Edition 21 - 2024 of your blog-style export controls & sanctions update for EC&S community members. Watch period: 03.06-09.06
Why You Should Read the "Export Controls & Sanctions Watch": https://www.customsmanager.info/post/stay-ahead-with-our-export-control-sanctions-weekly-update
Table of Contents: Edition 21 - 2024
China Export Controls: Introduction of Export Controls on Aerospace and Military Items
EU Sanctions: Renewal of Syria Sanctions with De-listings
EU Cyber Sanctions: Extension of Cyber-Attack Sanctions Framework
US Sanctions: OFAC Targets Cybercrime Network
OFAC Updates: Amendments to Cuban Assets Control Regulations (CACR) and FAQs
EU Sanctions: Designation of Individuals and Entities Linked to Iran, North Korea, and Support for Russia and Middle East Groups
OFAC Designation: Wagner Group in Central African Republic (CAR)
OFAC Targets Facilitators of Iran’s UAV Development
BIS Fines Airbus DS Government Solutions Inc. for Antiboycott Regulation Breaches
Netherlands Implements Ban on Russian Ships Transporting Food Products
US House Approves Sanctions Bill Targeting ICC Over Israel Arrest Warrants
UK Export Controls: Amendments to 4 OGELs
UK Russia Sanctions: Amendments to Consolidated List
UK Somalia Sanctions: Amendments to Consolidated List
UK Sanctions Update: Myanmar (Sanctions) Regulations 2021
US Export Controls: ITAR FAQ on Items Transitioned to EAR Control
Commerce/BIS: New Export Solutions Roadmap on Trade.gov
China Export Controls: China Introduces Export Controls on Aerospace and Military Items
In Announcement No. 21 of 2024, China's Ministry of Commerce, General Administration of Customs, and Equipment Development Department of the Central Military Commission announced the implementation of export controls on specific items related to
· aerospace,
· gas turbine engines,
· spacesuit windows, and
· ultra-high molecular weight polyethene fibres.
Effective 1 July 2024, exporters are required to obtain an export license and adhere to detailed procedures outlined in the announcement, including submitting necessary documents and undergoing examination by the Ministry of Commerce. Failure to comply with these regulations may lead to administrative penalties or criminal liability.
EU Sanctions: De-listings & Renewal of Syria
The EU has extended its Syria sanctions regime and the related humanitarian exception until 1 June 2025. The EU has removed five deceased individuals and one other individual from the sanctions list, and 96 listings have been amended. Presently, the Syria sanctions list includes 316 individuals and 86 entities. Link: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401517
EU Cyber Sanctions: EU Extends Cyber-Attack Sanctions Framework Until 2025
The Council has extended the framework for sanctions against cyber-attacks threatening the EU and its member states until 18 May 2025. This framework enables the EU to impose targeted measures, such as asset freezes and travel bans, on individuals and entities involved in significant cyber-attacks. Sanctions currently apply to eight individuals and four entities, with listings reviewed annually.
Framework: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02019D0797-20201124&qid=1620137455138
Press Release: https://www.consilium.europa.eu/en/press/press-releases/2022/05/16/cyber-attacks-council-extends-sanctions-regime-until-18-may-2025/
US Sanctions: OFAC Targets Cybercrime Network
OFAC has designated three individuals and three entities from the PRC for their involvement with a malicious botnet linked to the residential proxy service 911 S5. According to OFAC, this network submitted fraudulent applications for the Coronavirus Aid, Relief, and Economic Security Act programs.
Designation: https://home.treasury.gov/news/press-releases/jy2375
OFAC Updates Publication of Amended Cuban Assets Control Regulations (CACR) and Related Frequently Asked Questions
OFAC has revised the Cuban Assets Control Regulations, releasing six new FAQs and updating eight existing ones to offer additional guidance. The Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending the Cuban Assets Control Regulations, 31 CFR Part 515 (CACR) to further implement portions of the President's foreign policy toward Cuba. Among other things, these amendments increase support for internet freedom for the Cuban people and independent Cuban private sector entrepreneurs by expanding authorisations for internet-based services and a range of financial transactions. The rule will be published in the Federal Register on Wednesday, 29 May 2024. OFAC's six new, Cuba-related Frequently Asked Questions are here: FAQs 1174-1179, and eight Cuba-related Frequently Asked Questions amendments are here: FAQs 732, 736, 745, 748, 757, 769, 770, and 785.
EU Targets Individuals and Entities Linked to Iran, North Korea, and Support for Russia and Middle East Groups
The EU has sanctioned six individuals and three entities for their involvement in transferring UAVs to Russia, supplying UAVs or missiles to armed groups in the Middle East and the Red Sea region, or participating in Iran's UAV program.
