Frequently Asked Questions
The FAQs below are meant to provide Canadians and businesses with basic information about some of the Department of Foreign Affairs, Trade and Development’s regulations that affect business.
Import Control List (C.R.C., c. 604)
1. What is the purpose of this regulation?
The purpose of the Import Control List, a regulation made under section 5(1) of the Export and Import Permits Act, is to list the goods which are currently subject to import controls in Canada for various trade-related and strategic reasons. Import permits and certificates are issued by Foreign Affairs, Trade and Development Canada on behalf of the Minister under the Act.
2. What are the key elements of this regulation?
The key elements of the Import Control List are the names and descriptions of the goods subject to import controls, which currently include weapons, toxic chemicals, steel, textiles and clothing, and agricultural products. The controlled goods can be identified through technical descriptions, references to certain countries of origin, or links to specific items in Canada’s Customs Tariff.
3. How does this regulation affect Canadian businesses?
Goods included on the Import Control List may only be imported into Canada under the authority of an import permit or certificate issued under the Export and Import Permits Act. Import permits or certificates issued to Canadian businesses specify the quantity and quality of controlled goods that may be imported, subject to the terms and conditions described in the permit or certificate. Information on how to obtain an import permit or certificate can be obtained on Foreign Affairs, Trade and Development Canada’s website at: Export and Import Controls.
4. What is the timeline for implementation?
This regulation is in force and was last amended on October 1, 2014.
5. Where can I get more information?
More information on the Import Control List (C.R.C., c. 604) can be found at: http://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._604/index.html.
For questions regarding this regulation, contact tic@international.gc.ca.
Import Permits Regulations (SOR/79-5)
1. What is the purpose of this regulation?
Goods included on the Import Control List and therefore subject to import controls under the Export and Import Permits Act can only be imported into Canada under the authority of a permit issued under the Act. The Import Permit Regulations, a regulation made under section 12 of the Export and Import Permits Act, sets out requirements concerning the application, issuance and use of import permits, including the information to be furnished by applicants for permits.
2. What are the key elements of this regulation?
The key elements of this regulation are a list of information that applicants for import permits must furnish, actions that the Minister shall take when issuing permits, actions that persons to whom permits have been issued shall take before importing, and the procedures for lost permits.
3. How does this regulation affect Canadian businesses?
Canadian businesses wanting to obtain and subsequently use an import permit to import a good controlled under the Export and Import Permits Act into Canada must abide by the requirements established under the Import Permit Regulations.
4. What is the timeline for implementation?
This regulation came into force in 1978 and is amended as required.
5. Where can I get more information?
More information on the Import Permits Regulations (SOR/79-5) can be found at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-79-5/index.html
For questions regarding this regulation, contact tic@international.gc.ca.
Import Allocation Regulations (SOR/95-36)
1. What is the purpose of this regulation?
For many of the goods included on the Import Control List, the import controls are administered under a system of tariff rate quotas (TRQs). Under Canadian TRQs, in any given year, a predetermined quantity of imports of a good controlled under the Export and Import Permits Act can enter Canada at a lower rate of duty, while imports over this quantity are subject to higher rates of duty. The privilege to import at the lower rates of duty (i.e., within the access quantity) is allocated according to methods and/or policies established by the Minister under section 6.2 of the Act, and import permits granting access to the lower rate of duty are normally issued only to holders of import allocations.
The Import Allocation Regulations, a regulation made under section 12 of the Export and Import Permits Act, sets out the requirements pertaining to the information or undertakings to be furnished by applicants for import allocations, the application procedures, and the terms and conditions of import allocations; the considerations that the Minister must take into account when deciding whether to issue an import allocation or consent to its transfer; and the information to be supplied by persons to whom import allocations have been issued or granted.
2. What are the key elements of this regulation?
The key elements of this regulation are the application requirements to obtain an import allocation, notably the information to be furnished by an applicant, the procedure and considerations associated with issuing or transferring an import allocation, and the information required after an import allocation is issued or transferred.
3. How does this regulation affect Canadian businesses?
For goods subject to a TRQ under the EIPA, import permits granting access to the lower rate of duty are normally issued only to holders of import allocations. Canadian businesses wanting to import those goods at the applicable lower rate of duty must therefore obtain an import allocation, and must abide by the requirements established under the Import Allocation Regulations. This regulation also sets out the considerations that must be taken into account when an application for an import allocation or a transfer is evaluated (other considerations than those listed in the regulation can also be taken into account).
4. What is the timeline for implementation?
This regulation came into force on December 29, 1994 and is amended as required.
5. Where can I get more information?
More information on the Import Allocation Regulations (SOR/95-36) can be found at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-95-36/index.html
For questions regarding this regulation, contact tic@international.gc.ca.
