Export controls and dual-use products: a risk to manage for companies

On June 18, 2017, Posted by , In Business Cases,

Available | Disponible : French

One of our clients involved in the high-tech industry discovered that exporting products out of Canada can quickly become a challenge. On the basis of CMKZ’s advice, our client was made aware that he was subject to Canadian export control rules, particularly with regards to dual-use products, and was able to act accordingly.

Dual-use products are products that can be used in both civilian and military industries. One point to highlight: it is not, in principle, the ultimate destination of the product which determines if export control rules apply, but rather the very nature of the product.

Did you know that many products such as airplane propellers, equipment for drones, communications systems and industrial materials could be subject to export controls? In addition, US laws may apply if your product incorporates US components, even if it is not produced in, or exported to, the United States.

Many companies are unaware that their products can be controlled by the Canadian government. Any officer or director who authorizes the export of a controlled product without a licence may be held liable. If you realize that your company has not complied with export controls in the past without malicious intent, a voluntary disclosure procedure exists with the federal government which can potentially alleviate the consequences of a violation of such rules.

Work on the CMKZ file was mainly carried out by Bernard Colas with the support of Julius Dunton.

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