Category Archives: Export Controls and Sanctions

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New Sanctions on Venezuela’s National Oil Company, PDVSA

By Eric McClafferty and Scott Wise on Posted in Export Controls and Sanctions, Trade Policy
Yesterday, the Office of Foreign Assets Control (“OFAC”) listed Petroleos de Venezuela, S.A. (“PdVSA”) as a Specially Designated National (“SDN”) pursuant to its authority under Executive Order 13850. As a result of the designation, all property and interests in PdVSA property subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging … Continue Reading

U.S. Sanctions on Iran Have Been Fully Re-imposed

By Robert Slack on Posted in Export Controls and Sanctions, Trade Policy
Today the U.S. Office of Foreign Assets Control (OFAC) amended the Iranian Transactions and Sanctions Regulations (ITSR, 31 C.F.R. Part 560) to fully re-impose U.S. sanctions on Iran following a wind down period that expired yesterday, November 4, 2018.  OFAC also issued new FAQs for foreign affiliates of U.S. companies and non-U.S. companies. Foreign affiliates … Continue Reading

Preparing for the Worst:  Licenses Needed for UK Export of Dual Use Items

By Laura van der Meer, Eric McClafferty and Robert Slack on Posted in Brexit, Export Controls and Sanctions
It has always been a possibility that the United Kingdom would crash out of the European Union on 30 March 2019 but “no deal” preparation is now highly recommended by both sides.  For organisations that export dual use items, the possibility of the UK becoming a “third country” vis-à-vis the EU without an exit agreement … Continue Reading

BIS Proposed Expansion of Export Controls of Spraying and Fogging Systems Could Affect Agriculture Industry and Spray Equipment Used in Other Industries

By Eric McClafferty and Scott Wise on Posted in Export Controls and Sanctions
Earlier this week, the Bureau of Industry and Security (“BIS”) published a request for public comment regarding a proposed expansion of export controls under the Export Administration Regulations (“EAR”) for certain spraying or fogging systems, which are controlled under Export Control Classification Number (“ECCN”) 2B352.i.  Currently, the ECCN controls only spraying or fogging equipment that … Continue Reading

Exports of National Security Controlled Items to Russia Could Be Banned Under New Sanctions

By Robert Slack on Posted in Export Controls and Sanctions
Yesterday the U.S. government announced that it would implement new sanctions against Russia mandated under the Chemical and Biological Weapons Act of 1991 (the CBW Act) following the apparent deployment of a chemical weapon on British soil by Russia. The first round of sanctions, which are expected to come into force on or around August … Continue Reading

Exporting to India is Getting Easier

By Robert Slack on Posted in Export Controls and Sanctions
A set of changes to the U.S. dual use export control rules makes exporting sensitive goods, software, and technology to India less burdensome. Over the last several years, India has joined three of the four major multilateral export control regimes – the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement, and the Australia Group.  In … Continue Reading

First Set of U.S. Secondary Sanctions on Iran Snap Back on August 7, EU Blocking Statute Comes Into Force

By Robert Slack on Posted in Export Controls and Sanctions
Tomorrow the United States will re-impose a set of secondary sanctions on Iran as the newly amended EU blocking statute comes into force. Following the U.S. withdrawal from the multilateral Iran nuclear deal (the Joint Comprehensive Plan of Action or JCPOA), the United States is set to re-impose a raft of secondary sanctions targeting Iran.  … Continue Reading

U.S. Department of Commerce Lifts ZTE Denial Order

By Robert Slack on Posted in Export Controls and Sanctions
Today the U.S. Department of Commerce lifted its denial order on Chinese telecommunications firm ZTE Corp., allowing THE U.S. and other companies to resume most business with ZTE. The Commerce Department imposed the denial order in April after ZTE made false statements to the Commerce Department in connection with an earlier settlement agreement regarding violations … Continue Reading

U.S. Government and ZTE Agree to Have Denial Order Lifted Upon Payment of Penalty

By Lee Baumgardner on Posted in Export Controls and Sanctions
On June 7th, Secretary of Commerce Wilbur Ross announced that the U.S. government reached an agreement with ZTE Corporation (ZTE) to lift a denial order suspending the export privileges of ZTE for a period of seven years.  Under this new agreement, ZTE must pay $1 billion and place an additional $400 million in escrow in … Continue Reading

OFAC Formally Rescinds General License H – Foreign Subsidiaries of U.S. Companies Must Withdraw from Iran

By Robert Slack on Posted in Export Controls and Sanctions
Yesterday the Office of Foreign Assets Control (OFAC) formally rescinded General License H, requiring foreign subsidiaries of U.S. companies to wind down remaining business related to Iran by 11:59 pm EST on November 4, 2018.  After that date, foreign subsidiaries of U.S. companies and other owned or controlled entities will generally be prohibited from conducting … Continue Reading

New Venezuela Sanctions Announced; Future Sanctions Against Venezuelan Oil Threatened

By Robert Slack and Lee Baumgardner on Posted in Export Controls and Sanctions
Yesterday, the President issued a new Executive Order (E.O.) prohibiting certain financial transactions involving the Venezuelan government, including Petroleos de Venezuela, S.A. (PdVSA), the state-owned oil company.  Under the new rules, persons subject to U.S. jurisdiction are prohibited from engaging in transactions related to: (i) the purchase of any debt owed to the Government of … Continue Reading

