Foreign Affairs and International Trade Canada (FAITC) has just
amended its Guide to Canada's Export Controls (June 2006) by
removing the Introduction section which contained administrative
information on the export permit process. There has been no change
to items covered under the Export Control List, so the Guide
remains dated June 2006.
Apparently as a replacement for the old Guide's
Introduction, FAITC has separately published the Export Controls Handbook (dated February
2009). It's worth a few minutes of your time to carefully
The Introduction in the old Guide was 33 pages in length, while
the Export Controls Handbook is 55 pages. The Handbook includes
similar administrative information but it is updated, more
detailed, and also contains discussion of other Canadian trade
In particular, you may find the Table 1: Summary of Export
Prohibitions (pp. 14-15) to be of some assistance. Another example
of additional detail can be found in "Box 4: Exports by
Intangible Means", which discusses the various non-physical
means by which controlled exports of services and technology can
occur including through training, emails, telephone conversations
and face-to-face meetings.
Voluntary Disclosure Procedures
One of the most significant additions to the Export Controls
Handbook is its written procedures on voluntary disclosures.
Although informal disclosures could be made to FAITC in the past,
release of this written procedure is a significant and welcome
development. In this regard, section H.7 of the Handbook provides
The Export Controls Division
recognizes that, on occasion, responsible exporters inadvertently
fail to comply with the Export and Import Permits Act. We encourage
all exporters in such a situation to disclose such episodes to us
as soon as possible.
The Export Controls Division looks
favorably upon disclosures if, after considering the information
provided, we are satisfied that the exporter has fully cooperated
and that no further action is warranted.
Depending on the circumstances of a
case, we may refer it to the Canada Border Services Agency for
H.7.1. Disclosure Procedures
Any voluntary disclosure must be
accompanied by a cover letter, signed by a senior company officer
and addressed to the Director, Export Controls Division, Foreign
Affairs and International Trade Canada, 125 Sussex Drive, Ottawa,
Ontario K1A 0G2, which clearly states that its purpose is to
disclose noncompliance with the Export and Import Permits Act.
Included in the cover letter or in accompanying documentation must
be the following:
Details of the products concerned (including technical
specifications for assessment of export control status)
Dates of all shipments, mode of transport, and port of
Quantities and values of each shipment for each product
concerned (including copies of the B13 or Canadian Automated Export
Declaration submitted to the Canada Border Services Agency, as well
as copies of bills of lading or commercial invoices)
Contract of sale between the exporter and the final
For each export shipment in question, a statement as to whether
the export took place intentionally
Description of the circumstances underlying each export
shipment in question
Description of steps taken or processes and procedures put in
place to ensure that where required, export permits will be
obtained in future, and
Any other documentation that the exporter believes is relevant
to the purpose of the disclosure.
Disclosures may be submitted in
writing or electronically. You should contact the Export Controls
Division for advice on the most appropriate means of submitting a
disclosure of non-compliance.
Ensuring Compliance with Canadian Export Controls
Although it does not introduce any changes to Canadian export
controls laws, the Handbook ought to be carefully reviewed by all
Canadian exporters of goods, services and technology to better
understand current Canadian export permit procedures and ensure
their compliance systems are fully updated and complete.
Further, it is important to note that any effective export
control compliance program for businesses operating across the
United States-Canada border will need to take into account the
consistencies and conflicts between U.S. and Canadian control
regimes. In some cases, the controls will be similar or even
identical, in other cases they will differ, while in yet others
they actually create conflicting obligations such that compliance
with one regime results in violation under another.
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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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.
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