(to be upgraded)”, or “(on loan)”.
Examples as they might be displayed on an export permit:
Item
No.
Item Description
Quantity
Unit
Value
Total
Value
1
X35 microprocessor
P/N 12345
(to be repaired)
10
$560
$5600
2
Utopia display unit
Model UPZ02
(to be upgraded)
2
$2000
$4000
3
XYZ amplifier
Model number ABC
(on loan)
1
$1000
$1000
E.3.7.
EXCOL Field: Description
The “Description” field is one of the most important fields of the permit application as it
defines the parameters and limitations of the permit. It is also a key element of Canada
Border Service Agency review.
The Description is how the goods or technology will be identified on the export permit,
which will also be verified against the Export Declaration submitted to the Canada Border
Services Agency at the time of export (see section H). Exporters must ensure that item
descriptions declared on the customs export declaration is consistent with the description
found on the export permit. This may avoid unnecessary delays and potential detention of
the goods.
You should limit your item description to the following three points:
1-
The name of the item – The name should clearly identify the item like a picture
would do; don’t use internal specialized company jargon, use laymen’s terms that licensing
and customs officials can relate to;
2-
The identification number – Provide a model or part number making sure that it is
both on the documents and on the item; don’t put a list of numbers, keep it short;
3-
What is it used for or part of - The third line of the item description (see below) may
be used to include details helping the reviewers to better understand the nature of the
goods being exported (e.g. items to be incorporated in a civilian aircraft XX324).
Item Descriptions that do not follow this format will no longer be considered for further
review and the application will be returned without action.
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Where quantity is given as a weight or volume, the unit of measure must be stated in the
Description field.
Additional description related details on packaging, use, or physical appearance of the
product may be provided in the field “Overall Description of Goods and End-Use” (see
section E.3.4). Do not include references to the Export Control List (self-assessments
should be provided in the field “ECL No.”, section E.3.14), Sales or Purchase Order
numbers or information that the sale was made in another foreign currency (e.g. that the
sale was in US dollars). This information can be placed in the “Applicant/Exporter
Comments” field.
When exporting complete systems or items such as aircraft, aircraft simulator or vehicle,
the same approach may be taken. A single line item description may be used to describe
the item, for example, “Ford 2001, F-350 Super Duty Truck”. However, if the item will be
disassembled for shipment into several major components, these components should be
clearly reflected in the line item description. For example, a disassembled car might be
described as follows: “disassembled Ford 2001, F-350 Super Duty Truck, components
include 5.4 L V8 engine block, Chassis, body”.
When exporting spare parts for a complex item, exporters should use several lines to
reflect the main systems. For example, a helicopter might be broken down by the
following systems: Fuselage, Wings, Flight Controls, Avionics, Engines, Hydraulics
system. Each line item description should include a high level list of the types of items that
would be exported under each of these systems. “Lot” may be used instead of specific
quantities when grouping these types of exports.
Example of how to complete line item description in EXCOL:
Item Name
Identifying Number
Used in / component of a system
Documents you may be interested
Documents you may be interested
