ARCHIVED — Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran

Warning This Web page has been archived on the Web.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Registration

SOR/2008-118 April 17, 2008

UNITED NATIONS ACT

P.C. 2008-771 April 17, 2008

Whereas the Security Council of the United Nations, acting under Article 41 of the Charter of the United Nations, adopted Resolution 1803 (2008) on March 3, 2008;

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 (see footnote a), hereby makes the annexed Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran.

REGULATIONS AMENDING THE REGULATIONS IMPLEMENTING THE UNITED NATIONS RESOLUTIONS ON IRAN

1. (1) The definition “Security Council Resolutions” in section 1 of the Regulations Implementing the United Nations Resolutions on Iran (see footnote 1) is replaced by the following:

“Security Council Resolutions” means Security Council Resolution 1737, Security Council Resolution 1747 and Security Council Resolution 1803. (résolutions du Conseil de sécurité)

(2) Section 1 of the Regulations is amended by adding the following in alphabetical order:

“Security Council Resolution 1803” means Resolution 1803 (2008) of March 3, 2008 adopted by the Security Council of the United Nations. (résolution 1803 du Conseil de sécurité)

2. Paragraph 3(c) of the Regulations is replaced by the following:

(c) those that appear in the Security Council of the United Nations document S/2006/815;

3. Section 4 of the Regulations is replaced by the following:

4. No owner or master of a Canadian vessel, within the meaning of section 2 of the Canada Shipping Act, 2001, no operator of an aircraft registered in Canada, and no Canadian owner or master of a vessel or operator of an aircraft 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.

4. Section 8 of the Regulations is replaced by the following:

8. No owner or master of a Canadian vessel, within the meaning of section 2 of the Canada Shipping Act, 2001, no operator of an aircraft registered in Canada and no Canadian owner or master of a vessel or operator of an aircraft shall knowingly carry, cause to be carried or permit to be carried arms and related material or any of the items that appear in the 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.

5. (1) Paragraph 9(a) of the Regulations is replaced by the following:

(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, by a person owned or controlled by a designated person or by a person determined by the Security Council of the United Nations or by the Committee of the Security Council to have assisted a designated person in evading the sanctions or violating the provisions contained in the Security Council Resolutions;

(2) Paragraph 9(d) of the Regulations is replaced by the following:

(d) make any property or any financial or other related service available to a designated person, a person acting on behalf of, or at the direction of, a designated person, by a person owned or controlled by a designated person or by a person determined by the Security Council of the United Nations or by the Committee of the Security Council to have assisted a designated person in evading the sanctions or violating the provisions contained in the Security Council Resolutions; or

(e) make property or any financial or other related service available for the benefit of any person referred to in paragraph (d).

6. Subsection 15(2) of the English version of the Regulations is replaced by the following:

(2) The Minister shall notify the petitioner, within 60 days after receiving the petition, of the Minister’s decision whether or not 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.

7. Section 17 of the French version of the Regulations is amended by replacing “de base” with “ordinaires”.

8. Subsection 18(2) of the Regulations is replaced by the following:

(2) If the necessity of that property is established, the Minister shall issue a certificate after he or she informs the Committee of the Security Council of his or her intent to issue the certificate.

9. (1) Subsection 20(1) of the Regulations is replaced by the following:

20. (1) A person wishing to sell, supply or transfer any of the products referred to in paragraph 3(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 which it has identified as outstanding may apply to the Minister for a certificate to exempt those products from the application of sections 3 to 6.

(1.1) A person wishing to sell, supply or transfer any of the products referred to in paragraph 3(e) and claiming that those products are to be used exclusively in light water reactors and that their supply, sale or transfer is necessary for the technical cooperation provided to Iran by the IAEA or under its auspices as provided for in paragraph 16 of Security Council Resolution 1737 may apply to the Minister for a certificate to exempt those products from the application of sections 3 to 6.

(2) The portion of subsection 20(2) of the Regulations before paragraph (a) is replaced by the following:

(2) The applicant shall submit to the Minister the following information and declarations, in writing, in support of an application under subsection (1) or (1.1):

(3) Subparagraph 20(2)(f)(ii) of the Regulations is replaced by the following:

(ii) the Harmonized Commodity Description and Coding System commodity code as set out in the Harmonized System Nomenclature, published by the World Customs Organization,

(4) Paragraph 20(2)(i) of the Regulations is replaced by the following:

(i) a declaration that, to the best of the applicant’s knowledge,

(i) the products referred to in paragraph 3(f) 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 which it has identified as outstanding, or

(ii) the products referred to in paragraph 3(e) that are the subject of the application are to be used exclusively in light water reactors and that their supply, sale or transfer is necessary for technical cooperation provided to Iran by the IAEA or under its auspices as provided for in paragraph 16 of Security Council Resolution 1737; and

(5) Subsection 20(3) of the Regulations is replaced by the following:

(3) The Minister shall issue a certificate under subsection (1), 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 which it has identified as outstanding.

(4) The Minister shall issue a certificate under subsection 20(1.1), if it is established that the products that are the subject of the application are to be used exclusively in light water reactors and that their supply, sale or transfer is necessary for the technical cooperation provided to Iran by the IAEA or under its auspices as provided for in paragraph 16 of Security Council Resolution 1737.

(5) Before issuing a certificate under subsection (4), the Minister shall notify the Committee of the Security Council if the products that are the subject of the application are those set out in sections 3 to 6 of the Annex entitled “List of Nuclear-related Dualuse Equipment, Materials, Software and Related Technology” to Information Circular INFCIRC/254/Rev. 7/Part 2, set out in the Security Council of the United Nations document S/2006/814.

