FAQ: Canadian Export Controls - General

1. Who is subject to Canada's export control regime?

Any individual or business who exports a good/software or technology (including technical data, technical assistance) from Canada to another country, regardless of whether the individual or business is the manufacturer of the good or technology.

2. What are the laws and regulations which comprise Canada's export control regime?

• The Export and Import Permits Act:

Establishes an Area Control List which lists certain countries to which no goods or technology may be exported without obtaining a permit from the Export and Import Controls Bureau of the Department of Foreign Affairs and International Trade (DFAIT).

Establishes an Export Control List which lists certain goods and technology that are controlled for export, and for which a permit may be required.

• The United Nations Act:

Canada implements UN Security Council sanctions under the authority of regulations made pursuant to this Act. These regulations prohibit the export of certain goods and technologies, and may also prohibit certain transactions with persons and entities in the countries to which they apply.

Canada has implemented regulations that govern transactions with the following countries/entities: Al Qaida and the Taliban; Burma (Myanmar); Democratic People's Republic of Korea (North Korea); Congo; Iran; Iraq; Lebanon; Liberia; Zimbabwe.

3. Which countries are subject to the Area Control List?

Belarus and Myanmar.

4. Which goods are subject to the Export Control List?

The ECL consists of (7) broad groups of goods/technology: Dual-use goods; Munitions goods; Nuclear-related dual-use goods; Miscellaneous goods; Missile technology control regime goods; Chemical and biological weapon non-proliferation goods.

The most problematic for exporters are Group 1: Dual-use goods, which captures a wide variety of information technology products, including almost all products capable of encryption.

Also problematic is Group 5: Miscellaneous Goods, which establishes controls on all goods that are defined as "U.S. Origin Goods".

5. How do I obtain a permit to export goods that are subject to the Export Control List?

If an individual (specific) export permit is required, an application must be submitted to the Export and Import Controls Bureau of the Department of Foreign Affairs and International Trade (DFAIT). Exporters are able to submit applications for permits through an online application tool (EXCOL). Advisory opinions on whether a permit is required may also be obtained, prior to applying for a permit.

General export permits may be used as the authority to export certain goods that are listed on the Export Control List, without having to obtain an individual export permit. The general export permit number must be cited in the export declaration, or the goods may be detained or a penalty imposed.

6. What is the result of non-compliance with Canada's export control regime?

There are serious civil and criminal penalties for failure to comply with Canada's export control regime.

For a breach of the Export and Import Permits Act, the maximum criminal penalty on indictment is a fine in an amount at the discretion of the Court and/or imprisonment for up to 10 years. Civil sanctions include customs searches and seizure, or the detention of goods.

Under the AMPS (administrative monetary penalties system) regime, exporters face monetary penalties of up to $25,000 per contravention.

For more information on these and other trade law issues, please contact:

Wendy Wagner
Partner
613.786.0213
wendy.wagner@gowlings.com

Click here to download the presentation "Top Ten Export Traps (& Tips)"

The content provided on this site is general information only. It is not intended as nor should it be regarded or relied upon as legal advice or opinion. We would be pleased to provide you with more information or specific advice of matters of interest to you at your request. You should not rely on, take any action or take or fail to take any action based solely upon information appearing in this publication.

Please note as well that the presentation of information on this site or your use or reliance upon such information does not establish a lawyer-client relationship between you and Gowlings or between you and any Gowlings professional.