Designation and de-listing procedures for listed persons
Under Canadian sanctions, individuals and entities are designated—placed on sanctions lists—through regulations enacted by the Governor in Council on the recommendation of the Minister of Foreign Affairs under section 4 of the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act. The designation process varies between the two autonomous-sanctions statutes.
Designation mechanism under SEMA. Under section 4 of the Special Economic Measures Act, the Governor in Council may make regulations with respect to the restriction or prohibition of activities in relation to a foreign state, any person in that foreign state, a national of that foreign state who does not ordinarily reside in Canada, or a person outside Canada who is not Canadian. Persons are designated by name in a schedule to the relevant country-specific regulation and published in the Canada Gazette.
Each SEMA regulation defines the criteria for designation. Thirteen country-specific SEMA regulations (Belarus, Haiti, Iran, Moldova, Myanmar, Nicaragua, People's Republic of China, Russia, South Sudan, Sri Lanka, Syria, Ukraine, and Venezuela) authorize the Governor in Council to list persons who are nationals or ordinary residents of the foreign state or—following amendments enacted in August 2023—former nationals of that state. The amendments, published in the Canada Gazette Part II on August 16, 2023, closed a circumvention loophole whereby a listed person could renounce citizenship to remove the regulatory basis for maintaining the listing. Three other SEMA regulations (Democratic People's Republic of Korea, Libya, and Zimbabwe) permit designation of persons who meet the listing criteria without regard to nationality of the sanctioned state.
Designated persons are compiled on the Consolidated Canadian Autonomous Sanctions List maintained by Global Affairs Canada for administrative convenience. However, the Consolidated List itself is not a regulation and does not have force of law; legal effect flows solely from the listing in the schedule to the applicable regulation.
Designation under JVCFOA. Under section 4 of the Justice for Victims of Corrupt Foreign Officials Act, the Governor in Council may make orders or regulations prohibiting activities in relation to a foreign national if the Governor in Council is of the opinion that the foreign national has committed a gross violation of internationally recognized human rights, is responsible for or complicit in acts of significant corruption, or has materially assisted such activities. Foreign nationals are designated through regulations that list individuals in a schedule, published in the Canada Gazette. Because designation decisions are made in the context of foreign policy objectives and the risk of asset flight, the regulations are not prepublished for public comment; publication occurs upon or immediately after entry into force.
De-listing application. A listed person may apply to the Minister of Foreign Affairs to have their name removed from a sanctions list. Under the Special Economic Measures (Extremist Settler Violence) Regulations and other SEMA regulations, section 13 provides: "A listed person may apply to the Minister in writing to have their name removed from the schedule [and] [t]he Minister must decide whether there are reasonable grounds to recommend to the Governor in Council that the applicant's name be removed from the schedule." Parallel provisions exist in JVCFOA regulations.
An applicant must submit a de-listing application through the forms or written submission procedures published by Global Affairs Canada, including: (a) identifying information (name, date of birth, nationality, and any aliases for individuals; legal name, registration number, and jurisdiction of incorporation for entities); (b) the item number associated with the listing in the schedule of the relevant regulation; (c) a declaration of any assets held in Canada; and (d) a summary of the reasons the applicant believes they should be removed from the sanctions list. The Minister may request additional supporting documentation. Processing times for de-listing applications begin only when the Sanctions Bureau receives all required documentation.
If the Minister determines that reasonable grounds exist, the Minister makes a recommendation to the Governor in Council, which decides by order-in-council whether to amend the schedule to remove the name. If the Minister determines that reasonable grounds do not exist, the applicant receives notice of the determination. Neither SEMA nor JVCFOA establishes a statutory right of appeal; however, general judicial-review remedies under Canadian administrative law may be available on grounds of procedural fairness or reasonableness.
Request for particulars and mistaken identity. A listed person may request particulars—information about the reasons for their designation—from the Minister under applicable regulations. Separately, any individual or entity claiming not to be a listed person may apply for a certificate of mistaken identity. If the Minister is satisfied that the applicant is not the listed person, the Minister issues a certificate; if not, the applicant receives notice of the determination. Certificates of mistaken identity do not remove the name from the list but confirm that the certificate-holder is not the sanctioned person.
