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JUNE 2024 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through June 30, 2024.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

 

Check out our newly added LICENSING TIPS SECTION

 

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and

persons denied export privileges by the United States Government.

 

REGULATORY UPDATES

President

 

President Biden Continued The National Emergency with Respect to Belarus

 

June 13, 2024: On June 16, 2006, by Executive Order 13405, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the actions and policies of certain members of the Government of Belarus and other persons to undermine Belarus’s democratic processes or institutions, manifested in the fundamentally undemocratic March 2006 elections; to commit human rights abuses related to political repression, including detentions and disappearances; and to engage in public corruption, including by diverting or misusing Belarusian public assets or by misusing public authority.

 

The actions and policies of certain members of the Government of Belarus and other persons, and the Belarusian regime’s harmful activities and long-standing abuses, continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the national emergency declared in Executive Order 13405, which was expanded in scope in Executive Order 14038, must continue in effect beyond June 16, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13405.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/06/13/notice-on-the-continuation-of-the-national-emergency-with-respect-to-belarus-3/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/

 

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President Biden Continued The National Emergency with Respect to North Korea

 

June 13, 2024: On June 26, 2008, by Executive Order 13466, the President declared a national emergency with respect to North Korea pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the existence and risk of the proliferation of weapons-usable fissile material on the Korean Peninsula.  The President also found that it was necessary to maintain certain restrictions with respect to North Korea that would otherwise have been lifted pursuant to Proclamation 8271 of June 26, 2008, which terminated the exercise of authorities under the Trading With the Enemy Act (50 U.S.C. App. 1 et seq.) with respect to North Korea.

 

The existence and risk of the proliferation of weapons-usable fissile material on the Korean Peninsula and the actions and policies of the Government of North Korea continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.  For this reason, the national emergency declared in Executive Order 13466, expanded in scope in Executive Order 13551, addressed further in Executive Order 13570, further expanded in scope in Executive Order 13687, and under which additional steps were taken in Executive Order 13722 and Executive Order 13810, must continue in effect beyond June 26, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13466 with respect to North Korea.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/06/13/notice-on-the-continuation-of-the-national-emergency-with-respect-to-north-korea-4/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/

 

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President Biden Continued The National Emergency with Respect to the Western Balkans

 

June 13, 2024: On June 26, 2001, by Executive Order 13219, the President declared a national emergency with respect to the Western Balkans pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the actions of persons engaged in, or assisting, sponsoring, or supporting, (i) extremist violence in the former Republic of Macedonia (what is now the Republic of North Macedonia) and elsewhere in the Western Balkans region, or (ii) acts obstructing implementation of the Dayton Accords in Bosnia or United Nations Security Council Resolution 1244 of June 10, 1999, in Kosovo.  The President subsequently amended that order in Executive Order 13304 of May 28, 2003, to take additional steps with respect to certain actions that obstruct implementation of, among other things, the Ohrid Framework Agreement of 2001 relating to Macedonia (what is now the Republic of North Macedonia).

 

The actions of persons threatening the peace and international stabilization efforts in the Western Balkans, including acts of extremist violence and obstructionist activity, and the situation in the Western Balkans, which stymies progress toward effective and democratic governance and full integration into transatlantic institutions, continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the national emergency declared in Executive Order 13219, under which additional steps were taken in Executive Order 13304, and which was expanded in scope in Executive Order 14033, must continue in effect beyond June 26, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden is continued for 1 year the national emergency declared in Executive Order 13219 with respect to the Western Balkans.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/06/13/notice-on-the-continuation-of-the-national-emergency-with-respect-to-the-western-balkans-4/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/

 

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Department of State, Directorate of Defense Trade Controls (DDTC)

 

Annual Report to Congress On Direct Commercial Sales Authorizations to Foreign Countries and International Organizations for Fiscal Year 2023

 

June 3, 2024: The Department of State provided it’s annual report to Congress on direct commercial sales. This report documents defense articles and defense services licensed for permanent export under Section 38 of the Arms Export Control Act (AECA), 22 U.S.C. 2778, to each foreign country and international organization during fiscal year (FY) 2023, in response to the requirements in Section 655(b)(3) of the Foreign Assistance Act (FAA) of 1961, as amended. The Department of Defense will report International Military Education and Training activities separately.

 

The report specifies the aggregate dollar value and quantity of defense articles, and defense services, authorized to each foreign country and international organization during the fiscal year, as well as data on the actual shipments of those licensed transactions. The actual-shipment data shows the total dollar value of all shipments that were authorized and exported during the fiscal year to each destination. Authorizations in this report are categorized based on the destination country. Authorizations applicable to multiple countries in the appendix are included under the designation “Various.” Documentation for shipping purposes requires a definitive destination be declared. Accordingly, actual shipments for those articles approved under the designation “Various” are attributed to the country listed on the shipping documentation.

 

The reported value of authorizations for defense articles and defense services does not correlate precisely to the value of articles actually transferred during the reporting period. The reasons for this are as follows: Most licenses issued for defense articles are valid for four years and may be used throughout the four years to execute authorized transactions. Similarly, manufacturing license and technical assistance agreements cover a wide range of programmatic activities for multi-year periods (generally exceeding the four-year validity period of defense-article export licenses). Export authorizations furnished in FY 2023 also include certain activities occurring in prior years, because the scope of the Department’s regulatory authority over such agreements continues for as long as these multi-year agreements remain in effect.

 

https://www.pmddtc.state.gov/sys_attachment.do?sys_id=1707b48697e24a140083b3b0f053af31 and

https://www.pmddtc.state.gov/sys_attachment.do?sys_id=6b07b48697e24a140083b3b0f053af34

 

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Department of State Sanctions Israeli Group for Disrupting and Destroying Humanitarian Aid to Civilians

 

June 14, 2024: The Department of State designated Tzav 9, a violent extremist Israeli group that has been blocking, harassing, and damaging convoys carrying lifesaving humanitarian assistance to Palestinian civilians in Gaza.  For months, individuals from Tzav 9 have repeatedly sought to thwart the delivery of humanitarian aid to Gaza, including by blockading roads, sometimes violently, along their route from Jordan to Gaza, including in the West Bank.  They also have damaged aid trucks and dumped life-saving humanitarian aid onto the road.   On May 13, 2024, Tzav 9 members looted and then set fire to two trucks near Hebron in the West Bank carrying humanitarian aid destined for men, women, and children in Gaza.

 

The provision of humanitarian assistance is vital to preventing the humanitarian crisis in Gaza from worsening and to mitigating the risk of famine.  The Government of Israel has a responsibility to ensure the safety and security of humanitarian convoys transiting Israel and the West Bank enroute to Gaza. The U.S. Government will not tolerate acts of sabotage and violence targeting this essential humanitarian assistance. As such, the U.S. Government will continue to use all tools at our disposal to promote accountability for those who attempt or undertake such heinous acts, and expects and urges that the Israeli authorities do the same.

 

https://www.state.gov/sanctioning-israeli-group-for-disrupting-and-destroying-humanitarian-aid-to-civilians/

 

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Renewal of Defense Trade Advisory Group Charter

 

June 21, 2024: 89 Fed. Reg. 50661: The Department of State announces the renewal of the Charter for the Defense Trade Advisory Group (DTAG) for another two years. The DTAG advises the Department on its support for and regulation of defense trade to help ensure the foreign policy and national security of the United States continue to be protected and advanced, while helping to reduce unnecessary impediments to legitimate exports in order to support the defense requirements of U.S. friends and allies. It is the only Department of State advisory committee that addresses defense trade related topics. The DTAG will remain in existence for two years after the filing date of the Charter unless terminated sooner. The DTAG is authorized by the Federal Advisory Committee Act.

 

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events and

https://www.pmddtc.state.gov/sys_attachment.do?sys_id=054111f347b242907ddc0c03e16d43ea and

https://www.pmddtc.state.gov/sys_attachment.do?sys_id=4d4111f347b242907ddc0c03e16d43ed

 

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Statutory Debarment Under the Arms Export Control Act and the International Traffic in Arms Regulations

 

June 25, 2024: 89 Fed. Reg. 53172: The Department of State has imposed statutory debarment under the International Traffic in Arms Regulations (ITAR) on persons convicted of violating, or conspiracy to violate, the Arms Export Control Act (AECA).

 

Pursuant to section 38(g)(4) of the AECA and section 127.7(b) and (c)(1) of the ITAR, the following persons, having been convicted in a U.S. District Court, are denied export privileges, and are statutorily debarred as of the date of this notice:

 

  • Akem, Roger;
  • Al Eyani, Fares Abdo;
  • Bangarie, Tse Ernst;
  • Chang En-Wei, Eric;
  • Fonguh, Wilson Che;
  • Mancho, Godlove;
  • Nevidomy, Vladimir;
  • Ngang, Edith;
  • Ngomanji, Anye Collins;
  • Nji, Eric Fru;
  • Panchernikov, Igor;
  • Roggio, Ross;
  • Sendino, Luis Guillermo;
  • Sery, Dror of California;
  • Micharl, Tamufor Nchumuluh; and
  • Tita, Wilson Nuyila.

 

https://www.federalregister.gov/documents/2024/06/25/2024-13878/statutory-debarment-under-the-arms-export-control-act-and-the-international-traffic-in-arms and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events

 

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Department of State Imposes Sanctions on Lions Den

 

June 26, 2024: The Department of State is imposing sanctions on “Lions’ Den,” a militant Palestinian group centered in Nablus’s Old City in the West Bank.

 

In October 2022, Lions’ Den claimed responsibility for several drive-by shootings in the Nablus area.  Lions’ Den members opened fire at Israeli vehicles driving close to the nearby settlement of Elon Moreh, injuring a taxi driver and damaging vehicles.  In a separate attack, numerous shots were fired toward the West Bank settlement of Har Bracha.  In September 2022, Lions’ Den fighters injured and killed Palestinian civilians during clashes between Palestinian fighters and Palestinian Authority Security Forces in Nablus.  In April 2024, Palestinian media reported that Lions’ Den fighters targeted Israeli forces with small arms at an Israeli checkpoint in Nablus.

 

The United States condemns all acts of violence committed in the West Bank, whoever the perpetrators, and we will use the tools at our disposal to expose and hold accountable those who threaten peace and stability there.

 

https://www.state.gov/sanctioning-violent-palestinian-group-in-the-west-bank/

 

 

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Department of Defense, Defense Security Cooperation Agency (DSCA)

 

DSCA Notifies Congress of Potential FMS Sale To the Taipei Economic and Cultural Representative Office in the United States (TECRO)

 

June 5, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Taipei Economic and Cultural Representative Office In the United States (TECRO) has requested to buy non-standard spare and repair parts, components, consumables, and accessories for F-16 aircraft; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $80 million.

 

https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-f-0

 

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DSCA Notifies Congress of Potential FMS Sale To the Taipei Economic and Cultural Representative Office in the United States (TECRO)

 

June 5, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Taipei Economic and Cultural Representative Office In the United States (TECRO) has requested to buy standard spare and repair parts, components, consumables, and accessories for F-16 aircraft; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $220 million.

 

https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-f-1

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DSCA Notifies Congress of Potential FMS Sale to Denmark

 

June 7, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Denmark has requested to buy eighty-four (84) AIM-120C-8 Advanced Medium-Range Air-to-Air Missiles (AMRAAM) and three (3) AIM-120 AMRAAM guidance sections. Also included is the following non-MDE: spare AMRAAM control sections; containers and support equipment; munitions support and support equipment; spare parts, consumables, accessories, and repair and return support; weapons software and support equipment; classified software delivery and support; transportation support; classified publications and technical documentation; studies and surveys; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $215.5 million. The principal contractor will be RTX Corporation, located in Tucson, AZ. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/denmark-aim-120c-8-advanced-medium-range-air-air-missiles

 

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DSCA Notifies Congress of Potential FMS Sale to Norway

 

June 11, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Norway has requested to buy three hundred (300) AIM-120C-8 Advanced Medium-Range Air-to-Air Missiles (AMRAAM) and twenty (20) AIM-120C-8 AMRAAM guidance sections. Also included is the following non-MDE: AMRAAM containers and support equipment; spare parts, consumables, accessories, and repair and return support; weapons software, support equipment, and classified software delivery and support; transportation support; classified publications and technical documentation; training; studies and surveys; U.S. Government and contractor engineering; technical and logistics support services; and other related elements of logistics and program support. The estimated total cost is $1.94 billion.  The principal contractor will be RTX Corporation, located in Tucson, AZ. The purchaser typically requests offsets. Any offset agreement will be defined in negotiations between the purchaser and the contractor.

 

https://www.dsca.mil/press-media/major-arms-sales/norway-aim-120c-8-advanced-medium-range-air-air-missiles

 

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DSCA Notifies Congress of Potential FMS Sale to The Netherlands

 

June 13, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of the Netherlands has requested to buy one-hundred seventy-four (174) Advanced Medium-Range Air-to-Air Missiles-Extended Range (AMRAAM-ER) and four AMRAAM-C8 guidance sections. Also included is the following non-MDE: AMRAAM containers, load trainers, control section spares and support equipment; KGV-135A cryptographic devices; Common Munition Built-in-Test (BIT)/Reprogramming Equipment (CMBRE); ADU-891 Adaptor Group Test Sets; integration and test support and equipment; munitions support and support equipment; spare parts, consumables, and accessories, and repair and return support; classified software delivery and support; classified and unclassified publications, and technical documentation; personnel training and training equipment; studies and surveys; Contractor Logistics Support (CLS); U.S. Government and contractor engineering, technical and logistics support services; and other related elements of logistics and program support. The estimated total cost is $678 million. The principal contractor will be RTX Corporation, located in Camden, AR. The purchaser typically requires offsets. Any offset agreement will be defined in negotiations between the purchaser and the contractor.

