On November 21, 2011, Canada announced expanded sanctions
against Iran under the Special Economic Measures Act (this
statute has recently been used to impose sanctions on Syria).
According to the Department of Foreign Affairs and International
Trade ("DFAIT") news release dated November 21, 2011:
The new sanctions prohibit financial
transactions with Iran, expand the list of prohibited goods to
include all goods used in the petrochemical, oil and gas industry
in Iran, amend the list of prohibited goods to include additional
items that could be used in Iran's nuclear program, and add new
individuals and entities to the list of designated persons found in
Schedule 1 of the SEMA regulations. The amendments also remove
certain entities that no longer present a proliferation concern.
The new prohibitions on financial transactions and goods
used in the petrochemical, oil and gas industry in Iran do not
apply to contracts entered into prior to November 22,
2011. [emphasis added]
Recall that this is the third set of Canadian sanctions against
Iran since July 2010. These combined sanctions prohibit any and all
of the following:
dealing in the property of persons designated under Schedule 1
of the Special Economic Measures (Iran) Regulations
exporting or otherwise providing to Iran arms and related
material not already banned, all goods used in the
petrochemical, oil and gas industry in Iran, and items
that could contribute to Iran's proliferation activities;
providing or acquiring financial services to allow an Iranian
financial institution (or a branch, subsidiary or office) to be
established in Canada, or vice versa;
conducting financial transaction with Iran,
subject to certain exceptions;
making any new investment in the Iranian oil and gas
establishing correspondent banking relationships with Iranian
financial institutions, or purchasing any debt from the government
of Iran; and
providing a vessel owned or controlled by, or operating on
behalf of the Islamic Republic of Iran Shipping Lines (IRISL) with
services for the vessel's operation or maintenance.
Note that the Special Economic Measures (Iran) Permit
Authorization Order authorizes the Minister of Foreign Affairs
to issue a permit to carry out a specified activity or transaction,
or any class of activity or transaction, that would otherwise be
restricted or prohibited pursuant to the Regulations.
Companies doing business in this region should familiarize
themselves with the new requirements of the Canadian sanctions.
Given their breadth and complexity, interaction with DFAIT may be
These measures will undoubtedly increases scrutiny by the Canada
Border Services Agency ("CBSA") for shipments of most
goods destined to the region. CBSA has broad discretionary powers
to detain and seize goods for export if they believe a violation of
the Regulations and other related laws has occurred, including a
transhipment of prohibited goods through a third country. Companies
shipping to the region must exercise care and due diligence given
these latest developments.
The foregoing provides only an overview. Readers are
cautioned against making any decisions based on this material
alone. Rather, a qualified lawyer should be consulted.
While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
On September 29, 2016, the Supreme Court of Canada issued its first tariff classification decision since Canada signed the International Convention on the Harmonized Commodity Description and Coding System in 1998.
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