(6) The Minister shall notify the Committee of the Security Council and the IAEA within 10 days after the supply, sale or transfer of products for which a certificate has been issued under subsection (4).

10. The Regulations are amended by adding the following after section 21:

LEGAL PROCEEDINGS

21.1 No legal proceedings shall lie in Canada at the instance of the Government of Iran, of any person or entity in Iran, of a designated person or of any person claiming through or for the benefit of any such person or entity in connection with any contract or other transaction where its performance was prevented by reason of any measure imposed by these Regulations.

APPLICATION PRIOR TO PUBLICATION

11. For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply according to their terms before they are published in the Canada Gazette.

COMING INTO FORCE

12. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

On March 3, 2008, the United Nations Security Council adopted Resolution 1803 (2008) which imposes additional sanctions against Iran in response to the proliferation risks presented by the Iranian nuclear program. Resolution 1803 (2008) was adopted in light of Iran’s continuing failure to meet the requirements of the International Atomic Energy Agency (IAEA) Board of Governors and to comply with the provisions of Security Council resolutions 1696 (2006), 1737 (2006) and 1747 (2007) which required Iran to fully cooperate with the IAEA and to suspend all uranium enrichment-related and reprocessing activities. Implementation of Resolution 1803 (2008) by UN Member States will help prevent Iran from acquiring or developing nuclear weapons and contribute to international peace and security.

The Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran are necessary for Canada to fulfill its international legal obligation to implement the decisions of the Security Council in Resolution 1803 (2008).

Description and rationale

Security Council resolutions 1696 (2006), 1737 (2006) and 1747 (2007) called for Iran to cooperate with the IAEA and to suspend all uranium enrichment-related and reprocessing activities and imposed specific measures against Iran. As a member of the United Nations, Canada is legally obliged, pursuant to Article 25 of the Charter of the United Nations, to implement binding decisions of the Security Council in domestic law. The United Nations Act constitutes the appropriate legislative authority to implement these decisions.

Canada has fully implemented its international obligations under these resolutions by making, pursuant to section 2 of the United Nations Act, the Regulations Implementing the United Nations Resolutions on Iran (P.C. 2007-235, SOR/2007-44) which came into force on February 22, 2007 and were amended on May 17, 2007 (P.C. 2007-826, SOR/2007-105).

Resolution 1803 (2008) strengthens the previous sanctions and adds new elements. Acting under Article 41 of Chapter VII of the Charter of the United Nations, among other measures, the Security Council decided that States shall:

  • impose a travel ban to prevent the entry into or transit through their territory of persons listed by the Security Council or the 1737 Committee as being involved in Iran’s nuclear programme;
  • prohibit the export to Iran of newly designated products which could contribute to Iran’s uranium enrichment-related, reprocessing or heavy water-related activities, or to the development of nuclear weapon delivery systems, in addition to those listed in resolutions 1737 (2006) and 1747 (2007);
  • apply the assets freeze and travel notification requirements already imposed by resolutions 1737 (2006) and 1747 (2007) to additional designated individuals and entities; and
  • ensure that no claim shall lie at the instance of Iran or designated persons in relation to any transactions prevented by reason of the measures imposed in resolutions 1737 (2006), 1747 (2007) and 1803 (2008).

The Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran implement the export prohibitions and the proscription against claims by Iran or by designated persons. The application of the assets freeze and travel notifications to the additional designated individuals and entities was already captured by the Regulations Implementing the United Nations Resolutions on Iran. Implementation of the travel ban is ensured in Canada under existing provisions of the Immigration and Refugee Protection Act.

In addition to implementing in domestic law the mandatory provisions of Resolution 1803 (2008), the Regulations are intended to effect the adjustments requested by the Standing Joint Committee for the Scrutiny of Regulations.

Sanctions against Iran have been in place since February 2007 and impacts on international competitiveness should be limited insofar as the sanctions must be implemented by all UN Member States. These Regulations are expected to have minimal additional impact over and above the existing sanctions in place against Iran.

These Regulations came into force upon their registration, and will be tabled forthwith before Parliament as is required under the United Nations Act.

Security Council resolutions 1737 (2006), 1747 (2007) and 1803 (2008), and information concerning the work of the 1737 Committee, including listings, are available at: http://www.un.org/sc/committees/1737/index.shtml

Consultation

The Department of Foreign Affairs and International Trade Canada drafted the Regulations in collaboration with the Department of Justice, the Canada Border Services Agency, the Department of Finance, the Office of the Superintendent of Financial Institutions Canada, the Canadian Nuclear Safety Commission, Citizenship and Immigration Canada, the Department of National Defence, Export Development Canada, the Royal Canadian Mounted Police and the Canadian Security Intelligence Service.

Implementation, enforcement and service standards

Compliance is ensured by the Royal Canadian Mounted Police and the Canada Border Services Agency. Any person who contravenes the provisions of the Regulations is liable, upon conviction, to the punishments set out in section 3 of the United Nations Act.

Contacts

Karina Boutin
Legal Officer
United Nations, Human Rights and Economic Law Division
Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-995-1108
Fax: 613-992-2467
Email: Karina.Boutin@international.gc.ca

Sabine Nölke
Director
United Nations, Human Rights and Economic Law Division
Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-992-6296
Fax: 613-992-2467
Email: Sabine.Nolke@international.gc.ca

Footnote a
R.S., c. U-2

Footnote 1
SOR/2007-44; SOR/2007-105