New export controls for advanced technologies

Summary#

This is a proposed Order Amending the Export Control List that would add new export-permit rules for several advanced technologies. If adopted, people and companies in Canada would need a permit to export specified quantum-computing parts, advanced semiconductor items, certain metal 3D printers, and high-temperature coating technology (exports to the United States are generally exempt). The notice was published on December 21, 2024 and there is a 30 days comment period.

What it does#

• Adds specific items to the Export Control List so they require an export permit under the Export and Import Permits Act.
• Covers seven broad technology groups:
  • Quantum computing parts and tools, including:
    • isotopically enriched silicon and germanium with an isotopic impurity below 0.08%,
    • cryogenic cooling systems that meet thresholds such as 600 µW cooling at 0.1 K for more than 48 hours, or two-stage pulse tube coolers that can hold below 4 K and provide 1.5 W at 4.2 K,
    • cryogenic wafer probers that test wafers ≥ 100 mm at temperatures ≤ 4.5 K,
    • parametric (quantum-limited) amplifiers that operate below 1 K, between 2 GHz and 15 GHz, with noise figure less than 0.015 dB.
  • Advanced semiconductor production items used for Extreme Ultraviolet (EUV) lithography, such as masks, reticles, and pellicles.
  • Metal additive manufacturing (metal 3D printers) that meet a set of technical features (laser/electron-beam/electric-arc consolidation source; controlled atmosphere like inert gas or vacuum ≤ 100 Pa; in-process monitoring sensors; closed-loop controls).
  • Coating technology that protects ceramic matrix composites and operates above 1,100 °C.
• Keeps the usual exception that exports to the United States generally do not need a permit for these Group 5 items.
• The government expects to publish the final text in Part II; the order would come into force 30 days after that Part II publication.

Who's affected#

• Companies that design, make, sell or export:
  • quantum-computing hardware and components,
  • advanced semiconductor manufacturing supplies for EUV lithography,
  • metal additive manufacturing machines or parts,
  • high-temperature coatings for turbine or missile parts.
• Universities and researchers who share or send controlled technical information or equipment abroad.
• Export service providers and brokers who handle international shipments of these items.
• Government and enforcement bodies including Global Affairs Canada, the Canada Border Services Agency, and the Royal Canadian Mounted Police (they enforce the rules).
• The government estimates fewer than 10 companies currently make or use these quantum-related items in Canada, and expects fewer than 100 permit applications annually. The administrative burden on business is judged small; the regulatory paperwork cost is estimated at $150 (annualized total for affected businesses under the one-for-one rule).

Why it matters#

• These technologies can be used for civilian purposes but also have clear military or national-security uses (for example, powerful quantum computers could weaken current encryption; advanced chips, coatings, or metal parts can improve weapons or engines).
• The change is meant to give Canada the ability to review and approve exports that could pose security risks. That helps Canada coordinate with allies that have already adopted similar controls.
• For affected businesses and researchers, it adds a permit step and some paperwork. The government says most routine, low-risk applications are processed quickly (typical timelines cited are about 10 to 40 business days depending on destination).
• The proposal is at the consultation stage. The public and industry have 30 days from the Part I publication to comment before the order can move toward final publication.