Best Sanctions & Export Controls Lawyers in Ontario

1. About Sanctions & Export Controls Law in Ontario, United States

Sanctions and export controls govern the movement of goods, software, and technology across borders. In Ontario, these rules are primarily federal, not provincial, and are enforced by Canadian and, when applicable, United States authorities. Ontario residents and businesses must comply with Canadian statutes and regulations, plus any U.S. requirements that affect cross-border transactions.

Key Canadian frameworks include the Export and Import Permits Act and the Special Economic Measures Act. The first governs when Canada permits the export or import of controlled goods, while the second enables Canada to impose sanctions in response to foreign events or threats to national security. In addition, Canada operates the Controlled Goods Program to regulate the handling and transfer of controlled goods within the country.

Canada uses federal statutes to regulate exports and impose sanctions, rather than provincial laws in Ontario. This means Ontario-based companies must align their operations with federal rules and enforcement efforts.

Because sanctions regimes and export controls can affect cross-border business, Ontario entities should understand both Canadian and U.S. obligations. When a transaction touches the United States, U.S. agencies such as the Office of Foreign Assets Control (OFAC) and the Bureau of Industry and Security (BIS) may also apply. A lawyer specializing in sanctions and export controls can help navigate this complex landscape and reduce compliance risk.

Recent trends include expanded sanctions designations, tighter license screening, and more frequent updates to control lists. Staying current with these changes is essential for Ontario companies that export, import, or broker sensitive goods or technology. Note: For Canadian authorities, see Global Affairs Canada and Public Safety Canada resources; for U.S. authorities, see Treasury OFAC and BIS resources.

2. Why You May Need a Lawyer

Ontario-based individuals and businesses face concrete scenarios where specialized sanctions and export controls counsel is essential. Below are real-world examples that illustrate typical needs.

• An Ontario manufacturer of encryption hardware discovers a shipment to a distributor in a jurisdiction under sanctions. A lawyer helps determine if a license is required, whether the activity is prohibited, and how to rectify the shipment to avoid penalties.
• A Toronto software company plans to license a dual-use software product to a U.S. customer. Counsel helps classify the software, review export control requirements under the Canadian and U.S. regimes, and negotiate appropriate licenses.
• A Canadian startup discovers that a key investor or partner appears on a sanctions list. A sanctions attorney can advise on de-risking steps, potential exemptions, and reporting obligations to Global Affairs Canada or the appropriate regulator.
• A Ontario logistics firm routinely screens counterparties but identifies potential “denied party list” hits. Prior counsel ensures the screening process complies with law and explains remedies if a hit is wrongfully flagged.
• An Ontario financial institution is notified of a potential sanctions exposure tied to a cross-border payment. A legal counselor can coordinate with compliance, assess penalties, and structure remediation plans.
• A manufacturing company receives a formal request from Global Affairs Canada for licensing information on export controls. An experienced solicitor can respond accurately, preserve privilege where possible, and minimize enforcement risk.

In each scenario, a lawyer who specializes in sanctions and export controls can help with risk assessment, license applications, internal policies, and communications with regulators. Ontario residents should engage a solicitor or attorney who understands both Canadian and cross-border compliance dynamics to avoid costly mistakes.

3. Local Laws Overview

Ontario entities operate under Canadian federal statutes and regulations. The main laws governing sanctions and export controls are:

• Export and Import Permits Act (EIPA) - This act regulates export and import of controlled goods and technologies and requires permits for many transactions. It is administered by Global Affairs Canada. Compliance includes accurate commodity classification, permit applications, and record-keeping. EIPA (Export and Import Permits Act).
• Special Economic Measures Act (SEMA) - This statute authorizes Canada to impose sanctions in response to international events affecting national security or foreign policy. It is implemented through various regulations, including country-specific measures such as Russia or Ukraine regimes. Enforcement actions can include asset freezes, travel bans, and trade restrictions. SEMA (Special Economic Measures Act).
• Controlled Goods Program (CGP) - Administered by Public Safety Canada, CGP regulates the transfer and export of controlled goods and technologies. It requires registration and licensing for entities dealing with controlled items and provides compliance guidance to prevent unauthorized transfers.

