Vol. 152, No. 2 — January 24, 2018

Registration

SOR/2018-2 January 11, 2018

UNITED NATIONS ACT

P.C. 2018-10 January 11, 2018

Whereas the Security Council of the United Nations, acting under Article 41 of the Charter of the United Nations, adopted Resolution 2397 (2017) on December 22, 2017;

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), makes the annexed Regulations Amending the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK).

Regulations Amending the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK)

Amendments

1 (1) The definition Security Council Resolutions in section 1 of the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) (see footnote 1) is replaced by the following:

Security Council Resolutions means Security Council Resolution 1718, Security Council Resolution 1874, Security Council Resolution 2087, Security Council Resolution 2094, Security Council Resolution 2270, Security Council Resolution 2321, Security Council Resolution 2356, Security Council Resolution 2371, Security Council Resolution 2375 and Security Council Resolution 2397. (résolutions du Conseil de sécurité)

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

HS means the Harmonized Commodity Description and Coding System developed and maintained by the World Customs Organization. (SH)

Security Council Resolution 2397 means Resolution 2397 (2017) of December 22, 2017 adopted by the Security Council. (résolution 2397 du Conseil de sécurité)

2 (1) Paragraph 6(1)(a.1) of the Regulations is replaced by the following:

(2) Subsection 6(1) of the Regulations is amended by striking out “or” at the end of paragraph (d) and by adding the following after paragraph (e):

(3) Paragraph 6(2)(c) of the Regulations is replaced by the following:

3 (1) Subsections 7(1) and (2) of the Regulations are replaced by the following:

Prohibited acquisitions — products

7 (1) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire any vessel or any of the products referred to in paragraph 6(1)(a) or subsection 6(2), wherever situated, from the DPRK or from any person in the DPRK.

Coal, minerals and wood

(2) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire any of the following products, wherever situated, from the DPRK or from any person in the DPRK:

(2) Subsections 7(4) to (6) of the Regulations are replaced by the following:

Seafood

(4) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire seafood, including fish, crustaceans, mollusks and other aquatic invertebrates, wherever situated, or to acquire fishing rights related to such products by transfer or other means, from the DPRK or from any person in the DPRK.

Food and agricultural products

(5) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire the edible vegetables, roots and tubers referred to in HS code 7, the edible fruit, nuts and peel of citrus fruit or of melons referred to in HS code 8 and the oil seeds, oleaginous fruits, miscellaneous grains, seeds and fruit, industrial or medicinal plants, straw and fodder referred to in HS code 12, wherever situated, from the DPRK or from any person in the DPRK.

Textiles

(6) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire textiles, including fabrics and partially or fully assembled apparel products, wherever situated, from the DPRK or from any person in the DPRK.

Machinery, appliances and electrical equipment

(7) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire the machinery, mechanical appliances and electrical equipment referred to in HS codes 84 and 85, wherever situated, from the DPRK or from any person in the DPRK.

Technical assistance and training

(8) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly receive, from the DPRK, from any person in the DPRK or from any national, any technical assistance or training related to the purchase, acquisition, manufacture, use or maintenance of any of the products referred to in paragraph 6(1)(a) or subsection 6(2).

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

Carriage from DPRK — products referred to in subsections 7(1) to (7)

(2) It is also prohibited for any such owner, master or operator to knowingly carry, cause to be carried or permit to be carried, from the DPRK, any of the products referred to in any of subsections 7(1) to (7) or any bulk cash.

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

Maintaining vessel

9 (1) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide products or services for the operation or maintenance of any vessel, including with respect to stevedoring and lighterage, if the vessel has been identified by the competent authorities as one that is carrying any of the products referred to in any of subsections 6(1) and (2) and 7(1) to (7), unless it is necessary to do so for the safeguarding of human life or for the vessel to return to its port of origin.

(2) Paragraph 9(4)(d) of the Regulations is replaced by the following:

Application Before Publication

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

Coming into Force

7 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.)

