The Export Controls & Sanction Manager - Edition 4 - 2023 - Week 45
Welcome to the latest edition of "The Export Controls & Sanctions Manager." This weekly magazine is dedicated to keeping you informed about export controls and trade sanctions in the US, EU, and UK. We understand that these topics are of significant importance to some of our readers, which is why we have created a separate blog entry for them. Our team will update this magazine every week to ensure that we cover these topics thoroughly. We value your feedback, so please don't hesitate to send us your comments via email.
Period covered 07.11.2023 - 13-11-2023
Content
U.S. Export Controls
EU Export Controls
UK Export Controls
Sanctions Updates
EU Sanctions
UK Sanctions
U.S. Sanctions
What to do if I have questions regarding these updates?
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Highlight Reads of the Week
UN: Can AI and Autonomy be Used Responsibly in the Military?
AI and autonomy are increasingly being utilised in the military sector, particularly by the United States and its coalition partners, to enhance their defence capabilities. We look at what was decided at the UN yesterday. provide summary and context.
https://www.customsmanager.info/post/un-can-ai-and-autonomy-be-used-responsibly-in-the-military
Meet the Trade Compliance Superhero!
An unsung hero is an invaluable member of a team, whose contributions are crucial for the success of the group, yet they frequently go unnoticed or receive insufficient recognition for their efforts. What is their role?
https://www.customsmanager.info/post/meet-the-trade-compliance-superhero
Due Diligence
For all updates, see: https://www.customsmanager.info/all-news/categories/due-diligence
1) Ensuring Transparency: Insights on the EU List of Prominent Public Functions (PEPs)
The European Union List of Prominent Public Functions, sometimes known as the PEPs, has been made public.
2) EU: Companies trading globally must respect human rights & environment (Due Dilligence)
In 2022, the European Union adopted a proposal called the Directive on Corporate Sustainability Due Diligence. This proposal aims to promote sustainable and responsible corporate behaviour across the global value chains.
Export Controls Updates
To make sure you never miss an export control update, bookmark https://www.customsmanager.info/all-news/categories/export-controls
⇒ EU Export Controls
1) Strengthening International Efforts: Combating Weapons of Mass Destruction
Fight against the proliferation of weapons of mass destruction. Find out about the EU strategy against the proliferation of Weapons of Mass Destruction
2) Understanding the Implications of EU Dual Use Regulation 821-2020
Cyber controls and increased control requirements mean exporters need to double up on their due diligence efforts. We explain the what, when, how... https://www.customsmanager.info/post/eu-export-ccontrol-dual-use
⇒ UK Export Controls
1) Navigating UK Export Controls: A Guide to the Latest Open General Export Licences (OGEL)
Discover the ins and outs of UK Export Controls with our comprehensive guide to Open General Export Licences - which were updated last week. Stay compliant and informed. Date of last e-update: 14.11.2023
https://www.customsmanager.info/post/uk-open-general-export-licences-list
2) UK Export Controls - What You Must Know About OGELs
Learn about UK General Licences - OGELs and how they may be used to accelerate your export processes.
https://www.customsmanager.info/post/uk-export-control-ogel
⇒ U.S Export Controls
Export controls are a powerful tool for the USA to achieve its foreign and security policy goals. Violations are punished severely, even outside the US. As non-US companies face increasing demands on compliance programs, export control has become a major focus. Violating the export control law can land you on the "US sanctions list" with serious consequences. Stay updated with the latest developments to protect yourself from potential penalties.
1) BIS: Update Conference on Export Controls and Policy
The Bureau of Industry and Security (BIS) is rescheduling the Update Conference on Export Controls and Policy from November 28–30, 2023 to March 27-29, 2024. Details here:
2) Temporary Denial Order (TDO) to Russian Individuals and Entities
Seven individuals and three companies—Nikolay Goltsev, Salimdzhon Nasriddinov, Kristina Puzyreva, Oleg Zenchenko, Yekaterina Vetoshkina, Pavel Chernikov, Vladimir Bochkarev, SH Brothers Group Inc. (SH Brothers), SN Electronics, Inc., and Suntronic F.Z.E. (Suntronic)—had their export rights suspended by a BIS Temporary Denial Order (TDO). These ten are accused of participating in a global procurement ring that illegally purchased millions of dollars of dual-use electronics for Russian end users, including military businesses.
