How is one violating the US Arms export act?
Step 1: become familiar with the difference between 'transporting' and 'exporting'.
Step 2: be aware this is a discussion of a potential violation of US statute (specifically 22 U.S.C. 2778), and has nothing to do with Canadian laws.
Step 3: Read and understand 22USC2778. Reading the statue is easy. It can be found here:
http://uscode.house.gov/search/criteria.shtml Understanding how the law is applied is harder, and you will need an attorney who specializes in items subject to 22USC2778 to explain that to you. Bring your check book.
Or, you could just take Ken's word for it. It's Ken's business, and he has a very keen understanding of the issues.
Your call.