Notes for Ontario practitioners: sanctions and export controls are federal matters and generally do not have provincial equivalents. When Ontario-based companies engage in cross-border trade, they should also be mindful of U.S. export controls and sanctions when transactions involve U.S. persons or destinations. Recent changes include ongoing updates to sanctions lists and license requirements in response to international events.

Canadian sanctions and export controls rely on federal authorities to implement and enforce measures across all provinces, including Ontario.

4. Frequently Asked Questions

What is the Export and Import Permits Act used for? It governs permits for exporting or importing controlled goods and technologies from Canada. Licenses ensure controlled items leave or enter Canada legally.

What is the difference between SEMA and EIPA?

SEMA governs sanctions measures against designated persons, entities, or countries. EIPA governs licensing for export and import of controlled goods and tech.

How long does a Canadian export license typically take? Processing may vary by product and destination, but many license applications are decided within 4-8 weeks under normal conditions.

How much can license fees cost?

License costs differ by item and destination. Fees may range from in the low hundreds to several thousand dollars per request, plus potential ongoing compliance costs.

Do I need a lawyer to handle sanctions compliance? While not mandatory, a lawyer specializing in sanctions reduces risk, drafts licensing applications, and helps with enforcement responses.

What are the penalties for non-compliance in Ontario?

Penalties include fines, imprisonment, and reputational harm. Regulatory actions may also suspend or revoke licenses and restrict future exports.

How do I start screening customers and partners for sanctions risks? Implement a documented due-diligence process, use up-to-date screening lists, and train staff with clear escalation paths.

Is it possible to obtain a license after an export has occurred without authorization?

Retrospective licenses or waivers may be possible in some cases, but failures often lead to penalties and remedial steps required by regulators.

What is the difference between U.S. and Canadian controls for cross-border shipments? U.S. controls focus on OFAC and BIS regimes, while Canada relies on EIPA and SEMA, with extra considerations for cross-border goods and services.

Can I export to sanctioned destinations if I use a reseller?

Generally not, unless a license or exemption applies. In many cases, third-party involvement does not shield the exporter from liability.

Should I notify regulators of a potential exposure before it becomes a problem? Early notification or engagement through a compliance attorney can protect privileges and reduce penalties if required.

Do I need to classify my products under the correct schedule or list?

Yes. Correct classification under EIPA and related regulations is essential to determine licensing needs and penalties for misclassification.

5. Additional Resources

• Global Affairs Canada - International trade and sanctions policy, licensing, and export controls guidance. https://www.international.gc.ca
• Public Safety Canada - Controlled Goods Program - Regulatory framework for controlled goods and screening obligations. https://www.publicsafety.gc.ca
• U.S. Department of the Treasury - Office of Foreign Assets Control (OFAC) - U.S. sanctions program guidance and lists. https://home.treasury.gov/policy-issues/financial-sanctions
• U.S. Bureau of Industry and Security (BIS) - U.S. export controls including the Export Administration Regulations (EAR). https://www.bis.doc.gov

6. Next Steps

1. Identify all cross-border activities and map the flow of goods, software, and technology between Ontario and other jurisdictions. Timeline: 1 week.
2. Perform a high-level risk assessment to flag items on Canadian ECL lists and U.S. EAR/OFAC concerns. Timeline: 1-2 weeks.
3. Engage a sanctions and export controls lawyer to review classification, licensing requirements, and potential exemptions. Timeline: 1-3 weeks for initial consultation.
4. Develop or update internal compliance policies, including screening protocols, licensing procedures, and record-keeping standards. Timeline: 2-4 weeks.
5. Prepare a licensing plan for any transactions that require permits and begin the application process where appropriate. Timeline: 4-12 weeks depending on item and destination.
6. Establish a cross-border compliance calendar to track regulatory updates and license expirations. Timeline: ongoing with quarterly reviews.
7. Maintain ongoing training for relevant staff and establish an escalation path for potential penalties or investigations. Timeline: ongoing with annual refreshers.