 

https://www.dsca.mil/press-media/major-arms-sales/netherlands-advanced-medium-range-air-air-missiles-extended-range

 

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DSCA Notifies Congress of Potential FMS Sale To the Taipei Economic and Cultural Representative Office in the United States (TECRO)

 

June 18, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Taipei Economic and Cultural Representative Office In the United States (TECRO) has requested to buy seven hundred twenty (720) Switchblade 300 (SB300) All Up Rounds (AURs) (includes 35 fly-to-buy AURs) and one hundred one (101) SB300 fire control systems (FCS). The following non-Major Defense Equipment will also be included: first line spares packs; operator manuals; operator and maintenance training; logistics and fielding support; Lot Acceptance Testing (LAT); U.S. Government technical assistance, including engineering services, program management, site surveys, facilities, logistics, and maintenance evaluations; quality assurance and de-processing team; field service representative(s); transportation; and other related elements of logistics and program support. The estimated total cost is $60.2 million. The principal contractor will be AeroVironment, Inc., located in Simi Valley, CA. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-34

 

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DSCA Notifies Congress of Potential FMS Sale To the Taipei Economic and Cultural Representative Office in the United States (TECRO)

 

June 18, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Taipei Economic and Cultural Representative Office In the United States (TECRO) has requested to buy the following non-MDE: up to 291 ALTIUS 600M-V systems, comprised of an Unmanned Aerial Vehicle (UAV) loitering munition with extensible warhead and electro-optical/infrared (EO/IR) camera; ALTIUS 600 inert training UAVs; Pneumatic Integrated Launch Systems (PILS); PILS transport trailers; ground control systems; associated support, including spares; battery chargers; operator and maintenance training; operator, maintenance, and training manuals; technical manuals; logistics and fielding support; testing; technical assistance CONUS and OCONUS, including for engineering services; program management; site surveys; facility, logistics and maintenance evaluations; quality assurance and de-processing team support; field service representative support; transportation; and other related elements of logistics and program support. The estimated total cost is $300 million. The principal contractor will be Anduril, located in Atlanta, GA. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-34

 

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Department of Commerce – Bureau of Industry and Security (BIS)

 

Department of Commerce Announces Additional Export Restrictions to Counter Russian Aggression

 

June 12, 2024: In advance of the G7 Summit on June 12, and in concert with the Department of the Treasury and the Department of State, the Commerce Department’s Bureau of Industry and Security (BIS) announced several significant additional export control restrictions and related actions against Russia to further degrade its ability to continue waging war against Ukraine. These actions underscore the Biden-Harris Administration’s unwavering commitment to countering Russian aggression and its illegal, unjustified, and unprovoked war in Ukraine.

 

Key actions include:

 

  1. Cracking down on diversion through shell companies;
  1. Further cutting off exports of business software that enable Russian and Belarusian defense industries;
  1. Restricting trade in more items destined to Russia and Belarus;
  1. Tightening the availability of license exceptions for Russia and Belarus;
  1. Cutting off trade to foreign companies through the Entity List;
  1. Issuing Temporary Denial Orders (TDO), which cuts off not only the right to export items subject to the Export Administration Regulations (EAR) from the U.S., but also to receive or participate in exports from the U.S. or reexports of items subject to the EAR;
  1. Restricting distributors and transhippers.

 

https://www.bis.gov/press-release/department-commerce-announces-additional-export-restrictions-counter-russian and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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BIS Updates Boycott Requester List

 

June 27, 2024: The Department of Commerce’s Bureau of Industry and Security (BIS) published its first quarterly update of the boycott Requester List. This list notifies companies, financial institutions, freight forwarders, individuals, and other U.S. persons of potential sources of certain boycott-related requests they may receive during the regular course of business.

 

The updated public list of entities from the countries listed below who have been identified as having made a boycott-related request in reports received by BIS includes 57 additions. BIS has also removed 127 entities. The list is posted on the Office of Antiboycott Compliance (OAC) webpage link with the objective of helping U.S. persons comply with the reporting requirements of the antiboycott regulations set forth in Part 760 of the Export Administration Regulations (EAR), 15 CFR Parts 730-774.

The countries included on the boycott requestor list are:

  • Bangladesh
  • Malaysia
  • Saudi Arabia
  • Qatar
  • United Arab Emirates
  • Oman
  • Kuwait
  • Bahrain
  • Norway
  • India
  • Pakistan
  • Japan
  • Algeria
  • Afghanistan
  • Singapore
  • Brazil
  • Hong Kong
  • United Kingdom
  • Turkey
  • Iraq
  • Switzerland
  • Libyan Arab Jamahirya

https://www.bis.gov/press-release/bis-updates-boycott-requester-list and

https://www.bis.gov/sites/default/files/files/OAC%20Requester%20List%20June%202024.pdf

 

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U.S. Census Bureau

Tips on How to Resolve AES Response Messages

June 20, 2024: When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  Though the shipment is accepted, the filer may still receive a Verify Message, Compliance Alert, Informational Message or Warning Message along with their ITN.  However, if the shipment is rejected, a Fatal Error notification is received and must be corrected to receive a valid ITN.

To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

Response Code: 123

Narrative:     Conveyance Name Missing

Severity:       Fatal

Reason:        The Conveyance Name/Carrier Name is missing when the Mode of Transportation is one that requires the Conveyance Name/Carrier Name to be reported.

Resolution:  The name of the transport conveyance must be reported on an EEI for the major modes of transportation (i.e., vessel, air, rail, truck).  For Vessel shipments, report the name of the vessel; for Air, Rail, or Truck shipments report the carrier name.

Verify the Mode of Transportation and the Conveyance Name/Carrier Name, correct the shipment and resubmit.

Fatal Error Response Code: 138

Narrative:     Port of Unlading Missing

Severity:       Fatal

Reason:        The Port of Unlading Code is missing.  All vessel shipments, and any air shipments between the United States and Puerto Rico must provide a Port of Unlading Code.

Resolution:  The Port of Unlading Code is the foreign port where the exported merchandise is unloaded from the exporting carrier.  Report a valid Port of Unlading Code for all vessel shipments, and any air shipments between the United States and Puerto Rico.

Verify the Port of Unlading Code, correct the shipment and resubmit.

It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations.  These errors must be corrected prior to export for shipments filed predeparture and as soon as possible for shipments filed postdeparture but not later than five calendar days after departure.

 

LICENSING TIPS

 

Department of State licensing:

  • DDTC policy – Letters of Intent may not exceed $2Million dollars
  • DDTC Policy – Limited Defense Service licensing is generally limited to 6 months
  • DDTC licensing – The ultimate end platform must be specified in the specific purpose block. You must identify exactly where the item being exported or reexported will ultimately be used
  • Do not use the Government of XXXXX, as the end user, you must list the specific government agencies, i.e. Ministry of Defense

 

Department of Commerce licensing:

  • 748P applications for firearm-related transactions
  • Purchase order dated within one year of submission for license applications to destinations outside of Country Group A: 1,
  • Passport or other national identity card information for applications to export or reexport to individual end users (natural persons) outside of Country Group A:1.
  • Import certificate or import permit from the ultimate destination, if that destination requires one, per Section 748.12.

 

LATEST SANCTIONS FINES & PENALTIES

 

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

 

Fines and Penalties

 

June 3, 2024: the Department of Commerce’s Bureau of Industry and Security (BIS) imposed a civil penalty of $44,750 against Airbus DS Government Solutions Inc. (ADSGS), a satellite communications and networking systems company located in Plano, Texas, to resolve three violations of the antiboycott provisions of the Export Administration Regulations (EAR), as alleged in BIS’s Proposed Charging Letter.  ADSGS voluntarily self-disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took remedial measures after discovering the conduct at issue, all of which resulted in a significant reduction in penalty.

 

https://www.bis.gov/press-release/bis-imposes-penalty-texas-company-airbus-ds-government-solutions-inc-resolve-alleged and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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June 12, 2024: An indictment was returned on June 11, 2024 in the District of Alaska charging Sergey Nefedov, 40, of Anchorage, Alaska, and Mark Shumovich, 35, of Bellevue, Washington, with allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia without the required licenses and approvals, in violation of U.S. export laws. Nefedov and Shumovich were arrested yesterday morning in Alaska and Washington, respectively.

 

Authorities seized all snowmachines related to this case. Nefedov and Shumovich are charged with the following offenses, which carry associated maximum penalties as follows: conspiracy to unlawfully export goods from the U.S. and defraud the U.S. (5 years in prison); false electronic export information activities (5 years in prison); smuggling (10 years in prison); unlawful export without a license in violation of the Export Control Reform Act (20 years in prison); and conspiracy to commit international money laundering (20 years in prison). Nefedov is also charged with money laundering and making a false statement in violation of the Export Control Reform Act of 2018, which both carry maximum penalties of 20 years in prison. The defendants face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

 

https://www.justice.gov/usao-ak/pr/two-russia-born-us-citizens-arrested-conspiring-send-500000-worth-luxury-goods-russia?fbclid=IwZXh0bgNhZW0CMTAAAR05HAJN-2f9wjR9CjBObw5ff4hwFOUz7GlN8-0zv03LDnd0mZZE43o9ZSI_aem_AU80safIpkI-MfyfHXMjAvd3PgMuSjmuWScqi7RF1xjTMbArz1sUaSwKnalwisYjNXRT9lli_7nT3Wvi1-krCz1v and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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June 13, 2024: The Department of Commerce’s Bureau of Industry and Security (BIS) imposed a civil penalty of $285,000 against Sapphire Havacilik San Ltd. STI (Sapphire), an aviation company headquartered in Ankara, Türkiye, to resolve violations of the Export Control Reform Act of 2018 (ECRA) alleged in BIS’s Proposed Charging Letter.  As described in the Settlement Agreement and Proposed Charging Letter, in October 2023 and in January 2024, Sapphire flew private charter flights involving a U.S.-origin Gulfstream aircraft into Russia without a required BIS license.

 

The U.S. Department of Commerce, through BIS, responded to the Russian Federation’s further invasion of Ukraine by implementing a sweeping series of stringent export controls that severely restrict Russia’s access to technologies and other items, including luxury goods.  As part of those controls, effective February 24, 2022, BIS imposed expansive controls on aviation-related items to Russia, including a license requirement for the export, reexport, or transfer (in-country) to Russia of any aircraft or aircraft parts specified under any export control classification number.

 

https://www.bis.gov/press-release/bis-imposes-285000-penalty-against-sapphire-havacilik-san-ltd-sti-resolve-alleged and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

 

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June 17, 2024: The Department of Commerce’s Bureau of Industry and Security (BIS) has imposed a three-year denial order against USGoBuy LLC of Portland, Oregon, prohibiting USGoBuy from participating in all exports under BIS jurisdiction from the United States. BIS activated this denial order—originally included as a suspended penalty pursuant to a 2021 settlement agreement with USGoBuy that resolved previous alleged violations of the Export Administration Regulations (EAR)—due to USGoBuy’s continued violations of the EAR and failure to address its past compliance failures.

 

USGoBuy is a package forwarding company that allows non-U.S.-based customers to purchase items online from U.S. retailers and have those items shipped to the company’s warehouse in Oregon. USGoBuy then consolidates and re-packages the items for export from the United States.

 

https://www.bis.gov/press-release/commerce-department-denies-export-privileges-package-forwarding-company-usgobuy and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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June 17, 2024: 89 Fed. Reg. 51302: the Bureau of Industry and Security (“BIS”), U.S. Department of Commerce, through its Office of Export Enforcement (“OEE”), has requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of: Alexey Sumchenko (“Sumchenko”), Anna Shumakova (“Shumakova”), Branimir Salevic (“Branimir”), Danijela Salevic (“Danijela”); SkyTechnic, Skywind International Limited (“Skywind”), Hong Fan International (“Hong Fan”), Lufeng Limited (“Lufeng”), Unical dis Ticaret Ve Lojistik LSC (“Unical”), and Izzi Cup DOO (“Izzi Cup”) (collectively, the “Respondents”).

 

OEE’s request and related information indicate that these parties are located in the Russian Federation, Hong Kong, the British Virgin Islands, Turkey, Serbia, and Indonesia at the respective addresses listed on the caption page of this order. OEE’s request and related information further indicates that SkyTechnic, a Russian aircraft parts supplier, has developed and continues to utilize a network of Hong Kong-based shell companies, including Skywind, Hong Fan, and Lufeng, to obtain civil aircraft parts from the United States and obfuscate the ultimate end users of those parts in Russia, contrary to the requirements of the Export Administration Regulations.

 

https://www.federalregister.gov/documents/2024/06/17/2024-13258/order-temporarily-denying-export-privileges

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June 17, 2024: 89 Fed. Reg 51305: The Bureau of Industry and Security (“BIS”), U.S. Department of Commerce, through its Office of Export Enforcement (“OEE”), has requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of: Turboshaft FZE (“Turboshaft”), Treetops Aviation (“Treetops”), Black Metal FZE (“Black Metal”), Timur Badr, and Elaine Balingit (collectively, the “Respondents”). OEE’s request and related information indicate that the parties are located in the United Arab Emirates (“UAE”), at the respective addresses listed on the caption page of this order, and that Badr, a Russian national, owns or controls Turboshaft FZE and Treetops Aviation.

 

https://www.federalregister.gov/documents/2024/06/17/2024-13257/order-temporarily-denying-export-privileges

 

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June 20,2024: A Fort Smith, Arkansas man, Neil Ravi Mehta, age 32, was sentenced to 57 months in federal prison followed by three years of supervised release and ordered to pay $659,825.52 in restitution, on one count of Possession of an Unregistered Firearm that was a Destructive Device, one count of Fraud and False Statements related to Tax Returns, and one count of False Declaration Before a Court.

 

In a separate case, Federal Armament LLC, which was owned by Neil Ravi Mehta, was sentenced to five years of probation and ordered to pay a fine of $500,000.00 on one count of Unlawfully Importation and Receipt of Firearms and one count of Filing False or Misleading Electronic Export Information. Federal Armament LLC was also ordered to forfeit the illegally imported firearms.

 

 

https://www.justice.gov/usao-wdar/pr/fort-smith-arms-dealer-neil-ravi-mehta-and-his-company-federal-armament-llc-sentenced

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June 24, 2024: As part of a settlement agreement, the Department of Commerce’s Bureau of Industry and Security (BIS) issued an order imposing an administrative penalty on Indiana University (IU) related to exports by IU’s Bloomington Drosophila Stock Center (BDSC).

 

This settlement resolves the allegations set forth in a Proposed Charging Letter (PCL) regarding 42 violations related to the export of fruit flies genetically modified to produce a subunit of a controlled toxin. These exports went to numerous research institutions and universities worldwide without the required export licenses. IU voluntarily disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Export Enforcement (OEE), and took remedial measures after discovering the conduct at issue, which resulted in a significant reduction in the penalty.

