Originally published in Blakes Bulletin on Blakes
Bulletin on International Trade - February 2008.
As of September 2007, Canadians – including
Canadian subsidiaries of foreign companies – are no
longer permitted to export arms or arms-related materials to
the Lebanese Republic without obtaining prior authorization
from the Minister of Foreign Affairs.
Regulations Implementing the United Nations'
Resolution on Lebanon
On August 11, 2006, the United Nations (UN) Security Council
passed Resolution 1701 calling for an embargo on the
exportation of arms and related materials to the Lebanese
This measure is designed to reinforce the Government of
Lebanon's commitment to limit the forces and weapons
available in its territory to those that are for its own use in
asserting authority over the Lebanese Republic. This Resolution
calls for member states to prohibit the sale or supply of any
type of weapon, ammunition, military vehicle or military or
paramilitary equipment, and their spare parts.
Understanding the Prohibitions
Members of the UN are obligated to adopt the resolutions of
the UN Security Council and implement those resolutions within
domestic laws. Canada, as a longstanding member of the UN, is
no exception. Thus, the federal government has recently enacted
new Regulations implementing Resolution 1701.
Canadian exporters should be aware of the complexities
associated with the new Regulations to avoid any possible
compliance issues. The Regulations came into force on September
18, 2007, and prohibit the sale of arms and related materials
by persons in Canada or Canadians outside Canada to persons in
the Lebanese Republic. The term "person", as used in
the Regulations, includes not only an individual but also a
body corporate, a trust, a partnership, a fund, an
unincorporated association or organization and a foreign
The new Regulations apply to all Canadians –
meaning an individual who is a citizen of Canada as defined in
the Citizenship Act, including Canadians located
abroad, or a body corporate incorporated or continued under the
federal or provincial laws in Canada. By definition, Canadian
subsidiaries of foreign parent companies must comply with these
Regulations. Therefore, what may seem like a straightforward
prohibition is much more encompassing than the plain language
utilized in the new Regulations.
The prohibition applies to "arms and related
materials". This includes any type of weapon, ammunition,
military vehicle or military or paramilitary equipment. The
definition also includes spare parts for these items. None of
these items may be sold, supplied, exported or shipped to any
person in Lebanon.
Canadian exporters should also be aware that the prohibition
on the export of arms and related materials includes the sale,
supply, or shipment, whether direct or indirect, of any
technical assistance. Technical assistance consists of any
provision of instructions, training, consulting services,
technical advice or the transfer of know-how or technical data
relating to arms and arms-related materials. The term
"technical data", to which the prohibition applies,
is used to denote blueprints, technical drawings, photographic
imagery, computer software, models, formulas, engineering
designs and specifications, technical and operating manuals and
any technical information. Given the broad scope of these
prohibitions, Canadians must exercise caution even in the
supply of information related to arms and related
How to Avoid Contravention of
Canadian exporters who wish to continue operating on a
lawful basis when engaged in arms-related transactions with
persons in Lebanon must apply for a certificate from the
Minister of Foreign Affairs prior to the export of arms or
arms-related materials. A certificate may be issued by the
Minister of Foreign Affairs if the Minister is satisfied that
the proposed transaction is either not prohibited by the UN
Security Council Resolution or that the transaction has been
expressly approved by the UN Security Council.
Proceed With Caution
Compliance with the new Regulations will be monitored by
both the Royal Canadian Mounted Police and the Canada Border
Services Agency. Persons who contravene any provision of the
Regulation are liable, upon conviction, to fines of up to
C$100,000 and a maximum prison term of 10 years. Canadian
exporters dealing in arms or arms-related materials are urged
to carefully review and follow the new Regulations. Transacting
with the Lebanese Republic is not impossible as long as the
proper procedures are followed.
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.
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