Stronger safeguards for nuclear materials and trade

Summary#

The Canadian Nuclear Safety Commission is proposing updates to two sets of rules: the General Nuclear Safety and Control Regulations and the Nuclear Non-proliferation Import and Export Control Regulations. The proposal (prepublished on March 30, 2024) would tighten reporting and record-keeping for small holders of nuclear material, update what items need import/export licences, and is estimated to produce a net benefit of $1.7 million (present value). This is a proposal, not law yet, and is open for comment for 75 days from publication.

What it does#

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

  • Require anyone in Canada who possesses certain nuclear material or does nuclear fuel-cycle research or related manufacturing to file an annual report with the regulator.
  • Require reporting of inventory changes within one business day.
  • Require giving the regulator and the International Atomic Energy Agency verification access.
  • Require keeping supporting records for at least 5 years after stopping the activity (or while they possess the material).
  • Remove the rule that people must present a paper CNSC licence to a customs officer when sending or receiving protected technical information at the border.

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

  • Update the lists of controlled substances, equipment and information so they match current international control lists (Zangger Committee / Nuclear Suppliers Group).
  • Add licence exemptions for very low-risk items (for example some tritium-containing consumer devices).
  • Require import/export applicants to give a Canada Revenue Agency business number (if they have one), an email address, and a short written import/export process.
  • Require keeping import/export records for 6 years after a licence expires.
  • Add or adjust administrative penalties for failing to comply with the new reporting and retention rules.

Who's affected#

• Small holders of nuclear material and small research or manufacturing operations that are not currently fully regulated by the CNSC. The agency estimates about 45 small licensees and non-licensees would need to start regular safeguards reporting under the GNSCR.
• Businesses and institutions that import or export controlled nuclear items. About 300 smaller licensees would need to submit an import/export process document under the NNIECR.
• Roughly 75 licence-holders would benefit from new licence exemptions (fewer licences to obtain).
• Overall, the CNSC estimates 342 small businesses could be affected by one or both sets of changes.
• Border and trade staff, including the Canada Border Services Agency, will benefit from clearer licence information (for example the CRA business number).
• There may also be other, currently unknown, people or organizations that possess small amounts of nuclear material who will be swept in by the broader reporting requirements.

If it is unclear who is affected in a specific case, the proposed rules or later guidance would be the place to confirm.

Why it matters#

• The changes aim to help Canada meet international non‑proliferation commitments under the Nuclear Safety and Control Act framework and agreements with the International Atomic Energy Agency. That means Canada can better account for small amounts of nuclear material and certain research or manufacturing activities.
• For many small organizations, this means more regular reporting and record-keeping. That can add administrative work and brief inspection visits. The CNSC estimates some upfront time and costs for small entities.
• For exporters and importers of low-risk items, the rules remove some licence burdens and make cross-border trade clearer. The NNIECR updates also bring Canada’s control lists into line with other countries, reducing confusion for businesses that trade internationally.
• The government’s cost–benefit analysis projects a net benefit of $1.7 million over 10 years, but individual businesses may see costs or savings depending on their activities.
• These are proposed changes open for public comment for 75 days after prepublication (published March 30, 2024).