 

https://www.bis.gov/press-release/bis-settles-alleged-export-control-violations-indiana-university and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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Sanctions

 

Department of Commerce, Bureau of Industry and Security (BIS)

 

Implementation of Additional Sanctions Against Russia and Belarus Under the Export Administration Regulations (EAR) and Refinements to Existing Controls

 

June 18, 2024: 89 Fed. Reg. 51644: The Department of Commerce’s Bureau of Industry and Security (BIS) made changes to the Russia and Belarus sanctions under the Export Administration Regulations (EAR). This final rule imposes additional export control measures against Russia and Belarus by expanding the scope of items identified under two EAR supplements that are subject to the EAR’s Russian and Belarusian industry sector sanctions; imposing a “software” license requirement for certain EAR99-designated “software” when destined to or within Russia or Belarus; and narrowing the scope of commodities and software that may be authorized for export, reexport, or transfer (in-country) to or within Russia or Belarus under License Exception Consumer Communications Devices (CCD).

 

To promote clarity and facilitate compliance, this final rule also consolidates the EAR’s Russian and Belarus sanctions into a single section, while maintaining the existing related regulatory supplements identifying items that are subject to certain of those sanctions. This final rule also amends the EAR by adding five entities and eight addresses to the Entity List and making changes to the Entity List structure. These entries are listed on the Entity List under the destinations of the People’s Republic of China (China) and Russia and have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. Lastly, this final rule makes two additional revisions to the EAR: one to confirm the criteria used when revising, suspending, or revoking EAR license exceptions and one revision to clarify the control status of fasteners for purposes of the EAR’s Russian and Belarusian industry sector sanctions.

 

https://www.federalregister.gov/documents/2024/06/18/2024-13148/implementation-of-additional-sanctions-against-russia-and-belarus-under-the-export-administration

 

 

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June 20, 2024:  The Department of Commerce’s Bureau of Industry and Security (BIS) announced a Final Determination prohibiting Kaspersky Lab, Inc., the U.S. subsidiary of a Russia-based anti-virus software and cybersecurity company, from directly or indirectly providing anti-virus software and cybersecurity products or services in the United States or to U.S. persons. The prohibition also applies to Kaspersky Lab, Inc.’s affiliates, subsidiaries and parent companies (together with Kaspersky Lab, Inc., “Kaspersky”).

 

This action is the first of its kind and is the first Final Determination issued by BIS’s Office of Information and Communications Technology and Services (OICTS), whose mission is to investigate whether certain information and communications technology or services transactions in the United States pose an undue or unacceptable national security risk. Kaspersky will generally no longer be able to, among other activities, sell its software within the United States or provide updates to software already in use. The full list of prohibited transactions can be found at oicts.bis.gov/kaspersky.

In addition to this action, BIS added three entities—AO Kaspersky Lab and OOO Kaspersky Group (Russia), and Kaspersky Labs Limited (United Kingdom)—to the Entity List for their cooperation with Russian military and intelligence authorities in support of the Russian Government’s cyber intelligence objectives.

 

This Final Determination and Entity Listing are the result of a lengthy and thorough investigation, which found that the company’s continued operations in the United States presented a national security risk—due to the Russian Government’s offensive cyber capabilities and capacity to influence or direct Kaspersky’s operations—that could not be addressed through mitigation measures short of a total prohibition.

 

Individuals and businesses that utilize Kaspersky software are strongly encouraged to expeditiously transition to new vendors to limit exposure of personal or other sensitive data to malign actors due to a potential lack of cybersecurity coverage. Individuals and businesses that continue to use existing Kaspersky products and services will not face legal penalties under the Final Determination. However, any individual or business that continues to use Kaspersky products and services assumes all the cybersecurity and associated risks of doing so.

 

In order to minimize disruption to U.S. consumers and businesses and to give them time to find suitable alternatives, the Department’s determination will allow Kaspersky to continue certain operations in the United States—including providing anti-virus signature updates and codebase updates—until 12:00AM Eastern Daylight Time (EDT) on September 29, 2024.

 

https://www.bis.gov/press-release/commerce-department-prohibits-russian-kaspersky-software-us-customers and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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June 24, 2024: 89 Fed. Reg. 52362: In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding 3 entries to the Entity List, under the destinations of Russia (2), and the United Kingdom (1). These entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States.

 

The following entries have been added to the Entity List:

 

Russia

  • AO Kaspersky Lab; and
  • OOO Kaspersky Group.

 

United Kingdom

  • Kaspersky Labs Limited.

 

https://www.federalregister.gov/documents/2024/06/24/2024-13695/additions-to-the-entity-list

 

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Department of the Treasury, Office of Foreign Assets Control (OFAC)

 

Syrian Sanctions Regulations

 

June 6, 2024: 89 Fed. Reg. 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) adopted a final rule amending the Syrian Sanctions Regulations to, among other things, implement the relevant provisions of a May 1, 2012 Executive Order regarding foreign sanctions evaders with respect to Syria and Iran, and certain provisions of the Iran Threat Reduction and Syria Human Rights Act of 2012, the Countering America’s Adversaries Through Sanctions Act, and the Caesar Syria Civilian Protection Act of 2019. In addition to new prohibitions, OFAC is adding several relevant definitions and interpretations and one new general license. OFAC is also incorporating, with amendments, one general license, which has until now appeared only on OFAC’s website, and updating six general licenses.

OFAC also issued a new Syria Frequently Asked Question (FAQ 1180)

 

FAQ 1180:

 

Question: What changes did OFAC make in the June 5, 2024 regulatory amendments to the Syrian Sanctions Regulations, 31 CFR part 542 (SySR)?

 

Answer: On June 5, 2024, OFAC, in consultation with the Department of State, amended the SySR to, among other things, incorporate certain sanctions statutes, including the Caesar Syria Civilian Protection Act of 2019, which are designed to deny the Assad Regime the resources it needs to support its longstanding campaign of repression against the Syrian people.  The amendments also incorporate a web General License (GL) and modify certain existing GLs to facilitate the continued provision of legitimate humanitarian assistance and internet-based communications services to civilians in Syria and clarify the applicability of the SySR to persons sanctioned under certain sanctions authorities.  These changes include:

 

  • Incorporation of Executive order and sanctions statutes: OFAC incorporated into the SySR the Caesar Syria Civilian Protection Act of 2019, the Syria Human Rights Accountability Act of 2012, and the Iran Threat Reduction and Syria Human Rights Act of 2012, as well as relevant provisions of the Countering America’s Adversaries Through Sanctions Act and Executive Order (E.O.) 13608.
  • Incorporation of web GL 22 related to economic sectors in certain areas of Syria: OFAC incorporated into the SySR, at new § 542.533, web GL 22, which authorizes activities in certain economic sectors in non-regime held areas of Northeast and Northwest Syria.
  • Additional non-governmental organization (NGO) activities: OFAC amended the GL related to the activities of nongovernmental organizations (NGO) at § 542.516.  These changes clarify which types of persons are covered by the NGO GL; add new authorized activities; and clarify that U.S. financial institutions may rely on statements of the originator of a funds, provided that the financial institution does not know or have reason to know that the funds transfer is not in compliance with the NGO GL.
  • Additional international organizations (IO): OFAC amended the GL related to the activities of international organizations (IO) at § 542.513.  These changes add new IOs whose official business is authorized by the GL to include the International Committee of the Red Cross and the International Federation of Red Cross and Red Crescent Societies; and The Global Fund to Fight AIDS, Tuberculosis, and Malaria, and Gavi, the Vaccine Alliance.
  • Expansion of authorization for internet-based communications: OFAC amended the GL related to internet-based communications at § 542.511.  These changes update the list of examples of communications technologies that are incident to, or enable services incident to, communications over the internet; authorize the provision of services incident to the export or reexport of certain communications software or hardware not subject to the Export Administration Regulations (“EAR”), 15 C.F.R. parts 730-774, that is incident to, or enables services incident to, communications over the internet, subject to certain conditions; and authorize the exportation and re-exportation to Syria of non-commercial-grade internet connectivity services

 

https://www.federalregister.gov/documents/2024/06/06/2024-12317/syrian-sanctions-regulations and

https://ofac.treasury.gov/media/932916/download?inline and

https://ofac.treasury.gov/media/932911/download?inline

 

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June 6, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the Ecuador-based Los Lobos Drug Trafficking Organization (Los Lobos) and its leader Wilmer Geovanny Chavarria Barre (also known as “Pipo”). Numbering thousands of members, Los Lobos has emerged as Ecuador’s largest drug trafficking organization and contributes significantly to the violence gripping the country. This action builds on Treasury’s February 7 designation of Los Choneros a prominent Ecuadorian drug gang—and comes as Ecuadorian criminal organizations backed by Mexico’s Cartel Jalisco Nueva Generación (CJNG) and Sinaloa Cartel continue to drive violence and instability in Ecuador.

 

The following individual has been added to OFAC’s SDN List:

 

  • Chavarria Barre, Wilmer Geovanny of Ecuador.

 

The following entity has been added to OFAC’s SDN List:

 

  • Los Lobos Drug Trafficking Organization of Ecuador.

 

https://home.treasury.gov/news/press-releases/jy2394 and

https://home.treasury.gov/news/press-releases?page=2

 

 

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June 6, 2024: In response to the Department of State’s sanction on “Lions’ Den” a militant Palestinian group centered in Nablus’s Old City in the West Bank, Department of the Treasury’s Office of Foreign Assets Control (OFAC) added the following entities to its SDN List:

 

 

  • Al Jil Alqadem General Trading L.L.C. of the United Arab Emirates;
  • Al Zumoroud and Al Yaqoot Gold and Jewllers Trading L.L.C of the United Arab Emirates;
  • Capital Tap General Trading L.L.C. of the United Arab Emirates;
  • Capital Tap Holding L.L.C. of the United Arab Emirates;
  • Capital Tap Management and Consultancies L.L.C of the United Arab Emirates:
  • Creative Python L.L.C. of the United Arab Emirates;
  • Horizon Advanced Solutions General Trading – Sole Proprietorship L.L.C. of the United Arab Emirates; and
  • Lions’ Den of the West Bank.

 

https://ofac.treasury.gov/recent-actions/20240606

 

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June 10, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned ten individuals, entities, and vessels, including tanker captains, in multiple jurisdictions that have engaged in the illicit transport of oil and other commodities, including for the network of Houthi financial facilitator Sa’id al-Jamal. This action targets maritime shipping and financial facilitators, several vessel managers and owners, and a company involved in forging shipping documents. This action, the seventh round of sanctions targeting the network of Sa’id al-Jamal since October 2023, underscores the U.S. government’s commitment to isolating and disrupting the financing of international terrorist groups such as the Houthis.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Al-Jamal, Abdallah Najib Ahmad of Yemen;
  • Aruldhas, John Britto of the United Arab Emirates;
  • Choudhary, Sandeep Singh of India; and
  • Pandey, Vivek Ashok of India.

 

The following entities have been added to OFAC’s SDN List:

 

  • Lainey Shipping Limited of China;
  • Louis Marine Shipholding Enterprises S.A. of Turkey;
  • Rayyan Shipping Private Limited of India;
  • Shark International Shipping L.L.C. of the United Arab Emirates.

 

The following vessels have been added to OFAC’s SDN List:

 

  • Bella 1, Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9230880; and
  • Janet, Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9220952.

 

https://ofac.treasury.gov/recent-actions/20240610 and

https://ofac.treasury.gov/recent-actions?page=0

 

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June 11, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned members of one of Guyana’s wealthiest families, Nazar Mohamed (Nazar) and his son, Azruddin Mohamed (Azruddin), their company, Mohamed’s Enterprise, and a Guyanese government official, Mae Thomas (Thomas), for their roles in public corruption in Guyana.Additionally, OFAC designated two other entities, Hadi’s World and Team Mohamed’s Racing Team, for being owned or controlled by Mohamed’s Enterprise and Azruddin, respectively. These individuals and entities are sanctioned pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Mohamed, Azruddin Intiaz of Guyana;
  • Mohammed, Nazar of Guyana;
  • Thomas, Mae Toussaint of Guyana.

 

The following entities have been added to OFAC’s SDN List:

 

  • Hadi’s World Incorporated of Guyana;
  • Mohamed’s Enterprise of Guyana;
  • Team Mohamed’s Racing Team.

 

https://ofac.treasury.gov/recent-actions/20240611 and

https://ofac.treasury.gov/recent-actions?page=0

 

*******

 

June 12, 2024: As President Biden and Group of Seven (G7) Leaders met in Italy, the U.S. Department of the Treasury issued sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine. These actions ratchet up the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy; restrict the ability of Russian military-industrial base to take advantage of certain U.S. software and information technology (IT) services; and, together with the Department of State, target more than 300 individuals and entities both in Russia and outside its borders including in Asia, the Middle East, Europe, Africa, Central Asia, and the Caribbean whose products and services enable Russia to sustain its war effort and evade sanctions.

 

Treasury targeted the architecture of Russia’s financial system, which has been reoriented to facilitate investment into its defense industry and acquisition of goods needed to further its aggression against Ukraine. Treasury also targeted more than a dozen transnational networks laundering gold for a designated Russian gold producer, supporting Russia’s production of unmanned aerial vehicles (UAVs), and procuring sensitive and critical items such as materials for Russia’s chemical and biological weapons program, anti-UAV equipment, machine tools, industrial machinery, and microelectronics. This action also takes further steps to limit Russia’s future revenue from liquefied natural gas.

 

The State Department targeted over 100 entities and individuals engaged in the development of Russia’s future energy, metals, and mining production and export capacity; sanctions evasion and circumvention; and furthering Russia’s ability to wage its war against Ukraine.

 

OFAC also issued Russia-related General License 6D, 8J, 25D, 98, 99, and 100.

 

General License No. 6D: All transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587, related to:

 

(1) the production, manufacturing, sale, transport, or provision of agricultural commodities, agricultural equipment, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices;

(2) the prevention, diagnosis, or treatment of COVID-19 (including research or clinical studies relating to COVID-19); or (3) clinical trials and other medical research activities are authorized.

