A weekly live web event dedicated to issues related to international trade. Materials used throughout the stream include: OWIT Mexico Event | WOMAN EXPORTING MX – October 26-30, 2020 https://mbmapp.com/event/mujerexportamx Assoc. of Cert. Sanction Specialists | Listings, Delistings and Other Developments in the Russian Sphere – Oct. 1, 2020 https://sanctionsassociation.org/20201001upcoming/ Event – Rising Tensions – Increased Trade Controls on Wednesday, October 7 HKT https://email.steptoecommunications.com/120/8358/landing-pages/rsvp-blank.asp?sid=ea292c35-fe3a-42c2-ac19-ea8649c27ee1 Cuba: OFAC’s amendment of Cuban Asset Control Regulations: Qs 837 https://home.treasury.gov/policy-issues/financial-sanctions/faqs/topic/1541 12 Categories of General License: https://cu.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/traveling-to-cuba/ New Rule for Professional Meetings: https://www.ecfr.gov/cgi-bin/text-idx?SID=cff7b100f3d7279989d2c087a32f83f6&mc=true&node=se31.3.515_1564&rgn=div8 Old Rule for Professional Meetings: https://www.govinfo.gov/content/pkg/CFR-2019-title31-vol3/pdf/CFR-2019-title31-vol3-sec515-564.pdf New Rule for Public Performances: https://www.ecfr.gov/cgi-bin/text-idx?SID=cff7b100f3d7279989d2c087a32f83f6&mc=true&node=se31.3.515_1567&rgn=div8 Old Rule for Public Performances: https://www.govinfo.gov/content/pkg/CFR-2019-title31-vol3/pdf/CFR-2019-title31-vol3-sec515-567.pdf HK Special Administrative Region on SDN – 09/25/2020 OFAC FAQ https://home.treasury.gov/policy-issues/financial-sanctions/faqs/840 Reminder of 08/31/2020 HKSAR Designations: https://home.treasury.gov/news/press-releases/sm1088 Follows Exxon Mobile Case: https://www.govinfo.gov/content/pkg/USCOURTS-txnd-3_17-cv-01930/pdf/USCOURTS-txnd-3_17-cv-01930-2.pdf Xinjiang Production and Construction Corps (XPCC) makes it to Magnitsky List on 09/25/2020 https://home.treasury.gov/policy-issues/financial-sanctions/faqs/835 Note on Magnitsky (https://en.wikipedia.org/wiki/Sergei_Magnitsky): Sergei Magnitsky Rule of Law Accountability Act of 2012 … see pg. 8: https://www.govinfo.gov/content/pkg/BILLS-112hr6156enr/pdf/BILLS-112hr6156enr.pdf New Website for Steel Mill Licenses https://www.federalregister.gov/documents/2020/09/11/2020-19753/steel-import-monitoring-and-analysis-system https://www.trade.gov/us-industry-licensing https://enforcement.trade.gov/steel/license/SMP_byHTS.pdf DOJ News Release on False Claims Act https://www.justice.gov/opa/pr/multinational-industrial-engineering-company-pay-22-million-settle-false-claims-act 09/16/2020 Customs Bulletin at 15: Cyper Power v. US https://www.cbp.gov/sites/default/files/assets/documents/2020-Sep/Vol_54_No_36_Complete_0.pdf Please remember to attend our weekly live stream! Tuesdays at 5:30 p.m. EST…
Department of Justice (DOJ) October 2, 2016 guidance reaffirms its position to treat U.S. export controls and sanctions violations as an attack on the U.S. national security and DOJ’s Yates Memo guiding prosecutors to “promote greater accountability for individual corporate defendants” such as directors and employees of the company. Guidance also places jurisdictional chart for actors involved in voluntary self-disclosure (VSD). Ordinarily, when an organization voluntarily self-discloses violations of U.S. export controls and sanctions, it presents its VSD to the appropriate regulatory agency under the procedures set forth in the agency’s regulations. * * * Business entities should continue to submit VSDs to the Department of State, Directorate of Defense Trade Controls (DDTC) for violations of the International Traffic in Arms Regulations (ITAR); to the Department of Commerce, Bureau of Industry Security (BIS) for violations of the Export Administration Regulations (EAR); and to the Department of the Treasury, Office of Foreign Assets Control (OFAC), for violations of U.S. sanctions regulations. But, submission to the particular agency may not be enough! If violation is “done with knowledge that it is illegal,” then VSD should also be submitted to Counterintelligence and Export Control Section of the DOJ’s National Security Division. Guidance goes…
Read More DOJ’s Voluntary Self-Disclosure Guidance for Export Control & Sanctions
