Interpretation

1 The following definitions apply in these Regulations.

arms and related material

arms and related material means any type of weapon, ammunition, military vehicle or military or paramilitary equipment, and includes their spare parts. (armes et matériel connexe)

Canadian

Canadian means an individual who is a citizen within the meaning of the Citizenship Act or a body corporate incorporated by or continued under the laws of Canada or a province. (Canadien)

Committee of the Security Council

Committee of the Security Council means the Committee of the Security Council of the United Nations established under paragraph 18 of Security Council Resolution 1737. (Comité du Conseil de sécurité)

designated person

designated person means a person

• (a) whose name appears on the Annex to Security Council Resolution 1737;

• (b) that has been designated by the Security Council of the United Nations under paragraphs 10 or 12 of Security Council Resolution 1737 as being engaged in, directly associated with or providing support for Iran’s proliferation sensitive nuclear activities or the development of nuclear weapon delivery systems; or

• (c) that has been designated by the Committee of the Security Council under paragraph 18(f) of Security Council Resolution 1737 as being engaged in, directly associated with or providing support for Iran’s proliferation sensitive nuclear activities or the development of nuclear weapon delivery systems. (personne désignée)

Guide

Guide has the same meaning as the definition Guide in section 1 of the Export Control List. (guide)

Iran

Iran means the Islamic Republic of Iran and includes its political subdivisions. (Iran)

Minister

Minister means the Minister of Foreign Affairs. (ministre)

person

person means an individual, a body corporate, a trust, a partnership, a fund, an unincorporated association or organization or a foreign state. (personne)

product

product means any item, material, equipment, good or technology. (produit)

property

property means property of every description and documents relating to or evidencing the title or right to property, or giving a right to recover or receive money or goods, and includes any funds, financial assets or economic resources. (bien)

Security Council Resolution

Security Council Resolution[Repealed, SOR/2007-105, s. 2]

Security Council Resolution 1737

Security Council Resolution 1737 means Resolution 1737 (2006) of December 23, 2006 adopted by the Security Council of the United Nations. (résolution 1737 du Conseil de sécurité)

Security Council Resolution 1747

Security Council Resolution 1747 means Resolution 1747 (2007) of March 24, 2007 adopted by the Security Council of the United Nations. (résolution 1747 du Conseil de sécurité)

Security Council Resolutions

Security Council Resolutions means Security Council Resolution 1737 and Security Council Resolution 1747. (résolutions du Conseil de sécurité)

technical assistance

technical assistance means any form of assistance, such as providing instruction, training, consulting services or technical advice or transferring know-how or technical data. (aide technique)

technical data

technical data includes blueprints, technical drawings, photographic imagery, computer software, models, formulas, engineering designs and specifications, technical and operating manuals and any technical information. (données techniques)

working day

working day means a day that is not Saturday or a holiday. (jour ouvrable)

Application

2 These Regulations are binding on Her Majesty in right of Canada or a province.

Prohibitions

3 No person in Canada and no Canadian outside Canada shall knowingly sell, supply or transfer, directly or indirectly, any of the following products, wherever situated, to any person in Iran or for the benefit of Iran:

• (a) those that appear in sections 2 to 7 of Annex B of Information Circular INFCIRC/254/Rev.8/Part 1, entitled “Communications Received from Certain Member States Regarding Guidelines for the Export of Nuclear Material, Equipment and Technology”, set out in the Security Council of the United Nations document S/2006/814;

• (b) those that appear in section 1 of Annex A and section 1 of Annex B of that Information Circular, except

  • (i) equipment covered by section 1 of Annex B, if that equipment is for light water reactors, and

  • (ii) low-enriched uranium covered by section 1.2 of Annex A, if it is incorporated in assembled nuclear fuel elements for light water reactors;

• (c) those that appear in the Security Council of the United Nations document S/2006/815, except products covered by item 19.A.3 of Category II;