According to Global Affairs Canada guidance, any information provided in a de-listing application, request for particulars, or certificate-of-mistaken-identity application, including personal information, may be communicated to the Royal Canadian Mounted Police and other government departments and agencies as necessary to verify identity and assess whether a person should be de-listed, and for administration and enforcement of the sanctions regime.
Source: Special Economic Measures Act, S.C. 1992, c. 17, s. 4 Source: Justice for Victims of Corrupt Foreign Officials Act, S.C. 2017, c. 21, s. 4 Source: Regulations Amending Certain Regulations Made Under the Special Economic Measures Act, SOR/2023-175 (August 16, 2023) Source: Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations, SOR/2025-137, s. 13 (July 2, 2025) Source: Listed persons, mistaken identity and delisting—Global Affairs Canada
Asset freeze and dealing prohibition for listed persons
All Canadian sanctions regulations made under the Special Economic Measures Act, the Justice for Victims of Corrupt Foreign Officials Act, and most regulations under the United Nations Act impose a dealing prohibition (also called a dealing ban) on listed persons. This prohibition effectively subjects listed persons to an asset freeze, preventing them from gaining access to property or other assets held by Canadians or persons in Canada.
Scope of the prohibition. Under SEMA section 4(2)(a), regulations may prohibit "any dealing by any person in Canada or Canadian outside Canada in any property, wherever situated, that is owned—or that is held or controlled, directly or indirectly—by that foreign state, any person in that foreign state, a national of that foreign state who does not ordinarily reside in Canada or a person outside Canada who is not Canadian." The prohibition applies extraterritorially to persons in Canada and Canadians outside Canada; "Canadian" is defined to include citizens within the meaning of the Citizenship Act and bodies corporate incorporated or continued under the laws of Canada or a province.
Individual country-specific SEMA regulations implement the prohibition through standardized clauses. For example, under the Special Economic Measures (Russia) Regulations, it is prohibited for any person in Canada and any Canadian outside Canada to (a) deal in any property, wherever situated, that is owned—or that is held or controlled, directly or indirectly—by a listed person; (b) enter into or facilitate any transaction related to such a dealing; (c) provide any financial or related services in respect of such a dealing; or (d) make any goods available to a listed person. The prohibition covers direct transactions with listed persons and indirect dealings, including transactions through third parties—even if the third party is not Canadian and is located outside Canada.
Deemed ownership — the 50% rule and direction test. To close ownership-and-control evasion structures, SEMA section 2.1 establishes a deemed-ownership rule: if a person controls an entity, any property owned, held, or controlled by the entity is deemed to be owned by that person. Section 2.1(2) sets three alternative tests for control: (a) the person holds, directly or indirectly, 50% or more of the shares or ownership interests in the entity or 50% or more of the voting rights; (b) the person is able, directly or indirectly, to change the composition or powers of the entity's board of directors; or (c) it is reasonable to conclude, having regard to all the circumstances, that the person is able, directly or indirectly and through any means, to direct the entity's activities. Where any test is met, dealings with the entity are prohibited to the same extent as dealings with the listed person. The JVCFOA contains parallel provisions. The 50% threshold is a bright-line test, but the direction-of-activities prong is fact-specific and creates compliance uncertainty when a listed person holds a significant minority stake or exercises de facto control through contractual arrangements.
Disclosure obligations. Most SEMA and JVCFOA regulations impose a mandatory disclosure obligation on every person in Canada and every Canadian outside Canada. Under section 7(1) of the Special Economic Measures (Extremist Settler Violence) Regulations (a representative text), every person in Canada, every Canadian outside Canada, and every financial institution enumerated in section 6 must disclose without delay to the Commissioner of the Royal Canadian Mounted Police or to the Director of the Canadian Security Intelligence Service: (a) the existence of property in their possession or control that they have reason to believe is owned—or held or controlled, directly or indirectly—by a listed person; and (b) any information about a transaction or proposed transaction in respect of such property. A transaction does not have to occur to trigger the disclosure obligation; a proposed transaction or attempted transaction is sufficient. The regulation provides that no proceedings under SEMA and no civil proceedings lie against a person for a disclosure made in good faith.
