Guideline for designated officials

2.1 Certification program contents

The Designated Official Certification Program, a Controlled Goods Program requirement, is a free self-paced training course. The certification program consists of a series of modules and activities and is offered in both official languages. The training provides information about:

• the Controlled Goods Program
• legal requirements of the program
• roles and responsibilities of the designated official
• registration exemptions
• how to conduct a security assessment

The candidate must successfully pass the certification exam before the certificate is issued.

The information in each module is relevant to the legislated duties of the designated official. Approximately 4 to 5 hours will be required to complete all modules. In addition, 2 hours will be provided to complete the written certification exam, which consists of multiple choice questions and a case study.

A designated official who successfully completes the Designated Official Certification Program receives a certificate as proof of having successfully completing the required training. If a designated official changes employer, the certificate remains with that individual, and it is not transferable to another individual.

2.2 Certification process

The following represents the basic steps to achieving designated official certification:

• the nominated designated official receives an email with the training and instructions from the program to complete the Designated Official Certification Program training
• the nominee completes the self-paced training, practice activities and requests the exam schedule
• the program provides a selection of exam dates and times
• the nominee registers for their exam
• the nominee completes and submits their certification exam
• the program grades the exam, notifies the nominee of their results and provides feedback within 15 business days
• the nominee who fails the exam will have 2 more opportunities to successfully pass
• the nominee who is unsuccessful at passing the exam after 3 attempts will not be approved as a designated official

3.1 Consent to a security assessment

An individual needing access to controlled goods during the course of their employment must consent to a security assessment prior to access being granted. No security assessment is required if the employee, director or officer does not access controlled goods. An individual who does not consent to a security assessment cannot be permitted access to controlled goods. Consent to a security assessment is defined in the security assessment application (PDF, 436KB) form and is given by completing the Consent section.

3.2 Government of Canada and Transport Canada transportation security clearances

The designated official must collect and validate certain information to determine whether an officer, director or employee may examine, possess or transfer controlled goods. This is part of the designated official’s security assessment process.

To speed up the assessment process, the designated official may choose to accept an individual’s valid:

• Government of Canada security clearance of Secret (Level II) and higher
• Transport Canada transportation security clearance

To accept either of these security clearances, the designated official must meet the conditions in either section 3.2.1 Accepting a Government of Canada security clearance or 3.2.2 Accepting a Transport Canada transportation security clearance of this guideline.

3.3 Officers, directors and employees

Program registrants must ensure their employees are security assessed before they are permitted access to controlled goods. The designated official is responsible for conducting a security assessment of each officer, director, employee and domestic student requiring the examination, possession or transfer of controlled goods. The security assessments conducted by the designated official at the place of business are subject to inspection by the program at any time over the period of registration and for a period of 2 years after the day on which the individual assessed ceases to be an officer, director or an employee of the registered business.

The security assessment application forms must be used by all individuals being security assessed for access to controlled goods (except those individuals being assessed by the designated official that have the requisite security clearance as outlined above in section 3.2 Government of Canada and Transport Canada transportation security clearances), whether the security assessment is performed by a designated official or directly by the program representatives.

An individual being security assessed must provide all of the following supporting documents:

• 2 pieces of government-issued identification, of which at least 1 must be photo identification
  • as proof of citizenship, a photocopy is acceptable (for example, passport, birth certificate or permanent resident card)
  • as proof of current address, a photocopy is acceptable (for example, driver’s licence, government-issued document with address, gas or hydro bill)
• a criminal history report
• a credit check report (if requested by the designated official)

The designated official must ensure the risk of an unauthorized transfer is evaluated as defined by the Minister of Public Services and Procurement Canada. Accordingly, the designated official must consider (in the context of the security assessment), all of the information provided by the applicant in the security assessment application. The designated official must also verify the personal identification of the individual.

Section 46 of the Defence Production Act subjects an officer, director or employee of a corporation as liable when their corporation commits an offence under the act. The officer, director or employee is liable to be convicted of the offence if they directed, authorized, assented to, acquiesced in or participated in the commission of the offence, whether or not the corporation has been prosecuted or convicted.

3.4 Authorized individuals

The authorized individual must be security assessed by the program and not by the designated official. A completed security assessment application (PDF, 436KB) form, along with required supporting documentation listed above in section 3.3 Officers, directors and employees, must be submitted to the program. This is mandatory for all new registrations and is submitted along with the application for registration (PDF, 592KB) form.