3) ITAR: State/DDTC Seeks Comments on Form DS–7786, Requests for Advisory Opinion
Notice of request for public comment and submission to OMB of proposed collection of information.
4) Commerce/BIS Reinstates Rossiya Airlines Export Privilege Denial
Under Section 766.24 of the Export Administration Regulations, 15 C.F.R. Parts 730-774 (“EAR” or “the Regulations”), I grant the Office of Export Enforcement (“OEE”)'s request to renew the temporary denial order (“TDO”) issued in this matter on May 12, 2023. I find that renewing this order is necessary in the public interest to prevent an imminent violation of the Regulations and that an extended period is appropriate because Rossiya Airlines (“Rossiya”) has committed repeated, ongoing, and/or continuous apparent EAR violations.
5) Firearms Export Licences STOPPED
BIS said recently that it will no longer be granting new export licences for certain firearms, related components, and ammunition that are within its jurisdiction for a duration of about ninety days. During this "pause" period, authorities will further assess the current weapon export control review regulations to see if any changes are required. Commerce claims the investigation will be finished "urgently," allowing authorities to assess and lessen the likelihood that weapons may be transferred to groups or pursuits that uphold regional instability, violate human rights, or more effectively encourage criminal activity.
Click here to review an FAQ sheet issued by the BIS:
6) State/DDTC: All DECCS Users Must Log Into DECCS Before 17 Nov 2023
On Nov 17th, DDTC will be migrating to the FedRAMP High instance of a multifactor authentication solution to maintain a robust security posture and protect information stored within DECCS. As part of this process, all users should log into DECCS prior to Nov 17th, which will ensure your account information and passwords are automatically synced with the new upgraded instance. If you maintain multiple DECCS accounts, please ensure that you log in to all accounts you wish to retain access to. Once complete, no further action will be required at this time beyond the regular DECCS login process. Any users who do not log into their DECCS account may be locked out and unable to access DECCS without assistance in the future.
7) Bureau of Industry and Security and FinCEN Issue Joint Notice and New Key Term for
Reporting Evasion of U.S. Export Controls Globally
BIS and FinCEN issued a joint notice highlighting a new Suspicious Activity Report (SAR) key term (“FIN-2023-GLOBALEXPORT”) for financial institutions to reference when reporting
potential efforts by individuals or entities seeking to evade U.S. export controls not related to
Russia’s invasion of Ukraine. FinCEN and BIS previously issued two joint alerts in June 2022
and May 2023 urging financial institutions to be vigilant against potential Russian export control evasion in response to Russia’s illegal invasion of Ukraine. Financial institutions are encouraged to continue to use the key term “FIN-2022-RUSSIABIS” when filing SARs related to suspected Russian export control evasion. More here:
Sanctions Updates
The EU, UK and US implement extensive sanctions laws. These rules provide processes for producing lists of individuals and businesses subject to asset freeze targets and financial and investment restrictions. Businesses must stay up to date with the latest sanctions rules to avoid accidental non-compliance. Read the collection of all articles we have written on this topic here https://www.customsmanager.info/all-news/categories/sanctions
⇒ EU Sanctions Updates
1) Venezuela: Council reviews restrictive measures
The Council extended its restrictive measures for six months instead of one year to 14 May 2024 due to Venezuela's situation. This includes a prohibition on firearms and internal repression equipment, a travel ban, and an asset freeze on 54 people. One deceased person was eliminated from the list during the measure review. Find out more:
https://www.customsmanager.info/post/understanding-the-impact-of-eu-sanctions-on-venezuela
