Canada-U.S. Blog Trade Lawyers Cyndee Todgham Cherniak and Susan K. Ross

Tag Archives: export controls

What We Have is a Failure to Communicate: Computer Programmers Should Not be Expected to Know Customs and Trade Compliance

Posted in AMPs, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Export Controls & Economic Sanctions, Exports, GST/HST, Imports Restrictions, origin, Sales Taxes, tariff classification, Tax, valuation

This is a common problem – too common.  The people in the company responsible for customs and trade compliance do not work closely with the computer programmers as software is being developed — and mistakes are made.  The computer programmer does his or her job in preparing the code, but does not have any knowledge… Continue Reading

Should Canada add a books and records provision to export controls and economic sanctions laws?

Posted in Border Security, Canada's Federal Government, Corporate Counsel, Cross-border trade, Cryptocurrencies, Export Controls & Economic Sanctions, Exports, FCPA/Anti-Corruption

Countries, such as North Korea, Iran and Russia, may attempt to hide activities by using cryptocurrencies (such as Bitcoin). While the underlying activity of selling controlled goods or dealing with designated persons is illegal (under Canadian export laws) without an export permit/ministerial authorization, a secondary issue is enforcement.  Enforcement tools directed at “following the money”… Continue Reading

You need an export permit to export certain recyclables and scrap products from Canada to China

Posted in Canada's Federal Government, Cross-border trade, Export Controls & Economic Sanctions, Exports

Canada’s export controls go beyond dual-use goods, chemicals, defence and military items, and other goods on the Export Control List.  Canada imposes export controls under a variety of statutes and regulations.  For example, Canada controls exports of cannabis, cultural property, hazardous waste, hazardous recyclable and scrap materials, rough diamond, human pathogens, honey, maple syrup, (the… Continue Reading

Canada Has Many Export Controls/ Economic Sanctions Lists

Posted in Canada's Federal Government, Corporate Counsel, Export Controls & Economic Sanctions, Exports

Canada has made many lists and you may have to look at more than one list before exporting goods.  Which lists you must look at depends upon the destination country, the identity of buyer (including related parties), what specifically you are selling to your buyer (the good and its component parts), and the industry in… Continue Reading

Could U.S. Sanctions Against China Affect Canadian Companies?

Posted in Export Controls & Economic Sanctions, U.S. Federal Government

There are news reports that President Trump is considering imposing economic sanctions against China.  U.S. Ambassador to the United Nations Nikki Haley made comments that suggest that sanctions are on the horizon (not quite imminent, but no longer unrealistic). If the United States imposes economic sanctions against China in response to the perceived/real lack of action… Continue Reading

Canadian Government Export Controls Policies Under A Microscope

Posted in Aerospace & Defence, Border Security, Canada's Federal Government, Cross-border deals, Cross-border trade, Export Controls & Economic Sanctions, Exports, Politics

On July 28, 2017, Global Affairs Canada issued a statement of concern relating to escalating violence in eastern Saudi Arabia. In the Statement entitled “Canada concerned by escalating tensions in eastern Saudi Arabia”, Global Affairs stated: “Canada is concerned by the escalating violence in eastern Saudi Arabia, which has resulted in civilian and security force casualties…. Continue Reading

Canada’s Cabinet Can Impose Unilateral Economic Sanctions Against Venezuela Without Parliament Vote

Posted in Export Controls & Economic Sanctions, Exports

On July 26, 2017, Canada’s Minister of Foreign Affairs issued a Statement “Canada Calls on Venezuela to cancel Constituent Authority“.  The Statement contains two interesting sentences: “Furthermore, Canada welcomes and supports the important actions taken today by the United States to target leaders of the regime. Individuals who are undermining democracy and human rights in… Continue Reading

Don’t Be Surprised If The Components Of Your Good Being Shipped Triggers Export Controls Or Economic Sanctions Concerns

