In a significant move, Canada has announced stringent export controls on certain quantum computing and advanced semiconductor technology under the Export and Import Permits Act (EIPA). Beginning on July 20, 2024, the export of certain technology related to quantum computing and advanced semiconductors will be prohibited to any location except the United States without an export permit from Global Affairs Canada.
Canada unilaterally enacted this change by adding these technologies to Group 5 of the Export Control List (“Miscellaneous Goods and Technology”). Unlike most export controls, Group 5 is not linked to Canada’s multilateral commitments. This is part of a global shift to unilateral trade restrictions, as consensus stalls in multilateral arms control arrangements such as the Wassenaar Arrangement (of which Russia is a member).
These restrictions align with those of other leading nations, such as the United States and member states of the European Union, who have already implemented or are planning similar measures. The new regulations aim to prevent the proliferation of critical technologies that adversaries could utilize for military or espionage purposes, thereby ensuring that advanced technologies are only accessible to trusted international partners.
What are the new restrictions?
On May 31, 2024, Canada issued the Order Amending the Export Control List SOR/2024-112 (Regulations), adding five broad categories of quantum computing and semiconductor technology to Group 5 of the Export Control List. The restrictions took effect on July 20, 2024. As of that date, exporting this technology without an export permit will constitute an offence.
The five categories of technology are:
- Quantum computers with the capability to confine, control, measure and process the quantum information embodied in 34 or more physical qubits with a small margin of error. This includes circuits and devices specially designed for quantum computers, such as certain components and devices made to control and measure these quantum computers
- Cryogenic Complementary Metal Oxide Semiconductor (CryoCMOS) integrated circuits that operate at a temperature of 4.5 Kelvin (-268.56 °C) or below
- Technology used for the development or production of semiconductor devices or microchips using Gate-All-Around Field Effect Transistor (GAAFET) structures (i.e., nanosheet, nanowire and gate-all-around transistor technology)
- Equipment designed or modified for isotropic and anisotropic dry etching, which are critical in the making of GAAFET structures
- Advanced Scanning Electron Microscope (SEM) equipment for imaging semiconductor or integrated circuits, or performing chip design recovery meeting a specific set of metrics
The technologies affected are broader than the technological hardware itself. Among other things, “Technology” under Canada’s export control legislation includes “technical data” (such as manuals, plans, diagrams, blueprints and models) and “technical assistance,” which may take such forms as instruction, skills, training, working knowledge or consulting services.
Disclosing such “technology” to a person outside Canada without an export permit (e.g., even through teleconference, by email or through screen-sharing) may also constitute an offence even if the item or technology itself remains in Canada.
Are there any exceptions?
Certain exceptions apply to technology in the public domain, to basic scientific research or the minimum information required for patent applications.
What are the next steps?
Companies should be seeking advice and evaluating the Regulations carefully to determine if the restrictions or any exceptions apply to them. If there is uncertainty in whether a particular good is captured under the new restrictions, exporters may seek an Advisory Opinion from Global Affairs Canada. However, such opinions are not legally binding. The Blakes International Trade group will continue to monitor Canada’s export controls and provide advice to Canadian businesses navigating these changes.
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