• (d) any other products identified by the Committee of the Security Council or by the Security Council of the United Nations for the purpose of subparagraph 3(d) of Security Council Resolution 1737;

• (e) all products that appear in Information Circular INFCIRC/254/Rev.7/Part 2, entitled “Communications Received from Certain Member States Regarding Guidelines for Transfers of Nuclear-related Dual-use Equipment, Materials, Software and Related Technology” set out in the Security Council of the United Nations document S/2006/814; or

• (f) those that are listed in the following provisions of the Guide:

  • (i) group 1, items 1–1.A.1 to 1–1.A.3,

  • (ii) group 1, item 1–1.C.,

  • (iii) group 1, items 1–7.A. to 1–7.E.,

  • (iv) group 1, items 1–9.A. to 1–9.E.,

  • (v) group 2, items 2–10.c and 2–10.d,

  • (vi) group 2, item 2–21.b.1.a,

  • (vii) group 2, items 2–21.b.1.d, and 2–21.b.2.

4 No owner or master of a Canadian ship, within the meaning of section 2 of the Canada Shipping Act, and no operator of an aircraft registered in Canada shall knowingly carry, cause to be carried or permit to be carried, any of the products referred to in section 3, wherever situated, that are for the benefit of Iran or destined for any person in Iran.

5 No person in Canada and no Canadian outside Canada shall knowingly provide, to any person in Iran, technical assistance, financial services, brokerage or other services, related to the supply, sale, transfer, manufacture or use of any of the products referred to in section 3.

6 No person in Canada and no Canadian outside Canada shall knowingly make available to any person in Iran any property, financial assistance or investment, related to the supply, sale, transfer, manufacture or use of any of the products referred to in section 3.

7 No person in Canada and no Canadian outside Canada shall knowingly procure arms and related material or any of the items that appear in Security Council of the United Nations document S/2006/814 or S/2006/815, wherever situated, from any person in Iran or any other person acting on behalf of, at the direction of, or for the benefit of, Iran.

8 No owner or master of a Canadian ship, within the meaning of section 2 of the Canada Shipping Act, and no operator of an aircraft registered in Canada shall knowingly carry, cause to be carried or permit to be carried arms and related material or any of the items that appear in Security Council of the United Nations document S/2006/814 or S/2006/815, wherever situated, destined for any person in Canada and procured from any person in Iran or any other person acting on behalf of, at the direction of, or for the benefit of, Iran.

9 No person in Canada and no Canadian outside Canada shall knowingly

• (a) deal directly or indirectly in any property in Canada as at December 23, 2006 or at any time after that date, that is owned or controlled by a designated person, by a person acting on behalf of, or at the direction of, a designated person, or by a person owned or controlled by a designated person;

• (b) enter into or facilitate, directly or indirectly, any financial transaction related to a dealing referred to in paragraph (a);

• (c) provide any financial or other related service in respect of the property referred to in paragraph (a); or

• (d) make any property or any financial or other related service available to or for the benefit of a designated person, a person acting on behalf of, or at the direction of, a designated person, or a person owned or controlled by a designated person.

10 No person in Canada and no Canadian outside Canada shall knowingly do anything that causes, assists or promotes, or is intended to cause, assist or promote, any act or thing prohibited by sections 3 to 9.

Duty to Determine

• 11 (1) Each of the following entities must determine on a continuing basis whether it is in possession or control of property owned or controlled by a designated person, by a person acting on behalf of, or at the direction of, a designated person, or by a person owned or controlled by a designated person:

  • (a) authorized foreign banks, within the meaning of section 2 of the Bank Act, in respect of their business in Canada or banks to which that Act applies;

  • (b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;

  • (c) foreign companies, within the meaning of subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada;

  • (d) companies, provincial companies and societies, within the meaning of subsection 2(1) of the Insurance Companies Act;

  • (e) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act;

  • (f) companies to which the Trust and Loan Companies Act applies;

  • (g) trust companies regulated by a provincial Act;

  • (h) loan companies regulated by a provincial Act; and

  • (i) entities authorized under provincial legislation to engage in the business of dealing in securities, or to provide portfolio management or investment counselling services.