 

For the purposes of this general license, agricultural commodities, medicine, and medical devices are defined as follows:

 

(1) Agricultural commodities.  For the purposes of this general license, agricultural commodities are products that fall within the term “agricultural commodity” as defined in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602) and are intended for use as:

 

  • Food for humans (including raw, processed, and packaged foods; live animals; vitamins and minerals; food additives or supplements; and bottled drinking water) or animals (including animal feeds);
  • (ii) Seeds for food crops;
  • (iii) Fertilizers or organic fertilizers; or
  • (iv) Reproductive materials (such as live animals, fertilized eggs, embryos, and semen) for the production of food animals.

 

(2) Medicine.  For the purposes of this general license, medicine is an item that falls within the definition of the term “drug” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

(3) Medical devices.  For the purposes of this general license, a medical device is an item that falls within the definition of “device” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

 

This general license does not authorize:

 

(1) The opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to Directive 2 under Executive Order (E.O.) 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

 

(2) Any debit to an account on the books of a U.S. financial institution of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation; or

 

(3) Transactions prohibited by E.O. 14066, E.O. 14068, or E.O. 14071, except for transactions prohibited by the determination of May 8, 2022, made pursuant to section 1(a)(ii) of E.O. 14071, “Prohibitions Related to Certain Accounting, Trust and Corporate Formation, and Management Consulting Services,” or the determination of June 12, 2024, made pursuant to section 1(a)(ii) of E.O. 14071, “Prohibition on Certain Information Technology and Software Services.”

 

Effective June 12, 2024, General License No. 6C, dated January 17, 2023, is replaced and superseded in its entirety by this General License No. 6D

 

General License No. 8J:

 

All transactions prohibited by Executive Order (E.O.) 14024 involving one or more of the following entities that are related to energy are authorized, through 12:01 a.m. eastern daylight time, November 1, 2024:

 

(1) State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank;

(2) Public Joint Stock Company Bank Financial Corporation Otkritie;

(3) Sovcombank Open Joint Stock Company;

(4) Public Joint Stock Company Sberbank of Russia;

(5) VTB Bank Public Joint Stock Company;

(6) Joint Stock Company Alfa-Bank;

(7) Public Joint Stock Company Rosbank;

(8) Bank Zenit Public Joint Stock Company;

(9) Bank Saint-Petersburg Public Joint Stock Company;

(10) National Clearing Center (NCC);

(11) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest; or

(12) the Central Bank of the Russian Federation.

 

For the purposes of this general license, the term “related to energy” means the extraction, production, refinement, liquefaction, gasification, regasification, conversion, enrichment, fabrication, transport, or purchase of petroleum, including crude oil, lease condensates, unfinished oils, natural gas liquids, petroleum products, natural gas, or other products capable of producing energy, such as coal, wood, or agricultural products used to manufacture biofuels, or uranium in any form, as well as the development, production, generation, transmission, or exchange of power, through any means, including nuclear, thermal, and renewable energy sources.

 

This general license does not authorize:

 

(1) Any transactions prohibited by Directive 1A under E.O. 14024, Prohibitions Related to Certain Sovereign Debt of the Russian Federation;

(2) The opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

(3) Any debit to an account on the books of a U.S. financial institution of the Central Bank of the Russian Federation; or

(4) Any transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), including transactions involving any person blocked pursuant to the RuHSR other than the blocked persons described in paragraph (a) of this general license, unless separately authorized.

 

Effective June 12, 2024, General License No. 8I, dated April 29, 2024, is replaced and superseded in its entirety by this General License No. 8J.

 

General License No. 25D:

 

All transactions ordinarily incident and necessary to the receipt or transmission of telecommunications involving the Russian Federation that are prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), are authorized.

 

The exportation or reexportation, sale, or supply, directly or indirectly, from the United States or by U.S. persons, wherever located, to the Russian Federation of services incident to the exchange of communications over the internet, such as instant messaging, chat and email, social networking, sharing of photos and movies, web browsing, blogging, social media platforms, collaboration platforms, video conferencing, e-gaming, e-learning platforms, automated translation, web maps, user authentication services, web hosting, and domain name registration services, that is prohibited by the RuHSR, is authorized.

 

The exportation or reexportation, sale, or supply, directly or indirectly, from the United States or by U.S. persons, to the Russian Federation of software, hardware, or technology incident to the exchange of communications over the internet is authorized, provided that:

 

  • If the software, hardware, or technology is subject to the Export Administration Regulations, 15 CFR parts 730 through 774 (EAR), the exportation, reexportation, sale, or supply to the Russian Federation of such software, hardware, or technology is licensed or otherwise authorized by the Department of Commerce pursuant to the EAR; and
  • (ii) If the software, hardware, or technology is not subject to the EAR, the exportation, reexportation, sale, or supply to the Russian Federation of such software, hardware, or technology would be eligible for a license exception or otherwise authorized by the Department of Commerce if it were subject to the EAR.

 

This general license does not authorize:

 

(1) The opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to Directive 2 under Executive Order (E.O.) 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

 

(2) Any debit to an account on the books of a U.S. financial institution of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation;

 

(3) Any transactions prohibited by E.O. 14066 or E.O. 14068; or

 

(4) Any transactions involving Joint Stock Company Channel One Russia, Joint Stock Company NTV Broadcasting Company, Television Station Russia-1, Limited Liability Company Algoritm, New Eastern Outlook, Oriental Review, or Garantex Europe OU, unless separately authorized.

 

Effective June 12, 2024, General License No. 25C, dated July 14, 2022, is replaced and superseded in its entirety by this General License No. 25D.

 

General License No. 98:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, July 27, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR):

 

(1) Aviatech FZC

 

(2) Beijing Deepcool Industries Co., Ltd.

 

(3) Guangdong Pratic CNC Technology Co., Ltd.

 

(4) Joint Stock Company Uralredmet (5) Joint Stock Company Goznak

 

(5) Joint Stock Company Goznak

 

(6) Limited Liability Company Elga Stroy Mining Services

 

(7) Limited Liability Company Elgaugol

 

(8) Limited Liability Company Management Company Elga

 

(9) Limited Liability Company Koulstar

 

(10) Max Jet Service Limited Liability Company

 

(11) Mile Hao Xiang Technology Co., Ltd.

 

(12) Platin Group Machine Manufacturing International Company Limited

 

(13) Public Joint Stock Company Seligdar

 

(14) Shandong Oree Laser Technology Co., Ltd.

 

(15) Wuhan Tianyu Information Industry Co., Ltd; or

 

(16) Any entity in which one or more one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

 

(b) This general license does not authorize:

 

(1) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

 

(2) Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or

(3) Any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the blocked persons described in paragraph (a) of this general license, unless separately authorized.

 

General License No. 99:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, August 13, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR):

 

(1) Moscow Exchange (MOEX);

 

(2) National Clearing Center (NCC);

 

(3) Non-Bank Credit Institution Joint Stock Company National Settlement Depository (NSD); and

(4) Any entity in which one or more of the above persons own, directly or indirectly,  individually or in the aggregate, a 50 percent or greater interest.

 

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the divestment or transfer, or the facilitation of the divestment or transfer, of debt or equity issued or guaranteed by any of the blocked entities identified in paragraph (a) (“Covered Debt or Equity”) to a non-U.S. person are authorized through 12:01 a.m. eastern daylight time, August 13, 2024, 2024:

 

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to facilitating, clearing, and settling trades of Covered Debt or Equity that were placed prior to 4:00 p.m. eastern daylight time, June 12, 2024 are authorized through 12:01 a.m. eastern daylight time, August 13, 2024, 2024.

 

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the wind down of derivative contracts entered into prior to 4:00 p.m. eastern daylight time June 12, 2024 that (i) include a blocked person described in paragraph (a) of this general license as a counterparty or (ii) are linked to Covered Debt or Equity are authorized through 12:01 a.m. eastern daylight time August 13, 2024, provided that any payments to a blocked person are made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

 

This general license does not authorize:

 

(1) U.S. persons to sell, or to facilitate the sale of, Covered Debt or Equity to, directly or indirectly, any person whose property and interests in property are blocked; or

 

(2) U.S. persons to purchase or invest in, or to facilitate the purchase of or investment in, directly or indirectly, Covered Debt or Equity, other than purchases of or investments in Covered Debt or Equity ordinarily incident and necessary to the divestment or transfer of Covered Debt or Equity as described in paragraph (b) of this general license.

 

This general license does not authorize:

 

(1) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

 

(2) Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or

 

(3) Any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the blocked persons described in paragraph (a) of this general license, unless separately authorized.

 

General License No. 100:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the divestment of debt or equity to a non-U.S. person, who is not a person whose property or interests in property are blocked, or the conversion of currencies, involving one or more of the following blocked entities that is acting solely as a securities, trade, or settlement depository, central counterparty or clearing house, or public trading market, are authorized through 12:01 eastern daylight time August 13, 2024:

 

(1) Moscow Exchange (MOEX);

 

(2) National Clearing Center (NCC);

 

(3) Non-Bank Credit Institution Joint Stock Company National Settlement Depository (NSD); and

 

(4) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

 

This general license does not authorize:

 

(1) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

 

(2) Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or (3) Any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the blocked persons described in paragraph (a) of this general license, unless separately authorized.

 

Additionally, OFAC is issuing eight new, Russia-related Frequently Asked Questions (FAQs 1181 – 1188)

 

FAQ 1181:

 

Question: Effective June 12, 2024, how is Treasury interpreting Russia’s military-industrial base under section 11 of Executive Order (E.O.) 14024, as amended by E.O. 14114?

 

Answer: In line with G7 commitments and in response to the Government of the Russian Federation’s continued efforts to reorient its economy and government resources to support its war effort, Treasury has updated its definition of Russia’s military-industrial base to include all persons blocked pursuant to E.O. 14024.  This updated definition reflects Russia’s reorientation of its economy and government resources to support its war.  This action means that FFIs risk being sanctioned for conducting or facilitating any significant transaction or transactions or for providing any service involving a person blocked pursuant to E.O. 14024.

 

As updated in FAQ 1151, Russia’s military-industrial base includes all persons blocked pursuant to E.O. 14024, as well as any person operating in the technology, defense and related materiel, construction, aerospace, and manufacturing sectors of the Russian Federation economy (and other sectors as may be determined pursuant to E.O. 14024).  For definitions of those identified sectors, see FAQ 1126.  Russia’s military-industrial base may also include individuals and entities that support the sale, supply, or transfer, directly or indirectly, of critical items identified pursuant to subsection 11(a)(ii) of E.O. 14024 to the Russian Federation.  See determination of December 22, 2023 pursuant to subsection 11(a)(ii) of Executive Order 14024 (Russia Critical Items Determination)

 

FAQ 1182:

 

Question: Are foreign financial institutions (FFIs) subject to sanctions risk for providing all financial services involving persons blocked pursuant to Executive Order (E.O.) 14024, as amended?  What about agricultural, medical, and other transactions authorized by OFAC General Licenses?

 

Answer: Treasury remains focused on counteracting activity that involves sanctions evasion or third-country support to Russia’s military-industrial base. At the same time, legitimate humanitarian activity and agricultural and medical trade are not the target of our sanctions. Accordingly, FFIs may continue to conduct or facilitate any transaction(s) or provide any service related to activities that are otherwise authorized or exempted under the Russian Harmful Foreign Activities Sanctions program.

 

Foreign persons do not risk the imposition of sanctions for engaging in transactions authorized for U.S. persons under General Licenses issued under the Russian Harmful Foreign Activities Sanctions program.

FFIs may continue to rely on Treasury’s existing authorizations in place for transactions related to agricultural commodities, medicine, medical devices and related replacement parts, components, or software updates, the Coronavirus Disease 2019 (General License (GL) 6D), energy-related transactions (GL 8J), certain transactions in support of non-governmental organizations (GL 27), official business of third-country diplomatic or consular missions located in the Russian Federation (GL 20), certain transactions and official business of certain international organizations and entities by employees, grantees, or contractors thereof (31 CFR 587.510). Additionally, the importation or exportation of information or informational materials and transactions ordinarily incident to travel to or from any country are exempt under the International Emergency Economic Powers Act (IEEPA).

 

FAQ 1183:

 

Question: What authorizations are in place with respect to the Moscow Exchange (MOEX), National Clearing Center (NCC), and Non-Bank Credit Institution Joint Stock Company National Settlement Depository (NSD)?

 

Answer: On June 12, 2024, OFAC issued Russia-related general licenses (GLs) GL 99, GL 100, and amended GL 8J, authorizing certain transactions involving MOEX, NCC, NSD, or any entity in which one of these entities owns, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest (collectively, “the Blocked Entities”).

 

GL 99 authorizes the wind down of transactions involving the Blocked Entities, as well as certain transactions related to the divestment to non-U.S. persons of debt or equity issued or guaranteed by, or derivative contracts involving, the Blocked Entities.  For example, GL 99 would authorize a U.S. person to divest their equity in MOEX to a non-blocked non-U.S. person.  This authorization expires at 12:01 a.m. eastern daylight time August 12, 2024.  See GL 99 for more information.

 

GL 100 authorizes certain transactions for the divestment to non-blocked, non-U.S. persons of debt or equity, or for the conversion of currencies, involving one or more of the Blocked Entities solely as a securities, trade, or settlement depository, central counterparty or clearing house, or public trading market.  GL 100 is intended to cover the divestment of debt or equity of non-blocked companies that may be traded on or through one of the Blocked Entities in their capacity as a securities, trade, or settlement depository, central counterparty or clearing house, or public trading market.  For example, GL 100 would authorize a U.S. person to divest their equity in a non-blocked Russian company that is being traded on MOEX to a non-blocked, non-U.S. person.  This example would be distinct from the divestment of equity in MOEX itself, which would be covered by GL 99.  GL 100 would also authorize U.S. persons to transact with one of the Blocked Entities to the extent ordinarily incident and necessary to convert U.S. dollars to another currency, or vice versa.  This authorization expires at 12:01 a.m. eastern daylight time August 12, 2024. See GL 100 for more information.

 

FAQ 1184:

 

Question: What action did Treasury take on June 12, 2024 with regards to prohibiting certain information technology (IT) and software-related services?