Ongoing screening obligation for financial institutions. Designated financial institutions—including banks, credit unions, insurance companies, securities dealers, and money services businesses—face a heightened continuing duty to determine whether they are in possession or control of property owned or controlled by a listed person. Section 6 of the Russia Regulations lists ten categories of institutions subject to this obligation, including authorized foreign banks in respect of their business in Canada, banks regulated by the Bank Act, cooperative credit societies and savings and credit unions, foreign and domestic insurance companies, securities dealers, and life insurance brokers. This is a dynamic, ongoing obligation, not a one-time check at account opening.
Exceptions. Regulations may exempt specific categories of transactions from the prohibition. Common exceptions include: (a) diplomatic and consular activities; (b) transfers by a Canadian to a non-listed person of accounts, funds, or investments held by a listed person on the day the person became listed (de-listing exit transactions); (c) dealings required for loan repayments on pre-listing loans or loans entered into with non-listed persons, and enforcement of security; (d) pension and social-benefit payments under the Old Age Security Act, the Canada Pension Plan, or the Employment Insurance Act; and (e) transactions necessary to comply with court orders (for example, child-support orders). Always consult the specific regulation; exceptions are not uniform across all SEMA or JVCFOA instruments.
Permits. The Minister of Foreign Affairs may issue a permit on an exceptional, discretionary basis to authorize activities that would otherwise be prohibited under SEMA or JVCFOA, subject to terms and conditions consistent with the statute and the applicable regulation. Permit practice is not transparent; Canada does not publish aggregated statistics or a public register of issued permits. For United Nations Act measures, a certificate from the UN is required if the activity is otherwise prohibited by a Security Council resolution.
Enforcement and penalties. Contravention of a SEMA regulation is a criminal offence under section 3 of SEMA. On summary conviction, the penalty is a fine up to CAD 25,000 or imprisonment for a term of up to one year, or both. On indictment, fines are unlimited and imprisonment may extend to five years. JVCFOA section 13 sets parallel penalties. The RCMP and CBSA enforce the regulations. Since February 24, 2022 (the date of Russia's full-scale invasion of Ukraine), the RCMP reports that approximately CAD 140.1 million of assets have been frozen and approximately CAD 317.2 million in financial transactions have been blocked under the Russia Regulations alone, based on disclosures received as of May 2024.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 2.1, 4 Source: Special Economic Measures (Extremist Settler Violence) Regulations, SOR/2024-91, ss. 3, 6, 7 Source: Special Economic Measures (Russia) Regulations, SOR/2014-58, ss. 3, 6, 7 Source: Canadian sanctions — Dealings prohibition and asset freeze — Global Affairs Canada Source: Update on the reporting of frozen assets under the Special Economic Measures Act — RCMP, May 14, 2024
Permit applications for otherwise-prohibited activities
Canadian sanctions regulations made under the Special Economic Measures Act, the Justice for Victims of Corrupt Foreign Officials Act, and the United Nations Act prohibit a broad range of dealings, financial transactions, and sectoral activities. When a person in Canada or a Canadian outside Canada needs to conduct a transaction that would otherwise be prohibited—for example, humanitarian payments, enforcement of pre-existing contractual obligations, court-ordered transfers, or pension distributions—the only legal path is a permit (for SEMA or JVCFOA prohibitions) or a certificate (for United Nations Act prohibitions). Permits and certificates are granted on an exceptional basis at the discretion of the Minister of Foreign Affairs; there is no statutory entitlement, and approval is not guaranteed.
