Canada’s Consolidated Sanctions List – Life’s a Little Easier

On October 13, 2017, Global Affairs Canada published the Consolidated Special Economic Measures Act Sanctions List. This tool provides a list of the individuals and entities subject to sanctions regulations made under the Special Economic Measures Act (SEMA) in Canada. The list refers to the applicable regulations for each individual or entity, which must be consulted on a case-by-case basis to determine the specific prohibitions that apply.

The Consolidated SEMA Sanctions List assists Canadian businesses with ensuring compliance with Canada’s sanctions regime by creating a single point of access containing the names of all of the individuals and entities subject to sanctions regulations.

The Consolidated SEMA Sanctions List was adopted following recommendations of the Parliamentary Standing Committee on Foreign Affairs and International Development that Canada “produce and maintain a comprehensive, public and easily accessible list of all individuals and entities targeted by Canadian sanctions containing all information necessary to assist with the proper identification of those listed”. One of Tereposky & DeRose’s partners, Vince DeRose, testified before the Standing Committee as to the importance for Canadian businesses of creating a consolidated list of individuals and entities subject to sanctions. For more information on the Parliamentary Standing Committee report, see Parliamentary Standing Committee Calls for Improvements in Canada’s Sanctions Regime.

The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms.  They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear, and provide advice on compliance in these areas. Where breaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada.

If you would like to discuss any aspect of the Canadian sanctions regime, contact Vince DeRose, Jennifer Radford or Stéphanie Desjardins at:

Vince DeRose
613.237.8862
vderose@tradeisds.com

Jennifer Radford
613.237.3283
jradford@tradeisds.com

Stéphanie Desjardins
613.237.0483
sdesjardins@tradeisds.com

CBSA Commences New Investigation on Copper Pipe Fittings

Today the Canada Border Services Agency (CBSA) initiated an investigation under the Special Import Measures Act relating to alleged injurious dumping and subsidizing of copper pipe fittings originating in or exported from the Socialist Republic of Vietnam.

The investigations follow a complaint filed by Cello Products Inc. (Cello). Cello, which is located in Cambridge, Ontario, produces wrought copper and cast brass solder fittings, in sizes ranging from 1/8″ to 8″.

CBSA has stated that the goods subject to the investigation are usually classified under the following Harmonized System classification numbers:

  • 7412.10.00.11
  • 7412.10.00.19
  • 7412.10.00.90
  • 7412.20.00.11
  • 7412.20.00.12
  • 7412.20.00.19
  • 7412.20.00.90

Tereposky & DeRose regularly provides advice on Canadian anti-dumping and countervailing matters.  Should you have any questions regarding this matter or anti-dumping and countervailing issues more generally, we are at your disposal.

Greg Tereposky
613-237-1210
gtereposky@tradeisds.com

Vince DeRose
613-237-8862
vderose@tradeisds.com

 

Justice for Victims of Corrupt Foreign Officials Act Comes Into Force

On October 18, 2017, the Justice for Victims of Corrupt Foreign Officials Act (also referred to as the “Sergei Magnitsky Law”), received Royal Assent.

This Act introduces a new legal framework that enables Canada to impose targeted sanctions and travel bans on foreign nationals complicit in “extrajudicial killings, torture or other gross violations of internationally recognized human rights”, as well as acts of “significant corruption.”

The Act includes whistleblower protection to those that expose the illegal conduct of government officials or individuals. That protection is extended to people irrespective of nationality, including nationals of the country in which the abusive conduct occurred, and any non-national located within that country. Time will tell how effective such protections are to foreign whistleblowers residing outside of Canada.

The new framework permits Canada, upon receipt of “reliable and appropriate” evidence that a foreign national has engaged in illegal conduct, to issue orders and regulations to have the foreign national “listed”.  The consequences of being listed potentially include the seizure or freezing of the foreign national’s property within Canada, as well as the barring of the foreign national from entry into Canada.

The Act also makes it illegal for any person in Canada or Canadian outside Canada to engage in business dealings, directly or indirectly, with listed foreign nationals. This means that Canadian businesses now need to assess whether their business dealings include foreign nationals on the targeted sanctions list.

The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms.  They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear, and provide advice on compliance in these areas. Where beaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada.

