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The Export Controls & Sanction Manager - Edition 6 - 2023 - Week 48

How to Stay Compliant with Export Controls and Sanctions Laws Across Multiple Jurisdictions? Read "The Export Controls & Sanctions" Manager Magazine - with a winter joy!


'Tis the season for a jolly subscription-based magazine, filled with delightful content to keep you merry and bright with the latest tidings in export controls and sanctions across the EU, UK, and US. All this joyous knowledge can be yours at a reasonable cost, spreading Christmas cheer to one and all. What is this all about?


Period covered 28.11.2023 -05.12.2023



Content


Christmas Advent Calendar



U.S. Export Controls

EU Export Controls

UK Export Controls


Sanctions Updates

EU Sanctions

UK Sanctions

U.S. Sanctions




Unlock all exclusive posts and make sure you stay fully up-to-date. Access Our NEW FAQ to answer all your questions: https://www.customsmanager.info/plans-pricing

 

Christmas Advent Calendar


Unwrap the door of your festive customs, export control & sanctions calendar. Every day, unwrap a new "present" that will fill you with holiday cheer, preparing you for the joyous celebration of Christmas.


Not every day will be about export control & sanctions, but there will be a fair bit of jingle bells and mistletoe when it comes to export control & sanctions, so keep checking the doors for Santa's arrival.


We wish you a merry and joyful time, and may it fill your heart with the enchanting essence of Christmas.


Day 4 of the Advent Calendar is focused on U.S Export Controls

Export Controls regulate the export of strategic goods with strict licensing requirements. We have three presents for Export Control Professionals behind door number Four.


 

Due Diligence & AML


Taking a Stand Against Forced Labor: The EU's Proposal for a Ban on Goods made that way

What are the due diligence requirements for the EU when implementing the ban on products made using forced labor, including child labor? Download report.

 

Export Controls Updates

To make sure you never miss an export control update, bookmark https://www.customsmanager.info/all-news/categories/export-controls


Are End-Use Statements Sufficient for Conducting Effective Due Diligence on Export Controls?

Why relying solely on end-use statements for due diligence may not be enough and what to do in addition


AUS/CAN/NZ/UK/US eyes only: Global Cooperation in Export Control - Who and to what benefit?

Exploring the Benefits of International Cooperation for Export Controls among Australia, Canada, New Zealand, the UK, and the US.


⇒ EU Export Controls


“A European Defence for our Geopolitical Union” : speech by President Charles Michel at the EDA annual conference

We need a true European defence for more security. We need a true European defence for our ambitious geopolitical union. We must build a virtuous triangle of common threat assessment, common strategic goals, and enhanced operational capabilities.


⇒ UK Export Controls


1) Why Export Controls Compliance is Crucial for UK Businesses: A Closer Look at Latest Fines

HMRC announced on December 1, 2023 that it had issued compound settlement offers to three UK exporters, totaling over £77,000. These settlements were related to unlicensed exports of Dual Use goods and related activities that were controlled by The Export Control Order 2008, and a breach of The Russia (Sanctions) (EU Exit) Regulations 2019. You can find more information about this here:


2) The Office of Financial Sanctions Implementation (OFSI) has successfully defended its first court review.

On November 28, 2023, the Office of Financial Sanctions Implementation (OFSI) published a blog post regarding its successful defence against a legal challenge. The challenge was made against OFSI's decision to refuse certain license requests to a UK assets freeze target. OFSI stated that it will continue to defend its decisions against baseless challenges and ensure that financial sanctions are implemented to support the objectives of the Russia sanctions regime and applicable licensing grounds. To provide some context, on October 26, 2023, the High Court rejected a legal challenge by Mikhail Fridman against OFSI's decision to refuse him certain license requests. Mr. Fridman had argued that OFSI was wrong to refuse certain license requests made under the prior obligations, basic needs, and routine holding and maintenance licensing grounds in respect of his primary residence in the UK. However, Mr. Justice Saini dismissed the claim on all grounds.


3) UK Law Society updates guidance on sanctions and publishes guidance note on ownership and control

The Law Society updated its guidance on the UK sanctions regime on November 27, 2023. The update included a joint note with the Bar Council on the "control" test, which was issued after the NBT v Mints case. It's worth noting that the guidance note was prepared before the High Court's judgment in Litasco SA v Der Mond Oil and Gas Africa SA.nd Oil and Gas Africa SA.. Guidance here



⇒ 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) BETA Website of U.S. BIT Launched

BIS is currently testing a new and improved beta version of its website, while the old website is still accessible. This is great news for professionals in this field who found navigating the old site quite difficult. Kudos to BIS for their hard work! The FAQ page, in particular, has been revamped and is now much more user-friendly. This is a welcome change that will make compliance much easier.


2) How Does the Temporary Modification to ML Category VIII Impact U.S. ITAR KF-21?

The US State Department's Directorate of Defense Trade Controls (DDTC) has temporarily modified Category VIII of the US Munitions List with respect to the KF-21.


3) Getting Started with U.S. Export Control Regulations: Essential Introduction for Your Business

In this blog post, we covered the What, Who, Why, Where, When, and How of U.S. control.


4) Understanding U.S. Export Controls: A Briefing for Businesses

Discover the ins and outs of U.S. export controls in this essential briefing. Learn about regulations, licensing, and avoiding legal complications.


5) U.S. EAR Export Controls: An Intro by BIS

Learning about U.S. Export Controls is not always straightforward. Watch this introductory video by BIS.


