The us government requires notification of updates or modifications to strong encryption software already made publicly available when the original method for notification had been submission of a copy of the. This must be explicitly stated, not just implied by being available for public ftp. Major changes to canadas export and technology transfer. All items listed by the australia group, missile technology control regime, nuclear suppliers group, and wassenaar arrangement are subject to export control in canada. Hiring foreign software developers to assist in developing the software, even where the software is hosted on a server in canada and accessible only by vpn. Further, the available exemptions for mass market items and technology and software in the public domain may. Canadian export controls on encryption products and. When you leave the united states, you need to know your responsibilities under export control regulations.
Canadian export controls on en cryption category 1150 of group 1 of canada s export control list ecl controls essentially the same encryption items that are controlled in the united states. Endtoend encryption and a new understanding of technology. Closed source information security software that defines or uses cryptography, regardless of whether the linked crypto software is open source or not. Since world war ii, many governments, including the u. If your product is what is called a mass market product, i. In general, the restrictions apply even if the software is widelydisseminated or publicdomain and even if it came from outside the us originally. Section 1150 of the ecl, controls the export of technologies dealing with information security. Countries may wish to restrict import of cryptography technologies for a number of reasons. Are items that are just using open source encryption software specified by category. Legal restrictions on cryptography web security, privacy. On june 3, 2016, the commerce departments bureau of industry and security bis and the state departments directorate of defense trade controls ddtc both published in the federal register final rules updating a number of definitions in the export administration regulations ear 81 fed. Encryption software, however, is generally controlled based on the level and type of encryption involved and will generally be controlled under unique encryption export rules, even if it is incorporated into another item.
The minister of foreign affairs, pursuant to subsection 71. New developments in canadian export controls on encryption. Export permits must be applied for and obtained in order to export information security items or transfer any related technology from canada to destinations other than the united states. It is legal to export canadian software, even cryptographic software, which has no restrictions on distribution public domain software. Closed source or open source software that is even remotely related to the study or production of physical materials that you require an export permit for. Export from us of crypto software with keysize 56 bits. The export of cryptographic technology and devices from the united states was severely restricted by u. For the complete and current list of cryptographic applications, see ear controls for items that use encryption. The following are excerpts from that list regarding the export of cryptography from canada.
Items on the list must generally be authorised by an export permit before they can be exported from canada, and include certain forms of cryptography. Department of commerces bureau of industry and security bis under the export administration regulations the ear. Canadas export requirements for cryptographic items to ensure public safely, the global affairs canada gac will continue to enforce cryptography controls. Certain software products employing digital techniques for encryption of data are subject to export controls in the eu member states pursuant to community law and relevant laws in the member states. The export control list, which is included in a guide to canadas export controls, identifies specific goods and technology that are controlled for export from canada to other countries. Export control issues for companies using encryption software february 2011 u. Strong encryption and us person technical assistance.
Crypto has long been a major issue in export controls, and one. The export control list is divided into the following seven groups. Its true open source encryption software falls under cryptographic goods. Canadas export controls electronic frontier canada. Export permits for cryptographic items global affairs canada. Canada does not restrict or control the import, production or use of any strength of cryptographic products within canada. For those in the arms control world however, export controls can be considered a useful tool in constraining the general inclination of governments and defense manufacturers to sell weapons and. The wassenaar arrangement controls the export of weapons and of dualuse. Export controls for software companies what you need to.
Goods on the list require a license from the minister of foreign affairs. Under canadian export controls, cryptography is considered a. Export controls for software companies what you need to know. Last month, for the first time since us export restrictions on cryptography were relaxed over a decade ago, the us government has fined a company for exporting crypto software without a license. Canada s export control list identifies the goods and technology covered by these requirements, and imposes a very low threshold of control encryption with key lengths in excess of 64 bits in the case of symmetric algorithms.
Canada does not currently restrict or control the import, production or use of any strength of cryptographic products within canada. Decrypting canadian export controls on cryptography part 1. Cryptography controls are outlined in category 5 part 2 information security of group 1 the dualuse list. Canada has made important changes to the export control. It is promulgated under the authority of the export and import control act of canada.
As a participating state of the wassenaar arrangement, australia has an international obligation to strengthen its export controls on the transfer of sensitive technology, including the overseas transfer of certain encryption related technology. A common scenario for trouble is where a startup software company incorporates publicly available encryption functionality into its product. This label is part of microsoft s software channel distribution policies. The export control list, which is included in a guide to canada s export controls, identifies specific goods and technology that are controlled for export from canada to other countries. We encounter encryption when we withdraw cash from an atm or bank or shop online. Oct 20, 2010 canada issues new guidance on encryption controls october 20, 2010 on october 19, 2010, the export controls division of foreign affairs and international trade canada ecd released new information on its policies regarding the application for and granting of permits for the export or transfer of information security goods, software and technology. Notification after transmission or transfer of the software outside the us is an export control violation. For this purpose, technical specifications of the export must be detailed and adequately describe the characteristics of the goods and services. Canada issues new guidance on encryption controls mccarthy. Export controls is a term for the various legal rules which together have the effect of placing restrictions, conditions, or even wholesale prohibitions on certain types of export as.