In the case of a renewal application, if the authorized individual has been security assessed and the security assessment has not reached the 5-year expiry date, a security assessment application will not be required for the authorized individual. If the authorized individual of a registrant is changed during the period of registration, the security assessment application (PDF, 436KB) for the newly-proposed authorized individual must be submitted through a registration amendment.

3.5 Visitors

The designated official is responsible for verifying the visitor exemption application for security assessment and exemption from registration (PDF, 291KB) form and ensuring that, to the best of their knowledge, such information is accurate and complete.

As applicable and to the best of their ability, the designated official is also responsible for gathering required information pertaining to an exemption sought under section 16 of the Controlled Goods Regulations (International Traffic in Arms Regulations [ITAR] exemption).

3.6 Temporary workers and international students

The designated official is responsible for verifying the temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form and ensuring that, to the best of their knowledge, such information is accurate and complete.

An international student who has a requirement to examine, possess or transfer controlled goods over the course of their studies must be exempt from registration, as defined in section 1 of the Controlled Goods Regulations. A security assessment will be conducted by the program in accordance with section 15 and section 19 of the Controlled Goods Regulations.

The registrant responsible for submitting the application to the program on behalf of the international student will depend upon the location of the research or the type of work the student is undertaking. The possible scenarios are as follows:

• international students who are under the supervision of an individual employed at a registered business and have a requirement to examine, possess or transfer the controlled goods located at that registered business, are the responsibility of its designated official(s)
  • the designated official from the registered business will submit temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) on behalf of the student, to the program
  • examples of such situations include co-ops, internships, an on-site thesis research study or similar arrangements
• international students who are under the supervision of an individual employed at a registered educational institution and have a requirement to examine, possess or transfer controlled goods located at that registered educational institution, are the responsibility of its designated official
  • the designated official from the registered educational institution will submit the temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form to the program, on behalf of the student

3.7 Domestic students

A designated official should treat a domestic student accessing controlled goods under their authority, who is a Canadian citizen or permanent resident, as an employee. Any domestic student who is on a paid internship with a registrant should be treated as an employee if accessing controlled goods.

The designated official responsible for conducting the security assessment of a domestic student depends upon the location of the research or type of work the student is undertaking. The possible scenarios are as follows:

• students who are under the supervision of an individual employed at a registered business, and have a requirement to examine, possess or transfer controlled goods located at that registered business, must be security assessed by its designated official (examples include co-operative programs [co-ops], an on-site thesis research study or similar arrangements)
• students who are under the supervision of an individual employed at a registered educational institution and have a requirement to examine, possess or transfer controlled goods located at a registered educational institution, must be security assessed by the designated official of that educational institution
• students who are engaged in a joint project, which may involve the requirement to examine, possess or transfer controlled goods located at both a registered business and a registered educational institution, may be security assessed by either the designated official from the educational institution or the designated official from the business. The designated official who has not conducted the security assessment may reassess the student

3.8 Owners

Individual owners, with 20% or more of the outstanding voting shares or interests of the business, are security assessed by the program and not by the designated official. A completed security assessment application (PDF, 436KB) form, along with the required supporting documentation, must be submitted to the program. This is mandatory for all new registrations and is submitted along with the application for registration (PDF, 592KB) form.

In the case of a renewal application, if an owner has been security assessed and the security assessment has not reached the 5-year expiry date, the owner’s security assessment application will not be required. If there are ownership changes for a registrant, the security assessment application for the new owner(s) must be submitted along with the application for registration form.

3.9 Confirming completeness

Once the security assessment application form has been completed by an individual, the designated official will review the application to ensure that all of the information requested has been provided. A section may be marked “n/a” (not applicable) if it is not applicable to an individual. If the application is considered incomplete, the designated official must obtain the missing information from the applicant. In order to complete a security assessment, the designated official must ensure that the applicant has provided all the information requested in the application as well as all supporting documentation.