 

Answer: In line with G7 efforts to disrupt Russia’s defense industry’s reliance on western IT systems, on June 12, 2024, Treasury issued a determination that restricts the provision of certain IT and software-related services to Russia.  The determination, “Prohibition on Certain Information Technology and Software Services,” issued pursuant to Executive Order (E.O.) 14071 (the “IT and Software Services Determination”), prohibits the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, to any person located in the Russian Federation of:  (1) IT consultancy and design services; and (2) IT support services and cloud-based services for the following categories of software: enterprise management software and design and manufacturing software (collectively, “Covered Software”).  The IT and Software Services Determination will take effect at 12:01 a.m. eastern daylight time on September 12, 2024.  See FAQs 1185, 1186, 1187, and 1188 for additional information.

 

The aim of this action is not to prohibit all activity relating to the provision of IT and software-related services to Russia.  The United States strongly supports the free flow of information and communications globally as facilitated by telecommunications and the internet.  These measures do not prohibit internet access or the delivery of internet-based communications services.  Treasury already has in place General License (GL) 25D, which authorizes certain transactions ordinarily incident and necessary to the receipt or transmission of telecommunications involving the Russian Federation and the provision of certain services incident to the exchange of communications over the internet, subject to certain restrictions.  For additional information, see FAQ 1040.  Treasury has also amended GL 6D to authorize transactions related to certain agricultural and medical activities involving the provision of information technology and software-related services.  Additionally, the importation from any country, or the exportation to any country of any information or informational materials, regardless of format or medium, is generally exempt from the scope of sanctions prohibitions under the International Emergency Economic Powers Act.  See 50. U.S.C. § 1702(b)(3).

 

In addition, the IT and Software Services Determination does not prohibit the following IT and software services, which are excluded from its scope:  (1) any service to an entity located in the Russian Federation that is owned or controlled, directly or indirectly, by a United States person; (2) any service in connection with the wind down or divestiture of an entity located in the Russian Federation that is not owned or controlled, directly or indirectly, by a Russian person; and (3) any service for software that would be eligible for a license exception or otherwise authorized for export or reexport to Russia by the Department of Commerce.

 

FAQ 1185:

 

Question: What activities are considered prohibited “information technology (IT) consultancy and design services” under the determination, “Prohibition on Certain Information Technology and Software Services,” pursuant to Executive Order (E.O. 14071) (the “IT and Software Services Determination”)?

 

Answer: IT consultancy and design services include the development and implementation of software, as well as assistance or advice relating to the development and implementation of software, including the supply and installation of bespoke software.  However, the retail sale of off-the-shelf software, falling under United Nations’ Central Product Classification (CPC) Code 63252, is not included in the scope of IT consultancy and design services.  IT consultancy and design services are distinct from information technology (IT) support services, which fall under United Nations’ CPC Code 83132.  See FAQ 1187 for more information on how OFAC intends to define “IT consultancy and design services.”  See FAQ 1186 for a description of prohibited “IT support services” and “cloud-based services” for enterprise management software and design and manufacturing software.

 

The following are examples of activities that would be prohibited by the IT and Software Services Determination if such services were provided to a company located in the Russian Federation that is not owned or controlled directly or indirectly by a U.S. person (Russian company):

 

  • A U.S. company signs a contract with a Russian company to assist the Russian company in upgrading its IT systems.  The U.S. consulting company advises on, among other matters, the kinds of software and hardware needed for the Russian company’s operations and how best to

procure such technology.

 

  • A U.S. company works to modify existing web applications to be functional within a Russian company’s internal IT environment.

 

  • A U.S. service provider signs a contract with a Russian company for the design and engineering of bespoke (i.e., custom-made) software that the Russian company uses for internal purposes.

 

  • A U.S. person working at a third country company signs a contract with a Russian company to design the structure of their sales website.

 

The following are examples of activities that would not be prohibited by the IT and Software Services Determination:

 

  • A U.S. service provider provides a Russian company with internet access.

 

  • A U.S. service provider provides a Russian company with internet services.  The delivery of internet services includes, for example, Domain Name Services.

 

  • A U.S. company provides Russian individuals and entities with continued access to cloud-based, free-of-charge, publicly available web applications, such as email, spreadsheet, and document applications.
  • A U.S. company provides virtual private network (VPN) services to customers in the Russian Federation.

 

Some of these activities – such as the sale of off-the-shelf software – may be subject to other Federal laws or requirements of other Federal agencies, including export, reexport, and transfer (in-country) license requirements maintained by the Department of Commerce’s Bureau of Industry and Security under the Export Administration Regulations, 15 CFR parts 730–774 (EAR).

 

FAQ 1186:

 

Question: What activities are considered prohibited “IT support services” and “cloud-based services” for enterprise management software and design and manufacturing software (collectively “Covered Software”) under the determination, “Prohibition on Certain Information Technology and Software Services”, pursuant to Executive Order (E.O.) 14071 (the “IT and Software Services Determination”)?

 

Answer: The IT and Software Services Determination prohibits the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of both IT support services and cloud-based services for the Covered Software to a person located in the Russian Federation.  IT support services include the provision of technical expertise to solve problems for the client in using software, hardware, or an entire computer system.  Cloud-based services include the supply of software and associated services via the internet or the cloud, including through Software-as-a-Service (SaaS).  See FAQ 1187 for more information on how OFAC intends to define “enterprise management software,” “design and manufacturing software,” “cloud-based services,” and “information technology support services.”

 

The following are examples of activities that would be prohibited by the IT and Software Services Determination if such services were provided to a company located in the Russian Federation that is not owned or controlled directly or indirectly by a U.S. person (Russian company):

 

  • A U.S. company sells a cloud-based enterprise resource planning software subscription to a Russian company.

 

  • A U.S. employee of a third country company provides customer support services to a Russian company that is experiencing technical difficulties with its human resources software.

 

  • A U.S. company provides a software patch to a Russian company to fix a bug in its computer-aided design software.

 

The following are examples of activities that would not be prohibited by the IT and Software Services Determination:

 

  • A U.S. company sells a cloud-based electronic health records software subscription to a Russian company.

 

  • A U.S. company provides customer support services to a Russian individual who is experiencing technical difficulties with their publicly available cloud-based spreadsheet web application.
  • A U.S. person working at a third country company provides customer support services to a Russian individual who is experiencing technical difficulties with their free-of-charge publicly available teleconferencing application.

 

  • A U.S. company provides IT support services to a Russian individual to a non-covered software application.

 

The IT and Software Services Determination complements regulations to be issued by the U.S. Department of Commerce Bureau of Industry and Security (BIS) pertaining to the export, reexport, or transfer (in-country) to the Russian Federation of the following types of software subject to the Export Administration Regulations, 15 CFR part 730–774 (EAR):  Enterprise resource planning (ERP); customer relationship management (CRM); business intelligence (BI); supply chain management (SCM); enterprise data warehouse (EDW); computerized maintenance management system (CMMS); project management software, product lifecycle management (PLM);  building information modelling (BIM); computer aided design (CAD); computer-aided manufacturing (CAM); and engineering to order (ETO).

 

See General License (GL) 25D for more information about certain authorizations for transactions relating to the receipt or transmission of telecommunications involving the Russian Federation and the provision of certain services incident to the exchange of communications over the internet.  See GL 6D for more information on authorizations for transactions related to certain agricultural and medical activities involving the provision of information technology and software-related services.

 

FAQ 1187:

 

Question: How does OFAC intend to interpret the following terms in the determination, “Prohibition on Certain Information Technology and Software Services,” pursuant to Executive Order (E.O.) 14071 (the “IT and Software Services Determination”):  “enterprise management software,” “design and manufacturing software,” “cloud-based services,” “information technology support services,” and “information technology consultancy and design services”?

 

Answer: OFAC expects to promulgate regulations that define or interpret these terms as follows:

 

The term enterprise management software means the following types of software:  enterprise resource planning (ERP), customer relationship management (CRM), business intelligence (BI), supply chain management (SCM), enterprise data warehouse (EDW), computerized maintenance management system (CMMS), project management, and product lifecycle management (PLM) software.

 

The term design and manufacturing software means the following types of software:  building information modelling (BIM), computer aided design (CAD), computer-aided manufacturing (CAM), and engineer to order (ETO) software.

 

The term cloud-based services includes the delivery of software via the internet or over the cloud, including through Software-as-a-Service (SaaS), or SaaS cloud services in relation to such software.

 

The term information technology support services is defined consistent with the United Nations’ Central Product Classification (CPC) Code 83132 to include:

  1. providing technical expertise to solve problems for the client in using software, hardware, or an entire computer system, such as: (a) providing customer support in using or troubleshooting the software; (b) upgrading services and the provision of patches and updates; (c) providing customer support in using or troubleshooting the computer hardware, including testing and cleaning on a routine basis and repair of information technology (IT) equipment; (d) technical assistance in moving a client’s computer system to a new location; (e) providing customer support in using or troubleshooting the computer hardware and software in combination; and

 

  1. providing technical expertise to solve specialized problems for the client in using a computer system, such as:  (a) auditing or assessing computer operations without providing advice or other follow-up action including auditing, assessing and documenting a server, network or process for components, capabilities, performance, or security; (b) data recovery services, i.e. retrieving a client’s data from a damaged or unstable hard drive or other storage medium, or providing standby computer equipment and duplicate software in a separate location to enable a client to relocate regular staff to resume and maintain routine computerized operations in event of a disaster such as a fire or flood; and (c) other IT technical support services not elsewhere classified.

 

The term information technology consultancy and design services includes both IT consulting services and IT design and development services for applications, and is defined consistent with United Nations’ Central Product Classification (CPC) Codes 83131 and 83141, respectively.

 

  • IT consultancy services includes providing advice or expert opinion on technical matters related to the use of information technology, such as:  (a) advice on matters such as hardware and software requirements and procurement; (b) systems integration; (c) systems security; and (d) provision of expert testimony on IT related issues.

 

  • IT design and development services for applications includes services of designing the structure and/or writing the computer code necessary to create and/or implement a software application, such as:  (a) designing the structure of a web page and/or writing the computer code necessary to create and implement a web page; (b) designing the structure and content of a database and/or writing the computer code necessary to create and implement a database; (c) designing the structure and writing the computer code necessary to design and develop a custom software application; (d) customization and integration, adapting (modifying, configuring, etc.) and installing an existing application so that it is functional within the clients’ information system environment.

 

FAQ 1188:

 

Question: Does the determination, “Prohibition on Certain Information Technology and Software Services,” pursuant to Executive Order (E.O.) 14071 (the “IT and Software Services Determination”) prohibit U.S. persons from providing services to persons located outside of the Russian Federation that are owned or controlled by persons located in the Russian Federation? 

 

Answer: No, provided that the provision of services is not an indirect export to a person located in the Russian Federation.  For the purposes of the IT and Software Services Determination, OFAC interprets the “indirect” provision of the prohibited services to include when the benefit of the services is ultimately received by a “person located in the Russian Federation.”

 

In contrast, OFAC would not consider to be prohibited the provision of services to a third country company that is located outside of Russia, including such a company owned or controlled by persons located in the Russian Federation, provided that the services will not be further exported or reexported to persons located in the Russian Federation.

 

For example, the following scenarios describe services that would be prohibited under the IT and Software Services Determination:

 

  • A U.S. company designs and delivers proprietary supply chain management software to a third country limited liability company (Company X) on behalf of its Russian parent company, which Company X intends to supply to its parent company.

 

  • A U.S. company designs and delivers proprietary accounting software to a third country software re-seller (Company Y), which Company Y indicates that they intend to supply to a Russian company.

 

  • A U.S. consulting company signs a contract to provide enterprise management software and related information technology support services to Company X.  Company X provides access to these services to its Russian parent, such that employees from the Russian parent call the U.S. consulting company when they have problems with their enterprise management software.

 

The following scenarios illustrate services to a non-Russian subsidiary of a Russian person that would not be prohibited under the IT and Software Services Determination:

 

  • A U.S. software company assists a U.S. subsidiary of a Russian company in upgrading the U.S. subsidiary’s IT systems, including procuring new software and hardware.  The U.S. subsidiary has an office and employees in the United States and conducts business in the United States, and the services will not be exported or reexported to the Russian parent company.

 

  • A U.S. software company signs a contract with the third-country subsidiary (Company Z) of a Russian company for the delivery via cloud of building information software to Company Z.  This subsidiary has an office and employees in the third country and conducts business in this third country, and the software will not be provided to the Russian parent company.

 

 

  • A U.S. technology company designs a website for the subsidiary of a Russian company located in a third country. This subsidiary has an office and employees in the third country and conducts business in this third country, and the services will not be reexported to the Russian parent company.

OFAC is publishing an updated Compliance Advisory to Foreign Banks on Russia Sanctions Risks in order to provide additional guidance for Foreign Financial Institutions the update advisory warns foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russia’s military-industrial base run the risk of being sanctioned by OFAC.  OFAC is revising the definition of “Russia’s military-industrial base” to include all persons blocked under E.O. 14024, as amended.

 

Please see the full list of sanctioned Russian individuals and entities posted in the links below:

 

https://ofac.treasury.gov/recent-actions/20240612

https://home.treasury.gov/news/press-releases/jy2404

https://ofac.treasury.gov/media/932951/download?inline

https://ofac.treasury.gov/media/932921/download?inline

https://ofac.treasury.gov/media/932926/download?inline

https://ofac.treasury.gov/media/932931/download?inline

https://ofac.treasury.gov/media/932936/download?inline

https://ofac.treasury.gov/media/932941/download?inline

https://ofac.treasury.gov/media/932946/download?inline

https://ofac.treasury.gov/faqs/added/2024-06-12 and

https://ofac.treasury.gov/media/932436/download?inline

 

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June 14, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on four individuals with links to the Islamic State of Iraq and Syria (ISIS), including members of an ISIS-linked human smuggling network. The investigations into these targets, as well as their subsequent designations, were taken in close coordination with the Government of Türkiye. As a result of this close cooperation, the Government of Türkiye is concurrently taking its own domestic action against this network.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Ismailov, Olimkhon Makhmudjon Ugli of Uzbekistan;
  • Khamirzaev, Adam of Turkey;
  • Mirzoev, Muhammadyusuf Alisher Ogli of Uzbekistan: and
  • Niyazov, Muhammad Ibrohimjon of Turkey.

