Canada's Export Control Regime to See 'Significant' Changes Under Accession to UN Arms Trade Treaty
Canada’s accession to the United Nations Arms Trade Treaty requires “significant amendments” to the country’s Export and Import Permits Act that will broaden its current export control regime, according to an August post from the McMillan law firm.
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The changes, recently announced by Global Affairs Canada (see 1908230051), will expand the scope of Canada’s regime to regulate movement of export controlled goods and technologies between two or more foreign countries when Canadian citizens or companies are involved, McMillan said. Canada’s amendments include changes to the definition of “brokering” and what types of actions constitute a transaction, the post said, and increase the maximum fine for violating the EIPA from $25,000 to $250,000.
McMillan said the “cornerstone” of Canada’s new export regime is the new Brokering Control List, which will include all Group 2 Munitions List items and Group 9 Arms Trade Treaty items and “may include any article on the ECL that, at the determination of the Governor in Council, is likely to be used to produce or develop a weapon of mass destruction.” The permit regime for brokering will be similar to the existing regime for export permits, the post said, except for the fact that “any person or organization” may apply for a brokering permit. Only Canadian residents can apply for export permits, the post said.
Canada’s minister may also issue general brokering permits, which will act as “blanket authorizations that authorize specific goods and technology to be brokered without the need of an individual brokering permit,” the post said.
Along with the new export restrictions, Canada will impose penalties for violating the expanded scope of the EIPA, the post said. Because violations will be recognized under the “surveillance warrant regime” of the country’s Criminal Code, a Canadian judge may authorize officers to “use any device … in the investigation of a potential” violation, “including intercepting private communications or performing video surveillance,” the post said.
“Compliance departments should audit their corporate policies and procedures to mitigate the risks caused by this significantly increased cost of non-compliance,” the post said.