Insights on Export Controls & Economic Sanctions

Rumors have circulated through the export community for months, and the Bureau of Industry and Security (BIS) has finally acted. In a final rule published April 28, 2020, BIS is removing License Exception Civil End-Users (CIV) (15 CFR §740.5) from the Export Administration Regulations (EAR).

Chambers USA: America’s Leading Lawyers for Business has recognized 29 Arent Fox LLP attorneys as leaders in their field.

The Treasury’s Office of Foreign Assets Control (OFAC) issued web-based guidance to remind the public of the many ways medical exports and other humanitarian services, supplies, and donations can legally flow to sanctioned countries.

Like many other US Government agencies, the State Department, Directorate of Defense Trade Controls (DDTC) has announced certain measures, effective immediately, to alleviate burdens caused by COVID-19 in relation to compliance with the International Traffic in Arms Regulations (ITAR). The changes i

Appendix I, Automotive Rules of Origin and Procedures, to the CBP Instructions provides guidance on the USMCA automotive rules of origin by incorporating the appendix to Chapter 4 of the USMCA Implementation Act.

The USMCA permits CBP to verify whether a good entered with a claim for preferential tariff treatment qualifies as originating by written request, or questionnaire; a visit to the premises of the exporter or producer; and any other procedure that may be decided by the Parties.

The USMCA textile and apparel rules of origin are generally based on the “yarn forward” rule, which requires the formation of the yarn (spinning or extruding) and all processes following yarn formation to occur in the USMCA territory.

The Federal Emergency Management Agency has left many important questions blowing in the wind as a result of a Notification of Exemptions action published for public inspection on Friday, April 17, 2020. The final action will be published on April 21, 2020.

Arent Fox International Trade Practice Leader Kay Georgi will speak during the live webinar “The Impact of COVID-19 on International Trade” hosted by American Bar Association Section of International Law’s International Trade Committee on April 20, 2020, at 5 PM ET.

International Trade Partners Marwa Hassoun and Kay Georgi explain how FEMA’s new rule restricting the export of face masks, respirators, and other medical personal protective equipment works – how to get a license and what the penalties are.

FEMA has exercised its delegated authority under the Defense Production Act to issue a temporary final rule to prohibit the export of five types of medical PPE that the US government previously identified as scarce and threatened material in the COVID-19 pandemic.

What is the DPA? How has the administration used it in response to the COVID-19 crisis? What is the impact of the Administration’s DPA-related orders and memoranda? What about enforcement? What does it all mean for exporters?

International Trade Partner Kay Georgi and Associate Sylvia Costelloe have an update on their Reference Guide containing a listing of governments that have and have not imposed export controls on the export of a variety of medical (and industrial) PPE.

After initially accepting requests from importers in light of the novel coronavirus (COVID–19) pandemic to defer payment of duties—a means of relief that the Trump Administration had reportedly been considering—US Customs and Border Protection (CBP) has issued guidance withdrawing this option.

International Trade Partners Kay Georgi and Marwa Hassoun have an update on OFAC’s changes to the Reporting, Procedures and Penalties Regulations, 31 CFR §§ 501, et seq. related to reporting blocked, unblocked, or rejected transactions.

Third-country companies doing business with Iran’s construction, mining, manufacturing, or textiles sectors are now at increased risk of being sanctioned.

After a year plus of waiting on pins and needles, the US Department of Commerce, Bureau of Industry and Security (BIS) imposed controls on its first “emerging technology” – software specially designed to automate the analysis of geospatial imagery.

In a surprise holiday present, the State Department finally brought the International Traffic in Arms Regulations (ITAR) into the 21st century by releasing an Interim Final Rule adopting cloud computing encryption standards that the Commerce Department adopted in 2015. Well, better late than never.

The US Trade Representative (USTR) has established a process for interested parties to request that particular products be excluded from these tariffs, which has now closed for the first three lists and is gearing up for the fourth.

On October 23, the President asked the Department of the Treasury to lift previously imposed sanctions against Turkey following the cessation of Turkey’s offensive in Syria and the implementation of a lasting ceasefire.

BIS has restricted Cuba’s access to commercial aircraft and other goods, lowered de minimis for foreign items containing US content to 10%, and restricted the temporary sojourn by aircraft in Iran, Syria, Sudan, and North Korea, as well as Cuba. 

Draft Guidance issued by the US State Department recommends that companies that export items with surveillance capabilities conduct human rights due diligence, and solicits feedback by October 4, 2019.

On August 5, 2019, President Donald Trump signed an Executive Order (EO), freezing all assets in which the Government of Venezuela has an interest that are in US hands and prohibiting US persons from transactions with the Government of Venezuela, unless specifically exempted or authorized.

On Friday, August 2, 2019, the US State Department announced the issuance of another round of sanctions on the Russian Government in relation to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act), which will go into effect on August 19, 2019.

Earlier this month, members of Arent Fox’s Export Controls & Economic Sanctions team published analysis in WorldECR that identified problems with the application of secondary sanctions.