Those targeted include:
- Khatam al-Anbiya Central Headquarters (KCHQ) and a commander
- Kavan Electronics Behrad L.L.C. and its C.E.O. and Chairman
- Islamic Revolutionary Guard Corps Navy (IRGCN)
- Iran's Minister of Defence, Mohammad-Reza Gharaei Ashtiani
- A commander of the IRGC-QF
- Afshin Khaji Fard, head of Iranian Aviation Industries Organization (IAIO)
Sanctions include asset freezes, travel bans, and prohibitions on providing funds or economic resources to the listed individuals and entities.
Implementing Regulation: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401604
OFAC designates Wagner Group in CAF.
The Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned two companies linked to the Wagner Group in the Central African Republic (CAR) for supporting Russia's destabilising activities. Mining Industries SARLU and Logistique Economique Etrangere SARLU were designated to enable Wagner Group's security operations and illicit mining endeavours in CAR This action is part of the broader US effort to counter the Wagner Group's exploitation of CAR's resources and destabilising regional influence.
Press Release: https://home.treasury.gov/news/press-releases/jy2384
OFAC Targets Facilitators of Iran's UAV Development
OFAC has sanctioned four entities linked to the OFAC-designated Rayan Roshd Afzar Company for their involvement in procuring essential components for Iran's UAV program, along with one Iranian executive:
- Rayan Fan Kav Andish Co
- Kish Mechatronics Co
- Fanavarihaye Hava Pishran Sazeh Sepehr Co LLC
- Mersad Mohajer Co LLC
Additionally, Afshin Khajeh Fard, who is based in Iran and serving as the chief of the Iran Aviation Industries Organization and is responsible for overseeing UAV production, has been targeted.
Press Release: https://home.treasury.gov/news/press-releases/jy2388
Designation: https://ofac.treasury.gov/recent-actions/20240531
BIS Fines Airbus DS Government Solutions Inc. for Antiboycott Regulation Breaches
The Bureau of Industry and Security (BIS) has fined Airbus DS Government Solutions Inc. $44,750 for three antiboycott regulation violations, including furnishing prohibited information and failing to report boycott-related requests. Violations occurred during ADSGS's participation in a 2019 Kuwait trade show and fell under the Antiboycott Act of 2018. US persons must report such requests to the Office of Antiboycott Compliance, with voluntary self-disclosure options available for EAR violations.
The Netherlands Implements Ban on Russian Ships Transporting Food Products
We are advised that the Dutch government has decided to prohibit Russian vessels carrying food products from entering Dutch ports, citing concerns over espionage activities.
This decision, communicated by the Minister of Infrastructure and Water Management to the Netherlands Parliament, is based on Article 3ea of EU Regulation 833/2014, which generally bars Russian ships from accessing EU territories but allows exceptions for food transport.
The move comes in response to investigative findings by journalists at Pointer, which revealed the alleged misuse of Russian food-carrying ships for espionage purposes.
You can find out more here: https://www.tweedekamer.nl/kamerstukken/brieven_regering/detail?id=2024Z08517&did=2024D19937.
US House Approves Sanctions Bill Targeting ICC Over Israel Arrest Warrants
The US House of Representatives has approved a bill allowing sanctions against ICC officials involved in investigating, arresting, or prosecuting US and allied citizens. This action comes after ICC Prosecutor Karim A.A. Khan KC announced plans to seek arrest warrants for Israeli Prime Minister Benjamin Netanyahu, Defense Minister Yoav Gallant, and Hamas leaders for alleged war crimes and crimes against humanity. The bill now requires Senate approval and presidential endorsement to become law. See here: https://www.congress.gov/bill/118th-congress/house-bill/8282/text.
UK Export Controls: 4 OGELs amended
The Export Control Joint Unit (ECJU) has amended 4 open general licences (OGLs) to update the lists of controlled items following a change to the Export Control Amendment Regulation that came into force on 1 April 2024. The licences are:
If you have licences in scope, ECJU will contact you to confirm the decision and advise you about the actions you need to take.
UK Russia Sanctions: 2 entries amended on the consolidated list
On 31 May 2024, the Foreign, Commonwealth and Development Office updated the UK Sanctions List on GOV.UK. This list provides details of those designated under regulations made under the Sanctions Act. The following entry has been amended under the Russia financial sanctions regime and is still subject to an asset freeze: Dmitry Vladimirovich Konov (Group ID: 14735). Tatiana Vladimirovna Evtushenkova (Group ID: 15880) OFSI's consolidated list of asset freeze targets has been updated to reflect these changes.
UK Somalia Sanctions: 4 entries amended on the consolidated list
On 30 May 2024 the Foreign, Commonwealth and Development Office updated the UK Sanctions List on GOV.UK. This list provides details of those designated under regulations made under the Sanctions Act.
OFSI's consolidated list of asset freeze targets has been updated to reflect these changes.