On April 23, 2014 CBP’s Virginia McPherson advised international trade community that products from Crimea, marked as “Product of Russia,” “Made in Russia,” “Contents Made in Russia” can be subject to additional 10% marking duties due to violation of 19 U.S.C. § 1304. See CSMS #14-000236 (stating “[g]rowth, production, or manufacture of a good in Crimea is growth, production, or manufacture of a good in Ukraine.”). With CSMS #14-000236 CBP joined OFAC’s critique circle that expresses the discontent of our (U.S.) executive branch views over political situation in Crimea. My colleagues done a good analysis on OFAC’s expression of unhappiness with Russia. See e.g. Steptoe’s publication here, or Mr. Burns article here. Here, CBP’s Virginia McPherson statements invite review of the administrative precedent and analysis, as Ms. McPherson’s address offers only conclusive words with very little reasoning. In T.D. 97-16, CBP (then called Customs Service) offered a better reasoning of country of origin marking for products that were made in places of political uncertainties. Case study concerned West Bank and Gaza. Following were the major principles that CBP used for guidance in T.D. 97-16 and 95-25: CBP gives a great deal of deference to the State Department, which “requests” CBP…
Few years back, we published a list of links that U.S. based international trade community should check prior to engaging in a transaction. Time has come to update the list with a Foreign Sanctions Evader List. OFAC’s Specially Designated Nationals List ; OFAC’s Foreign Sanctions Evader List; BIS’s Entity List; BIS’s Denied Persons List; BIS’s Unverified Parties List; ISN’s Nonproliferation Sanctions Lists. DDTC’s Debarred Parties List. Another list maintained by the System for Award Management (SAM) – Excluded Parties List System – may also be relevant in the case of federal contracts.
Read More Websites to check prior to proceeding with U.S. Exports and Imports (Revisited)
While many trade content providers, such as Customs Info, developed a single screen check tool to verify denied parties list, those forwarders, importers, and exporters with scarce resources have free links at their disposal that will get the job done: OFAC’s Specially Designated Nationals List BIS’s Entity List BIS’s Denied Persons List BIS’s Unverified Parties List State’s Nonproliferation Sanctions Lists State’s Debarred Parties List Another list maintained by the General Services Administration – Excluded Parties List System – may also be relevant in the case of federal contracts.
Read More Websites to check prior to proceeding with U.S. Exports and Imports
Office of Foreign Assets and Controls (OFAC) posted .pdf screen shots of its presentation symposium. Most of information is a form of restatement of governmental policies. There are some interesting points worth noting with respect to BIS. If OFAC authorizes an export to Iran, no BIS license is required Luxury goods to N. Korea include: luxury automobiles; yachts; gems; jewelry; other fashion accessories; cosmetics; perfumes; furs; designer clothing; luxury watches; rugs and tapestries; electronic entertainment software and equipment; recreational sports equipment; tobacco; wine and other alcoholic beverages; musical instruments; art; and antiques and collectible items including but not limited to rare coins and stamps. OFAC and BIS share jurisdiction with respect to Sudan BIS Contact List for Clarifications and Questions: Main (Foreign Policy Division a.k.a. FPD) (202) 482-4252 Director, FPD Joan Roberts (202) 482-0171 jroberts@bis.doc.gov Cuba, Iran, Syria Tony Christino (202) 482-3241 tchristi@bis.doc.gov N. Korea, Sudan, Burma Susan Kramer (202) 482-0117 skramer@bis.doc.gov
The Office of Foreign Assets Control posted a guidance entitled “Guidance on the Release of Limited Amounts of Blocked Funds for Payment of Legal Fees and Costs Incurred in Challenging the Blocking of U.S. Persons in Administrative or Civil Proceedings.”
· Denied Persons List: The BIS publishes the names of individuals and entities that have been found to have violated the U.S. export laws and regulations, and that have been denied export privileges for a certain period of time. U.S. citizens and corporations are prohibited from exporting merchandise to these individuals and entities. An updated version of this list may be found on the BIS’ website at: http://www.bis.doc.gov/DPL/default.shtm. · Unverified List: This list includes names and addresses of foreign persons who in the past were parties to an export transaction, and the BIS could not conduct a pre-license check or post-shipment verification. The involvement of a person designated on the Unverified List in an export transaction will raise a “red flag” with the BIS; therefore, U.S. exporters have an affirmative duty to inquire, verify or substantiate the proposed export transaction with such individuals to ensure compliance with all export laws and regulations. An updated version of this list may be found on the BIS’ website at: www.bis.doc.gov/enforcement/unverifiedlist/unverified_parties.html. · Entity List: The BIS also publishes a list of foreign end users involved in proliferation activities—an export license is required for export to these entities. An updated version of this list may…
