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Effective March 22, 2021, Canada has imposed new sanctions against four Chinese officials and a Chinese entity under the newly enacted Special Economic Measures (People’s Republic of China) Regulations (the “Regulations”), in response to the alleged human rights situation in Xinjiang.

Becoming a listed person under the Regulations has two noteworthy consequences.  First, listed persons who are individuals are considered inadmissible to Canada under the Immigration and Refugee Protection Act.  Second, the Regulations effectively impose an asset freeze on listed persons because, subject to prescribed exceptions, it prohibits any person in Canada and any Canadian outside of Canada from:

  • dealing in property, wherever situated (located inside or outside of Canada), that is owned, held or controlled by a listed person or a person acting on behalf of a listed person;
  • entering into or facilitating any transaction related to a dealing referred to in paragraph (a) above;
  • providing any financial or related services in respect of a dealing referred to in paragraph (a) above;
  • making available any goods, wherever situated (located inside or outside of Canada) to a listed person or a person acting on behalf of a listed person; and
  • providing any financial or other related services to or for the benefit of a listed person.

The Regulations further prohibit any person in Canada and any Canadian outside of Canada from knowingly doing anything that causes, facilitates or assists in, or is intended to cause, facilitate or assist in any of the prohibited activities described above.

For additional background information, please see the press release (here) from the Government of Canada regarding the imposition of these sanctions.

Author

Paul Burns has over 30 years of experience advising clients on all aspects of international trade and commodity tax, including significant experience advising on Canadian customs and export control matters. For many years, he served as the Practice Group Coordinator of the International Commercial Practice Group in Baker & McKenzie’s Toronto office.

Author

Brian Cacic is an associate in Baker McKenzie´s Toronto office. He primarily focuses on customs law issues as well as export control regulations compliance. He obtained his LL.B. from the University of Western Ontario, and holds a Master of Science in Mathematics and a bachelor’s degree in Mathematics and Computer Science. Mr. Cacic was also the recipient of the 2004 Governor General of Canada’s Gold Medal in recognition of his achievements in his graduate studies. Mr. Cacic is a member of the Canadian and Ontario bar associations and the Canadian Association of Importers and Exporters, among others.

Author

Jacqueline Rotondi is an associate in Baker McKenzie's International Commercial Practice Group in Toronto.