New Developments on Sanctions Against Iran

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Jun 17, 2013

Further to our May 31, 2013 trade news article, "Regulating Amending the Special Economic Measures (Iran) Regulations", there has been some new developments that will interest the import/export community.

Canada has a number of sanctions in place against Iran that could impact business transactions with that country or any person in that country. Canada's Regulations Implementing the United Nations Resolutions on Iran (the Iran UN Regulations) contain a ban on the import of arms and related material. The Special Economic Measures (Iran) Regulations (the Iran SEMA Regulations) contain a blanket ban on the import from Iran of any goods that are not already prohibited for import under the Iran UN Regulations, subject to certain exemptions.

The export ban is found in section 4 of the Iran SEMA Regulations.  The import ban is found in section 4.1. They can be found at http://laws-lois.justice.gc.ca/eng/regulations/SOR-2010-165/FullText.html.  They reads as follows.

4. (1) It is prohibited for any person in Canada and any Canadian outside Canada to export, sell, supply or ship goods, wherever situated, to Iran, to a person in Iran, or to a person for the purposes of a business carried on in or operated from Iran.

(2) Subsection (1) does not apply to

(d) goods that are required to be exported, sold, supplied or shipped under a contract entered into before May 29, 2013

4.1. (1) It is prohibited for any person in Canada and any Canadian outside Canada to import, purchase, acquire, ship or tranship any goods that are exported, supplied or shipped from Iran after May 29, 2013, whether the goods originated in Iran or elsewhere.

(2) Subsection (1) does not apply to

(b) goods that are required to be imported, purchased, acquired, shipped or transhipped under a contract entered into before May 29, 2013 provided that

(i) the goods are not natural gas, crude oil, or petroleum or petrochemical products, and

(ii) the consideration received or to be received complies with these Regulations and the Regulations Implementing the United Nations Resolutions on Iran;

(c) personal or settlers’ effects that are taken or shipped by an individual leaving Iran and that are solely for the use of the individual or the individual’s immediate family;

(d) informational materials, including books and other publications;

(e) correspondence, including letters, printed papers and postcards; and

(f) any package sent by mail for non-commercial reasons.

Further in the regulations there is another exemption in Section 8.1 that states,

8.1 The prohibitions in sections 4 to 8 do not apply with respect to an activity that has as its purpose

(a) the safeguarding of human life;

(b) disaster relief; or

(c) the provision of food, medicine or medical supplies as listed in Schedule 3.

SCHEDULE 3

(Section 8.1)

FOOD, MEDICINE AND MEDICAL SUPPLIES

Goods listed under the following categories of the Harmonized Commodity Description and Coding System published by the World Customs Organization:

If your goods fit within the items listed in Schedule 3, and no designated persons are involved in the transaction, you will not need a permit for the import or the related financial transactions. Similarly, if the items do not fit within Schedule 3, but they fit under another exemption, such as for pre-existing contracts, a permit would not be required.

Please note, that sanctions against any country are subject to change without notice.  Prior to any thought of importing, it is best to consult the website at www.international.gc.ca/sanctions.