2) Understanding the Latest EU Sanctions on Libya: A Comprehensive Briefing
Libya is currently subject to sanctions. Background, lists and latest legal updates are here. Date of latest Update: 14-11-2023
https://www.customsmanager.info/post/sanctions-briefing-libya
3) EU: Consolidated Sanctions List of Persons, Groups, Entities, and Organisations
Discover the ultimate resource for EU sanctions: Download the consolidated list of persons, groups, and entities subject to sanctions. Date of last update 14.11.2023
https://www.customsmanager.info/post/eu-consolidated-financial-sanctions-list
4) Unpacking the EU Sanctions on the Central African Republic: What You Need to Know
The Central African Republic is currently subject to financial sanctions. Find out why and access all relevant EU documents. Date of last Update. 14.11.2023
5) Assessing the Impact of EU Sanctions on Türkiye's Drilling in the Mediterranean Sea
What restrictive measures are imposed considering Türkiye's unauthorised drilling activities in the Eastern Mediterranean? Date of Last Update: 14.11.2023
https://www.customsmanager.info/post/eu-sanctions-turkey
⇒ UK Sanctions Updates
1) New Russian Listings
On November 10, 2023, the UK changed Vadym Oleksandrovich Tregub's entry in compliance with the sanctions against Russia. This individual is still vulnerable to asset freezes, transportation fines, and travel restrictions. On November 9, 2023, the UK took Sergey Stognienko off its list of people under sanctions. Mr. Stognienko was appointed to the management board of Bank Otkritie, a Russian financial services company, in September of 2022. Noted by OFSI. On November 8, 2023, the UK announced the designation of 29 new sanctions against individuals and groups involved in the strategic, oil, and gold industries in Russia. North Gold PLC and Highland Gold Mining Ltd., two of Russia's largest gold producers, are among the newly designated entities. Additionally, a network based in the United Arab Emirates, which includes Paloma Precious DMCC and Howard Jon Baker, is purportedly responsible for channelling gold revenues to Russia.
Find out more and access notices: https://www.customsmanager.info/post/uk-latest-listing-of-sanctioned-persons-entities-organisations-etc
2) UK: Latest Listings of Sanctioned Individuals etc. (All Countries + Topics)
All the latest changes to UK Sanctions Lists against individuals, entities, and organisations. All updates are on one page. Date of last update 14.11.2023
3) UK Russian Licence amended
OFSI amends General Licencerelating to Russian Travel: On November 10, 2023, this licence was modified by OFSI. The amendment clarifies that the general licence only permits the purchase of tickets from a designated person listed in the licence or one of their subsidiaries for passenger rail or passenger air travels starting in or within Russia.
4) Caution: Do not misuse gold in order to evade penalties.
On November 8, 2023, the UK’s National Crime Agency (NCA) sent a red alert to financial institutions about the use of gold as a way to evade sanctions. The purpose of the alert was to raise awareness and encourage preventative action. Among other things, the alert contained the following information: (i) the relevant sanctions measures; (ii) an overview of typical circumvention methods; (iii) some indicators of circumvention of sanctions; and (iv) industry guidelines from other organisations. Download the document
5) A UK court rejects SG and ING's sanctions defence interim payment to EuroChem.
The UK High Court denied LLC EuroChem North-West-2 (EuroChem)'s November 3, 2023 request that Société Générale (SG) and ING Bank (ING) deposit money into a UK or EU-frozen account or court. Eurochem sued SG and ING for on-demand bond payments; the jury decides in 2025. SG and ING refused to pay (the bonds' performance location) because of EU sanctions in France and Italy. . Find out more here: https://www.customsmanager.info/post/uk-sanction-court-cases
6) UK County Court denied Mazars and XTX Markets Technologies Ltd.'s summary judgement request.