If you would like to discuss any aspect of the Canadian sanctions regime, contact Vince DeRose or Jennifer Radford at:

Vince DeRose
613.237.8862
vderose@tradeisds.com

Jennifer Radford
613.237.3283
jradford@tradeisds.com

CBSA Now Applying Important Changes to Canada’s Anti-Dumping and Countervailing Duty Laws that Favour Exporters Who Cooperate in Investigations and are Found to Have Margins of Dumping less than 2% and/or Amounts of Subsidization less than 1%

The Canada Border Services Agency (CBSA) is now applying the changes to the Special Import Measures Act (SIMA) that implement the findings of the WTO panel in Canada – Welded Pipe (DS482). That panel faulted Canada for, among other things, not immediately terminating anti-dumping investigations against individual exporters found in the final determination to have a de minimis margin of dumping (i.e., less than 2 percent of the export price). Canada had previously based the de minimis threshold on the country-wide average margin of dumping. This prevented individual exporters from being excluded from investigations, even if their individual margin of dumping was de minimis, if the average margin of dumping for all exporters from the same country was above de minimis. Consequently, such exporters were subject to the arduous duty administration, re-investigations and reviews that were ongoing during the life of the duties.

Bill C-44, which was assented to on 22 June 2017, amended the SIMA.  One of the amendments requires the President of the CBSA to terminate an investigation against an individual exporter if the final determination of the margin of dumping or amount of subsidy for that exporter is “insignificant”, defined as less than 2% and 1% of export price, respectively. Although not specifically ruled on by the WTO panel, the inclusion of the de minimis threshold for subsidization is a logical extension of the panel’s finding.

On 29 September 2017, the CBSA issued the results of its review of the final determination in Certain Carbon Steel Welded Pipe, the investigation that was the subject of the WTO ruling.  In that review, the CSBA terminated the investigation against two steel companies found to have insignificant margins of dumping in the original final determination, although the anti-dumping duties remained in place against other exporters from Chinese Taipei.

On 3 October 2017, the CBSA terminated the investigation in Certain Silicon Metal against individual exporters from Brazil, Norway and Thailand because their margins of dumping were insignificant or zero.

The possibility of having an investigation terminated and having the burdens associated with the duties removed is a huge incentive for exporters to fully participate in Canadian anti-dumping and countervailing duty investigations.

Tereposky & DeRose regularly provides advice on Canadian anti-dumping and countervailing duty matters.  Should you have any questions regarding this matter or anti-dumping and countervailing issues more generally, please contact us.

Contact:

Greg Tereposky

613.903.7015, ext. 101

gtereposky@tradeisds.com

 

Canada Imposes Economic Sanctions Against Venezuela

On September 22, 2017, Canada imposed targeted economic sanctions against Venezuela. These economic sanctions affect 40 persons (“listed persons”) that Canada has identified as responsible for the current social and economic situation in the country.

Under the Special Economic Measures (Venezuela) Regulations (the “Regulations”), it is now prohibited for any person in Canada or any Canadian outside Canada to knowingly do anything that causes, facilitates or assists in dealing with any property, wherever situated, that is owned, held or controlled by a listed person or by an agent of a listed person. It is also illegal to enter into or facilitate such a transaction, or to provide any financial or related service in respect of such dealings. Finally, it is also illegal to make available any goods to a listed person or to a person acting on their behalf.

While there are some limited exceptions, the sanctions effectively prohibit Canadians from carrying on almost any business dealings with the 40 listed persons – who are all senior Venezuelan officials and individuals, including President Nicola Maduro.

The imposition of economic sanctions does not mean that Canadians must cease business with Venezuela. On-going business is permitted so long as it does not involve, directly or indirectly, a listed person. The introduction of economic sanctions does, however, impose on Canadians conducting business with Venezuela an obligation to scrutinize ongoing business transactions to ensure compliance.

The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms.  They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear, and provide advice on compliance in these areas. Where breaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada.

If you would like to discuss any aspect of the Canadian sanctions regime, contact Vince DeRose, Jennifer Radford or Stephanie Desjardins at:

Vince DeRose
613.903.7015, ext. 102
vderose@tradeisds.com

Jennifer Radford
613.903.7015, ext. 103
jradford@tradeisds.com

Stephanie Desjardins
613.903.7015
sdesjardins@tradeisds.com