If your company manufactures or deals with goods, components or technology with military or national security significance, you are required to register in the Canada Controlled Goods Program, administered under the terms of the Defence Production Act and Regulations. In addition to the legal requirements, registration in the program provides additional benefits you may not be aware of.
Both Abuma Manufacturing and Armo Tool Ltd <www.armotool.com> are registered and in good standing under the Canada Controlled Goods Program.
What are controlled goods?
Controlled goods are defined in Schedule 35 of the Defence Production Act and include goods, components, and technology such as blueprints or specifications that may have strategic significant or national security implications. It also includes defense material listed in United States Munitions List—part 121 of the United States International Traffic in Arms Regulations, including both goods manufactured in the United States, and goods manufactured anywhere in the world based on technical data originating from the United States.
Examples of controlled goods include:
- Defense materials: Parts for firearms, anti-tank weapons, and missile systems.
- Military equipment: Helmets, protective gear, and vision systems.
- Vehicles: Aircraft, submarines, unmanned vehicles, and associated launch systems.
- Technical data: Blueprints, schematics, or other sensitive technical information.
Even if a company is responsible for only a component of the finished product, they may be required to register under the Controlled Goods Program.
Goods which meet the criteria and are intended for export from Canada are also considered controlled goods.
Who must register?
If you will be conducting any form of business that will involve examining, possessing, transferring or soliciting bids that involve controlled goods, you must register for the program. If you will be exporting the goods, you must register for the Controlled Goods Program before you can apply for the controlled goods export permit.
Before you can solicit or provide bids for products that may be considered controlled goods, you must have an approved registration. Even if you are simply manufacturing a component that will be added to a controlled good, access to the specifications or blueprints of the part may require registration. Depending on your supply chain, some of the components that you use could meet the criteria, especially if they are specialized.
Individuals, partnerships and corporations are eligible to register under the terms of the program if they are carrying on business involving controlled goods in Canada. The registration process includes a criminal background check, proof of citizenship and residence, a security assessment, and mandatory training for all designated individuals. There is no fee to register, although there may be fees to obtain the criminal background checks from law enforcement and for the mandatory training.
In the case of a corporation, the registration process includes any owner of the company holding more than 20% ownership or shares, and designated individuals who will complete mandatory training. Employees, officers and directors who will be directly involved in the examination, possession or transfer of the controlled goods must also undergo security assessments.
There may be instances when your subcontractors may also need to register if they will have access to controlled goods. This may include janitorial staff, cafeteria or security staff, temporary workers or interns and other employees who are not directly employed by your company.
If you are approved, you will receive a certificate of registration that is good for five years and sets out the conditions for handling controlled goods. It is non-transferable and changes to personnel or the registration must be filed and updated immediately.
This is a brief overview of the program, and there are other conditions and exceptions. Each potential registrant should familiarize themselves with the details. Failure to do so could result in revocation of registration, a minimum $2 million fine and possible imprisonment up to 10 years.
Benefits of Registration
In addition to it being a legal requirement to handle controlled goods, having a Controlled Goods Program certification has some other benefits.
- Instant credibility The strict security controls and assessments prior to acceptance into the Controlled Goods Program provides instant credibility, not only for the company, but for the individuals and leadership. Registrants can be searched and verified on the government of Canada site, Canada.ca, although some registrants are private for security reasons.
- Enhanced Reputation Intellectual property, especially as it pertains to military or security interests is a valued commodity. Controlled goods registration sends a message that your company is trustworthy and will safeguard sensitive intellectual property.
- Strengthened Cybersecurity One of the requirements for acceptance into the Controlled Goods Program is proof of a robust cybersecurity program. One of the biggest cyberattacks was orchestrated by attacking a third-party supplier who had less stringent cybersecurity measures. This registration signals to all your clients and potential clients that you take cyber threats seriously, and have protocols in place to protect sensitive data, intellectual property and information.
- Improved Quality Control Registrants of the program must develop and submit security assessments and a security plan, as well as detailed compliance programs to safeguard controlled goods and technology. All customers and potential customers will benefit from the additional layer of security and QC, whether they deal with controlled goods or not.
- Comprehensive documentation Materials tracing and documentation is becoming more important and the ability to validate and provide detailed documentation and data is a value-add for all customers, not just those who deal in controlled goods.
- Internal and external value-add The security assessments, documentation and compliance requirements provide both internal and external benefit. Cybersecurity, safeguarding of intellectual property and detailed protocols in the event of a breach benefit both your company and your customers.
- Access to Defense and Security Markets Many government and defense contracts require CGP registration. Without it, your company may be ineligible to bid on lucrative projects in these sectors. Registration positions you as a qualified vendor for high-value opportunities.
Why Choose Abuma Manufacturing and Armo Tool?
At Abuma Manufacturing and Armo Tool Ltd., our CGP registration reflects our commitment to safeguarding sensitive technologies and delivering exceptional quality. With decades of experience in defense and security manufacturing, we provide:
- Controlled Goods Manufacturing
- Component Fabrication and Assembly
- Security Compliance and Traceability
Our certifications and expertise ensure that your projects are handled with the highest levels of security and precision.
Learn More About the Canada Controlled Goods Program
Registering in the Controlled Goods Program is a time-intensive process, but the benefits far outweigh the challenges. Beyond meeting legal requirements, CGP certification enhances your company’s credibility, reputation, and operational efficiency, positioning you for success in high-security markets.
If you’re ready to partner with a trusted, CGP-certified manufacturer, contact us today:
📞 519-659-6376
✉️ [email protected]
For additional details about the Controlled Goods Program, visit Canada.ca
Check out our automation, tooling and die manufacturing division and sister company at Armo Tool Ltd. for all of your automation and tooling needs.
