Yesterday, we published “The ABCs of Canada’s Export Controls and Economic Sanctions Laws – Part 1”.  Today, we are providing the second part of the blog post.

M = Minister Approvals = Canada’s Minister of International Trade and/or the Minister of Foreign Affairs may issue a Ministerial Authorization to permit certain transactions with designated persons (or persons who are not designated persons) in sanctioned countries even if the transaction would otherwise be prohibited.  A Ministerial Approval must be obtained prior to the export and should not be sought in order to correct an infraction.

N = Nuclear Non-Proliferation – Canada imposes export controls and economic sanctions in order to contain and prevent the proliferation of nuclear weapons.

O = Origin – The origin of goods to be exported from Canada may be relevant.  Certain goods of U.S. origin require an export permit prior to export from Canada.  Canada has a bilateral arrangement with the United States that requires Canada to ensure that U.S. controlled goods are not shipped from Canada in order to circumvent U.S. export controls and economic sanctions rules. Some goods require a specific export permit and other goods may be exported pursuant to General Export Permit No. 12.

P = Permits – An exporter of controlled goods must obtain an export permit from the Trade Controls Bureau prior to exporting the goods.

Q = Quotas – Certain goods, such as softwood lumber are subject to export quotas.

R = Registration – Canadian companies may be required to register with the Controlled Goods Directorate of Public Works and Government Services Canada with respect to domestic transfers of certain controlled goods on Canada’s Export Controls List.  Companies are required to maintain a security plan, undertake security assessments of employees who are involved with controlled goods, appoint a designated officer and maintain detailed records concerning inbound and outbound transfers of controlled goods, including technical data sheets.

S = Sanctions – Canada imposes multi-lateral and unilateral economic sanctions against a number of countries,

T = Trade Controls Bureau – The Trade Controls Bureau (TID) of the Foreign Affairs, Trade and Development Canada administers Canada’s export controls and economic sanctions laws.

U = Unilateral Sanctions – Canada may choose to impose unilateral sanctions against a country in order to send a message that Canada does not agree with that country’s activities.  Unilateral sanctions may be imposed in addition to or to supplement sanctions imposed by the United Nations Security Council.

V = Vigilance = Exporters must exercise vigilance to ensure that they are in compliance with Canada’s export controls laws (and the laws of other countries and some laws have extra-territorial application).  The first step is to establish internal policies and controls.

W = Wassenaar Convention – Canada is a signatory to the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (the Wassenaar Arrangement). The Wassenaar Arrangement is a voluntary multilateral export control regime established by 41 countries with a view to regional and international security and stability, transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies. The List of Dual Use Goods and Technologies is updated from time to time (usually based on Plenary Meetings).

X = XO – XO means executive officer.  Any compliance program must have the support of executive officers in order to be successful.

Y = Yellow = Anyone engaged in export activities or dual use goods or U.S. Origin goods must exercise caution.

Z = Zimbabwe – Zimbabwe and many others countries are the subject of regulations pursuant to the Special Economic Measures Act and the United Nations Act.