What is CGP/ITAR Compliance?
Canada Forgings Inc. is accredited by the Canadian Controlled Goods Program (CGP), which operates in conjunction with the International Traffic in Arms Regulation (ITAR) in the United States. The CGP is a federally mandated registration and compliance program that regulates the manufacture, sale, and distribution of controlled goods within national borders.
The CGP was established in 2001 as a means to strengthen existing legislation on defense trade between Canada and the United States while also allowing Canadian businesses registered with the CGP to trade in controlled goods without directly acquiring licenses from the United States government.
But what qualifies as a controlled good? These articles are defined as goods, including components or technical data, with military or national security significance, including, among others:
o Firearms and munitions specifically designed for military use
o Bombs, torpedoes, mines, and missiles
o Military vehicles, vessels, and aircrafts (and their component parts)
o Chemical, biological, and radioactive material used in war
o Protective equipment, including armoured plate technology and body armour
o Missile technology, including delivery systems, propulsion equipment, navigation and stealth equipment, avionics, etc.
o Blueprints or technical specifications with strategic significance or national security implications
For a comprehensive list of items included, consult schedule (section 35) of the Defence Production Act here.
The CGP also regulates the international trade of controlled goods, safeguarding defence articles or technical data of U.S. origin from unlawful examination, possession, or transfer. These articles include those specifically covered in the United States Munitions List (USML), which can be accessed by following the link here.
There are approximately 4000 registrants, which include companies, organizations, and individuals, which are currently authorized by the state to examine, possess, and transfer controlled goods. These institutions are bound to the regulations and guidelines established in the Defence Production Act and the Controlled Goods Regulations, which must be followed to retain their right to do business.
Compliance is enforced by Public Services and Procurement Canada (PSPC) who are responsible for registering individuals and organizations involved in the controlled goods trade, performing security assessments, overseeing exemptions, conducting inspections and ensuring compliance with controlled goods legislation, training and certifying designated individuals, investigating security breaches, issuing suspensions and revocations of registration, and working with law enforcement agencies for enforcement-related actions of the Defence Production Act.
Any individual or organization who fails to comply with the terms established in the Defence Production Act may have their registration in the program suspended or revoked. Additionally, any individual found to be in violation of the act may also be subject to a fine of up to $2 million and/or face imprisonment for up to 10 years.
Above all, the GCP/ITAR programs exist to keep us all safe by ensuring that items with strategic significance or national security implications do not fall into the wrong hands. CanForge is proud to comply with all international laws and regulations when manufacturing our high-quality, high-performance forgings. Our team is constantly adapting to meet the exact specifications provided by our clients, which includes stayed well-versed in industry best practices and ensuring compliance with all federal, provincial, local laws, as well as all industry-specific guidelines and regulations.