Export and Import Controls and Compliance Programs

(Lexology – Ronald C. Cheng and Drew Tyler, Osler Hoskin & Harcourt LLP )

Canadian businesses engaged in international trade always have been less diligent on compliance with import and export controls imposed by the Export and Import Permits and Controlled Goods Acts and similar legislation, than on other regulation. Often compliance did not occur until due diligence requirements on financings or at the sale of the business focussed attention on required inquiry and compliance “with all applicable laws”.

Since a significant and essential aspect of Canadian import and export controls covers the re-export from Canada of goods of U.S. origin, Canadian business should take note that increased surveillance and compliance as well as controls generally, have received much recent attention in the U.S. […]

Export and import controls compliance programs have been developed by many U.S. companies. What the U.S. enforcement agencies recommend for such programs should be of particular interest to Canadians faced with (remedial) compliance since Canadian authorities are fully familiar with U.S. requirements. Also, the creation or improvement of such programs often has been required by Canadian authorities when approached to rule on possible contraventions, particularly when requests are made for expedited consideration in view of an impending “closing”.

Read more here. Earlier this year, the U.S. Department of Commerce published “How to Develop An Effective Export Management And Compliance Program And Manual“. The U.S. Department of State similarly has published guidelines for compliance programs in this area. Although no one “template” will suffice for all companies, the Canadianized version of the U.S. government’s guidelines provides an effective starting point from which to develop a compliance program acceptable to Canadian regulators. The original article with footnotes, and the template for a Canadian compliance program can be downloaded here.