Registration
SOR/2013-283 December 11, 2012
SPECIAL ECONOMIC MEASURES ACT
P.C. 2012-1652 December 11, 2012
Whereas the Governor in Council is of the opinion that the situation in Iran constitutes a grave breach of international peace and security that has resulted or is likely to result in a serious international crisis;
Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to subsections 4(1) to (3) of the Special Economic Measures Act (see footnote a), makes the annexed Regulations Amending the Special Economic Measures (Iran) Regulations.
1. Section 1 of the Special Economic Measures (Iran) Regulations (see footnote 1) is amended by adding the following in alphabetical order:
2. Paragraph 2(a) of the Regulations is replaced by the following:
3. Paragraphs 3.1(c) and (d) of the Regulations are replaced by the following:
4. (1) Paragraph 4(1)(a) of the Regulations is replaced by the following:
(2) Paragraph 4(1)(d) of the Regulations is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
(3) Subsection 4(1) of the Regulations is amended by striking out “or” at the end of paragraph (c) and by adding the following after paragraph (d):
5. The Regulations are amended by adding the following after section 4:
4.1 (1) It is prohibited for any person in Canada and any Canadian outside Canada to import, purchase, acquire or ship natural gas, crude oil, or any petroleum or petrochemical products, from Iran.
(2) It is prohibited for any person in Canada and any Canadian outside Canada to provide marketing services or any financial or other services to, from or for the benefit of, or on the direction or order of, Iran or any person in Iran in respect of any of the activities set out in subsection (1).
6. (1) Subparagraphs 5(d)(v) and (vi) of the Regulations are replaced by the following:
(2) Paragraph 5(d) of the Regulations is amended by striking out “and” at the end of subparagraph (vii) and by adding the following after subparagraph (viii):
(3) Section 5 of the Regulations is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):
7. Sections 8 and 8.1 of the Regulations are replaced by the following:
7.1 It is prohibited for any person in Canada and any Canadian outside Canada to provide any flagging or classification services to Iranian oil tankers or cargo vessels.
8. It is prohibited for any person in Canada and any Canadian outside Canada to do anything that causes, assists or promotes, or is intended to cause, assist or promote, any act or thing prohibited by sections 3 to 7.1.
8.1 The prohibitions in sections 4 to 8 do not apply with respect to an activity that has as its purpose
8. (1) Items 133, 136, 190 and 243 of Part 1 of Schedule 1 to the Regulations are repealed.
(2) Item 78 of Part 1 of Schedule 1 to the Regulations is replaced by the following:
78. Iran Aircraft Manufacturing Industries (also known as IAMI, IAMCO, HESA, HASA, Iran Aircraft Manufacturing Company, Iran Aircraft Mfg. In. Co., Iran Aircraft Manufacturing Industries Corporation, Havapeyma Sazhran, Hava Payma Sazi-E Iran, Havapeyma Sazi Iran, HESA Trade Center and Karkhanejate Sanaye Havapaymaie Iran)
(3) Item 159 of Part 1 of Schedule 1 to the Regulations is replaced by the following:
159. Mavadkaran Jahed Noavar Co. (also known as Mavad Karan and Mavad Karan Jahad-e-No’avar)
(4) Part 1 of Schedule 1 to the Regulations is amended by adding the following after item 350:
9. Part 2 of Schedule 1 to the Regulations is amended by adding the following after item 51:
52. Majid Namjoo
10. (1) Items 3 and 4 of Schedule 2 to the Regulations are replaced by the following:
|
Item |
Column 1 |
Column 2 |
|---|---|---|
|
4. |
Aluminum and aluminum alloy products |
Piping, tubing, fittings, flanges, forging, castings, valves, any unfinished products in any form and any waste or scrap that are made of aluminum and its alloys that are not specified in the Export Control List. |
(2) The portion of item 22 of Schedule 2 to the Regulations in column 2 is replaced by the following:
|
Item |
Column 1 |
Column 2 |
|---|---|---|
|
22. |
(1) High voltage direct current power supply units that are not specified in the Export Control List and
(2) Transformers with the specifications necessary for the electricity generated by the high voltage direct current power supply units specified in subsection (1). |
(3) The portion of item 28 of Schedule 2 to the Regulations in column 2 is replaced by the following:
|
Item |
Column 1 |
Column 2 |
|---|---|---|
|
28. |
Seals and gaskets made of
|
(4) Schedule 2 to the Regulations is amended by adding the following after item 71:
|
Item |
Column 1 |
Column 2 |
|---|---|---|
|
72. |
Aluminum, steel, iron, copper, zinc and manganese |
In addition to specific items made of those metals referred to in these Regulations, all raw or semi-finished forms of those metals or their alloys. |
|
73. |
Electroslag remelters |
Electroslag remelters of all types and specifications, and specially designed parts for them. |
|
74. |
Graphite |
Chemical Abstracts Service registry number 7782-42-5. |
|
75. |
Gold, silver, platinum, palladium, ruthenium, rhodium, osmium and iridium |
In addition to specific items made of those metals referred to in these Regulations, all raw, semi-finished or finished forms of those metals or their alloys. |
|
76. |
Helium or hydrogen leak detectors |
Helium or hydrogen leak detectors capable of detecting leak rates of less than 1 x 10-5 standard cubic centimetres of air per second (atm cc/s for air). |
|
77. |
Smelting machinery and products |
Any smelting machines and specially designed parts for them, as well as any reducing agents or fluxes used in the smelting process. |
|
78. |
Software for integrating industrial processes |
Any software used to control or integrate industrial systems, such as SCADA. |
|
79. |
Stainless steel valves, piping, tubing and fittings |
Any valves, piping, tubing and fittings that are made of stainless steel type 304, 316 or 317 and that are not specified in the Export Control List. |
|
80. |
Vacuum arc remelters |
Vacuum arc remelters of all types and specifications, and specially designed parts for them. |
|
81. |
Vacuum induction melting furnaces |
Vacuum induction melting furnaces of all types and specifications, and specially designed parts for them. |
11. The Regulations are amended by adding, after Schedule 2, the Schedule 3 set out in the schedule to these Regulations.