Statutory authority. Under section 4(4) of the Special Economic Measures Act, the Governor in Council may authorize the Minister of Foreign Affairs to (a) issue to any person in Canada or Canadian outside Canada a permit to carry out a specified activity or transaction, or class of activity or transaction, that is restricted or prohibited under SEMA or any regulation made under it; or (b) issue a general permit allowing any person in Canada or Canadian outside Canada to carry out a specified activity or transaction, or class of activity or transaction, that is restricted or prohibited. Section 4(5) provides that the Minister may issue a permit or general permit subject to any terms and conditions that are, in the opinion of the Minister, consistent with SEMA and any order or regulation made under it. Section 4(6) provides that the Minister may amend, suspend, revoke, or reinstate any permit. Parallel authority exists under section 4 of the Justice for Victims of Corrupt Foreign Officials Act.
On February 26, 2025, Canada brought into force the Special Economic Measures Permit Authorization Order (SOR/2025-50), which consolidates and replaces all prior country-specific permit authorization orders under SEMA. The Order authorizes the Minister of Foreign Affairs to issue both individual permits (to named applicants) and general permits (allowing any person who meets specified criteria to carry out the activity without a prior individual application). The Order applies to all SEMA regulations listed in its schedule.
Who may apply. Permits may be issued only to persons in Canada and Canadians outside Canada. Under section 2 of SEMA, Canadian means "a person who is a citizen within the meaning of the Citizenship Act or a body corporate incorporated or continued by or under the laws of Canada or of a province." Foreign nationals outside Canada who are not Canadian citizens and non-Canadian entities may not apply for a permit; in practice, a Canadian intermediary or Canadian subsidiary would need to apply on behalf of the transaction.
Application procedure. Global Affairs Canada does not publish a prescribed application form for sanctions permits or certificates. According to Global Affairs Canada guidance, once an applicant has confirmed that a permit or certificate is needed, the applicant must provide Global Affairs Canada with: (a) a detailed description of the proposed activity or transaction; (b) an explanation as to how the activity or transaction would violate the relevant regulation, or how the request otherwise meets the criteria for application; and (c) where possible, which section of the regulation and/or which permit authorization order is being relied on to support the application.
Any information provided in the application, including personal information, may be communicated to the Royal Canadian Mounted Police and other government departments and agencies if it is necessary to do so in order to establish if a permit or certificate can be issued.
Applications should be sent to: Sanctions Bureau Global Affairs Canada 125 Sussex Drive Ottawa, Ontario K1A 0G2 Email: sanctions@international.gc.ca Telephone (toll-free): 1-833-352-0769 Telephone (local): 343-203-3975
For certificate applications under the United Nations Act, the procedure and decision timeline may differ depending on the type of certificate.
Processing time. Global Affairs Canada does not publish or guarantee processing times for permit applications. According to official guidance, "Global Affairs Canada cannot estimate how long a permit will take to process." The granting of a permit under SEMA or JVCFOA is "an exceptional act at the discretion of the Minister of Foreign Affairs," and applicants "should not rely on the granting of a permit and should not undertake any activities prohibited by sanctions until a signed permit has been transmitted." For certificate applications submitted pursuant to regulations made under the United Nations Act, timelines for the processing of a certificate may apply, depending on the type of certificate.
An evaluation report published by Global Affairs Canada in August 2025 noted that the Russian invasion of Ukraine in February 2022 resulted in Canada imposing 65 rounds of sanctions on Russian, Belarusian, Ukrainian, and Moldovan individuals and entities, which "resulted in a tremendous increase in the number of Canadian sanctions regulations being managed by GAC," with consequent implications for permit-processing capacity.
Humanitarian permits and the Syria general permit. Certain SEMA regulations include statutory exceptions for humanitarian activities, obviating the need for a permit. For example, section 3.2 of the Special Economic Measures (Syria) Regulations exempts dealings for the purpose of safeguarding human life, disaster relief, democratization, stabilization, or providing food, medicine, or medical supplies or equipment for international organizations with diplomatic status, United Nations agencies, the International Red Cross and Red Crescent Movement, and NGOs that have entered into a grant or contribution agreement with the Department of Foreign Affairs and International Trade or the Canadian International Development Agency.
According to Global Affairs Canada guidance, a general permit allowing the provision of humanitarian financial and services assistance to Syria was in place until February 2026. A general permit does not require a permit application. At the discretion of the Minister of Foreign Affairs, a general permit may be renewed or removed when it expires. Where a general permit or statutory exception applies and the applicant satisfies its conditions, no individual permit is required.
