International Trade Law News

Canada's National Post newspaper reports that Canada is seeking to extradite to Toronto a Chicago-based gun dealer who was arrested in the U.S. in June and has been charged with violating the Arms Export Control Act for allegedly exporting more than 200 firearms from the United States to Canada.

The article indicates that the "extradition case against Ugur "Mike" Yildiz began on August 18 but was kept under seal until late Friday, when a Chicago court released documents showing that Toronto police have charged the Turkish-born American with conspiracy to traffic firearms." The story notes that "two of the firearms registered to Yildiz were used in attempted homicides in the Greater Toronto Area."

The story notes that this case appears to the be the first in many years that Canada has attempted to extradite a person charged with smuggling firearms from the U.S. to Canada.

Labels: Canada

The Ottawa Business Journal reports that Canada's leading aerospace and defense trade associations will ask the Canadian government to request the U.S. to expand the May 2007 arrangement between the Canadian Department of National Defence (DND) and U.S. Department of State that permits DND employees holding secret-level security clearances, including dual nationals, to work on certain defense-related projects in Canada that are subject to the ITAR. The trade associations want the arrangement to be expanded to cover employees of private companies in Canada that hold secret-level security clearances.

The article notes that the "the dual-nationality issue has hampered Canadian defence and security firms for years because American International Traffic in Arms Regulations (ITAR) prohibit secure data from being exported to Canadian companies who employ certain workers – in particular, employees holding citizenship from countries the United States deems sponsors of terrorism or in non-compliance with nuclear or biological weapon treaties."

Labels: Canada, ITAR

The Canadian Government last week imposed targeted sanctions on Zimbabwe. These sanctions, which are being implemented through the Special Economic Measures (Zimbabwe) Regulations, include the following restrictions:

• Ban on the export of arms and related material to Zimbabwe or to any person in Zimbabwe;
• Prohibition on the transport of arms and related material to Zimbabwe aboard a Canadian vessel or aircraft;
• Prohibition on the provision of technical or financial assistance or services relating to arms and related material, including the provision, transfer or communication of technical data, to Zimbabwe or any person in Zimbabwe;
• Requirement on any person in Canada and Canadian outside of Canada to freeze the assets of listed Zimbabwean persons and entities;
• Prohibition on Zimbabwean aircraft from flying over or landing in Canada.

Under these regulations, the Canadian Government can approve a list containing the names of persons for which there are reasonable grounds to believe that they are connected with the Government of Zimbabwe or persons or entities engaged in activities that seriously undermine democracy, respect for human rights and the rule of law in Zimbabwe. The Regulations also provide a review mechanism to remove names from the schedule upon receipt of a petition from a designated person.

The U.S. has imposed an arms embargo on Zimbabwe since April 17, 2002 and other economic sanctions administered by OFAC on the Mugabe regime since 2003.

Labels: Canada, Zimbabwe

Canada's Globe and Mail newspaper contains a front page story today on the adverse impact of the U.S. International Traffic in Arms Regulations (ITAR) on Canada's acquisition of new military equipment. Below are some excerpts of the story. The complete story can be found here:

Ottawa is facing an uphill battle to carry out a promised purchase of $17-billion in new military equipment because of stringent U.S. security rules and ballooning costs caused by a series of delays, newly released documents show.

According to Foreign Affairs briefing notes, the government is blaming U.S. security measures that limit the export of military technology to Canada, as American authorities fear some Canadian workers will engage in espionage.

* * *

In addition, documents released by the Department of Foreign Affairs reveal government fears that the purchase of military equipment "is in jeopardy" because of U.S. regulations called the International Traffic in Arms Regulations.

* * *

The Canadian government argues that ITAR is discriminatory and goes against the Charter of Rights. However, Ottawa has so far been unable to persuade the U.S. government to ease the restrictions for private-sector workers.

The Foreign Affairs documents show that U.S. firms are tired of ITAR, which hamper their sales to the Canadian government and cause delays.

"U.S. industry is becoming increasingly frustrated with the status quo as it impeded its own defence trade," a document said.

Labels: Canada, Export Controls, ITAR

In response to the recent events in Zimbabwe, the Government of Canada announced today that it will immediately put in place a series of measures to severely restrict its relationship with the Government of Zimbabwe. These measures include:

• Imposing restrictions on travel, work and study on senior Zimbabwean government, military and police officials and their families.
• Summoning the Ambassador of Zimbabwe to Canada to convey messages to her home government.
• Reconfirming its long-standing policy against exporting military goods to Zimbabwe.
• Not allowing any aircraft registered in Zimbabwe to land in, or to fly over, Canada.

Labels: Canada, Zimbabwe

For those readers interested in Canadian export control issues, Canada's Controlled Goods directorate is organizing a series of domestic and export control seminars across Canada this year.