Export Control List (SOR/89-202)
1. What is the purpose of this regulation?
The Export Control List (ECL), established under subsection 3(1) of the Export and Import Permits Act (EIPA), authorizes the Government of Canada to control the export or transfer of certain goods and technology identified on that list from Canada to other countries.
2. What are the key elements of this regulation?
The key elements of the ECL are the references to the controls lists of the various international export control regimes which Canada has formally implemented into domestic legislation, and the definition of the Guide (“A Guide to Canada’s Export Controls”), the document which identifies, in detail, those goods and technology that are controlled for export under the EIPA.
3. How does this regulation affect Canadian businesses?
Exports or transfers of goods and technology listed in the ECL must be authorized by export permits to all destinations, except where otherwise stated. Canadian businesses exporting or transferring, or attempting to export or transfer, goods and technology identified on the ECL, without the required authorization under the EIPA, could be subject to prosecution.
4. What is the timeline for implementation?
The Department has committed to update the ECL on an annual basis to reflect Canadian commitments in the various international export control regimes. These annual updates normally occur between October and December each year.
5. Where can I get more information?
More information on the Export Control List can be found at: http://lawslois.justice.gc.ca/eng/regulations/sor-89-202/FullText.html
More information regarding Canada’s export control regime for strategic and military goods and technology, including the Export Control List can be found at: www.exportcontrols.gc.ca or by telephone at 343-203-4331.
Export Permits Regulations (SOR/97-204)
1. What is the purpose of this regulation?
The Export Permits Regulations (EPR) established, under paragraphs 12(a) and 12(b) of the Export and Import Permits Act (EIPA), prescribes the the procedure to be followed in applying for and issuing or granting permits, the duration of permits, and the terms and conditions, including those with reference to shipping or other documents, on which permits, may be issued or granted under the EIPA. It also sets out information to be supplied by persons to whom permits have been issued or granted under the EIPA and any other matter associated with their use.
2. What are the key elements of this regulation?
While all aspects of the EPR are important, the key elements are the “Interpretation”, “Exclusion”, and “Application for a Permit” sections. These sections provide important information to stakeholders regarding which controlled goods and technology are covered by the EPR, and what information is required from applicants as a part of the export permit application process.
3. How does this regulation affect Canadian businesses?
Applicants and exporters wishing to obtain and subsequently use a permit to export goods and technology identified on the Export Control List are required to abide by the requirements established under the EPR, including the provision of the requested information under the application process.
4. What is the timeline for implementation?
This regulation is currently in force. Changes are implemented as they are required. Amendments to the EPR follow the normal Governor in Council regulatory process. Please note that minor updates to the Export Permit Regulations are currently being drafted and should be completed in the 2015 calendar year.
5. Where can I get more information?
More information on the Export Permit Regulations can be found at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-97-204/FullText.html
More information regarding Canada’s export control regime for strategic and military goods and technology, including the Export Permit Regulations can be obtained by visiting the Trade Controls Bureau’s website at: www.exportcontrols.gc.ca or by contacting the Export Controls Division via telephone at 343-203-4331.
General Export Permit No. 12 – United States Origin Goods (SOR/97-107)
1. What is the purpose of this regulation?
General Export Permit No. 12 (GEP 12) was established under subsections 7 (1.1)and 10 (1) of the Export and Import Permits Act, to facilitate the export of US origin goods controlled under Export Control List (ECL) item 5400 United States Origin Goods and Technology to certain destinations.
2. What are the key elements of this regulation?
Canada requires an export permit on the export of all US origin goods. This includes common and non-strategic items like pens, pencils and clothing. US origin goods that are not controlled elsewhere on the ECL are classified under ECL item 5400. GEP 12 can be used to export US origin goods and technology to most countries. GEP 12 cannot be used to export to any country listed on the Area Control List (ACL - http://laws-lois.justice.gc.ca/eng/regulations/SOR-81-543/FullText.html) or to Cuba, the Democratic People’s Republic of Korea (North Korea), Iran and Syria.
3. How does this regulation affect Canadian businesses?
GEP 12 allows the export of certain US origin items from Canada by means of a simplified administrative procedure. Canadian businesses must claim GEP 12 when exporting US origin goods captured in ECL 5400 in their export declaration in the Canadian Export Reporting System (CERS), rather than applying for an individual export permit. Failing to claim GEP 12 or an individual export permit will result in administrative penalties.
4. What is the timeline for implementation?
GEP 12 is currently in force and does not require further amendments at this time.
5. Where can I get more information?
More information on GEP 12 can be found at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-97-107/FullText.html
More information regarding Canada’s export control regime for strategic and military goods and technology, including GEP 12 can be found at www.exportcontrols.gc.ca or by telephone at 343-203-4331.