• (2) Every entity referred to in subsection (1) must report monthly, to the principal agency or body that supervises or regulates it under federal or provincial law, either

  • (a) that it is not in possession or control of any property referred to in that subsection; or

  • (b) that it is in possession or control of such property, in which case it must also report the number of persons, contracts or accounts involved and the total value of the property.

• (3) No person contravenes subsection (2) by making a report in good faith under that subsection.

Disclosure

• 12 (1) Every person in Canada and every Canadian outside Canada shall disclose without delay to the Commissioner of the Royal Canadian Mounted Police and to the Director of the Canadian Security Intelligence Service

  • (a) the existence of property in their possession or control that they have reason to believe is owned or controlled by a designated person, by a person acting on behalf of, or at the direction of, a designated person, or by a person owned or controlled by a designated person; and

  • (b) information about a transaction or proposed transaction in respect of property referred to in paragraph (a).

• (2) No person contravenes subsection (1) by disclosing in good faith under that subsection.

13 The Minister of Public Safety and Emergency Preparedness is authorized to disclose information to the Minister for the application of paragraph 10 of Security Council Resolution 1737.

14 The Minister is authorized to disclose information collected under section 13 to the Committee of the United Nations Security Council for the application of paragraph 10 of Security Council Resolution 1737.

Petition to No Longer Be a Designated Person

• 15 (1) Any Canadian or person in Canada who is a designated person may petition the Minister in writing to no longer be a designated person.

• (2) The Minister shall notify the petitioner, within 60 days after receiving the petition, of his or her decision to submit the petition to the Security Council of the United Nations or to the Committee of the Security Council, as the case may be.

• (3) If there has been a material change in circumstances since the last petition was submitted, a person may submit another petition under subsection (1).

Exceptions

• 16 (1) A person claiming not to be a designated person may apply to the Minister for a certificate stating that they are not the person who has been designated by the Committee of the Security Council or by the Security Council of the United Nations.

• (2) If it is established that the applicant is not a designated person, the Minister shall issue a certificate to the applicant within 15 days after receiving the application.

• 17 (1) A person whose property has been affected by the application of section 9 may apply to the Minister for a certificate to exempt property from the application of that section if the property is necessary for basic or extraordinary expenses, or if it is the subject of a judicial, administrative or arbitral lien or judgment, a hypothec, prior claim, mortgage, charge or security interest.

• (2) The Minister shall issue a certificate, if the necessity of that property for basic or extraordinary expenses is established in accordance with the Security Council Resolutions, or if the property is the subject of a judicial, administrative or arbitral lien or judgment, a hypothec, prior claim, mortgage, charge or security interest

  • (a) in the case of property necessary for basic expenses, if the Committee of the Security Council did not refuse the release of the property, within 15 working days after receiving the application;

  • (b) in the case of property necessary for extraordinary expenses, if the Committee of the Security Council approved the release of the property, within 30 working days after receiving the application; and

  • (c) in the case of property that is the subject of a judicial, administrative or arbitral lien or judgment, a hypothec, prior claim, mortgage, charge or security interest, if the lien, judgment, hypothec, prior claim, mortgage, charge or security interest was entered prior to December 23, 2006, is not for the benefit of a designated person and has been brought to the attention of the Committee of the Security Council by the Minister, within 90 days after receiving the application.

• 18 (1) A person whose property has been affected by the application of section 9 may apply to the Minister for a certificate to exempt property from the application of that section if the property is necessary for activities directly related to those items set out in subparagraphs 3(b)(i) and (ii).

• (2) If the necessity of that property is established in accordance with the Security Council Resolutions, the Minister shall issue a certificate after he or she has informed the Committee of the Security Council of his or her intent to issue the certificate.