The following provides a list of all supporting documents required as part of the security assessment process:

• a completed security assessment application (PDF, 436KB) form
• 2 pieces of government-issued identification (at minimum 1 must be valid photo ID)
  • as proof of citizenship, a photocopy is acceptable (for example, birth certificate, passport or permanent resident card)
  • as proof of current address, a photocopy is acceptable (for example, driver’s licence, government-issued document with address, gas or hydro bill)
• either a certified criminal record check based on fingerprints or a name-based criminal record check verified against the Royal Canadian Mounted Police (RCMP)'s Canadian Police Information Centre (CPIC) system
• credit check report (if requested)

After completing the security assessment, the designated official makes a record using the security assessment summary by designated official conducting a security assessment of an employee, director or officer (PDF, 180KB) form, which includes the assessment summary, recommendation and conclusion of the security assessment. This form and the supporting documentation are to be kept in the individual’s security assessment file.

4.1 Biographical information

Biographical information, as requested in section E of the security assessment application (PDF, 436KB) form, must be verified by the designated official. The designated official must verify the identity of the individual and the place of residence by inspecting 2 pieces of government issued identification such as a driver’s licence or passport. One of the pieces of identification must bear a photo of the individual. A legible copy of all verified documents must be kept on file.

4.2 Residential history

In documenting places of residence over the last 5 years, an applicant must ensure there are no gaps in residential history and that the complete history is provided. The designated official will look for indications of stability, reliability and consistency.

4.3 Employment and educational history

Employment history assists in determining reliability, based on current and previous employment and in conjunction with educational qualifications, to assist in determining whether the individual is being truthful about their background and employment and qualifications.

4.4 Travel history

In reviewing this section, the designated official must consider the frequency of travel, the length of the travel and the locations and countries visited.

4.5 Financial risk

Details for the assessment of possible financial risk are contained in the risk matrix; however, it should be noted that while credit checks are not mandatory for all assessments, there are instances when a credit check report will be required to complete the security assessment.

4.6 Criminal history

While a certified criminal record check based on fingerprints is mandatory for the security assessment of a designated official, a name-based criminal record check verified against the RCMP's Canadian Police Information Centre (CPIC) system is sufficient for officers, directors and employees. A check must be made for every name used by the individual in their lifetime (for example, maiden name, married name, anglicized names and transposed names). For that reason, a fingerprint report may be a less cumbersome and inexpensive method of obtaining the necessary report.

4.7 Personal references

To verify the information in the application, the designated official should contact at least 2 of the individuals identified as personal references. Contacting these references will allow for a basis of comparison and an opportunity to identify potential discrepancies in the information provided.

Immediate family members cannot be used as references. Immediate family members are defined as:

• spouse or common-law partner
• father
• mother
• parents-in-law (parents of the spouse or common-law partner)
• children (including adopted children, stepchildren and children of a common-law partner)
• siblings (including adopted siblings and stepsiblings)
• cohabitants

Appropriate personal references that may be used by an individual include friends, co-workers or business acquaintances.

4.8 Extent of posing a risk of unauthorized transfer

The designated official is required to assess the extent to which the individual being security assessed poses a risk of transferring a controlled good to an unauthorized company or individual. This determination can be made using the risk matrix.

In consideration of all information provided, the designated official will determine the risk threshold and make a decision to grant or deny access to controlled goods. For a risk threshold of moderate, the designated official may forward the completed security assessment application (PDF, 436KB) form to the program for further assessment of the results, whereas for a result of high, forwarding the completed security assessment application form to the program is mandatory. This will be explained more in-depth in section 5. Referrals to the Controlled Goods Program.

11.1 Submitting an application for a visitor exemption

A registrant must submit the visitor exemption application for security assessment and exemption from registration (PDF, 291KB) form to the program with respect to each visitor travelling to a place of business where controlled goods are kept, and who, in the course of their visit, will access controlled goods. The designated official is responsible for verifying the form and ensuring that, to the best of their knowledge, such information is accurate and complete.

The visitor application for security assessment and exemption from registration form must include the following:

• name of the registrant (such as business name)
• registered site address where the visit is taking place
• full name, all nicknames and previous names, date of birth, citizenship and complete residential address of the visitor
• name, address and website of the visitor’s employer
• a description, including the country of origin if other than Canada, of the controlled goods that the visitor will examine, possess or transfer, including the Controlled Goods List group and item number
• expected duration of the visit
• purpose of the visit and description of the situation in which the visitor will examine, possess or transfer controlled goods
• information regarding a current valid export permit between the registrant and the visitor’s employer with respect to the controlled goods that will be examined, possessed or transferred (if applicable)
• a statement, signed and dated by the designated official, stating that the individual for whom the exemption is being sought meets the requirements of the definition of a visitor
• a statement, signed and dated by the designated official, stating that the individual for whom the exemption is being sought that, to the best of their knowledge, the information contained in the application is true, complete and correct
• signed consent to a security assessment from the visitor

The designated official is responsible for ensuring the visitor, for whom an exemption is being requested, meets the definition of a visitor and the information contained in the application is true, complete and correct. The designated official and the program must be able to verify the veracity, completeness and accuracy of the information provided in the application for exemption from registration for it to be considered valid.