 

https://ofac.treasury.gov/recent-actions/20240614 and

https://ofac.treasury.gov/recent-actions/20240617

 

 

 

*******

June 14, 2024: Based on the Department of State’s designation of Tzav 9, a violent extremist Israeli group that has been blocking, harassing, and damaging convoys carrying lifesaving humanitarian assistance to Palestinian civilians in Gaza, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added the following individuals to its SDN List:

 

  • Eklund, Leif Robert of Sweden;
  • Oberg, Par of Sweden;
  • Vejeland, Tor Frederik of Sweden.

 

The following entities have been added to OFAC’s SDN List:

 

  • Nordic Resistance Movement of Sweden; and
  • TZAV 9 of Israel.

 

https://ofac.treasury.gov/recent-actions/20240614 and

https://ofac.treasury.gov/recent-actions?page=0

 

*******

 

June 17, 2024:  The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated individuals and entities that have facilitated weapons procurement for Ansarallah, commonly referred to as the Houthis. OFAC is also designating one individual and one company, as well as identifying one vessel, that have facilitated the shipment of commodities, the sale of which provides an important funding stream to the Houthis that aids in their weapons procurement. This action targets key actors who have enabled the Houthis to generate revenue and acquire a range of materials to manufacture the advanced weaponry they are now using to conduct ongoing terrorist attacks against commercial ships. Since November 2023, the Houthis have deployed a range of unmanned aerial vehicles (UAVs), ballistic missiles, and cruise missiles to attack merchant vessels and their crews in the Red Sea and Gulf of Aden, killing innocent civilians, causing severe damage to commercial ships, and threatening global freedom of navigation.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Al-Haifi, Muaadh Ahmed Mohammed of Oman;
  • Al-Sa’idi, Haydar Muzhir Ma’lak of Iraq;
  • Al-Wazir, Ali Abd Al-Wahhab Muhammad of Yemen; and
  • Salyga, Vyacheslav of Ukraine.

 

The following entities have been added to OFAC’s SDN List:

 

  • Dongguan Yuze Machining Tools Company Limited of China;
  • Guangzhou Tasneem Trading Company Limited of China;
  • Harakat Ansar Allah Al-Awfiya of Iraq;
  • International Smart Digital Interface Limited Liability Company of Oman;
  • Ningbo Beilun Saige Machine Co., Ltd., No. 2 of China;
  • Stellar Wave Marine L.L.C. of the United Arab Emirates; and
  • Tasneem Trading Company Limited of China.

 

The following vessel has been added to OFAC’s SDN List:

 

  • Otaria, rude Oil Tanker Cameroon flag; Vessel Registration Identification IMO 9192260.

 

https://ofac.treasury.gov/recent-actions/20240617 and

https://ofac.treasury.gov/recent-actions?page=0

 

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June 18, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated a network of two individuals and seven entities that provide major sources of revenue for U.S.-designated Republika Srpska (RS) President Milorad Dodik (Dodik) and his family. Dodik has used his official position to accumulate personal wealth through companies linked to himself and to Igor Dodik (Igor). For example, in 2024, Igor and Dodik exercised their control over senior Bosnia and Herzegovina (BiH) government officials to manipulate the draft BiH state budget so that a state-level contract could be awarded to Prointer ITSS d.o.o. Banja Luka Clan Infinity International Group—an entity in the network—outside of the competitive process.

 

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) published Balkans-Related General License 3A, 4, and 5.

 

General License 3A:

 

All transactions prohibited by the Western Balkans Stabilization Regulations, 31 CFR part 588 (WBSR), involving one or more of the blocked entities described in this general license related to the following are authorized:  (1) the production, manufacturing, sale, transport, or provision of agricultural commodities, agricultural equipment, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices; (2) the prevention, diagnosis, or treatment of any disease or medical condition; or (3) the conduct of clinical trials or other medical research.

 

The authorization this general license applies to the following blocked entities:

(1) Orka Holding AD;

 

(2) Infinity International Group d.o.o. Banja Luka;

 

(3) Sirius 2010 d.o.o. Banja Luka; or

 

(4) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

 

(c) For the purposes of this general license, agricultural commodities, medicine, and medical devices are defined as follows:

 

(1) Agricultural commodities.  Agricultural commodities are products that fall within the term “agricultural commodity” as defined in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602) and are intended for use as:

 

  • Food for humans (including raw, processed, and packaged foods; live animals; vitamins and minerals; food additives or supplements; and bottled drinking water) or animals (including animal feeds);

 

  • Seeds for food crops;

 

  • Fertilizers or organic fertilizers; or

 

  • Reproductive materials (such as live animals, fertilized eggs, embryos, and semen) for the production of food animals.

 

(2) Medicine.  Medicine is an item that falls within the definition of the term “drug” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

 

(3) Medical devices.  A medical device is an item that falls within the definition of “device” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

 

(d) This general license does not authorize any transactions otherwise prohibited by the WBSR, including transactions involving any person blocked pursuant to the WBSR other than the blocked persons described in paragraph (b) of this general license, unless separately authorized.

 

(e) Effective June 18, 2024, General License No. 3, dated November 16, 2023, is replaced and superseded in its entirety by this General License No. 3A.

 

General License 4:

 

All transactions prohibited by the Western Balkans Stabilization Regulations, 31 CFR part 588 (WBSR), that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, August 17, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the WBSR:

 

(1) Infinity International Group d.o.o. Banja Luka;

 

(2) Sirius 2010 d.o.o. Banja Luka; or

 

(3) Any entity in which one or more of the above persons own, directly or indirectly, individually or in aggregate, a 50 percent or greater interest.

 

This general license does not authorize any transactions otherwise prohibited by the WBSR, including transactions involving any person blocked pursuant to the WBSR other than the blocked persons described in this general license, unless separately authorized.

 

General License 5:

 

All transactions prohibited by the Western Balkans Stabilization Regulations, 31 CFR part 588 (WBSR), that are ordinarily incident and necessary to the manufacture, distribution, operation, installation, or maintenance and repair of pumps manufactured or distributed by Kaldera Company EL PGP d.o.o., or any entity in which Kaldera Company EL PGP d.o.o. owns, directly or indirectly, a 50 percent or greater interest, that are currently or are intended solely for use in the treatment or distribution of drinking water, are authorized.

 

This general license does not authorize any transactions otherwise prohibited by the WBSR, including transactions involving any person blocked pursuant to the WBSR other than the blocked persons described in this general license, unless separately authorized.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Cicic, Milenko of Bosnia and Herzegovina; and
  • Djuric, Djordje of Serbia.

 

The following entities have been added to OFAC’s SDN List:

 

  • Infinity International Group D.O.O. Banja Luka of Bosnia and Herzegovina;
  • Infinity Media D.O.O of Bosnia and Herzegovina;
  • K-2 Audio Services Banja Luka D.O.O. of Bosnia and Herzegovina;
  • Kaldera Company El PGP D.O.O. of Bosnia and Herzegovina;
  • Prointer ITSS D.O.O. Banja Luka Clan Infinity International Group of Bosnia and Herzegovina;
  • Sirius 2010 D.O.O. Banja Luka of Bosina and Herzegovina; and
  • UNA World Networdk D.O.O. of Bosnia and Herzegovina.

 

https://ofac.treasury.gov/recent-actions/20240618 and

https://ofac.treasury.gov/recent-actions?page=0

 

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June 20, 2024: Secretary Yellen announced that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned eight Mexico-based targets affiliated with La Nueva Familia Michoacana drug cartel for trafficking fentanyl, cocaine, and methamphetamine into the United States. In addition to narcotics trafficking, La Nueva Familia Michoacana smuggles migrants from Mexico into the United States. La Nueva Familia Michoacana is one of the most powerful and violent cartels in Mexico and has become a priority focus of the Mexican government in recent years.

 

Concurrently, Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Supplemental Advisory to highlight critical new information to help U.S. banks and other financial institutions guard against activity associated with the illicit fentanyl supply chain. The advisory includes new trends and red flags that can be indicators of activity associated with the procurement of precursor chemicals and manufacturing equipment used for the synthesis of illicit fentanyl and other synthetic opioids. Reporting from financial institutions of suspected financial transactions involving illicit fentanyl and narcotics trafficking plays a key role in law enforcement investigations and Treasury’s sanctions efforts globally.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Arzate Gomez, Kevin of Mexico;
  • Camacho Goicochea, Euclides of Mexico;
  • Duran Alvarez, David of Mexico;
  • Lopez Hernandez, Josue of Mexico;
  • Maldonado Bustos, Rodolfo of Mexico;
  • Ochoa Lagunes, Lucio of Mexico;
  • Ramirez Carrera, Josue of Mexico;
  • Tabares Martines, Uriel of Mexico.

 

https://ofac.treasury.gov/recent-actions/20240620 and

https://ofac.treasury.gov/recent-actions?page=0

 

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June 25, 2024: the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned  nearly 50 entities and individuals that constitute multiple branches of a sprawling “shadow banking” network used by Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) and Islamic Revolutionary Guard Corps (IRGC) to gain illicit access to the international financial system and process the equivalent of billions of dollars since 2020. MODAFL and the IRGC engage in several commercial revenue-generating activities, most notably the sale of Iranian oil and petrochemicals.

 

Networks of Iranian exchange houses and dozens of foreign cover companies under their control enable MODAFL and the IRGC to disguise the revenue they generate abroad that is then available to use for a range of MODAFL and IRGC activities, including the procurement and development of advanced weapons systems such as unmanned aerial vehicles. This revenue also supports the provision of weapons and funding to Iran’s regional proxy groups, including Yemen’s Houthis, who continue a campaign of reckless attacks on global shipping, as well as the transfer of UAVs to Russia for use in its war of aggression against Ukraine.

 

The following individuals have been added to OFAC’s SDN list:

 

  • Jalalian, Ramin of the United Arab Emirates;
  • Mir Mohammed Ali, Seyyed Reza of Iran;
  • Najibi, Seyyed Mohammad Mosanna’i of Turkey; and
  • Nourian, Siavash of Iran.

 

The full list of sanctioned entities can be found at the posting below

 

https://ofac.treasury.gov/recent-actions/20240625 and

https://home.treasury.gov/news/press-releases/jy2431

 

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June 26, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $538,000 settlement with Mondo TV, S.p.a. (“Mondo”).  Mondo, an Italy-based animation company, has agreed to settle its potential civil liability for 18 apparent violations of the North Korea Sanctions Regulations. Between May 2019 and November 2021, Mondo caused U.S. financial institutions to process approximately $537,939 in payments for animation work Mondo outsourced to a Government of North Korea-owned animation studio. This settlement amount reflects OFAC’s determination that Mondo’s conduct was non-egregious and not voluntarily disclosed.

 

https://ofac.treasury.gov/media/932986/download?inline and

https://ofac.treasury.gov/recent-actions/20240626

 

OFAC issued Russia-related General License 55B:

 

All transactions prohibited by the determination of November 21, 2022 made pursuant to section 1(a)(ii) of Executive Order 14071 (“Prohibitions on Certain Services as They Relate to the Maritime Transport of Crude Oil of Russian Federation Origin”) related to the maritime transport of crude oil originating from the Sakhalin-2 project (“Sakhalin-2 byproduct”) are authorized through 12:01 a.m. eastern daylight time, June 28, 2025, provided that the Sakhalin-2 byproduct is solely for importation into Japan.

 

This general license does not authorize any transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), including transactions involving any person blocked pursuant to the RuHSR, unless separately authorized.

 

Effective June 26, 2024, General License No. 55A, dated September 14, 2023, is replaced and superseded in its entirety by this General License No. 55B.

 

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JUNE 2024 EXPORT CONTROL REGULATIONS UPDATES Read More »

MAY 2024 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through May 31, 2024.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

 

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and

persons denied export privileges by the United States Government.

 

REGULATORY UPDATES

President

President Biden Continued The National Emergency with Respect to the Actions of the Government of Syria

 

May 8, 2024: On May 11, 2004, pursuant to his authority under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 (Public Law 108-175), the President issued Executive Order 13338, in which he declared a national emergency with respect to the actions of the Government of Syria.  The national emergency was modified in scope and relied upon for additional steps taken in Executive Order 13399 of April 25, 2006, Executive Order 13460 of February 13, 2008, Executive Order 13572 of April 29, 2011, Executive Order 13573 of May 18, 2011, Executive Order 13582 of August 17, 2011, Executive Order 13606 of April 22, 2012, and Executive Order 13608 of May 1, 2012.

 

The President took these actions to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the actions of the Government of Syria in supporting terrorism, maintaining its then-existing occupation of Lebanon, pursuing weapons of mass destruction and missile programs, and undermining United States and international efforts with respect to the stabilization and reconstruction of Iraq.

 

The regime’s brutality and repression of the Syrian people, who have called for freedom and a representative government, not only endangers the Syrian people themselves, but also generates instability throughout the region.  The Syrian regime’s actions and policies, including with respect to chemical weapons and supporting terrorist organizations, continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.  As a result, the national emergency declared in Executive Order 13338, which was expanded in scope in Executive Order 13572, and with respect to which additional steps were taken in Executive Order 13399, Executive Order 13460, Executive Order 13573, Executive Order 13582, Executive Order 13606, and Executive Order 13608, must continue in effect beyond May 11, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared with respect to the actions of the Government of Syria.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/page/2/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/08/notice-on-the-continuation-of-the-national-emergency-with-respect-to-the-actions-of-the-government-of-syria-4/

 

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President Biden Continued The National Emergency with Respect to Securing the Information and Communications Technology and Services Supply Chain

 

May 8, 2024: On May 15, 2019, by Executive Order 13873, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the unrestricted acquisition and use of certain information and communications technology and services transactions.

 

The unrestricted acquisition or use in the United States of information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries augments the ability of these foreign adversaries to create and exploit vulnerabilities in information and communications technology or services, with potentially catastrophic effects.  This threat continues to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.  For this reason, the national emergency declared on May 15, 2019, must continue in effect beyond May 15, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13873 with respect to securing the information and communications technology and services supply chain.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/page/2/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/08/notice-on-the-continuation-of-the-national-emergency-with-respect-to-securing-the-information-and-communications-technology-and-services-supply-chain-4/

 

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President Biden Continued The National Emergency with Respect to the Central African Republic

 

May 8, 2024: On May 12, 2014, by Executive Order 13667, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in and in relation to the Central African Republic, which has been marked by a breakdown of law and order; intersectarian tension; the pervasive, often forced recruitment and use of child soldiers; and widespread violence and atrocities, including those committed by Kremlin-linked and Yevgeniy Prigozhin-affiliated entities such as the Wagner Group, and which threatens the peace, security, or stability of the Central African Republic and neighboring states.

 

The situation in and in relation to the Central African Republic continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the national emergency declared in Executive Order 13667 on May 12, 2014, to deal with that threat must continue in effect beyond May 12, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared with respect to the Central African Republic.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/08/notice-on-the-continuation-of-the-national-emergency-with-respect-to-the-central-african-republic-4/

 

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President Biden Continued The National Emergency with Respect to Yemen

 

May 14, 2024: On May 16, 2012, by Executive Order 13611, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the actions and policies of certain members of the Government of Yemen and others that threatened Yemen’s peace, security, and stability.  These actions include obstructing the political process in Yemen and blocking the implementation of the agreement of November 23, 2011, between the Government of Yemen and those in opposition to it, which provides for a peaceful transition of power that meets the legitimate demands and aspirations of the Yemeni people.

 

The actions and policies of certain former members of the Government of Yemen and others in threatening Yemen’s peace, security, and stability continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the national emergency declared in Executive Order 13611 on May 16, 2012, to deal with that threat must continue in effect beyond May 16, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13611 with respect to Yemen.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/14/notice-on-the-continuation-of-the-national-emergency-with-respect-to-yemen-4/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/

 

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President Biden Continued The National Emergency with Respect to the Stabilization of Iraq

 

May 20, 2024: On May 22, 2003, by Executive Order 13303, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq.

 

The obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the national emergency declared in Executive Order 13303, as modified in scope and relied upon for additional steps taken in Executive Order 13290 of March 20, 2003, Executive Order 13315 of August 28, 2003, Executive Order 13350 of July 29, 2004, Executive Order 13364 of November 29, 2004, Executive Order 13438 of July 17, 2007, and Executive Order 13668 of May 27, 2014, must continue in effect beyond May 22, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency with respect to the stabilization of Iraq declared in Executive Order 13303.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/20/notice-on-the-continuation-of-the-national-emergency-with-respect-to-the-stabilization-of-iraq-4/

https://www.whitehouse.gov/briefing-room/presidential-actions/

 

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President Biden Notifies Congress on Intent to Designate Kenya as a Major Non-NATO Ally

 

May 22, 2024:  In accordance with section 517 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2321k), President Biden provided notice on intent to designate Kenya as a Major Non-NATO Ally.

 

President Biden made this designation in recognition of Kenya’s many years of contributions to the United States Africa Command area of responsibility and globally and in recognition of our own national interest in deepening bilateral defense and security cooperation with the Government of Kenya.  Kenya is one of the United States Government’s top counterterrorism and security partners in sub-Saharan Africa, and the designation will demonstrate that the United States sees African contributions to global peace and security as equivalent to those of our Major Non-NATO Allies in other regions.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/23/message-to-congress-on-intent-to-designate-kenya-as-a-major-non-nato-ally/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/page/2/

 

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Department of State, Directorate of Defense Trade Controls (DDTC)

 

International Traffic in Arms Regulations: Exemption for Defense Trade and Cooperation Among Australia, the United Kingdom, and the United States 

 

May 1, 2024: 89 Fed. Reg. 35028: The Department of State (the Department) proposes to amend the International Traffic in Arms Regulations (ITAR) to support the goals of the AUKUS partnership, the enhanced trilateral security partnership among Australia, the United Kingdom, and the United States. This exemption is designed to foster defense trade and cooperation between and among the United States and two of its closest allies. It is reflective of the nations’ collective commitment to implement shared security standards on protecting defense technology and sensitive military know-how. To achieve this, the Department proposes to amend the ITAR to include an exemption to the requirement to obtain a license or other approval from the Department’s Directorate of Defense Trade Controls (DDTC) prior to any export, reexport, retransfer, or temporary import of defense articles; the performance of defense services; or engagement in brokering activities between or among authorized users within Australia, the United Kingdom, and the United States. The Department also proposes to add a list of defense articles and defense services excluded from eligibility for transfer under the proposed new exemption; add to the scope of the exemption for intra-company, intra-organization, and intra-governmental transfers to allow for the transfer of classified defense articles to certain dual nationals who are authorized users or regular employees of an authorized user within the United Kingdom and Australia; and revise the section on expediting license review applications by referencing new processes for Australia, the United Kingdom, and Canada.

 

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events and

https://www.federalregister.gov/documents/2024/05/01/2024-08829/international-traffic-in-arms-regulations-exemption-for-defense-trade-and-cooperation-among

 

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30-Day Notice of Proposed Information Collection: Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party

 

May 13, 2024: 89 Fed. Reg. 41482: The Department of State has submitted the information collection described below to the Office of Management and Budget (OMB) for approval. In accordance with the Paperwork Reduction Act of 1995. DOS is requesting comments on this collection from all interested individuals and organizations. The purpose of this Notice is to allow 30 days for public comment.

 

The Directorate of Defense Trade Controls (DDTC), Bureau of Political-Military Affairs, U.S. Department of State, in accordance with the Arms Export Control Act (AECA) (22 U.S.C. 2751 et seq.) and the International Traffic in Arms Regulations (ITAR) (22 CFR parts 120-130), has the principal missions of taking final action on license applications and other requests for defense trade transactions via commercial channels, ensuring compliance with the statute and regulations, and collecting various types of reports. By statute, Executive Order, regulation, and delegation of authority, DDTC is charged with controlling the export and temporary import of defense articles, the provision of defense services, and the brokering thereof, which are covered by the U.S. Munitions List.

 

ITAR §§ 122.4 and 129.8 requires registrants to notify DDTC in the event of a change in registration information or if the registrant is a party to a merger, acquisition, or divestiture of an entity producing or marketing ITAR-controlled items. Based on certain conditions enunciated in the ITAR, respondents must notify DDTC of these changes at differing intervals—no less than 60 days prior to the event, if a foreign person is acquiring a registered entity, and/or within 5 days of its culmination. This information is necessary for DDTC to ensure registration records are accurate and to determine whether the transaction is in compliance with the regulations ( e.g., with respect to ITAR § 126.1); assess the steps that need to be taken with respect to existing authorizations ( e.g., transfers); and to evaluate the implications for US national security and foreign policy.

 

 

https://www.federalregister.gov/documents/2024/05/13/2024-10365/30-day-notice-of-proposed-information-collection-statement-of-material-change-merger-acquisition-or

 

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Department of Defense, Defense Security Cooperation Agency (DSCA)

 

DSCA Notifies Congress of Potential FMS Sale To Malaysia

 

May 6, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government Malaysia has requested to buy ten (10) AN/AAQ-33 Sniper Advanced Targeting Pods. Also included are technical data and publications; personnel training; software and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $80 million. The principal contractor will be Lockheed Martin Corporation, located in Orlando, FL, and The Boeing Company, located in St. Louis, MO. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/malaysia-sniper-advanced-targeting-pods

 

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DSCA Notifies Congress of Potential FMS Sale To the United Arab Emirates

 

May 7, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of the United Arab Emirates (UAE) has requested to buy up to one hundred forty-nine (149) WCU-33/B High-Speed Anti-Radiation Missile (HARM) Control Section Modification (HCSM) upgrade kits. Also included are high bandwidth HSCM telemetry kits loaned for integration support to be used in CONUS use only. This includes HARM Control Section containers; encryption devices; software and mission data support; test flight and live-fire range support; HARM support and test equipment; spare parts and repair and return support; publications and technical documentation; personnel training and training support; design and construction; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistical and program support. The estimated total cost is $144 million. The principal contractor will be RTX Corporation located in Tucson, AZ. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/united-arab-emirates-high-speed-anti-radiation-missile-harm-control

 

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DSCA Notifies Congress of Potential FMS Sale To Ukraine

 

May 10, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Ukraine has requested to buy three (3) High Mobility Artillery Rocket Systems (HIMARS). The estimated total cost is $30 million, which will be funded by the Government of Germany on behalf of Ukraine.

 

The Secretary of State has determined and provided detailed justification that an emergency exists that requires the immediate sale to the Government of Ukraine of the above defense articles and services in the national security interests of the United States, thereby waiving the congressional review requirements under Section 36(b) of the Arms Export Control Act, as amended. This will be a sale from U.S. Army inventory. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/ukraine-high-mobility-artillery-rocket-systems

 

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DSCA Notifies Congress of Potential FMS Sale To Romania

 

May 14, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Romania has requested to buy up to three hundred (300) AIM-9X Sidewinder Block II Tactical Missiles; forty (40) AIM-9X Sidewinder Block II Tactical Missile Guidance Units; forty (40) AIM-9X Sidewinder Block II Captive Air Training Missiles (CATM); and twenty (20) AIM-9X Sidewinder Block II CATM Guidance Units. Also included are missile containers; personnel training and training equipment; classified and unclassified publications and technical documents; warranties; U.S. Government engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total program cost is $340.8 million. The principal contractor will be RTX Corporation, located In tucson, AZ. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/romania-aim-9x-sidewinder-block-ii-missiles

 

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DSCA Notifies Congress of Potential FMS Sale To NATO

 

May 16, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The NATO Support and Procurement Agency (NSPA) has requested to buy radar equipment spares and additional items and services that will be added to a previously implemented case whose value was under the congressional notification threshold. The original Foreign Military Sales case, valued at $40.26 million, included Alliance Ground Surveillance (AGS) system equipment and support, including: AN/APG-68 radar processors; Global Hawk engine controllers; classified and unclassified spare components and parts; consumables and accessories; repair and return support; facilities support including storage; classified and unclassified publications and technical documentation; classified and unclassified software delivery and support; transportation support; U.S. Government and contractor engineering, technical, and logistics support services; studies and surveys; and other related elements of logistics and program support. This notification is for the combined non-MDE AGS system equipment and services, including: AN/APG-68 radar processors; Global Hawk engine controllers; communications equipment spares; classified and unclassified spare components and parts; consumables, accessories, and repair and return support; facilities support including storage; classified and unclassified publications and technical documentation; classified and unclassified software delivery and support; transportation support; U.S. Government and contractor engineering, technical, and logistics support services; studies and surveys; and other related elements of logistics and program support. The estimated total cost is $250.2 million. The principal contractor will be Northrop Grumman located in Mojave, CA. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/nato-support-and-procurement-agency-alliance-ground-surveillance

 

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DSCA Notifies Congress of Potential FMS Sale To Ukraine

 

May 16, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Ukraine has requested to buy equipment and services for sustainment support of U.S. Army supplied vehicles and weapon systems, utilizing Blanket Orders, Cooperative Logistics Supply Support Arrangement (CLSSA), and/or Simplified Non-Standard Acquisition Program (SNAP), as well as other related elements of logistics and program support. The estimated total cost is $100 million. The principal contractor(s) will be determined from approved vendors. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/ukraine-blanket-order-sustainment-us-army-supplied-systems

 

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DSCA Notifies Congress of Potential FMS Sale to Canada

 

May 21, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Canada has requested to buy an additional six hundred ninety (690) KMU-572 Joint Direct Attack Munition (JDAM) tail kits; seventy-five (75) KMU-556 JDAM tail kits; and twenty-five (25) KMU-557 JDAM tail kits that will be added to a previously implemented case whose value was under the congressional notification threshold. The original Foreign Military Sales (FMS) case, valued at $16.1 million ($11.8 million in MDE), included a total of two hundred ten (210) KMU-572 JDAM tail kits; fifty (50) KMU-556 JDAM tail kits; and twenty-five (25) KMU-557 JDAM tail kits. This notification is for a combined total of nine hundred (900) KMU-572 JDAM tail kits; one hundred twenty-five (125) KMU-556 JDAM tail kits; and fifty (50) KMU-557 JDAM tail kits. Also included are Laser Illuminated Target Detectors; FMU-139 fuzes; weapons support equipment; spare and repair parts, consumables and accessories, and repair and return support; publications and technical documentation; studies and surveys; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $96.4 million. The principal contractor will be Boeing Corporation, located in St. Louis, MO. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/canada-joint-direct-attack-munition-tail-kits

 

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DSCA Notifies Congress of Potential FMS Sale to Brazil

 

May 24, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Brazil has requested to buy twelve (12) UH-60M Black Hawk helicopters; thirty-four (34) T700-GE-701D engines (24 installed, 10 spares); twenty-eight (28) EAGLE-M Embedded Global Position Systems with Inertial Navigation (EGI) or functional equivalent (24 installed, 4 spares); and twenty-four (24) AN/ARC-231A radio systems. The following non-MDE is also included: AN/PYQ-10 Simple Key Loader (SKL), KIV-77 Common Identification Friend or Foe (IFF) crypto appliques, APX-123A Identification Friend or Foe (IFF) transponders; AN/ARC-231 radio systems; ARC-201D Single Channel Ground and Airborne Radio System (SINCGARS) or functional equivalents; ARC-220 high frequency airborne communication systems or functional equivalents with KY-100M; VRC-100 advanced high frequency ground/vehicular communications systems; ARN-147 navigation receivers; ARN-149 low frequency automatic direction finders; ARN-153 advanced digital Tactical Airborne Navigation (TACAN) receiver-transmitters; APN-209 radar altimeter systems; AN/ARC-210 Gen 6 very high frequency/frequency modulation radios; AN/AVR-2B(V) laser warning systems (provisions only); Airspace Concept Evaluation System (ACES); M-134D-H minigun, mount, power supply, and ammunition handling systems gun and mount accessories package; contractor-provided gun and mount accessories, including spare parts, in support of the M-134D-H minigun systems; Aviation Mission Planning System (AMPS); Aviation Ground Support Equipment (AGSE); HGU-56/P Rotary Wing Helmets (RWH); Advanced Sight Display Computers (ASDC); Common Display Interface Units (CDIU); Wide Color Day Display Module (WCDDM); Wide Color Night Display Module (WCNDM); ADS-B Out ability; Integrated Area Navigation (I-RNAV); RDR-7000 weather radar systems; external rescue hoists; Traffic Collision Avoidance Systems (TCAS); Fast Rope Insertion Extraction System (FRIES); EBC-406HM Emergency Locator Transmitters (ELT); Aircrew Combat Equipment (ACE); Internal Auxiliary Fuel Tank System (IAFTS); technical assistance and logistics support services; publications; and other related elements of logistics and program support. The estimated total cost is up to $950 million. The principal contractor will be Lockheed Martin, Sikorsky, located in Stratford, CT. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/brazil-uh-60m-black-hawk-helicopters-0

