TradeLane

Dual-use goods are defined as goods, equipment, technology, and knowledge that may have either civilian or military use or may contribute to the proliferation of weapons of mass destruction.

As part of their global strategy, most countries have regulations in place to control the export of dual-use goods. National authorities issue the lists of products for which they want to control the exports and for which a license is required.

At present, there seems to be a renewed interest in the venerable Winston Churchill in popular culture. Between John Lithgow’s portrayal in The Crown and Gary Oldman’s version in The Darkest Hour, we are presented with a reintroduction to some of Mr. Churchill’s more memorable quotes. One of my favourites is, “There is nothing wrong with change, if it is in the right direction.”

Unfortunately, this quote does not accurately reflect customs duty adjustments based on retroactive changes in transfer pricing agreements.

It was June 2007 when we first started hearing talk of the possibility of a trade agreement between Canada and the European Union. With the European Union being one of Canada’s largest trade partners, second only to the United States, many importers have been eagerly awaiting this trade agreement to become a reality. 

At last, on September 21, 2017, the Canada-European Union Comprehensive Economic Trade Agreement (CETA) was provisionally implemented. 

 Most exporters of technology products have learned in the past, either through good corporate governance or a knock on the door by their local export control enforcement authority, that encryption is a sensitive subject (pun intended).

Within the European Union, most items incorporating encryption are classified as dual-use goods (when not Military items) and are subject to Export Control.

Within the EU, French authorities extend control of encrypted items beyond the export process to import as well.  Cryptographic items can move freely within French territory. However, supplying, importing, or exporting encrypted items are regulated activities.

On March 29^th, UK Prime Minister Theresa May sent a letter to European Council President Donald Tusk invoking Article 50 and providing formal notification that the UK will leave the European Union. The formal countdown clock is underway, and the UK and EU have two years to finalize the terms of the UK’s departure.

In reading the letter, there are a few statements that provide guidance on the potential future for customs legislation, as well as the trading relationship between the UK and EU.