Sep 08, 2016 data protection, cybersecurity, commercial confidentiality and personal privacy all demand high standards of security. The changes to both the export control list and the export controls guide are not taking place in a vacuum. Anything that deals with cryptography, cryptanalysis, or. These controls are agreed globally in the framework of the socalled wassenaar arrangement. Encryption over a given strength, no matter where and how you sourced it, is controlled for export in canada and makes your overall product subject to export permitting. Exporting software and technology abroad controls on. In the us, the export, re export, and incountry transfer of controlled goods, software, and technology dualuse items are controlled by a branch of the us department of commerce known as the bureau of industry and security through the export administration regulations ear. Modern laws around export controls regarding cryptography depend on a vector of issues. Mar 11, 2010 yesterday, foreign affairs and international trade canadas export controls division ecd launched its consultation on the international interpretations of the wassenaar arrangement cryptography note by wassenaar arrangement participating states. World map of encryption laws and policies global partners. Jul 16, 2010 the export controls division of foreign affairs and international trade canada ecd has launched another consultation with industry regarding the control of encryption goods and technology for export or transfer from canada.
In this section, well examine restrictions that result from patent law, trade secret law, importexport restrictions, and national security concerns. It may come as a surprise that sharing software that performs or uses cryptographic functions on a public website could be a violation of u. Cryptography is legally a munition and export is tightly controlled under the ear export administration regulations. Export control list the canadian export control list controls the export of goods from canada. In addition to regulating the export of encryption code, the ear also regulates us person activity with respect to strong dualuse encryption software and hardware.
The complete text of the export control list is published in the guide to canada s export controls. However, canada does have export commitments pursuant to the wassenaar arrangement, a 33nation international protocol which restricts the export of hardware and some software cryptography products, and products that use cryptography. Export to seven friendly countries australia, canada, japan, new zealand. Category 5, part 2 of the bureau of industry and securitys bis commerce control list ccl sets forth these restrictions. Imported cryptography may have backdoors or security holes e.
If your app calls, supports, contains, or uses cryptography or encryption for any task that is not in this list, it needs an export commodity classification number eccn. Within the european union, most items incorporating encryption are classified as dualuse goods when not military items and are subject to export control. Exporting software and technology abroad controls on ancillary. Designed or modified to use cryptography employing digital techniques ensure. Export control issues for companies using encryption software. Canadian sanctions against specific countries, individuals and entities associated with terrorist activities. Anything that deals with cryptography, cryptanalysis, or detecting bugs is controlled. The export controls guide lists goods and technology that are subject to canada s exports restrictions and for which an export permit is required. Federal register encryption export and reexport controls. Us law us laws, as currently interpreted by the us government, forbid export of most cryptographic software from the us in machinereadable form without government permission. Section 3 of the export and import permits act allows the government to establish an export control list, setting out restrictions on the export of certain articles.
Item 1151 controls cryptographic systems, equipment and components. The canadian export licensing authority is global affairs canada. To that end, canada enacted the export and imports permits act the eipa. Canadian government launches consultations on encryption. Government because of national security concerns and the need for secure government communications and intelligence gathering. Regulation of cryptographic controls cryptographic controls should be used in compliance with all relevant agreements, legislation and regulations. Export restrictions on cryptography uwp applications. Importing and exporting drugs, human pathogens and toxins and. For export control purposes, software is defined as a collection of one or more programs or microprograms fixed in any.
An export permit issued for software will generally include the version. Within the eu, french authorities extend control of encrypted items beyond the export process to import as well. While the controls were eventually changed, the crypto wars have shaped how many software engineers and open source advocates view export controls. Take time early on to familiarize yourself with canadas export controls and. It is not specifically related to export controls on encryption software.
These are items designed to work with encryption but encryption is not their primary function. Is it legal to export opensource cryptographic software. You need a permit to export most cryptographic software. Export controls have something of a bad reputation in technology circles, and for good reason. Encryption controls have been a challenge for many canadian software and hardware vendors. Excerpts from the export control list of canada openbsd. Whether by electronic download or through the physical transfer via cdrom or flash drive, the release of software may require an export control license from the u. In recent years the legal restrictions on cryptography in the united states have largely eased, while the restrictions in other countries have increased somewhat. International agreements on the control of cryptographic software summarized in table 43 date back to the days of cocom coordinating committee for multilateral export controls, an international organization created to control the export and spread of military and dualuse products and technical data. In december 1996, canada granted export of 56bit cryptography to most countries for a twelvemonth trial period. Ukeu export controls on encryption products lexology.
