Perspectives on Export Controls & Economic Sanctions

In a live press conference yesterday, President Barack Obama announced the beginning to a thaw in more than 50 years of chilly relations with Cuba.

On November 7, 2014, the Department of Commerce’s Bureau of Industry and Security (BIS) amended its Export Administration Regulations (EAR) to impose license requirements on the export, re-export, or transfer (in-country) of certain items to or within Venezuela when intended for a “military end use”

Import managers and compliance personnel can now be held personally liable in circumstances other than fraud for imports that violate US custom laws.

Investment Services Targeted, Sectoral Sanctions Move Debt Sanctions from 90 to 30 days, Certain Oil Exploration/Production Exports and Services Prohibited

After announcing planned additional sanctions in the energy and military end-use sectors, the European Union and the United States both made good on their promises.

On July 16, 2014, the US Office of Foreign Assets Control (OFAC) escalated Russian sanctions by issuing “Sectoral Sanctions” — prohibitions on certain finance related transactions with certain entities, including two major Russian banks and two oil and natural gas producers.

The US Department of Justice recently announced that Fokker Services BV (FSBV), a Dutch aerospace services provider, agreed to forfeit $10.5 million to the United States.

This round includes US export control sanctions on trade in controlled products and technology.

On April 14, the US Court of Appeals for the DC Circuit stuck down portions of the Security and Exchange Commission’s (SEC) Final Rule on Conflict Minerals (Final Rule) as unconstitutional.

On April 3, 2014, President Barack Obama signed an Executive Order sanctioning those responsible for the conflict in South Sudan. The Executive Order blocks the property and entry of designated entities and individuals.

Activity levels involving Russia and Ukraine continue at a torrid pace, with daily developments. In the past few days, there have been diplomatic overtures, a suspension of export licenses to Russia, legislative action, and further sanction releases.

President Obama signs Second Executive Order Expanding Sanctions to Cover Wide Range of Potential Russian Targets; OFAC adds names to SDN List; Senate and House Propose Bills; EU Sanctions Also Keeping Pace.

In a recent case of first impression, the Delaware Court of Chancery issued a decision that is a valuable example of how US courts often resolve cross-border discovery issues arising when a party relies on a foreign blocking statute.

Companies Are Warned Over Optimism for Future Negotiations

Attention employers with employees working in the United States on L-1 (intra-company transferee) visas: US Citizenship and Immigration Services (USCIS) has begun conducting worksite visits under its Fraud Detection and National Security (FDNS) site inspection program.

In the category of lesser regulatory changes that occurred during the pre-holiday season, on December 19, 2013, the Department of Commerce’s Bureau of Industry and Security (BIS) amended its Export Administration Regulations (EAR) for exports to persons listed on the Unverified List (UVL).

As experienced members of the fashion industry can attest, trade matters such as duties and taxes, and other regulations can have a huge impact on global sales and sourcing decisions.

On April 13, 2012, the US Commerce Department’s Bureau of Industry and Security (BIS) published a final regulation establishing the 0Y521 ECCN series with a view towards providing a mechanism for identifying and controlling potentially sensitive emerging technologies not yet categorized.

International Trade Partners David Hanke and Marwa Hassoun will speak as part of the National Defense Industrial Association’s (NDIA) webinar titled “FIRRMA and ECRA? Making Sense of Alphabet Soup on Foreign Investment Screening and Emerging Technology Controls.”

Kay Georgi will speak at the Canadian Association of Lawyers with Russian Eurasian Interests’ (CALREI) Navigating Business Between Russia and North America in a High-Risk Sanctions Environment event.

International Trade Practice Leader Kay Georgi will speak at the Practicing Law Institute’s (PLI) Coping with US Export Controls and Sanctions 2018 Program, hosted December 13 -14, 2018 in Washington, DC.

International Trade Practice Leader Kay Georgi will present at the US Export & Reexport Compliance for Canadian Operations event hosted by the Canadian Institute (CI) on January 29 – 30, 2018 in Toronto, Canada.