Canada: Autonomous Vehicles And Export Controls

Last Updated: March 6 2019
Article by Milos Barutciski and Julia Webster

Autonomous vehicles are not yet available for commercial sale and use in North America, but governments are now determining how to best regulate the cross-border flow of vehicles and their underlying technology for safety and national security concerns in a growing protectionist international trade environment.

In spring 2016, Transport Canada and the United States Department of Transportation announced a number of initiatives to collaborate on Vehicle-to-Vehicle and Vehicle to Infrastructure technology to support "seamless cross-border vehicle operations". Despite cross-border regulatory initiatives like this, the underlying technology in these vehicles is heavily regulated by Canadian and U.S. export controls that restrict the cross-border flow of autonomous vehicle technology outside the U.S. and Canada.

What are export controls?

Export controls regulate the flow of goods across borders and establish permitting systems to track certain goods with the aim of preserving Canadian and international security.

Canadian export control legislation

Canada's domestic export control legislation implements its international commitments made under the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Treaty on the Non-Proliferation of Nuclear Weapons, the Missile Technology Control Regime, and the Australia Group controls on chemical weapons.

The Export and Import Permits Act implements Canada's international export control obligations for dual-use goods (i.e., military/security and civil applications) and other goods under the above noted instruments. The Act aims to ensure that exports are aligned with Canada's foreign policy and other strategic interests. Goods subject to export controls are listed in the Export Control List (ECL), which is enforced by the Trade & Export Controls Division of Global Affairs Canada. The Act prohibits exports of controlled goods without a permit from the Minister of Foreign Affairs.

Canadian export control and autonomous vehicles

Many of the components of autonomous vehicles and their related hardware, software and technology are controlled pursuant to the dual-use provisions in Group 1 of the ECL.

In particular, the cryptography used in operating autonomous vehicles is a controlled dual-use product under Canadian export legislation and as a result, export permits are required to export those components, the technology required to make them and vehicles containing those components (subject to certain narrow exceptions).

Goods containing cryptography may be exported under the authority of individual export permits identifying specific consignees, or multi-destination export permits, which allow for exports to multiple destinations without specifying consignees. Applicants must satisfy various conditions to obtain a multi-destination permit including implementation of an export control compliance plan. In addition, two general export permits (GEP) are available for exporters to use without an application in specified circumstances: (1) GEP 45 – Cryptography for the Development or Production of a Product; (2) GEP 46 – Cryptography for Use by Certain Consignees. In both instances, conditions and restrictions apply in relation to the countries of destination and the nationality and ultimate control of the consignees.

U.S. export control law

Recent policy developments in the United States may make it more difficult to export autonomous vehicle technology from the U.S. and Canada. The U.S. Export Administration Regulations (EAR) regulate exports of U.S.-origin dual-use goods, software and technology, including re-exports from Canada and other countries, as well as re-exports of goods containing U.S.-origin inputs or technology. More recently, the U.S. enacted the Export Control Reform Act of 2018 (ECRA) which allows the Department of Commerce to establish controls on export, re-export or transfer (in country) of "emerging and foundational technologies" (ECRA, section 1758).

On November 19, 2018, the Bureau of Industry and Security (BIS), which controls the export of dual-use items under the EAR, announced a notice of proposed rulemaking, seeking public comment on "criteria for identifying emerging technologies that are essential to U.S. national security". This process will likely result in proposed rules for new Export Control Classification Numbers for the Commerce Control List.

It is likely that the BIS' findings on "emerging and foundational technologies" will include technology like the artificial intelligence behind computer vision, an important component of autonomous technology. Any tightening of U.S. export controls will directly affect Canadian exports since U.S. export authorization will be required to export products incorporating such components or technology from Canada over and above any applicable Canadian export permits.

Conclusion

Autonomous vehicles raise the prospect of broad economic and social impacts in personal and commercial transportation, public infrastructure and municipal planning, supply chain management, related trades and professions, and many other fields. At the same time, the security risks inherent in autonomous vehicles and their control systems are potentially acute. Governments can be expected to play a role in the implementation and dissemination of autonomous vehicle technology, including export controls related encryption and AI technology. In light of the close integration of Canadian and U.S. supply chains as well as shared strategic and defence interests, there is a high likelihood that Canada will follow suit with parallel restrictions on exports of "emerging and foundational technologies". Businesses involved in the development and manufacturing of autonomous vehicles and related technology and inputs would be well advised to review and upgrade their security and compliance policies, including those relating to export controls.

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions