Export Controls & Economic Sanctions

Most Canadian export controls and controlled goods compliance programs are built with the assumption that relevant employees who have access to controlled goods and technical data will be working in an on-site work environment and use work computers and in-house servers where information is securely stored with access and release restrictions and where work-related activities

On April 16, 2020, the Government of Canada issued Notice to Exporters Serial 992 “Notice to Exporters – Export of items listed on the Export Control List to Turkey” in which Canada announced that it will presumptively deny any new export permit application with respect to military goods on the Export Control List where the

During the COVID-19 global pandemic, an important humanitarian issue has arisen for individuals (friends and family), companies, and non-governmental organizations.  Many Canadians and residents in Canada have asked whether they can export humanitarian goods (including personal protective equipment (“PPE”)) to countries against whom Canada has imposed sanctions (called “Sanctioned Countries”). Canada clearly exempts humanitarian activities.

On April 1, 2020, the Government of Canada published in the Canada Gazette “An Order Amending the Export Control List”, SOR/2020-48 (P.C. 2020-140).  This Order takes effect on May 1, 2020. The objective of this Order is to implement the Government of Canada’s arrangements, commitments and policies resulting from Canada’s participation, up until

Persons who are registered with the Controlled Goods Directorate must notify the Minister of Public Services and Procurement of any actual or potential data breach within 3 days of discovery of the breach.  Since the requirement includes potential data breaches, Controlled Goods Registrants should report any hacking incidents, potential data breaches, employees taking company data,

On October 15, 2019, Global Affairs Canada informed reporters that new export permits of military equipment and technology and brokering permits in respect of goods destined for Turkey would not be approved.  There was not a formal Notice of Exporters (possibly because Canada’s federal election campaign was underway – election was held on October 21st).

Canadian companies whose business operations involve Controlled Goods must report changes to their Controlled Goods Directorate registration before an acquisition. This means that companies and their in-house and outside lawyers must ensure that the closing checklist includes the Controlled Goods Directorate reporting requirement. The due diligence checklist should also include questions about Controlled Goods registrations

Canada has implemented economic sanctions to suppress international terrorism under three complimentary legal mechanisms:

1. The United Nations Al-Qaida and Taliban Regulations, imposed pursuant to the United Nations Act;

2. The Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism, also imposed pursuant to the United Nations Act; and

The use of cannabis is legal in Canada. The Cannabis Act, Bill C-45, was passed by Canada’s House of Commons on November 27, 2018 and the Senate on June 7, 2018.  Bill C-45 received royal assent on June 21, 2018.  Most provisions of the Cannabis Act entered into force on October 17, 2018.

It has been a busy year in Canada for export controls and economic sanctions developments. As a result, we are posting an H1 2019 report. The top 10 developments in H1 2019 are:

1. Canada will implement the brokering rules on September 1, 2019. Bill C-47 “An Act to amend the Export and Import Permits