Posted in Export Controls & Economic Sanctions

We often receive calls from small and medium sized businesses who receive word from the Canada Border Services Agency (“CBSA”) that their to-be exported goods have been detained and that the file has been referred to Global Affairs Canada, Export Controls Division for review against Canada’s export controls and economic sanctions laws.  This happens most… Continue Reading

Canada’s Standing Committee on Foreign Affairs And International Development Makes 13 Economic Sanctions Recommendations

Posted in Border Security, Canada's Federal Government, Corporate Counsel, Cross-border deals, Cross-border trade, Export Controls & Economic Sanctions, Exports, Uncategorized

In 2016 and early 2017, Canada’s Standing Committee on Foreign Affairs and International Development (FAAE) reviewed Canada’s Special Economic Measures Act (“SEMA”) and the Freezing Assets of Corrupt Foreign Officials Act.  The SEMA was encted to authorize the Governor in Council (Cabinet) to promulgate unilateral economic sanctions against states, as well as individuals and entities… Continue Reading

Canada Has Made Important Changes To The Export Control List And Export Controls Guide: It Is Time To Update Company Export Controls

Posted in Aerospace & Defence, Border Security, Canada's Federal Government, Controlled Goods Program, Corporate Counsel, Cross-border trade, Export Controls & Economic Sanctions, Exports

On July 12, 2017, the Government of Canada (more specifically, the Governor in Council (Cabinet)) promulgated changes to the Export Control list, which is a regulation.  In the Canada Gazette, Part II, Regulation SOR/2017-139 “Order Amending the Export Control List”  (the “ECL Order”) made pursuant to the Export and Import Permits Act was published.  The… Continue Reading

Canada Releases Notice to Exporters About CETA Light Vehicle Origin Quotas And Then Takes It Down

Posted in Canada-EU CETA, Export Controls & Economic Sanctions, origin

The Government of Canada posted a Notice to Exporters (No. 211) “Vehicles for Export to the European Union and Its Member States (Item 5210 of Canada’s Export Control List)”  (dated May 25, 2017) in which the rules for monitoring Canada-EU Comprehensive Economic and Trade Agreement (“Canada-EU CETA”) new vehicle quotas (for exports to the EU)… Continue Reading

Canada’s Arms Trade Treaty Legislation Will Create Arms Brokering Rules And Change The Export And Import Permits Act

Posted in Export Controls & Economic Sanctions

On April 13, 2017, the Minister of Foreign Affairs introduced Bill C-47 “An Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments)”.  Since then, Bill C-47 has not moved past first reading in Canada’s House of Commons. So, there is an… Continue Reading

Canada Imposes Very Strict/Limiting Export Controls And Economic Sanctions Against North Korea

Posted in Export Controls & Economic Sanctions

North Korea just launched an intercontinental ballistic missile and Canada has unreservedly condemned this action.  It is time for Canadian exporters to review the rules about exporting goods to North Korea – to not take a moment to do so may be regretted.  First, North Korea is on Canada’s Area Control List.  The Area Control… Continue Reading

Global Affairs Canada Tables 2016 Annual Report on Exports In House of Commons

Posted in Aerospace & Defence, Border Security, Canada's Federal Government, Corporate Counsel, Export Controls & Economic Sanctions, Imports Restrictions

On June 20, 2017, Hon. Diane Lebouthiller (Minister of National Revenue) tabled (see page 13032 of Hansard) the 2016 Annual Report to Parliament on the Administration of the Export and Import Permits Act (the “2016 Annual Export Controls Report”)  The Report is required under Standing Order 32(2) and section 27 of the Export and Import Permits… Continue Reading

Canada’s Standing Committee On Foreign Affairs And International Development Amends Canada’s Magnitsky Act

Posted in Export Controls & Economic Sanctions

Canada’s Magnitsky Act is not yet law.  Bill S-226 “Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law)” started as a Senate bill and has passed third reading in Canada’s Senate on April  11, 2017. On April 13, 2017, Bill S-226 passed first reading in Canada’s House of Commons and passed second reading… Continue Reading