 

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) Breaking Barriers: EU's Latest Sanction Exceptions in Humanitarian Aid Delivery

EU Introduces Humanitarian Exceptions to Asset Freeze Measures in 10 Restricted Regimes: What You Need to Know


2) German Khan’s EU designation upheld in EU court

The EU's General Court rejected German Khan's challenge against his inclusion on the Russia sanctions list. The court upheld his designation, stating that Alfa Bank provides a significant source of revenue to the Russian government. The court also rejected Khan's argument that the listing criteria lacked legal basis or proportionality. You can find the judgment here:


3) Alexander Pumpyanskiy's application to annul his initial designation on the EU's Russia sanctions list.

On September 6th, 2023, the EU General Court made a decision regarding Alexander Pumpyanskiy's application to annul his initial designation on the EU's Russia sanctions list. Initially, he was listed due to his association with his father Dmitry, as they both held positions in TMK and the Sinara Group, and because he was believed to have supported or benefitted from the government. The court rejected his first application, but has now accepted his second application to annul his re-relisting. However, his claim for damages was rejected by the court.


⇒ UK Sanctions Updates


1) Six entries amended on the consolidated list

On 30 November 2023 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 remains subject to an asset freeze and trust services sanctions:

Mihajlo Perencevic (Group ID: 15424). See here for the updated list


2) Libya financial sanctions regime

UK Government update Libya sanction list: On November 29, 2023, the UK Government updated the sanctions list under the Libya sanctions regime to amend the entries for the following: (i) Osama Al Kuni Ibrahim; (ii) Abd Al-Rahman Salim Ibrahim Al-Milad; (iii) Mohammed Al Amin Al-Arabi Kashlaf; (iv) Saadi Qadhafi; and (v) Sayyid Mohammed Qadhafi. These individuals remain subject to an asset freeze and travel ban. See here


3) UK Law Firm fined from Sanctions

A UK law firm has been fined by the UK SRA for not taking adequate measures to mitigate the risk of sanctions.


4) Iran Sanctions

On November 27, 2023, the UK Government updated the sanctions list under the Iran sanctions regime to amend the entry for Ya Mahdi Industries Group. This entity remains subject to an asset freeze. See: https://assets.publishing.service.gov.uk/media/6564952162180b000dce8214/Notice_Iran__Nuclear__271123.pdf



⇒ U.S. Sanctions Updates


1) An international task force has been established to freeze the financing of Hamas.

The Financial Intelligence Units (FIUs) of Australia, Canada, Estonia, France, Germany, Israel, Liechtenstein, Luxembourg, the Netherlands, New Zealand, Switzerland, the UK, and the US (the "Task Force Members") and other FIUs with similar goals immediately established an international task force after Hamas attacked Israel on October 7.


Four FIUs from Germany, Israel, the Netherlands, and the US co-chair the task group. Sharing financial intelligence and information to disrupt Hamas's international money flows and boost global anti-terrorism operations is its purpose.


The horrific deaths in Israel on October 7 reminded us that our FIUs must locate, detect, and end terrorism financing.

Task Force members vow to prohibit Hamas and other terrorist organisations from gaining money:

  1. Increase financial intelligence on terrorist financing issues and their financial flows and economic activities;

  2. Speed up and increase the sharing of financial intelligence;

  3. Discuss FIU best practises and lessons.

The Task Force knows the private sector is crucial to achieving these aims, notably in discovering and preventing global financial system attacks. We must collaborate with financial institutions and technological businesses as much as our governments allow to uncover and halt terrorist financing pathways. Each Task Force Member promises to cooperate closely with domestic police, courts, and other relevant government authorities to achieve the Task Force's goals within their legal boundaries.


2) OFAC designates 3 entities and vessels

The Office of Foreign Assets Control (OFAC) has taken action against three entities and identified three vessels as blocked property. These entities and vessels are accused of using the services of the Price Cap Coalition to transport Russian crude oil above the price cap agreed upon by the Coalition.


3) Counter Narcotics Designations and Designation Update

The US government has imposed sanctions on 3 individuals and 13 companies from Mexico who are suspected to be involved in timeshare fraud. These entities are believed to be associated with the notorious Cartel de Jalisco Nueva Generacion (CJNG), which is known for trafficking fentanyl and other dangerous drugs into the United States. The Mexican government has collaborated with the US government in this action, as evidenced by the press release and SDN list.


4) Zimbabwe Designation Removal

The US Zimbabwe list has been updated to remove Happyton Mabhuya Bonyongwe.Non-Proliferation Designation


5) North Korea Designations

Australia, the US, Japan, and South Korea have jointly announced targeted financial sanctions against senior North Korean officials from the National Aerospace Technology Administration and the munitions industry department. This action is in response to North Korea's satellite launch on November 21. The Office of Foreign Assets Control (OFAC) has announced that it will designate eight individuals and various entities associated with North Korea's state-owned weapons exporters, financial institutions, and front companies.


6) More Updates

  • Sudan Designations

  • Cyber-related Designation Update

  • Ukraine-related Designation Update

  • Foreign Interference in U.S. Election Designation Update

  • Russia-related Designations; Issuance of Russia-related General License

  • Global Magnitsky Designation

  • Counter Terrorism Designations

  • Iran-related Designations


⇒ Russian Sanctions Updates


Exemptions from Disclosure of Information

According to reports, Russian President Putin has approved a list of companies that are exempt from disclosing information required by federal law. This exemption is granted to companies whose information could be used by Western countries to impose sanctions. Instead of disclosing their information publicly, these companies can send it directly to the Russian Central Bank, which will keep it confidential.

 

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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