12. For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act , these Regulations apply before they are published in the Canada Gazette.
13. These Regulations come into force on the day on which they are registered.
Goods listed under the following categories of the Harmonized Commodity Description and Coding System published by the World Customs Organization:
|
Column 1 |
Column 2 |
Column 3 |
|---|---|---|
|
02 |
Meat and edible meat offal |
All |
|
03 |
Fish and crustaceans, molluscs and other aquatic invertebrates |
Excluding 0301.10, 0301.11, 0301.91, 0301.92, 0301.93 and 0301.99 |
|
04 |
Dairy produce; birds’ eggs; natural honey; edible products of animal origin not elsewhere specified or included |
All |
|
07 |
Edible vegetables and certain roots and tubers |
All |
|
08 |
Edible fruits and nuts; peel of citrus fruit or melons |
All |
|
10 |
Cereals |
All |
|
11 |
Products of the milling industry, malt, starches, inulin and wheat gluten |
All |
|
12 |
Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder. |
1201.00, 1202.30, 1202.41, 1202.42, 1208.10 and 1208.90 |
|
16 |
Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates |
All |
|
19 |
Preparations of cereals, flour, starch or milk; pastrycooks’ products |
Excluding 1905.90 |
|
20 |
Preparations of vegetables, fruit, nuts or other parts of plants |
All |
|
21 |
Miscellaneous edible preparations |
All |
|
30 |
Pharmaceutical products |
3002.20, 3003.10, 3003.20, 3003.31, 3003.39, 3003.40, 3003.90, 3004.10, 3004.20, 3004.31, 3004.32, 3004.39, 3004.40, 3004.90, 3005.10, 3005.90, 3006.10, 3006.20, 3006.30, 3006.40 and 3006.50 |
(This statement is not part of the Regulations.)
On July 26, 2010, sanctions against Iran were enacted under the Special Economic Measures Act in response to Iran’s nuclear proliferation activities, its violation of multiple United Nations Security Council (UNSC) resolutions and its failure to cooperate with the International Atomic Energy Agency (IAEA). The Governor in Council had determined that the situation constituted a grave breach of international peace and security that had resulted or was likely to result in a serious international crisis. The Special Economic Measures (Iran) Regulations (the Iran Regulations) prohibited dealings with a list of designated persons, banned the export of goods used in the liquefaction of gas or the refining of oil as well as the export of arms and related material not already prohibited under existing United Nations sanctions, prohibited the provision of certain financial services to persons in Iran and prohibited the export of a long list of goods and related technology that could be used in Iran’s nuclear and missile programs.
The Regulations Amending the Special Economic Measures (Iran) Regulations of October 18, 2011, added five individuals that are senior officials of the Iranian Revolutionary Guards Corps Quds Force, or are associated with such senior officials, to the list of designated persons. These individuals were implicated in the plot to kill the Saudi ambassador in the United States.
The Regulations Amending the Special Economic Measures (Iran) Regulations of November 21, 2011, further amended the Regulations in response to the IAEA’s November 9, 2011, assessment of Iran’s nuclear program. The new sanctions prohibited all financial transactions with Iran, subject to certain exceptions; expanded the list of prohibited goods to include all goods used in the petrochemical, oil and gas industry in Iran; added prohibited goods to include items that could be used in Iran’s nuclear program; added new individuals and entities to the list of designated persons found in Schedule 1 of the Iran Regulations; and removed certain entities that were recommended for removal by the Minister of Foreign Affairs as no longer presenting a proliferation concern for Canada.