Issues

The United Nations Security Council (UNSC), acting under Chapter VII of the Charter of the United Nations (UN Charter), has adopted Resolution 2397 (2017), strengthening its sanctions regime against the Democratic People’s Republic of Korea (DPRK). This Resolution was adopted as a result of systematic, ongoing and severe violations of past UNSC resolutions by the DPRK. The sanctions strengthen and modify measures that had been imposed by the UNSC in Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), and 2375 (2017). The implementation of UNSC Resolution 2397 (2017) in Canadian law requires amendments to the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) [RIUNRDPRK].

Background

As a member of the United Nations (UN), Canada is obligated under international law to implement binding decisions of the UNSC in accordance with articles 25 and 41 of the UN Charter. Canada’s United Nations Act enables the Canadian government to give effect to decisions passed by the UNSC. The RIUNRDPRK implement the decisions of the UNSC for Canada in relation to the DPRK and were first introduced in 2006 to implement UNSC Resolution 1718. The RIUNRDPRK have since been amended in response to UNSC Resolutions 1874, 2094, 2270, 2321, 2356, 2371 and 2375.

The Regulations Amending the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) [the Regulations] amend the RIUNRDPRK to implement decisions in UNSC Resolution 2397 (2017) not already incorporated into Canadian domestic legislation through previous versions of the RIUNRDPRK. Resolution 2397 was adopted in response to the ballistic missile test-launched by the DPRK on November 28, 2017.

Objectives

Resolution 2397 (2017) was adopted by the UNSC pursuant to Article 41 of Chapter VII of the UN Charter and is binding on all member states. As a member state of the UN and pursuant to Article 25 of the UN Charter, Canada is obligated under international law to implement binding decisions of the UNSC. The proposed regulatory amendments would implement decision of this Resolution in Canadian law.

Description

These Regulations implement decisions of UNSC Resolution 2397 (2017) not already incorporated in Canadian domestic legislation through previous versions of the RIUNRDPRK.

In accordance with Security Council Resolution 2397 (2017), the Regulations

The Regulations continue to impose an asset freeze and dealings prohibition on the individuals and entities maintained on the list of designated persons per Resolution 1718, including those listed in Annex I and II of Resolution 2397, as well as a dealings prohibition in relation to those individuals and entities.

In Canada, travel restrictions imposed on designated individuals are implemented pursuant to the application of the Immigration and Refugee Protection Act.

The Regulations allow for the issuance of ministerial certificates to authorize certain prohibited activities if it is established that the requirements for participation in such activities are met, including, when required, the approval of the 1718 Committee.

The United Nations Act constitutes the appropriate legislative authority to implement into Canadian law the additional asset freezes and other restrictive measures mandated by the Security Council. The UNSC resolutions relevant to the Regulations, and information concerning the work of the Security Council Committee established pursuant to Resolution 1718 (2006) to oversee the relevant sanctions measures, including listings, are available at https://www.un.org/sc/suborg/en/sanctions/1718.

Resolution 2397 (2017) is available at http://www.un.org/en/ga/search/view_doc.asp?symbol=S/RES/2397(2017).

“One-for-One” Rule

The “One-for-One” Rule does not apply to these changes to the Regulations, as they impose no additional administrative burden and implement non-discretionary international obligations.

Small business lens

The small business lens does not apply to these changes, as there are no costs (or insignificant costs) on small business, and small businesses would not be disproportionately affected.

Consultation

Public consultations were not held, as Canada is obligated under international law to implement binding decisions of the UNSC. In addition, public support has been high for Canada to increase pressure on North Korea.

Rationale

The Regulations Amending the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) enable Canada to align with the sanctions adopted unanimously by the UNSC in Resolution 2397 (2017). As Canada has very limited trade with North Korea and has imposed very strict sanctions since 2011, additional sanctions are expected to have minimal costs or impacts. Canada has always shown leadership in its dealing with North Korea and its sanctions are consistent with Canada’s official position.

Implementation, enforcement and service standards

Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency. Every person who contravenes the Regulations is liable, upon conviction, to the punishments set out in section 3 of the United Nations Act (i.e. on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both; or, on conviction on indictment, to imprisonment for a term of not more than 10 years).

Contact

Christopher Burton
Director
Northeast Asia and Oceania Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343-203-3366
Email: Christopher.burton@international.gc.ca