Terms, conditions, and revocation. Permits are issued subject to terms and conditions specified in the permit document. The Minister may amend, suspend, revoke, or reinstate a permit at any time at the Minister's discretion under section 4(6) of SEMA and parallel provisions in JVCFOA.
Separate from export/import permits. Global Affairs Canada guidance notes that "the application process for sanctions permits and certificates is separate from the permit process under the Export and Import Permits Act, which is related to the Export Control List, the Import Control List, and the Area Control List." The latter permits are administered by the Strategic Export Controls Bureau.
Criminal offence. Contravening sanctions is a criminal offence under section 3 of SEMA and section 13 of JVCFOA. According to official guidance, "Do not undertake any activities prohibited by sanctions until you have received a signed permit or certificate." Conducting a prohibited transaction in anticipation of a permit, or after submitting an application but before receiving the signed permit, is a violation and exposes the person to prosecution, with penalties on indictment of an unlimited fine and imprisonment for up to five years under SEMA section 3.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 2, 4(4)–(6) Source: Justice for Victims of Corrupt Foreign Officials Act, S.C. 2017, c. 21, s. 4 Source: Special Economic Measures Permit Authorization Order, SOR/2025-50 (February 26, 2025) Source: Permits and certificates—Global Affairs Canada Source: Canadian sanctions—Essential information—Global Affairs Canada Source: Canadian sanctions guidance—Humanitarian sector—Global Affairs Canada Source: Evaluation of Global Affairs Canada's Sanctions Operations, 2018–2024 (August 2025)
Sectoral and trade prohibitions — goods, services, and financial restrictions
Beyond asset freezes and dealing prohibitions on listed persons, Canadian sanctions regulations impose sectoral and trade prohibitions that restrict or prohibit the import, export, or supply of specific goods, the provision of designated services, and certain financial transactions. These prohibitions apply to all persons in Canada and all Canadians outside Canada, regardless of whether the counterparty is a listed person. The most extensive suite of sectoral measures is found in the Special Economic Measures (Russia) Regulations (SOR/2014-58), reflecting Canada's response to Russia's ongoing violations of Ukraine's sovereignty and territorial integrity.
Import prohibitions — Russian-origin goods. Under section 3.05(1) of the Russia Regulations, it is prohibited for any person in Canada and any Canadian outside Canada to import, purchase, or acquire any good referred to in Schedule 5 (revenue-generating goods), wherever situated, from Russia or from any person in Russia. Schedule 5 enumerates goods that generate revenue for the Russian economy, including crude oil (HS 2709), petroleum oils and oils obtained from bituminous minerals (refined petroleum products) under HS 2710, and natural gas and other gaseous hydrocarbons under HS 2711. The prohibition applies regardless of the legal status of the seller; a transaction with a non-listed Russian entity for goods on Schedule 5 is prohibited.
Section 3.05(2) grandfathers goods if a contract for the import, purchase, or acquisition was entered into before the day on which section 3.05 came into force. Section 3.051(1) imposes a parallel prohibition on goods listed in Schedule 5.01 (which includes certain diamonds of Russian origin). Subsection 3.051(2) exempts goods exported from Russia at least 60 days before the section came into force, and subsection 3.051(3) provides an exception for goods imported, purchased, or acquired under a contract entered into at least 60 days before that date, if the goods are exported, sold, supplied, or shipped within 120 days after the day the section comes into force.
Section 3.052(1) prohibits the export, sale, supply, or shipment of any good referred to in Schedule 5.02 (luxury goods) to Russia or to any person in Russia. Luxury goods include certain vehicles, yachts, jewelry, clothing, footwear, and alcoholic beverages exceeding specified HS thresholds and values. An exception applies to usual and reasonable quantities of goods stored on board an aircraft and intended for consumption on board the aircraft during its outgoing and return flight. Schedule 9 lists additional goods the import of which from Russia is prohibited; in July 2022, amendments added gold and certain gold products to that schedule.