Export Permits Regulations (Softwood Lumber Products 2006) (SOR/2007-15)
1. What is the purpose of this regulation?
This regulation provides details regarding the mandatory information and documentation that is required from softwood lumber product exporters when they are applying for an export permit. There are also provisions regarding who can apply for an export permit if the exporter is not a resident of Canada. An additional provision details the necessary documentation that must be available for single family home packages or kits.
2. What are the key elements of this regulation?
This regulation provides an itemized list of information that an exporter must provide when applying for an export permit. This list includes, but is not limited to the following items:
- the exporter’s identifier number assigned by the Minister;
- a detailed description of the softwood lumber products;
- the quantity of the softwood lumber products, expressed in board feet;
- the name of the region of first primary processing;
- the export price in Canadian or United States dollars of the softwood lumber products;
- the date of shipment of the softwood lumber products;
For products originating from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, the application must also include the Maritime Lumber Bureau Certificate of Origin number for those products.
An additional provision indicates that if the exporter is not a resident of Canada, the application must be made by an agent or mandatory who is a resident of Canada (for example, a Canadian customs broker).
Finally, if an exporter is exporting a single family home package or kit - a product for which an export permit is not required - the regulation directs the exporter to ensure that the following documents are available should they be required by U.S. Customs and Border Protection:
- a copy of the appropriate home design plan, or of a blueprint matching the customs entry in the United States;
- a purchase contract from a retailer of home packages or kits, signed by a customer not affiliated with the person who imports the packages or kits into the United States;
- a listing of inventory of all parts of the package or kit entering the United States that conforms to the home design package; and
in the case of multiple shipments on the same contract, a listing of inventory that indicates the items that are included in the shipment at issue.
3. How does this regulation affect Canadian businesses?
This regulation adds certainty, stability and predictability to the provisions concerning the exporting of softwood lumber found in the Export and Import Permits Act and the Softwood Lumber Products Export Charge Act, 2006. By clearly identifying the information requirements associated with the export of softwood lumber products, this regulation facilitates the operational planning of Canadian businesses and can prevent time consuming and costly errors associated with incorrect information and documentation required in the export process.
4. What is the timeline for implementation?
This regulation was implemented on October 12, 2006 and continues to be in effect.
5. Where can I get more information?
More information on Export Permits Regulations (Softwood Lumber Products 2006) – SOR/2007-15, is available at: http://laws-lois.justice.gc.ca/PDF/SOR-2007-15.pdf
For additional assistance or specific questions regarding the export of items identified on Canada's Export Control list please visit the Export and Import Controls page for the Department of Foreign Affairs, Trade and Development here http://www.international.gc.ca/controls-controles/index.aspx?lang=eng
For additional information specific to exporting softwood lumber products to the U.S. please send an email to the softwood.boisdoeuvre@international.gc.ca or call the Softwood Lumber Division at 613 944-2167.
Softwood Lumber Products Export Allocations Regulations (SOR/2007-16)
1. What is the purpose of this regulation?
This regulation provides details regarding the information required in the application process for a softwood lumber export allocation. Provisions also detail the types of factors that the Minister of Foreign Affairs will consider when making a decision to issue an export allocation to an applicant.
2. What are the key elements of this regulation?
This regulation provides an itemized list of information that an exporter must provide when applying for an export allocation for softwood lumber products. This list includes, but is not limited to the following items:
- the name and address of the exporter and, if applicable, of the agent or mandatory;
- the official language selected for communications with the exporter;
- whether or not the exporter and, if applicable, the agent or mandatory are residents of Canada; and
- information necessary to enable the Minister to take into account the considerations outlined in the regulation when deciding whether to issue an export allocation.
Additional provisions detail the types of factors the Minister will consider when making a decision regarding a request for softwood lumber quota. These include, but are not limited to:
- whether the exporter or, if applicable, the agent or mandatory has furnished the information required by the regulations;
- whether the exporter has complied with the provisions of the Export and Import Permits Act (EIPA), or the regulations made under the Act, or any condition of an export allocation or export permit during the 12-month period preceding the month for which the export allocation is to apply; and
whether the exporter has furnished false or misleading information in connection with any reports required by the EIPA.
3. How does this regulation affect Canadian businesses?
This regulation adds certainty, stability and predictability to the process for applying for softwood lumber quota pursuant to the Export and Import Permits Act and the Softwood Lumber Products Export Charge Act, 2006. By clearly identifying the information requirements and considerations associated with applications for softwood lumber quota, this regulation facilitates the operational planning of Canadian businesses and can prevent time consuming and costly errors that can occur when incorrect information and documentation is submitted in respect to the application process.
4. What is the timeline for implementation?
This regulation was implemented on October 12, 2006 and continues to be in effect.