• 19 (1) If a contract has been entered into by a party who subsequently became a designated person, any party to that contract may apply to the Minister for a certificate to exempt property from the application of section 9 in order for any party who is not a designated person to receive a payment or for the party who is a designated person to make a payment under that contract.

• (2) The Minister shall issue a certificate within 90 days after receiving the application and at least 10 working days after having informed the Committee of the Security Council of his or her intent to issue the certificate, if it is established that

  • (a) the contract was entered into prior to any party becoming a designated person;

  • (b) the contract is not related to products referred to in section 3, nor to the provision of technical assistance, financial services, brokerage or other services, property, financial assistance or investment related to the supply, sale, transfer, manufacture or use of products referred to in that section; and

  • (c) the payment is not to be received directly or indirectly by a designated person, by a person acting on behalf of, or at the direction of, a designated person, or by a person owned or controlled by a designated person.

• 20 (1) A person wishing to sell, supply or transfer any products referred to in paragraphs 3(e) and (f) and claiming that those products would not contribute to Iran’s enrichment-related, reprocessing or heavy water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to topics about which the International Atomic Energy Agency (IAEA) has expressed concerns or identified as outstanding, may apply to the Minister for a certificate to exempt those products from the application of sections 3 to 6.

• (2) The applicant shall submit to the Minister, in writing, the following information and declarations:

  • (a) the applicant’s name, address and telephone number and, if the applicant is a corporation, the name of a contact person;

  • (b) if the applicant is applying for a certificate for, on behalf of or for the use of another person who will sell, supply or transfer the products, the name, address and telephone number of the other person;

  • (c) the customs office at which the products will be reported in the prescribed form under the Customs Act;

  • (d) the name and address of each consignee;

  • (e) the country in which the products are to be consumed or the country of final destination;

  • (f) for each type of separately identifiable product,

    • (i) if the product appears in the Guide, the corresponding item number,

    • (ii) if it exists, the Harmonized Commodity Description and Coding System commodity code as set out in the Harmonized System Nomenclature, published by the World Customs Organization,

    • (iii) a description of the identifiable products, including technical specifications, with sufficient detail to disclose their true identity and in terms that avoid the use of trade-names, technical names or general terms that do not adequately describe the goods, and

    • (iv) the quantity, unit value and total market value of the identifiable products, free on board (f.o.b.), factory or first shipping point in Canada and the approximate net weight;

  • (g) the total value of all types of separately identifiable products intended to be sold, supplied or transferred;

  • (h) all other relevant information, including

    • (i) an End-use Certificate,

    • (ii) an End-use Statement,

    • (iii) a copy of the contract between the applicant and the person to whom the applicant wishes to sell, supply or transfer the products,

    • (iv) a summary report on any prior sale, supply or transfer of like products by the applicant,

    • (v) the intended end-use of the products by the consignee of the goods,

    • (vi) the intended end-use location of the products if different from the location of the consignee,

    • (vii) the export permit numbers of any previous export permits issued to the same applicant,

    • (viii) an import permit issued by the government of the country for which the products are destined, and

    • (ix) an in-transit authorization;

  • (i) a declaration that, to the best of the applicant’s knowledge, the products would not contribute to Iran’s enrichment-related, reprocessing or heavy water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to topics about which the IAEA has expressed concerns or identified as outstanding; and

  • (j) a declaration that the information provided under this subsection is true, complete and correct.

• (3) The Minister shall issue a certificate, if it is established that the products that are the subject of the application would not contribute to Iran’s enrichment-related, reprocessing or heavy water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to topics about which the IAEA has expressed concerns or identified as outstanding.

21 No person contravenes these Regulations by doing an act or thing prohibited by any of sections 3 to 10 if, before the person does that act or thing, the Minister issues a certificate to the person stating that

• (a) the Security Council Resolutions do not intend that such an act or thing be prohibited; or

• (b) the act or thing has been approved by the Security Council of the United Nations or by the Committee of the Security Council in accordance with the Security Council Resolutions.

Coming into Force

22 These Regulations come into force on the day on which they are registered.