Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Canadian Exporters Should Get Used to Asking For End User Certificates

Canadian exporters of goods to (1) Iran (2) third countries which are intermediary points/shipping points to Iran, (3) countries subject to a U.S. embargo (e.g., Cuba), (4) Area Control List countries (North Korea, Burma/Myanmar and Belarus) or (5) other countries that Canada watches on an enhanced level, should get into the habit of completing end user certificates. In addition, if the goods to be exported from Canada require a specific or general export permit, the Canadian exporter should ask for and receive an end user certificates as a matter of practice (even when proof is not requested by the CBSA of DFAIT).

An end user certificate is a document used in international sales/transfers/transactions that provide information information (e.g., certification that the buyer is the final recipient of the materials and is not planning on transferring the materials to another party). End user certificates are required by many governments to restrict the flow of the materials to undesired destinations.

Paragraph 3(1)(j)(ii) and (iii) of the Export Permits Regulations to the Export and Import Permit Act (Canada) include end use certificates and end use statements as possible required documents to support an export permit application. In many cases, the application for an export permit will be considered to be incomplete if a completed end user certificate is not included with respect to the transaction for which the permit.

We have prepared precedent end user certificates for clients. Template end user certificates may need to be adjusted to conform to the Canadian exporter's business (it is not that a good end user certificate for one company may be used by another company). A end user certificate format may be used by the client to conduct due diligence with respect to the export transaction.

Many clients have said to me that their customers will not want to complete an end user cerificate answering all the questions.  I have responded that based on my experience in today's world, a foreign buyer who has nothing to hide generally understands why the certificates are needed and are pleased to complete the certificates in order to facilitate the processing of export permits and limit delays in the export process (because a seizure and detention affects both the exporter and the buyer).  It is now common in international transactions.

If you require more information, please contact Cyndee Todgham Cherniak at 416-307-4168.

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