Over-Compensation Is An Issue In Export Controls/Economic Sanctions Compliance

Posted in Export Controls & Economic Sanctions

On February 10, 2017, the CBC posted an article entitled “PayPal freezes Canadian media company’s account over story about Syrian family“.  A community newspaper (Flin Flon Reminder) in Canada saw PayPal freeze its account.  What prompted the freeze was the local newspaper entering an article entitled “Syrian family adapts to new life” in an awards competition…. Continue Reading

It Is Best To Sever Ties With Representatives Who Commit Export Controls Infractions

Posted in Aerospace & Defence, Corporate Counsel, Cross-border deals, Cross-border trade, Export Controls & Economic Sanctions, Exports

On February 9, 2017, Stewart Bell wrote an article for the Financial Post entitled “Canadian company investigating branch in Iraq after logo spotted in photos of missile test“. It is never good to see your company name in the news – let alone being associated with a missile test in a country subject to United… Continue Reading

What Is The Canadian Process For Voluntarily Disclosing An Export Controls/Economic Sanctions Mistake?

Posted in Aerospace & Defence, AMPs, Border Security, Canada's Federal Government, Cross-border trade, Export Controls & Economic Sanctions, Exports

Mistakes happen.  While the majority of Canadian companies want to comply with Canada’s export controls and economic sanctions laws, violations can occur.  Often when there is an economic sanctions violation, there is also an export controls violation at the same time.  Sometimes, there are export controls violations without an economic sanction violation. There are three procedures… Continue Reading

Canada’s Two Magnitsky Bills – Will One Get Passed Into Law?

Posted in Canada's Federal Government, Cross-border trade, Export Controls & Economic Sanctions, Exports

At the present time, Canada has two bills (one in the Senate and one Private Member’s bill) that are Magnitsky laws. Senate Bill S-226 “An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights and to make related amendments to the… Continue Reading

Canada’s Minister of Foreign Affairs Has Broad Export Controls Discretion Says Federal Court

Posted in Export Controls & Economic Sanctions, Legal Developments

On January 24, 2017, the Federal Court of Canada issued its judicial review decision in Daniel Turp v. The Minister of Foreign Affairs, T-462-16.  The Federal Court dismissed an application for judicial review of the decision of the Minister of Foreign Affairs to approve an export permit in respect of the export of General Dynamics… Continue Reading

Why Should You Know About Canada’s Export Controls and Economic Sanctions Laws?

Posted in Aerospace & Defence, Border Security, Canada's Federal Government, Controlled Goods Program, Corporate Counsel, Cross-border trade, Export Controls & Economic Sanctions, Exports

I am often asked why export controls and economic sanctions are important.  The simple answer is that if you export a controlled good or export goods to a sanctioned country, your company could become front page news.  If that should happen because your company manufactured and sold goods that are used to kill a Canadian… Continue Reading

What Is An Export Control List Item Number?

Posted in Aerospace & Defence, Cross-border trade, Export Controls & Economic Sanctions, Exports, tariff classification

An Export Control List Item Number (the “ECL Item Number”) is the Canadian identification or classification number that must be provided on export permit applications made under the Export and Import Permits Act and, if the good is subject to economic sanctions, requests for ministerial authorizations. All goods that are subject to Canada’s export controls… Continue Reading

Canadian Companies Should Not Be Duped By North Korea, Which Is Subject To Strict Trade Sanctions

Posted in Canada's Federal Government, Export Controls & Economic Sanctions, Exports

Canadian companies must be careful to not inadvertently breach Canada’s very strict sanctions against North Korea. Most Canadian companies know that almost all dealings with North Korea are either not permitted or that an export permit or ministerial authorization is required.  That is why it comes as quite a shock to learn that not only… Continue Reading