5. Where can I get more information?
More information pertaining to the Softwood Lumber Products Export Allocations Regulations (SOR/2007-16) can be found at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2007-16/page-1.html#docCont
For additional assistance or specific questions regarding the export of items identified on Canada's Export Control list please visit the Export and Import Controls page for the Department of Foreign Affairs, Trade and Development here http://www.international.gc.ca/controls-controles/index.aspx?lang=eng
For additional information specific to exporting softwood lumber products to the U.S. please send an email to the softwood.boisdoeuvre@international.gc.ca or call the Softwood Lumber Division at 613 944-2167.
Regulations made under the United Nations Act
1. What is the purpose of these regulations?
Canada's United Nations Act enables the Canadian government to give effect to decisions passed by the United Nations Security Council (UNSC). If the UNSC determines that an act of aggression or a breach of peace has occurred, it may decide what measures member states shall take to restore or maintain international peace and security. These measures are generally economic and trade sanctions. Such a decision by the UNSC imposes a legal obligation on Canada as a UN member to introduce the required measures into domestic law. This is done by enacting regulations under the United Nations Act.
2. What are the key elements of these regulations?
Sanctions regulations imposed by Canada on specific countries, organizations, or individuals vary and can encompass a variety of measures, including restricting or prohibiting trade, financial transactions or other economic activity between Canada and the target state; or the seizure or freezing of property situated in Canada.
For specific information about the sanctions regime in the country where you wish to do business, consult the relevant regulations. More information on specific sanctions regulations can be found at the following link: https://www.international.gc.ca/world-monde/international_relations-relations_internationales/sanctions/types.aspx?lang=eng
3. How do these regulations affect Canadian businesses?
Sanctions can impact Canadian businesses by:
- Prohibiting trade and other economic activity with a foreign market,
- Restricting financial transactions such as foreign investments or acquisitions, or
- Leading to the seizure of property situated in Canada.
These restrictions may apply to dealings with entire countries, non-state actors, such as terrorist organizations, or designated persons from a target country.
These regulations also require Canadians to disclose and report certain holdings and activities, specifically in relation to provisions that freeze the financial assets of targeted individuals and entities.
4. What is the timeline for implementation?
Sanctions regulations under the United Nations Act are made by the Governor in Council when required for Canada to implement decisions of the UNSC. The regulations come into force upon registration and before publication in the Canada Gazette.
5. Where can I get more information?
For more information on regulations made under the United Nations Act, please see DFATD’s Canadian Economic Sanctions Portal for Small Businesses at: https://www.international.gc.ca/world-monde/international_relations-relations_internationales/sanctions/index.aspx?lang=eng
Regulations made under the Special Economic Measures Act
1. What is the purpose of these regulations?
In order to maximize the effectiveness of a sanctions regime, Canadian policy seeks to ensure, whenever possible, that sanctions are applied multilaterally. Absent a UNSC resolution, the Special Economic Measures Act (SEMA) allows Canada to impose sanctions in either of the following situations:
- Where an international organization to which Canada belongs calls on its members to take economic measures against a foreign state; or
- Where a grave breach of international peace and security has occurred and is likely to result in a serious international crisis. Non-UN sanctions are imposed by enacting regulations under SEMA.
2. What are the key elements of these regulations?
Sanctions regulations imposed by Canada on specific countries, organizations, or individuals vary and can encompass a variety of measures, including restricting or prohibiting trade, financial transactions or other economic activity between Canada and the target state; or the seizure or freezing of property situated in Canada.
For specific information about the sanctions regime in the country where you wish to do business, consult the relevant regulations. More information on specific sanctions regulations can be found at the following link: https://www.international.gc.ca/world-monde/international_relations-relations_internationales/sanctions/types.aspx?lang=eng
3. How do these regulations affect Canadian businesses?
Sanctions can impact Canadian businesses by:
- Prohibiting trade and other economic activity with a foreign market,
- Restricting financial transactions such as foreign investments or acquisitions, or
- Leading to the seizure of property situated in Canada.
These restrictions may apply to dealings with entire countries or designated persons from a target country.
These regulations also require Canadians to disclose and report certain holdings and activities, specifically in relation to provisions that freeze the financial assets of targeted individuals and entities.
4. What is the timeline for implementation?
Sanctions regulations under the Special Economic Measures Act may be made by the Governor in Council when either of the two requirements listed above are satisfied. The regulations come into force upon registration and before publication in the Canada Gazette.
5. Where can I get more information?
For more information on regulations made under the Special Economic Measures Act, please see DFATD’s Canadian Economic Sanctions Portal for Small Businesses at: https://www.international.gc.ca/world-monde/international_relations-relations_internationales/sanctions/index.aspx?lang=eng
