Canada: Focus on International Trade - July 2010

Last Updated: July 13 2010


On June 17, 2010, regulations implementing the latest round of United Nations sanctions against Iran (the "Regulations") came into force in Canada. The Regulations are intended to implement United Nations Security Council Resolution 1929, the most recent in a series of Security Council Resolutions imposing sanctions against Iran, in response to Iran's continued failure to cooperate with the International Atomic Energy Agency ("IAEA"), and to comply with provisions of earlier Security Council Resolutions regarding its nuclear program.

Key aspects of the Regulations include:

  • An expansion of the list of items (including technology) for which exportation to Iran is prohibited
  • An expansion to the lists of individuals and entities subject to an asset freeze and travel ban (in the case of certain individuals)
  • A prohibition on persons in Canada or Canadians outside of Canada knowingly making available any property, financial service or other related service for the purpose of investing in commercial activity in Canada related to uranium mining production, or use of various nuclear materials or technologies to Iran, persons in Iran, corporations incorporated in Iran or subject to its jurisdiction, or any person owned or controlled by any of the foregoing
  • A clarification to previously unclear language prohibiting certain dealings with "designated persons"

Notably, other jurisdictions, including the United States and the European Union, have either already implemented or announced intentions to implement sanctions regimes, which go beyond the sanctions provided for by the various UN Security Council resolutions adopted to date. In contrast, Canada has thus far limited its sanctions to mirror the scope of the UN Security Council sanctions. That said, Canada's Foreign Affairs Minister, Lawrence Cannon, has indicated that: "Canada stands ready to implement additional sanctions to address Iran's egregious violations and continued threat to global peace and security."

In any event, the multijurisdictional combination of new UN-based sanctions, and unilateral sanctions in some jurisdictions that go beyond the UN sanctions, will require increased vigilance on the part of any business with actual, or even potential, direct or indirect business dealings involving Iran, Iranian entities, and, more generally, the Persian Gulf. Moreover, the fact that Canada's Regulations (which are an interpretation of the Security Council Resolution) are the legally binding instruments applicable in Canada, as opposed to Security Council Resolutions themselves, and given that that key terms in the Canadian Regulations (e.g. "persons in Canada", "Canadians outside Canada," "financial services") remain undefined, suggest that business officials and others with responsibility for trade compliance should always be vigilant to issues of Canadian legal interpretation in considering the potential application of Canada's Regulations, whether in the context of applying global trade compliance policies or otherwise.


At its most recent Plenary Meeting held in December 2009, the membership of the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (the "Wassenaar Arrangement") agreed to certain revisions to its List of Dual-Use Goods and Technologies, among these the decontrol of certain items incorporating or using cryptography.

This recent decontrol of certain cryptographic items is effected through the inclusion of a "Note 4" to Category 5 – Part 2 of the List of Dual-Use Goods and Technologies. Subject to certain identified exceptions, Category 5 – Part 2 imposes export controls on systems, equipment and components thereof that use or incorporate cryptography, meeting specified criteria as well as certain encryption software. The new Note 4, however, exempts items incorporating or using cryptography that meet the following criteria from such export controls:

a. The primary function or set of functions is not any of the following:

  1. "Information security";
  2. A computer, including operating systems, parts and components therefor;
  3. Sending, receiving or storing information (except in support of entertainment, mass commercial broadcasts, digital rights management or medical records management); or
  4. Networking (includes operation, administration, management and provisioning);

b. The cryptographic functionality is limited to supporting their primary function or set of functions; and

c. When necessary, details of the items are accessible and will be provided, upon request, to the appropriate authority in the exporter's country in order to ascertain compliance with conditions described in paragraphs (a) and (b) above.

Notably, the application of this new safe-harbour turns on "function" rather than cryptographic strength. In this respect, it expands on certain existing limited safeharbour language in Category 5 – Part 2 of the List of Dual-Use Goods and Technologies. For example, item 5.A.2.a.1 provides for the control of certain systems, equipment and components which employ cryptography of a certain strength that performs a cryptographic function, "other than" authentication and digital signature.

These revisions have yet to be reflected in many national export control regimes, including Canada's Export Control List ("ECL"). As a member of the Wassenaar Arrangement, however, Canada can be expected to include this new Note 4 (as well as other revisions agreed to at the Plenary Meeting) in the next version of the ECL. If and when implemented, these revisions will have beneficial implications, in particular for exporters of high tech products that include cryptographic functionality that is ancillary to a product's primary function. It should be noted, however, that cryptrographic items otherwise described in Note 4, may still be captured by other export control classifications (and, consequently, may still be subject to export controls).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
25 Nov 2016, Seminar, Toronto, Canada

On Thursday, September 22, 2016, Dentons hosted a panel discussion about the management of liabilities and risks associated with environmental crises, including potential liabilities for directors and officers and provided insight into risk and liability techniques associated with environmental crisis management.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.