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ITAR Canadian Exemption Provision

Prior to utilizing the ITAR Canadian exemption provision to export hardware and technical data related to defense services, exporters must receive a certification that ensures that the end use of the item is allowed under the exemption provision. Additionally, the certification should limit delivery/end use of the defense article being produced directly to an identified State Department registered manufacturer in the U.S., a U.S. Federal government agency/department, a Canadian-registered person authorized in writing to manufacture defense articles for the Canadian government, or the Canadian government. This subcontract should contain all the limitations of 22 CFR 126.5 (Canadian Exemption Provision), as well as allowing the disclosure of the technical data related to the defense article only to a Canadian-registered person. The Canadian company should also certify that all technical data will be destroyed or returned to the U.S. exporter upon fulfillment of the contract (unless it is required for use by the Canadian or the U.S. government) and the U.S. exporter must receive notice that the technical data has been destroyed. Finally, the Canadian company should agree to include a clause on all documentation transferring U.S. origin technical data, that notes that the technical data is restricted by the U.S. Arms Export Control Act.


The U.S. exporter must provide DDTC with a semi-annual report regarding all defense services and technical data authorized under the Canadian Exemption Provision (§126.5). The report must include the articles being produced; the end-user(s); the end-item into which the product is to be incorporated; the intended end-use of the product; and the names/addresses of all Canadian contractors and subcontractors.


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