The Regulations Amending the Special Economic Measures (Iran) Regulations of January 31, 2012, added three individuals and five entities to the list of designated persons. These individuals were listed in order to maintain unity with the measures adopted by the European Union (EU).
The Regulations are now further amended in response to Iran’s continued lack of cooperation with the IAEA and the P5+1 group (UNSC permanent members and Germany), which has engaged negotiations with Iran on its nuclear program, and to maintain unity and consistency with the latest measures adopted by the European Union and other countries.
The latest amendments prohibit any person in Canada or Canadian abroad from
In order to relieve some of the pressure on ordinary Iranians, recent Iranian immigrants to Canada, and family members of persons in Iran, the Iran Regulations are also amended to allow all financial banking transactions of $40,000 and under between family members in Canada and family members in Iran. The Iran Regulations also remove names of entities that no longer present a proliferation concern to Canada.
Iran’s persistent failure to comply with its obligations under its Comprehensive Safeguards Agreement and relevant UNSC resolutions is the cause of grave concern to the IAEA and the broader world community, including Canada. On November 16, 2012, the IAEA’s Director General concluded in his report that Iran has failed to cooperate with the IAEA as required in relevant resolutions (GOV/2011/69 and GOV/2012/50) to resolve outstanding issues pertaining to its nuclear program. Most critically, there has been no further progress on the Agency’s investigation into the Possible Military Dimensions (PMD) of Iran’s program. The report contains a detailed listing of the attempts the IAEA has made to engage in meaningful dialogue with Iran to no avail, clearly demonstrating continued stonewalling of the IAEA by Iran.
Multiple rounds of international sanctions have not yet affected the pace of Iran’s nuclear program and its enrichment activities. Iran has proven able to circumvent existing sanctions and to obtain, through front companies led by the Iranian Revolutionary Guards Corps (IRGC) business conglomerate, diverse sources of funding that may contribute to Iran’s nuclear activities.
The objectives of the Regulations are to add further obstacles to Iran’s efforts to build its nuclear program, and to persuade Iran’s leadership to resume negotiations with respect to its nuclear program. The latest amendments of the Regulations are closely aligned with the most recent EU sanctions with a view to strengthen international pressure, and expand the sanctions to strategic sectors that indirectly contribute to the nuclear program. Amendments seek to
The latest Regulations Amending the Special Economic Measures (Iran) Regulations prohibit additional goods and services and add close to 100 entities to the list of designated persons subject to a prohibition on dealings under the Regulations. The Minister of Foreign Affairs is authorized to issue permits to allow those affected by the Regulations to undertake activities that would otherwise be prohibited. The amendments also remove from the list of designated persons those who no longer fulfill the criteria for being a designated person.
The Department of Foreign Affairs and International Trade drafted the amendments to the Iran Regulations following consultations with the Department of Justice, the Canada Border Services Agency, the Department of Finance Canada, the Department of Citizenship and Immigration, the Canadian Security Intelligence Service, the Treasury Board Secretariat, the Department of Agriculture and Agri-Food and the Privy Council Office. All departments and agencies consented to this action.
The existing prohibitions on financial services between Canada and Iran bring increasing complexities to trade and banking transactions with Iran, including for exempted goods. The new measures are expected to have an impact on Canadian companies active in the additional prohibited sectors, but the impacts are limited as trade activities with Iran have decreased significantly in recent years. The Minister of Foreign Affairs is authorized to issue permits to allow those affected by the Regulations to undertake activities that would otherwise be prohibited.
The provisions of the Regulations were implemented to put pressure on the Government of Iran to urgently comply with UNSC resolutions and other legal obligations regarding its nuclear program and to halt its proliferation activities. The measures contained in the amendments to the Regulations are the best available options to contain Iran’s nuclear program and to urge Iran to enter meaningful negotiations. The international community seeks to achieve a comprehensive, long-standing and peaceful settlement with Iran, with proper safeguard measures and transparency, in a way that would restore confidence in the exclusively peaceful nature of Iran’s nuclear program. Canada and its partners are adopting new sanctions in support of efforts to seek a diplomatic settlement to the Iranian crisis.
Provisions of Canada’s sanctions are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency.
Cheryl Cruz
Deputy Director
United Nations, Human Rights and Economic Law Division (JLH)
Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-944-1599
Fax: 613-992-2467
Email: cheryl.cruz@international.gc.ca
Hugh Adsett
Director
United Nations, Human Rights and Economic Law Division (JLH)
Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-992-6296
Fax: 613-992-2467
Email: hugh.adsett@international.gc.ca
Daniel Maksymiuk
Deputy Director
Gulf Countries and Regional Trade Division
Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-944-3022
Fax: 613-944-7975
Email: daniel.maksymiuk@international.gc.ca
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