The Russian owner of financial technology trading company XTX, which was not sanctioned and has since renounced his Russian citizenship, claimed Mazars, which handled payroll, discriminated against it by refusing to work with it. Mazars refused Russian-owned clients by refusing more. XTX alleges 2010 Equality Act violations. Mazars used Section 44 of the SAMLA to argue that XTX were not treated less favourably than a hypothetical or real comparator by complying with UK sanctions. The County Court ordered a full trial for triable issues. Interpreting Mazars' email rejecting the invitation to provide services, choosing a comparator, and using s. 44 were the issues. Russia Regulations and UK sanctions are "front and centre to the issues in this case." Find out more here: https://www.customsmanager.info/post/uk-sanction-court-cases
7) UK High Court upholds “Brutus Allegations” on US sanctions non-compliance
On November 8, 2023, the UK High Court rules on Iran sanctions. Four claims by 230 claimants against Standard Chartered (SC) allege that SC made false and misleading Iran sanctions market statements in its prospectuses from 2007 to 2019. SC settled with OFAC in 2012 and US enforcement agencies in 2019 over Iranian sanctions violations. These "Brutus Allegations" claim SCB's non-compliance was much more widespread and systematic than admitted. The UK High Court ordered a Brutus Allegations trial after the US District Court dismissed them. Approved Judgement: Standards Chartered plc v Various Claimants. Find out more here: https://www.customsmanager.info/post/uk-sanction-court-cases
⇒ US Sanctions Updates
1) A settlement agreement between OFAC and daVinci Payments
Under the terms of the deal, DaVinci will pay a $206,213 penalty to resolve any possible legal responsibility it may have for allegedly breaking sanctions against Cuba, Iran, Syria, and Crimea. DaVinci made it possible for reward cards to be redeemed from people in these approved countries between 2017 and 2022. The fine is in line with OFAC's assessment that daVinci's actions were voluntary and non-egregious. Offical links and more
https://www.customsmanager.info/post/us-sanctions-latest-updates
2) Issuance of Russia-related General Licenses
"Authorising the Wind Down of Transactions Involving Certain Entities Blocked on November 2, 2023,".By this action, the licence is amended to make it clear that Public Joint Stock Company Saint Petersburg Exchange is covered by it. Saint Petersburg Stock Exchange was the entity's name as mentioned in the GL on November 2, 2023. Other than that, the GL remains unaltered. Details
https://www.customsmanager.info/post/us-sanctions-latest-updates
3) OFAC has updated its Specially Designated Nationals and Blocked Persons List
The United States is imposing further sanctions on over 200 individuals and entities in connection with Russia’s war against Ukraine. The Department of State is imposing sanctions on over 90 entities and individuals engaged in sanctions evasion and those complicit in furthering Russia’s ability to wage its war against Ukraine. The sanctions focus on individuals and entities abetting Russia’s unconscionable war against Ukraine by providing Russia with much-needed technology and equipment from third countries. Additionally, these actions take aim at Russia’s domestic industrial base, which is seeking to reinvent itself as the maintainer of Russia’s war machine. With these designations, Treasury is disrupting producers, exporters, and importers of nearly all of the high-priority items identified by the international coalition imposing sanctions and export controls on Russia.
https://www.customsmanager.info/post/us-sanctions-latest-updates
4) Treasury Designates Virtual Currency Money Launderer for Russian Elites and Cybercriminals
Treasury imposes consequences on money launderer responsible for moving funds on behalf of Russian elites and ransomware actors
https://www.customsmanager.info/post/us-sanctions-latest-updates
5) Burma Sanctions Update
Burma-related Designations; Issuance of Burma-related Directive 1 and Frequently Asked Questions
https://www.customsmanager.info/post/us-sanctions-latest-updates
6) U.S. Extends China Sanctions: What It Means for Trade Relations with China
U.S. President Keeps China Companies Subject to Restrictions
7) U.S. President to be voice of Uyghurs?!?
In a letter to President Biden, the Chairs of the CECC urged the President to act as the “voice” for Uyghurs residing in the United States who are afraid to publicly speak up for family members who have vanished or are being held in the Xinjiang Uyghur Autonomous Region (XUAR) due to PRC police and security forces using “intimidation and other tactics to coerce” them into remaining silent.
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
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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