As an aside, if you export only to the us, and your products or technology are not reexported to an enduser in a third country, you dont need a permit except for some very specific. The export controls division undertakes a technical assessment of the goods or technology listed in the export permit application to determine under which export control list items they fall. Without us government approval, us persons are prohibited from providing technical assistance i. The crypto wars were about draconian policies regulating how people could buy, sell and use cryptography which prevented people from being able to employ encryption techniques and technologies to protect their information and communications. The idea is that once countries decide that strong cryptography must be regulated within their borders, these countries make deals with other countries so that those other countries do not recklessly export strong cryptographic products, neither to them, nor to third parties who are deemed. Last month, for the first time since us export restrictions on cryptography were relaxed over a decade ago, the us government has fined a company for exporting crypto software without a license news article no one knows what this means tags. Overview of cryptography and the defence trade controls act 2012. Export controls and requirements, certificates and permits, excise taxes, sanctions and prohibited goods.
A summary of canadas export controls on cryptographic software. What is the software license of the original piece using the crypto. Export regulations are the offspring of international treaties, in particular the wassenaar arrangement. Restrictions on the import of cryptography wikipedia. In particular if you are traveling with your laptop or any other electronic devices these items along with the underlying technology, any data on your device, proprietary information, confidential records, and encryption software are all subject to export control. The export control list ecl describes goods and technology that are. Her excellency the governor general in council, on the recommendation of the secretary of state for external affairs, pursuant to section 6 of the export and import permits act, is pleased hereby to revoke the export control list, c. Many nations restrict the export of cryptography and some restrict its use by their citizens or others within their borders. If you dont have an eccn, see eccn questions and answers. In what will come as welcome news to canadian tech companies, canada is planning on easing export controls over ancillary encryption. Canadas export requirements for cryptographic items. What is the classification of windows operating system in eu. Cryptography is treated as a critical technology and is closely regulated by the u. The following items must be considered for compliance.
Export import controls canada follows predecember 1998 wassenaar regulations. Electronic encryption source code, such as on a flash drive or in a cloud drive, are subject to the ear. An export permit is required for some cryptographic goods as well as goods with cryptographic components i. Windows is eligible for the general mass market crypto note to category 5, part dual use controls international. Despite the legal victory in the bernstein case, open source software with encryption remains subject to u. Canadian controls over the export or transfer of goods, software and technology containing or designed to work with encryption continue to present challenges for canadian companies. Complying with encryption export regulations apple. Restrictions on import or export of computer hardware or software used to perform cryptographic functions or are designed to have. Export of cryptography from the united states wikipedia. Why does canada control cryptographic items for export.
Permits for exporting controlled cultural property from canada. Is it legal to export opensource cryptographic software from. The export of items from canada may be subject to restriction if they are included on the export control list. License exception enc authorizes export, reexport, and transfer incountry of systems, equipment, commodities, and components therefor that are classified under eccns 5a002, 5b002, equivalent or related software and technology therefor classified under 5d002 or 5e002, and cryptanalytic items classified under eccns 5a004, 5d002 or 5e002. Exporting software and technology abroad controls on ancillary encryption to be liberalized august 02, 2010 in what will come as welcome news to canadian tech companies, canada is planning on easing export controls over ancillary encryption items. Canadas export control list identifies the goods and technology covered by these requirements, and imposes a very low threshold of control encryption with key lengths in excess of 64 bits in the case of symmetric algorithms. The balance seems to be that if canada already controls a given u. This guidance is provided to assist exporters to make their own assessment on the application of the cryptography note note 3 to category. The new agreement which regulates export of cryptography internationally is called the wassenaar arrangement.
Canada s export requirements for cryptographic items to ensure public safely, the global affairs canada gac will continue to enforce cryptography controls. Both delivery methods can qualify as an export under the ear. United states origin goods are controlled for reexport from canada under item 5400 of group. Note 4 to category 5, part 2 in the commerce control list supplement no.
Furthermore, encryption registration with the bis is required for the export of mass market encryption commodities, software and components with encryption exceeding 64 bits 75 fr 36494. Permits are not required to export cryptography and information security goods. On october 19, 2010, the export controls division of foreign affairs and. Eligible destinations include all countries within the european union except cyprus, australia, japan, new zealand, norway and switzerland. We are a member of the 33nation wassenaar arrangement under which we are obliged to control the export of hardware and some software cryptography products, as well as products that use cryptography. If your app uses, accesses, contains, implements, or incorporates encryption, this is considered an export of encryption software, which means your app is subject to u. To be eligible for export and reexport under this paragraph b, encryption commodities, software and components must qualify for mass market treatment under the criteria in the cryptography note note 3 of category 5, part 2 information security, of the commerce control list supplement no. The export controls list ecl specifies goods which require a permit to export. Export of encryption software is still regulated chiefly by the department of commerce regime for dualuse goods and violations of those regulations are enforced.
Export controls compliance foss cryptography is a powerful tool for protecting the confidentiality, integrity, and authentication of information against even the most capable. However, ive been in the unfortunate position where ive had to deal with this legal nightmare. The government of canada conducted consultations with stakeholders in 2014 and 2015. Canadian government undertaking industry consultations on. Nevertheless, the lower burdens on export have opened the door for millions of people around the world to benefit from higher security. Our computers and cell phones, as well as the software programs that run on them, employ multiple encryption features. Category 5 part 2 of canadas export control list identifies information security items that require a permit in order to be exported from canada to destinations other than the united states. This list does not embargo software which is either.
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