UK Sanctions Update: Myanmar (Sanctions) Regulations 2021
The Myanmar (Sanctions) Regulations 2021 were established under the Sanctions and Anti-Money Laundering Act 2018, enabling the imposition of financial sanctions on individuals involved in activities undermining democracy, human rights violations, or threatening the stability of Myanmar. On 7 June 2024, the Foreign, Commonwealth and Development Office updated the UK Sanctions List on GOV. UK, detailing designated individuals under regulations governed by the Sanctions Act. As a result of the UK Sanctions List update, information on the Consolidated List has been revised, including amendments to specific entries. See here: https://assets.publishing.service.gov.uk/media/6662e505716b14967fe341d0/Notice_Myanmar_070624.pdf
US Export Controls:ITAR FAQ re Items Transitioned to EAR Control
FAQ: A foreign company received a previously exported article (via DSP-5) that has since transitioned to the EAR. The foreign company now wishes to retransfer the item to an entity not included on the license. Must the company submit a General Correspondence request?
Answer: Because the only item proposed for transfer is now controlled under the EAR (no longer under the jurisdiction of the Department of State), the company must conduct the retransfer in accordance with Department of Commerce regulations. Items not yet shipped remain subject to the terms and conditions of the USML license until received by the end-user or the license expires or is returned.
Commerce/BIS: "New Export Solutions Roadmap on Trade.gov"
US BiS has enhanced trade.gov with a new web-based Aspiring Exporter Roadmap resource. It provides a straightforward, step-by-step guide for new and growing exporters. Plus the user-friendly roadmap helps businesses to navigate US government resources, including where to find funding for international expansion. Experienced exporters can quickly find the information and tools they need too. Explore the New Export Roadmap HERE: https://www.trade.gov/export-solutions
Upcoming Export Control and Sanctions Training
Learn the essentials of sanctions, dual-use products and export limits to avoid expensive fines. Our training will be advantageous to any US and non-US firm engaging in international trade, especially concerning items of US origin. Our training helps prevent expensive export control and sanctions fines. It imparts essential knowledge that personnel responsible for export controls and sanctions compliance must grasp.
Sanctions
This course develops professionals' competencies to deal with all key compliance aspects of sanctions laws and policies. Using examples from the EU, the UK and the U.S., we will explore how to check entities, individuals, and organisations against sanctions lists, set up an effective restricted party screening programme, and identify economic trade sanctions and how your products may be affected by it. We will determine due diligence requirements and how you can locate attempts for circumvention. We will discuss applying for a sanction’s exemption licence, a licence exception / general licence. Includes a discussion around red flags and how to set up a sanctions policy and programme. Special feature: Participants will workshop through real sanctions’ case studies and explain the action they would take to ensure compliance.
Dates (Click To Book)
Export Controls
This course develops the competencies that professionals need to deal with the four fundamental aspects of export controls: Product, Destination, End-User and End-Use Controls. Using examples from the EU, the UK and the U.S., we will explore how to determine if an item is subject to export controls and detail the steps to acquire an export control licence and/to apply for a licence exception / general licence. Includes a discussion around red flags and Internal Export Compliance Programmes (ICP/ECP). Special feature: A hands-on workshop where you get to determine the export control rating of your product by yourself (supported by your expert instructor).
Dates (Click To Book)
U.S. Export Controls
This course focuses on U.S. Export Controls, the EAR and ITAR. Discover how an item can be subject to the EAR or ITAR, how to verify items against the CCL or the USML, how to determine licence requirements and licence exceptions, how to make a licence application, check Export Controls specific restrictive lists and more. We cover
The enforcement authority of the Bureau of Industry and Security (BIS) extends overseas.
Key US law on export restrictions and importance for non-US firms.
Concepts and definitions related to dual-use products.
the many categories of EAR bans for non-US companies.
The many export classifications and categories, including dual use.
The Commerce Control List: An Introduction (CCL).
the primary dangers associated with doing business with US companies.
Fines and penalties.
Vigilance and warning signs.
How to create an export compliance programme (ECP) that works?
How BIS licences are applied for.
Special feature: A close look at the extraterritorial application of U.S. Export Controls De Minimis, Foreign Direct Product Rule, Second Incorporation Principle and more
Dates (Click To Book)
What if I have a question regarding these updates
We invite you to use the chat function available on www.customsmanager.org to ask any questions related to this update. Our skilled team of export control and sanctions managers will be happy to provide you with the information you need within 24 hours.
Sources
EU
Official Journal of the EU
DG TRADE Website
Social Media (LinkedIn, Twitter, etc).
Information on the National Export Control & Sanctions Website of Member States
Social Media Postings
U.S.
Bureau of Industry and Security (BIS)
Department of Commerce
Office of Foreign Asset Control (OFAC)
Social Media (LinkedIn, Twitter, etc).
UK
Information on gov.uk
Information on legislation.gov.uk
Department of Business and Trade
Social Media (LinkedIn, Twitter, etc).
Other
United Nations (Sanctions)
Social Media (LinkedIn, Twitter, etc).
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