For the purpose of determining the extent to which a visitor poses a risk of transferring controlled goods to a person who is not registered or exempt from registration, the program will conduct a security assessment of the visitor prior to deciding whether or not to exempt an individual under the act and the regulations.

The registrant must inform the program, within 5 business days, of any change to the information given in the application for visitor exemption, in particular, if the visit is to be extended to other sites, prolonged or if there are additions or changes to the controlled goods which the visitor will be examining, possessing or transferring. The visitor application for security assessment and exemption from registration form must be used for this purpose.

11.2 Granting an exemption certificate for visitors

As required by regulation, it is the responsibility of the registrant to provide the visitor with a copy of the certificate of exemption (including any limiting conditions). The registrant nonetheless remains responsible at all times for the application of the conditions of exemption, as well as the security of the controlled goods in their possession.

Subsection 39.1(2) of the Defence Production Act allows the program to set any conditions that, in its opinion, are appropriate. Such conditions shall be stated in the certificate of exemption. A certificate of exemption is assigned to a specific individual and it may not be transferred or in any way used by any other individual.

11.3 Period of validity of a visitor’s certificate of exemption

The period of validity of a certificate of exemption is determined by the program during the vetting process of the application. This period of validity will be primarily determined by the following 3 factors:

• reason for the visit
• extent of the visit
• anticipated future requirements for visits

The maximum period of validity is for a period not exceeding 3 years from the date of approval as set out in section 23 of the Controlled Goods Regulations. In order to renew a certificate of exemption, the registrant must submit a new visitor exemption application for security assessment and exemption from registration (PDF, 291KB) form to the program.

11.4 Recurring visits

As long as the certificate of exemption is valid, the individual visitor may leave and return for subsequent visits to the same site and to access the same controlled goods. A certificate is valid only for the visitor named in the certificate for the declared duration, purpose and controlled goods. For a visit to a different site of the registrant or to access a different controlled good (or to extend a visit), it is the registrant's responsibility to inform the program prior to the change of site and to confirm the continued validity of the exemption with the program either through a new application or an amendment to the existing one, as appropriate.

11.5 Records of visitors

A visitor is eligible for an exemption from registration in the program only if a registrant submits an application on their behalf to the Controlled Goods Program and the visitor consents to a security assessment.

The registrant must keep the most recent records, including supporting documentation, of all visitors who will examine, possess or transfer controlled goods at the registrant’s place of business and records of transfer of controlled goods. Records of visitors should be kept during the period of registration and for a period of 2 years after the day on which the individual in question ceases to act in that capacity.

The record may include, but is not limited to, the following supporting documents:

• copy of the visitor exemption application for security assessment and exemption from registration (PDF, 291KB) form
• copy of the certificate of exemption from registration for a visitor
• copy of security assessment documentation submitted to the Controlled Goods Program (if applicable)

12.1 Submitting an application for a temporary worker or international student exemption

Designated officials must submit the temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form to the program for each temporary worker or international student.

The registrant must inform the program, within 5 business days, of any change to the information given in the temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form, in particular if the temporary worker’s or international student’s assignment is to be prolonged, extended to other sites or includes additional controlled goods. The temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form must be used for this purpose and must include the following:

• name and address of the registrant (for example, business name)
• full name, date of birth and citizenship(s) of the temporary worker or international student
• worksite address in Canada where the temporary worker or international student will examine, possess or transfer controlled goods
• evidence that the temporary worker or international student may be lawfully employed in Canada (for example, work or study permit issued by Citizenship and Immigration Canada)
• in the case of study permit, a document from the academic institution at which they are authorized to study indicating that the work they are doing for the registrant is integral to those studies
• expected duration of the temporary worker’s or international student’s employment
  • an exemption may be granted for a maximum of 3 years and cannot exceed the date on which the temporary worker or international student may be lawfully employed in Canada, that is, the date of expiry date on the work or study permit
• description, including the country of origin if other than Canada, of the controlled goods that the temporary worker or international student will examine, possess or transfer
• statement signed and dated by the designated official stating that the individual for whom the exemption is being sought meets the requirements of the definition of a temporary worker or an international student and, to the best of their knowledge, the information contained in the application is accurate and complete

The temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form must include the following:

• type of application (new or reassessment)
• preferred language of correspondence
• registrant’s business information
• description of the controlled goods that the temporary worker or international student will examine, possess or transfer, including the Controlled Goods List group and item number
• a Privacy Act statement, signed and dated by the designated official
• consent to a security assessment (including its use by credit agencies) signed and dated by the temporary worker or international student
• full name, date of birth and citizenship(s) of the temporary worker or international student
• for the 5-year period immediately before the date of the temporary worker’s or international student’s consent to a security assessment, a complete history with no gaps including^{Footnote 2}:
  • residential history (note: there should be no gaps)
  • education and employment history (note: there should be no gaps)
  • criminal history (original of certificate of good conduct from each country the temporary worker or international student resided in for more than 6 consecutive months)
  • travel history
  • personal references (note: this should include the full residential address for each reference use; personal reference cannot be a co-habitant or family member)
• information regarding any valid security clearance the temporary worker or international student may be holding (if applicable)
• information regarding the temporary worker’s or international student’s credit history as requested

Submit all applications by email to tpsgc.ssidmcura-isscgdiau.pwgsc@tpsgc-pwgsc.gc.ca^{Footnote 1}.

12.2 Granting an exemption certificate for a temporary worker or international student

Subsection 39.1(2) of the Defence Production Act allows the program to set any conditions it deems appropriate. Such conditions shall be stated in the certificate of exemption or as a matter of general published policy. Subsection 21(2) of the Controlled Goods Regulations specifies that it is the responsibility of the registrant to provide the temporary worker or international student with a copy of the certificate of exemption within 1 business day, including any limiting conditions. Even after the temporary worker or international student has been granted a certificate of exemption, the registrant remains responsible for the application of the conditions of exemption as well as for the security of the controlled goods in their possession.

A certificate is valid only for the temporary worker/international student named in the certificate, for the period specified on the face of the certificate and for access to the controlled goods detailed in the temporary worker or international student application for security assessment and exemption from registration (PDF, 891KB) form. A certificate of exemption is assigned to a specific individual; it may not be transferred or used in any way, by any other individual or registrant.

12.3 Period of validity of a certificate of exemption for temporary workers or international students

The period of validity of a certificate of exemption is determined by the program during the vetting process of the application. This date will be primarily determined by the following 2 factors:

• validity of work permit or study permit and passport
• length of employment period as set out in the application

The maximum period of validity is 3 years from the date of approval, as set out in section 23 of the Controlled Goods Regulations. In order to receive a new certificate of exemption from registration, the registrant must submit a new application for reassessment.

12.4 Recurring assignments

As long as the certificate of exemption is valid, the temporary worker or international student may leave and return to the same site to access the same controlled goods for the same purpose as set out in the application for exemption. Any change to the information provided in support of an application for exemption must be communicated to the program within 5 business days. If the registrant assigns the temporary worker/international student access to different controlled goods or extends the duration of employment, it is the registrant’s responsibility to inform the program prior to the change and to confirm the continued validity of the exemption with the program, either through a new application or an amendment to the existing one as appropriate.

12.5 Records of temporary workers or international students

The registrant must keep records and supporting documentation of each temporary worker international student who examines, possesses or transfers controlled goods at the registrant’s place of business.

The record must include, but is not limited to, the following supporting documents:

• application for exemption
• completed security assessment application
• certificate of exemption
• copy of work or study permit

13.1 Individuals registered under the United States International Traffic in Arms Regulations

Specifically with respect to officers, directors or employees of persons registered under the International Traffic in Arms Regulations (ITAR), an individual is exempt from registration from the day on which they provide the following evidence to the registrant from whom they will obtain access to controlled goods:

• evidence of the individual’s status as director, officer or employee of the person registered under the ITAR
• evidence of the registration and eligibility of the ITAR registrant under the ITAR
• evidence of the eligibility of the individual under the ITAR

Eligibility means not debarred or suspended under the ITAR and therefore able, under the ITAR, to participate directly or indirectly in the export or import of defence-related articles, including technical data or in the furnishing of defence services for which a licence or approval is required.