 

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DSCA Notifies Congress of Potential FMS Sale to Austria

 

May 29, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Austria has requested to buy twelve (12) UH-60M Black Hawk helicopters with twenty-six (26) T700-GE-701D engines; fifteen (15) AN/AAR-57 Counter Missile Warning Systems (CMWS); and thirty (30) H-764U Embedded Global Positioning Systems with Inertial Navigation (EGI) with country-unique selective availability anti-spoofing modules (or Future M-Code replacement). The following non-MDE is also included: APR-39C(V)1/4 radar warning receivers; AVR-2B laser detecting sets; AN/ARN-147(V) very high frequency omni-directional range instrument landing system receiver radio; AN/ARN-149(V) low frequency automatic direction finder (ADF) radio receiver; AN/ARN-153 Tactical Air Navigation System (TACAN) receiver transmitter; AN/APN-209 radar altimeter radios; EBC-406HM emergency locator transmitter (ELT); Improved Heads Up Display (IHUD); signal data converters for IHUD; color weather radars; MX-10D electro optical and infrared with laser designator; Engine Inlet Barrier Filters (EIBF); Ballistic Armor Protection Systems (BAPS); Internal Auxiliary Fuel Tank Systems (IAFTS); Fast Rope Insertion Extraction System (FRIES); External Rescue Hoist (ERH); rescue hoist equipment sets; dual patient litter system (DPLS) sets; Martin Baker palletized crew chief and gunner seats with crashworthy floor structural modifications; External Stores Support System (ESSS); instrument panel; cockpit multi-function display (MFD); degraded visual environment (DVE) system; Traffic Alert Collision Avoidance System (TCAS II); cargo hook scale; sling load observation capability; Direction Finder DF-935; environmental control system; snow skis provisions; Bambi bucket provisions; Helicopter Terrain Awareness System (HTAWS); CONRAD troop radio capability; TETRA BOS radio capability; very important person kit; 28 volts of direct current 10 ampere utility power socket (cabin); Universal Serial Bus (USB) charging outlet; Crashworthy Extended Range Fuel Systems (CEFS) tanks; Black Hawk Aircrew Trainer (BAT); training devices; helmets; transportation; organizational equipment; spare and repair parts; support equipment; tools and test equipment; technical data and publications; personnel training and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics support. The estimated cost is $1.05 billion. The principal contractors will be Lockheed Martin, Sikorsky, located in Stratford, CT. There are no known offset agreements in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/austria-uh-60m-blackhawk-helicopters

 

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DSCA Notifies Congress of Potential FMS Sale to Sweden

 

May 29, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that the Government of Sweden has requested to buy twelve (12) UH-60M Black Hawk helicopters; thirty (30) T700-GE-701D engines (24 installed, 6 spares); and seventeen (17) AN/AAR-57 common missile warning systems (CMWS). The following is also included: AN/APR-39C(V)1/4 radar warning receivers; AN/AVR-2B laser detecting sets; AN/ARN-149(V) low frequency automatic direction finder radio receivers; AN/ARN-153 tactical air navigation systems (TACAN) receiver transmitters; AN/APN-209 radar altimeters; EBC-406HM emergency locator transmitters (ELT); Enhanced Ballistic Armor Protection Systems (EBAPS); Internal Auxiliary Fuel Tank Systems (IAFTS); Fast Rope Insertion Extraction Systems (FRIES); external rescue hoists (ERH); rescue hoist equipment sets; Martin Baker palletized crew chief and gunner seats with crashworthy floor structural modifications; aircraft fire extinguisher cartridge; impulse cartridge; thruster TCU-3/A; helmets; transportation; organizational equipment; spare and repair parts; support equipment; tools and test equipment; technical data and publications; personnel training and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $900 million. The principal contractor will be Lockheed Martin, Sikorsky, located in Stratford, CT. There are no known offset agreements in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/sweden-uh-60m-black-hawk-helicopters

 

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Department of Commerce – Bureau of Industry and Security (BIS)

 

Export Control Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced Trilateral Security Partnership; Correction

 

May 8, 2024: 89 Fed. Reg. 38837: On April 19, 2024, BIS published in the Federal Register an interim final rule (IFR), “Export Control Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced Trilateral Security Partnership.” The April 19 IFR removed license requirements, expanded the availability of license exceptions, and reduced the scope of end-use and end-user-based license requirements for exports, reexports, and transfers (in-country) to or within Australia and the United Kingdom (UK) to enhance technological innovation among the three countries and support the goals of the AUKUS Trilateral Security Partnership. This correction revises a footnote included in the April 19 IFR to add greater specificity for the Export Control Classification Numbers (ECCN) referenced, so only portions of those 0x5zz ECCNs in the footnote that were previously controlled for national security column 1 (NS1) or regional stability column 1 (RS1) reasons for control for the destinations of Australia and the United Kingdom will continue to require a license to Australia and the United Kingdom based on the license requirements specified in this footnote.

 

https://www.federalregister.gov/documents/2024/05/08/2024-10079/export-control-revisions-for-australia-united-kingdom-united-states-aukus-enhanced-trilateral

 

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Conforming and Clarifying Changes to the Export Administration Regulations (EAR)

 

May 10, 2024: 89 Fed. Reg. 40369: This final rule makes conforming and clarifying changes to the Export Administration Regulations (EAR). These changes include making conforming changes to the EAR to ensure that destination names reflect the current destination names that are recognized by the United States Government, clarifying the removal of certain license requirements for exports, reexports, and transfers (in-country) to and within Australia and the United Kingdom, making a conforming change to reflect that Cyprus is no longer a Country Group D:5 country, and clarifying how Russia and the Russian Federation are referenced for consistency with the designation of Russia as a U.S. Arms Embargoed country.

 

https://www.federalregister.gov/documents/2024/05/10/2024-10280/conforming-and-clarifying-changes-to-the-export-administration-regulations-ear and

https://www.federalregister.gov/documents/search?conditions%5Bpublication_date%5D%5Bgte%5D=05%2F01%2F2024&conditions%5Bpublication_date%5D%5Blte%5D=05%2F31%2F2024&conditions%5Bterm%5D=EAR

 

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Antiboycott Advisory on Turkey

 

May 14, 2024: The Turkish government has recently announced that it will suspend all exports and imports to and from Israel until the Israeli government allows an uninterrupted and sufficient flow of humanitarian aid into Gaza.

 

All United States persons, wherever located, are reminded that, with respect to their activities in United States commerce, the Export Administration Regulations prohibit taking certain actions in furtherance or support of an unsanctioned foreign boycott maintained by a country against a country friendly to the United States and require reporting of receipt of a boycott-related request to BIS.  U.S. companies operating in Turkey, in particular, are cautioned to be alert to their receipt of any requests to refrain from importing or exporting goods to or from Israel or to provide certification that the goods are not of Israeli origin or do not contain Israeli-origin components or materials.

 

https://www.bis.gov/press-release/antiboycott-advisory-turkiye and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

 

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Department of Commerce Announces Revisions to Section 232 Steel and Aluminum Tariff Exclusions Process

 

May 17, 2024: The U.S. Commerce Department’s Bureau of Industry and Security (BIS) published a final rule revising the Section 232 exclusions process for steel and aluminum imports. These changes, effective July 1, 2024, aim to refine the framework under which exclusions from the tariffs on steel and aluminum can be requested, ensuring a fairer and more transparent process.

 

The revisions remove twelve General Approved Exclusions (GAEs), six for steel and six for aluminum. The GAEs were originally established to streamline the exclusions process for products consistently found not to be produced in sufficient quantity or quality in the United States. Reversing previous exemptions that facilitated imports of these metals aims to strengthen our U.S. industrial base and our national security by reducing reliance on foreign manufacturing and enhancing domestic production of steel and aluminum.

https://www.bis.gov/press-release/department-commerce-announces-revisions-section-232-steel-and-aluminum-tariff and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

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U.S. Census Bureau

May 21, 2024: Tips on How to Resolve AES Response Messages

When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  Though the shipment is accepted, the filer may still receive a Verify Message, Compliance Alert, Informational Message or Warning Message along with their ITN.  However, if the shipment is rejected, a Fatal Error notification is received and must be corrected to receive a valid ITN.

To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

Response Code:  622

Narrative: Schedule B/HTS Number Missing

Severity:  Fatal

Reason:    The Export Information Code is not ‘HH’ for household goods and the Schedule B/HTS Number is missing.

Resolution:  A Schedule B/HTS Number must be declared on an EEI with the exception of household goods reported with Export Information Code ‘HH’.

Verify the Schedule B/HTS Number, correct the shipment and resubmit.

Response Code:  627

Narrative:     1st Unit of Measure Code Unknown

Severity:       Fatal

Reason:  The Schedule B/HTS Number reported requires a 1st Unit of Measure Code to be reported and the 1st Unit of Measure Code is not valid in the AES.

Resolution:  The 1st Unit of Measure Code, based on the Schedule B/HTS reported, must be a valid code contained in Appendix K, Unit of Measure Codes.

Verify the 1st Unit of Measure Code required for the Schedule B/HTS Number reported, correct the shipment and resubmit.

For a complete list of AES Response Codes, their reasons, and resolutions, see Appendix A – Commodity Filing Response Messages.

It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations.  These errors must be corrected prior to export for shipments filed predeparture and as soon as possible for shipments filed postdeparture but not later than five calendar days after departure.

https://www.cbp.gov/document/guidance/ace-appendix-k-unit-measure-codes?utm_campaign=&utm_content=&utm_medium=email&utm_source=govdelivery and

https://www.cbp.gov/document/guidance/aestir-appendix-commodity-filing-response-messages?utm_campaign=&utm_content=&utm_medium=email&utm_source=govdelivery

 

LATEST SANCTIONS FINES & PENALTIES

 

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

 

Fines and Penalties

 

May 8, 2024: Yuksel Senbol, 36, of Orlando, pleaded guilty to 25 felony counts in Florida federal court, including conspiracy to defraud the United States, conspiracy to commit wire fraud, eight counts of wire fraud, conspiracy to commit money laundering, seven counts of money laundering, conspiracy to violate the Export Control Reform Act (ECRA), four counts of violating the ECRA, and one count of violating the Arms Export Control Act.

 

According to court documents, beginning in approximately April 2019, Senbol operated a front company in the Middle District of Florida called Mason Engineering Parts LLC. She used this front company to assist her co-conspirators, Mehmet Ozcan and Onur Simsek, to fraudulently procure contracts to supply critical military components to the Department of Defense. These components were intended for use in the U.S. Navy Nimitz and Ford Class Aircraft Carriers, U.S. Navy Submarines, U.S. Marine Corps Armored Vehicles, and U.S. Army M-60 Series Tank and Abrahams Battle Tanks, among other weapons systems.

 

Senbol faces up to 10 years in prison for the conspiracy to defraud the United States offense and for each count of money laundering. She faces up to 20 years in prison for each count of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to violate the ECRA, violating the ECRA and violating the Arms Export Control Act. Sentencing is scheduled for Aug. 6. Alleged co-conspirators Mehmet Ozcan and Onur Simsek are fugitives.

 

https://www.justice.gov/opa/pr/defense-contractor-pleads-guilty-fraud-money-laundering-and-unlawful-export-military-data and

https://www.justice.gov/news?search_api_fulltext=+export&start_date=05%2F01%2F2024&end_date=05%2F31%2F2024&sort_by=field_date

 

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May 22, 2024: The Justice Department announced that Pen Yu, also known as Ben Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have each pleaded guilty to one count of wire fraud conspiracy for their roles in a scheme to fraudulently procure deeply discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., doing business as MilliporeSigma, and export them to China using falsified export documents.

 

In addition, the Justice Department announced that it has declined the prosecution of MilliporeSigma after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The NSD Enforcement Policy creates a presumption that companies that (1) voluntarily self-disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws, (2) fully cooperate, and (3) timely and appropriately remediate will generally receive a non-prosecution agreement, unless aggravating factors are present. This is the first time that NSD has declined the prosecution of a company under the NSD Enforcement Policy.

 

https://www.justice.gov/opa/pr/ringleader-and-company-insider-plead-guilty-defrauding-biochemical-company-and-diverting

 

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Sanctions

 

Department of Commerce, Bureau of Industry and Security (BIS)

 

May 9, 2024: 89 Fed. Reg. 41886: The U.S. Commerce Department’s Bureau of Industry and Security (BIS) added 37 entities to the Entity List under the Export Administration Regulations (EAR). This action reflects BIS ‘s commitment to safeguarding U.S. national security and foreign policy interests. Also, the Commerce Department has added 355 PRC entries to the Entity List – more than any prior Administration.

Among the new entities added to the Entity List, 22 institutes and firms were added for their participation in the People’s Republic of China’s (PRC) quantum technology advancements and for acquiring or attempting to acquire U.S.-origin items to enhance the PRC’s quantum capabilities. These activities have substantial military applications and pose a significant threat to U.S. national security. Additionally, some of these entities are linked to advancements in the PRC’s nuclear programs or have been involved in the shipment of controlled items to Russia following its invasion of Ukraine in February 2022.

Four entities were added for acquiring or attempting to acquire U.S.-origin items to be used by the PRC’s military for its unmanned aerial systems (UAS).

Eleven entities were added under the destination of PRC for their involvement in China’s High Altitude Balloon program, which poses significant national security concerns. This builds on previous actions the Commerce Department took in February 2023 to target PRC aerospace programs, including airships, balloons and related materials.

The list of sanctioned entities can be found below:

  • AEE Shenzhen Yidian Aviation Technology Co., Ltd.;
  • Beijing Academy of Quantum Information Sciences;
  • Beijing BDStar Navigation Co., Ltd;
  • Beijing Leike Defense Technology Co., Ltd.;
  • