Canada Nearing New Export Control Regulations
Canada is moving closer to new regulations that would create some new restrictions on transactions involving controlled goods moving to other countries, law firm McCarthy Tetrault said in a blog post. The proposed regulations "create a new control regime for Canadians engaged in 'brokering' related to transactions involving the movement of certain controlled goods, services or technology from one foreign country to another," the firm said. "This is the first time Canada has imposed such controls and companies that may be potentially involved in such transactions."
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The regulations also implement "other changes required as a result of Canada’s accession to the United Nations Arms Trade Treaty, including new permit and reporting requirements for certain goods and technology transfers to the United States," the firm said. As part of that implementation, "Canada has developed a number of proposed regulations," it said. "These include a Brokering Control List, Brokering Permit Regulations, regulations specifying activities that do not constitute brokering (exclusions), and two proposed regulations on enhanced reporting requirements for ATT exports to the United States."
The regulations were proposed last month and comments on the proposal were due April 15. "Significantly, the reference to a 'foreign country' means countries other than Canada," the law firm said. "Consequently, the movement of items into or out of Canada is not captured within the newly-established definition of 'brokering.'" Also to satisfy the ATT, "Canada has created the eight ATT categories of full-system conventional arms that will require a permit to be exported to the United States," it said. "The permit-free movement of other military goods and technology to the United States will remain intact."