Export prohibitions — oil and gas equipment, restricted goods, and technologies. Section 3.03(1) prohibits any person in Canada and any Canadian outside Canada from exporting, selling, supplying, or shipping any good referred to in Schedule 4 to Russia or to any person in Russia for use in: (a) offshore oil exploration or production at a depth greater than 500 m; (b) oil exploration or production in the Arctic; or (c) shale oil or gas projects in Russia with the potential to produce oil. Section 3.03(2) prohibits the provision to Russia or to any person in Russia of any financial, technical, or other services related to any good whose export, sale, supply, or shipment is prohibited by subsection (1). The prohibition is use-specific: an export of Schedule 4 equipment for a non-oil/gas civilian end-use in Russia would not be caught by section 3.03(1), but the prohibition on services in subsection (2) applies if the service is related to a prohibited good intended for the enumerated uses.
Section 3.06(1) imposes the broadest export prohibition: it is prohibited for any person in Canada and any Canadian outside Canada to export, sell, supply, or ship any good to Russia or to any person in Russia if the good is referred to in the Restricted Goods and Technologies List (administered by Global Affairs Canada and incorporated by reference) or in Schedule 5.1. According to Global Affairs Canada, the Restricted Goods and Technologies List includes a broad range of items in electronics, computers, telecommunications, sensors and lasers, navigation and avionics, marine, aerospace, and transportation goods. Section 3.06(2) prohibits the provision to Russia or to any person in Russia of any technology referred to in the Restricted Goods and Technologies List or in Schedule 5.1. Exceptions are enumerated in section 3.06(3) and include: goods for use by a department or agency of the Government of Canada or a partner country listed in Annex 1 to the Restricted Goods and Technologies List; goods for use in inspections under the Chemical Weapons Convention; goods for use in relation to the activities of the International Space Station; software updates for civilian end-users owned, held, or controlled by a Canadian or a national of a partner country; civil aircraft departing Canada after a temporary sojourn or departing for a temporary sojourn abroad; and usual and reasonable quantities of food, beverages, and personal-care items stored on board an aircraft for consumption during the flight.
Services prohibitions — oil, gas, chemical, and manufacturing sectors. Section 3.07(1) prohibits the provision to Russia or to any person in Russia of any service referred to in Schedule 8 in relation to the Russian oil, gas, chemical, or manufacturing industries or any entity in those industries. Schedule 8 includes categories of technical, management, and business services—among them accounting, auditing, bookkeeping, tax-consulting, business and management consulting, public-relations services, advertising, market research, and architectural, engineering, and technical-testing services. The prohibition is industry-specific, not end-user-specific: the service prohibition applies when the service is provided to a Russian oil, gas, chemical, or manufacturing entity or in relation to those industries, even if the ultimate customer is a non-Russian parent company. Exceptions exist under section 3.07(2) for services related to the safety and security of activities, for completion of contractual obligations under contracts entered into before the applicable effective date, and for services to facilitate the winding-down of operations.
Maritime and aviation prohibitions. Section 3.04(1) prohibits any person from docking or passing through Canada any ship that is: (a) a Russian-flagged ship; (b) owned, operated, or controlled by Russia; or (c) used, leased, or chartered, in whole or in part, by or on behalf of or for the benefit of Russia, a person in Russia, or a person listed in Schedules 1, 2, or 3, unless that docking or passage is necessary to safeguard human life or to ensure navigational safety. Section 3.04(2) prohibits any person in Canada and any Canadian outside Canada from providing to a person outside Canada who is not Canadian any services related to a vessel listed in Schedule 1.1. Schedule 1.1 was added by amendment and lists vessels by name and IMO number.
Section 3.11(1) prohibits any person in Canada and any Canadian outside Canada from providing any insurance, reinsurance, or underwriting services for aircraft and aviation and aerospace products that are owned, controlled, registered to, chartered, or operated by entities and individuals resident, incorporated, or domiciled in Russia.