DDTC and BIS Propose New Rules to Continue Export Control Reform Initiative

By Scott Wise on Posted in Export Controls and Sanctions
As part of the ongoing Export Control Reform initiative, the Directorate of Defense Trade Controls (“DDTC”) and Bureau of Industry and Security (“BIS”) has issued proposed rules that would move certain items currently controlled on the International Traffic in Arms Regulations (“ITAR”) to the Export Administration Regulations (“EAR”).  The proposed rules would move some items … Continue Reading

The EU & Russia Move Forward with “Blocking Statutes” in Response to U.S. Exit from Iran Nuclear Deal

By Robert Slack, Eric McClafferty and Lee Baumgardner on Posted in Export Controls and Sanctions
Today, the EC announced that it is moving forward with a package of measures to blunt the impact of renewed U.S. sanctions on Iran following the U.S. exit from the Joint Comprehensive Plan of Action (JCPOA).  Included in those measures is the planned activation of the EU blocking statute, which would bar EU companies from … Continue Reading

The United States will withdraw from the Iran nuclear deal and fully re-impose nuclear sanctions on Iran within 180 days.

By Eric McClafferty and Robert Slack on Posted in Export Controls and Sanctions
On Tuesday President Trump announced that the United States will exit the multilateral Iran nuclear deal and fully re-impose sanctions on Iran. After the announcement, the Office of Foreign Assets Control (OFAC), the agency responsible for administering most U.S. sanctions, issued a statement and guidance on the re-imposition of U.S. sanctions. This announcement reflects a … Continue Reading

China’s ZTE Corporation Has Export Privileges Suspended for Next Seven Years

By Lee Baumgardner on Posted in Export Controls and Sanctions
On April 15, 2018, the Bureau of Industry and Security (BIS) issued an Order relating to Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd. (collectively, ZTE) that suspends the export privileges of ZTE for a period of seven years, until March 13, 2025.  Pursuant to the Order, ZTE may not, directly or indirectly, participate … Continue Reading

UK Unpacks Encryption Controls

By Laura van der Meer and Edouard de Nyary Comandini on Posted in Export Controls and Sanctions
Despite the fact that export controls on dual-use goods derive from international agreements such as the Wassenaar Arrangement, significant differences can be seen as controls are implemented by different countries. The same is true in the European Union notwithstanding the fact that the EU’s dual-use regulation (Council Regulation (EC) No. 428/2009) is binding on its … Continue Reading

Sanctions Penalties Tick Up Again

By Robert Slack on Posted in Export Controls and Sanctions
Penalties for violations of sanctions rules administered by the Office of Foreign Assets Control (OFAC) ticked up again yesterday.  Most violations of OFAC’s rules now face statutory penalties of $295,141 or twice the value of the underlying transaction.  Penalties for violations of OFAC’s narcotics trafficking regulations are now set at $1,466,485, with penalties for violations … Continue Reading

Trump makes it official: Venezuelan digital currency is subject to sanctions

By Robert Slack on Posted in Anti Money Laundering, Export Controls and Sanctions
The President signed a new Executive Order today making it unlawful to engage in transactions involving digital currency issued by the Venezuelan government.  The Executive Order makes official prior guidance from the Office of Foreign Assets Control (OFAC), which stated that dealings related to Venezuelan digital currency would likely be prohibited under existing sanctions. Last … Continue Reading

The U.S. sanctions Russian trolls and threatens future measures against Russian officials and oligarchs

By Robert Slack on Posted in Export Controls and Sanctions
Yesterday, the U.S. Office of Foreign Assets Control (OFAC) blacklisted 14 new Russian individuals and the Internet Research Agency as Specially Designated Nationals (SDNs) for their role interfering with the 2016 U.S. presidential election.  While limited in scope, the new designations are the first use of authority under the Countering America’s Adversaries Through Sanctions Act (CAATSA) … Continue Reading

New North Korea Sanctions Regulations Become Effective Today

By Robert Slack and Lee Baumgardner on Posted in Export Controls and Sanctions
The Office of Foreign Assets Control (OFAC)’s new North Korea Sanctions Regulations become effective today.  In addition to making certain technical and conforming changes, the newly updated Part 510 incorporates recent changes to the sanctions program under Executive Orders (E.O.) 13687, 13722, and 13810, the North Korea Sanctions and Policy Enhancement Act of 2016, and … Continue Reading

U.S. Issues New North Korea Sanctions and a Warning to the Global Shipping and Finance Industries

By Robert Slack on Posted in Export Controls and Sanctions
Today the U.S. Office of Foreign Assets Control (OFAC) issued new sanctions targeting the shipping industry for dealings involving North Korea.  The sanctions include the designation of 56 companies and vessels involved in conducting illegal trade with North Korea. OFAC also issued new guidance for the global shipping and finance industries, describing common methods used … Continue Reading

Trump Administration Declines to Issue Sanctions Related to Russia’s Military and Intelligence Sectors

By Robert Slack on Posted in Export Controls and Sanctions
Under Section 231 of the Countering America’s Adversaries Through Sanctions Act (CAATSA), the Trump administration was due to issue secondary sanctions on non-U.S. persons that conduct significant transactions with Russia’s defense and intelligence sectors.  The Trump administration declined to issue those new sanctions, claiming that CAATSA was serving as an effective deterrent – discouraging non-U.S. … Continue Reading
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