These full-day seminars will review the role of Canadian industry in safeguarding strategic and sensitive goods and technology, with a focus on Canada's Controlled Goods Program, Canadian export controls, and contract security as it relates to federal government procurement and will cover the following issues:

• Overview of Export Control Process
• Applying for an Export Permit Using Export Controls Online (EXCOL)
• Understanding the Application Review Process
• Common Errors Made by Exporters

• Controlled Goods Directorate
• Export Controls Division (Foreign Affairs and International Trade Canada)
• Customs and Excise Program (Royal Canadian Mounted Police)
• Canadian Industrial Security Directorate
• Canada Border Services Agency

Ottawa – May 29, 2008
Montreal – June 11, 2008
Toronto – June 25, 2008
Halifax – September 2, 2008
Vancouver – September 16, 2008
Calgary – September 18, 2008
Winnipeg – October 8, 2008

Labels: Canada

Labels: Canada, DDTC, ITAR

The U.S. and Canada today announced that they have completed an exchange of letters documenting an arrangement between the U.S. Department of State and the Canadian Department of National Defence (DND) permitting dual citizens in Canada to work on certain military projects that are subject to the U.S. International Traffic in Arms Regulations (ITAR).

Under the arrangement announced today, the State Department's Directorate of Defense Trade Controls (DDTC) will implement procedures to grant access to defense articles and services exported to Canada under the ITAR to DND personnel who are Canadian citizens holding a minimum secret-level security clearance, including dual nationals. DND personnel covered by this agreement include Canadian Forces members, civilian employees, embedded contractors and employees of other federal government departments and agencies working within DND. Canadian standards and procedures will continue to be used to process security clearances.

This agreement, which has been negotiated for more than one year, was necessary since the U.S. has been limiting access to ITAR-controlled defense articles and services to Canadian citizens, and denying access to Canadian citizens who possess dual nationality with a U.S. proscribed country. Canada objected to these restrictions claiming they would be inconsistent with the Canadian Charter of Rights and Freedoms and human rights legislation, which prohibit discriminatory treatment of Canadian citizens, regardless of their country of origin or other nationality. This arrangement will allow Canada to proceed with the purchase of U.S.-produced CH-47 helicopters, C-17 transport aircraft and C-130 aircraft.

The U.S. and Canada both indicated that they consider this arrangement as an important first step in resolving these ITAR-related issues. The State Department has offered to conclude similar arrangements with other Canadian government agencies provided they can assure the U.S. of their commitment to "vigorously implement and oversee similar procedures".

The press releases issued by the U.S. Department of State and Canada's Department of National Defence can be found here and here.

Labels: Canada, ITAR

Canada's The Globe and Mail newspaper reported today that the U.S. and Canada have reached an agreement on how to handle the recent controversy involving dual citizens that work on military projects in Canada which are subject to the U.S. International Traffic in Arms Regulations (ITAR). The paper reports that:

The Harper government has come to terms with Washington on a deal exempting Department of National Defence employees from U.S. restrictions that prevent dual nationals from 17 countries from having access to data related to U.S. military technology.

Under the deal, the exemption could eventually be extended to other federal bureaucrats, and then, with the agreement of the U.S. government, to people in the private-sector industry.

"It's a step-by-step approach," a federal source said.

Labels: Canada, ITAR

Canada's Export Controls Division today posted an announcement on the agency's website advising Canadian exporters that the Export and Import Permits Act (EIPA) was recently amended to clarify specific controls over technology contained on Canada's Export Control List (ECL).

According to the Export Controls Division, the amendments to Canada's export control law:

Clarif[ies] specific controls over technology, including technical data, technical assistance and information necessary for the development, production or use of military and other strategically sensitive goods listed in the Export Control List (ECL). The amendments also provide explicit authority to control transfers, including electronic transfers, of technology listed in the ECL. These changes respond to the need for enhanced controls over the export and electronic transfer of military and strategically sensitive technology.

Labels: Canada, Export Controls

Canada's The Globe and Mail newspaper today reports that ITAR "restrictions on military purchases are causing so much paralysis in Ottawa" that the Canadian Government proposed "scrapping its project" to purchase Sikorsky Cyclone helicopters to replace its aging fleet of Sea Kings. The paper reports that "the Canadian government is refusing to sign documents containing ITAR restrictions -- such as technical assistance agreements and export licences -- that are crucial to the production of the Sikorsky Cyclones."

The article also indicates that "some federal officials feel that a solution to ITAR is close to being made public. However, senior officials in the defence industry fear the new rules will favour only government bureaucrats, and that employees in the private sector will continue facing the same discriminatory measures."

Labels: Canada, Export Controls, ITAR