Financial prohibitions — debt and equity financing. Section 3.01(1) prohibits any person in Canada and any Canadian outside Canada from transacting in, providing financing for, or otherwise dealing in new debt of longer than 30 days' maturity (including bonds, loans, debentures, extensions of credit, loan guarantees, letters of credit, drafts, acceptances, discount notes, treasury bills, commercial paper, and similar instruments) in relation to certain Russian state-owned financial institutions and entities listed in Schedule 2. Section 3.01(1.1) imposes a similar prohibition for new debt of longer than 90 days' maturity in relation to entities listed in Schedule 3.1. Section 3.02(1) prohibits transacting in, providing financing for, or otherwise dealing in new equity in relation to entities listed in Schedule 2. These prohibitions apply only to new debt and equity issued or entered into after the effective date; existing instruments held prior to the prohibition are not required to be divested, though secondary-market dealings may be restricted depending on the structure of the prohibition.
Schedules as regulatory lists. The goods, services, vessels, and entities subject to sectoral prohibitions are enumerated in schedules to the Russia Regulations. Each schedule is a regulatory instrument amendable by the Governor in Council. According to Global Affairs Canada, schedules of prohibited goods use a description-based approach in Column 1 to cover items by detailed capabilities and technical characteristics; HS codes in Column 2 are provided for reference purposes only, and "the description in Column 1 prevails over the HS codes listed in Column 2." Exporters and importers must conduct substantive classification based on the description, not rely solely on HS code screening.
Overlap with the Export and Import Permits Act. Sanctions export and import restrictions are separate from broader export and import controls under the Export and Import Permits Act (EIPA). According to Global Affairs Canada guidance, in some cases a transaction may require both a permit under EIPA (administered by the Strategic Export Controls Bureau) and a sanctions permit under SEMA; the two regimes are complementary but legally distinct. Global Affairs Canada notes that "the application process for sanctions permits and certificates is separate from the permit process under the Export and Import Permits Act."
Grandfathering and wind-down provisions. Many sectoral prohibitions include exceptions for contracts entered into before the relevant provision came into force. For example, section 3.03(3) provides that the oil-and-gas-equipment prohibitions in subsections (1) and (2) do not apply to goods or services if a contract for the export, sale, supply, or shipment of the good, or for any related service, was entered into before the day on which section 3.03 came into force. Similar exceptions appear throughout the Russia Regulations; practitioners must check each prohibition individually to determine the applicable grandfathering or wind-down period.
Application to other SEMA regulations. Sectoral prohibitions also appear in other SEMA country-specific regulations. The Special Economic Measures (Ukraine) Regulations impose comprehensive prohibitions on investment, goods trade, technical assistance, and financial services with respect to the Crimea region and the areas of Donetsk, Luhansk, Kherson, and Zaporizhzhia oblasts that are illegally occupied by the Russian Federation, under sections 4.1 and 4.2. Section 4.1 prohibits making an investment involving property in the Crimea region; importing, purchasing, or acquiring goods from the Crimea region; exporting goods destined for the Crimea region; providing technical assistance to the Crimea region; providing financial or other services related to tourism; and docking a cruise ship in the Crimea region. The Special Economic Measures (Belarus) Regulations, the Special Economic Measures (Syria) Regulations, the Special Economic Measures (Myanmar) Regulations, and other country-specific regulations contain arms embargoes, export and import restrictions on designated goods, and prohibitions on the provision of technical assistance. The scope, exceptions, and grandfathering provisions vary by regulation.
Enforcement. Sectoral prohibitions are criminal offences under section 3 of SEMA. On summary conviction, the penalty is a fine up to CAD 25,000 or imprisonment for a term of up to one year, or both; on indictment, fines are unlimited and imprisonment may extend to five years. The Canada Border Services Agency enforces import and export prohibitions at the border; the RCMP investigates violations and prosecutes offences.
Source: Special Economic Measures (Russia) Regulations, SOR/2014-58, ss. 3.01–3.14 Source: Special Economic Measures (Ukraine) Regulations, SOR/2014-60, ss. 4.1, 4.2 Source: Special Economic Measures Act, S.C. 1992, c. 17, s. 3 Source: Canadian sanctions — Export and import restrictions — Global Affairs Canada Source: Canadian Sanctions Related to Russia — Global Affairs Canada