Tighter Nuclear Safeguards and Export Rules

Summary#

The Canadian Nuclear Safety Commission (CNSC) has published proposed changes called the Regulations Amending Certain Regulations Made Under the Nuclear Safety and Control Act (Imports, Exports and Safeguards). The changes would tighten reporting and inspection rules for people who hold small amounts of nuclear material or do certain nuclear R&D or manufacturing, and would update Canada’s export-control lists and some border procedures. The proposals were prepublished in Canada Gazette, Part I on March 30, 2024 and are open for comment for 75 days.

What it does#

• Changes to the General Nuclear Safety and Control Regulations (GNSCR):

  • Requires anyone in Canada who possesses uranium, plutonium-239 or thorium, or who carries out certain nuclear fuel‑cycle research or nuclear‑related manufacturing, to:
    • file an annual report with the CNSC;
    • report inventory changes within one business day;
    • allow verification visits by the CNSC and the International Atomic Energy Agency (IAEA); and
    • keep supporting records for at least five years (or as long as they hold the material).
  • Removes the rule that a physical copy of a CNSC licence must be presented to a customs officer when importing or exporting prescribed (controlled) information.

• Changes to the Nuclear Non-proliferation Import and Export Control Regulations (NNIECR):

  • Updates the schedule of controlled items to match the latest international control lists (Trigger List and Nuclear Suppliers Group (NSG) Guidelines). This adds, clarifies and rewords many technical entries (for example, external thermal shields, updated graphite limits).
  • Introduces licence exemptions for very low‑risk items (examples include some uses of tritium such as in watches, compasses, and certain self‑luminous devices).
  • Requires licence applicants to provide extra information, including their Canada Revenue Agency business number (if they have one), an email address and a written import/export process.
  • Sets a record retention period of six years after a licence expires for import/export documentation.

• Enforcement and penalties:

  • Adds or updates administrative monetary penalties for failing to report, keep records, or allow verification visits.

• Cost/benefit snapshot from the CNSC analysis:

  • The CNSC estimates a net benefit to Canada of about $1.7 million over 10 years.
  • The proposal would save industry about $1.4 million (mainly from licence exemptions), while imposing various administrative costs on some small holders and licensees.

Who's affected#

• Organizations and people most likely to notice this:
  • Existing CNSC licence holders such as power and research reactors, uranium facilities, hospitals and labs (many of these already meet the rules and won’t change much).
  • Smaller licence holders and people not currently licenced who possess small amounts of nuclear material or who do relevant research or manufacture (the CNSC estimates about 45 small licensees/non‑licensees would need to start formal reporting).
  • Importers and exporters of controlled nuclear substances, equipment or information (about 300 small licensees would need to submit import/export process documents; roughly 75 licensees would benefit from new exemptions).
  • Border officials, especially the Canada Border Services Agency (CBSA), which enforces these rules at the border.
  • Export control partners and international bodies such as the IAEA, Zangger Committee and the NSG.
• Uncertain or harder to count:
  • The CNSC notes there may be other non‑licenced holders in Canada who aren’t yet known and who would become subject to reporting if the rules are adopted.
  • Small businesses: the CNSC estimates 342 small businesses could be affected in total.

Why it matters#

• Strengthens Canada’s international commitments: the changes are meant to make Canada’s safeguards and export controls line up with international agreements and current international lists. That helps Canada avoid gaps that could raise concerns with the IAEA or other partners.
• More transparency and inspections: more people who hold even small amounts of nuclear material would have to report and be available for verification, which reduces the risk that material or technology could be diverted to non‑peaceful uses.
• Practical effects at the border and for businesses:
  • Some low‑risk items would no longer need export/import licences, which could reduce paperwork and costs for those traders.
  • Other small holders and researchers would face new reporting and record‑keeping duties and possibly more contact from regulators.
  • Adding a business number and other identifiers aims to speed up customs checks and reduce holds at the border.
• Cost and enforcement: the CNSC expects modest overall net benefits, but some small entities will face new administrative work and there are new penalties for non‑compliance.
• This is a proposal, not law: these measures are under consultation (comment period 75 days) and would only take legal effect if finalized and registered with the government.