February 27, 2007
No. 30
The Honourable Peter MacKay, Minister of Foreign Affairs and Minister of the Atlantic
Canada Opportunities Agency, today announced that the government is implementing
UN Resolution 1737 on the Islamic Republic of Iran's nuclear program.
"The Government of Canada has satisfied its obligations and is fully implementing
Resolution 1737, which is intended to bring about the verifiable suspension of Iran's
uranium enrichment program," said Minister MacKay. "Canada believes that if Iran
wishes to regain the confidence of the international community, as represented by the
Security Council, it must earnestly submit to the requirements of Resolution 1737."
On February 22, the Governor-in-Council made new regulations under the United
Nations Act: the Regulations Implementing the United Nations Resolution on Iran.
Together with existing relevant provisions of the Canada Shipping Act, the Export and
Import Permits Act and the Nuclear Safety and Control Act, these regulations will
enable Canada to fully implement in Canadian law the sanctions mandated by
Resolution 1737 of the Security Council. The regulations will be tabled in Parliament, as
required by section 4 of the United Nations Act. An unofficial version of the regulations
is attached as a backgrounder. The official version will be published in the Canada
Gazette, Part II, on March 7, 2007.
The regulations impose an embargo on certain goods and services that could
contribute to Iran's activities linked to enrichment, reprocessing, heavy water or the
development of nuclear weapons delivery systems. They also address an assets freeze
and a travel notification requirement.
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A backgrounder is attached.
For further information, media representatives may contact:
Foreign Affairs Media Relations Office
Foreign Affairs and International Trade Canada
613-995-1874
http://www.international.gc.ca
Backgrounder
Whereas the Security Council of the United Nations, acting under Article 41 of the
Charter of the United Nations, adopted Resolution 1737 (2006) on December 23, 2006;
And whereas it appears to the Governor in Council to be necessary to make regulations
for enabling the measures set out in that Resolution to be effectively applied;
Therefore, Her Excellency the Governor General in Council, on the recommendation of
the Minister of Foreign Affairs, pursuant to section 2 of the United Nations Act, hereby
makes the annexed Regulations Implementing the United Nations Resolution on Iran.
REGULATIONS IMPLEMENTING THE UNITED NATIONS RESOLUTION ON IRAN
(Unofficial version)
INTERPRETATION
1. The following definitions apply in these Regulations.
"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" means the Committee of the Security Council of
the United Nations established under paragraph 18 of the Security Council Resolution.
(Comité du Conseil de sécurité)
"designated person" means a person
(a) whose name appears on the Annex to the Security Council Resolution;
(b) that has been designated by the Security Council of the United Nations under
paragraphs 10 or 12 of the Security Council Resolution 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 the Security Council Resolution 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" has the same meaning as the definition Guide in section 1 of the Export Control
List. (guide)
"Iran" means the Islamic Republic of Iran and includes its political subdivisions. (Iran)
"Minister" means the Minister of Foreign Affairs. (ministre)
"person" means an individual, a body corporate, a trust, a partnership, a fund, an
unincorporated association or organization or a foreign state. (personne)
"product" means any item, material, equipment, good or technology. (produit)
"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" means Resolution 1737 (2006) of December 23, 2006
adopted by the Security Council of the United Nations. (résolution du Conseil de
sécurité)
"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" 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" 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 the Security Council Resolution;
(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 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 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 the Security
Council Resolution.
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
the Security Council Resolution.
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
Resolution, 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 Resolution, 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 Resolution does 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 Resolution.
COMING INTO FORCE
22. These Regulations come into force on the day on which they are registered.
(Unofficial version)
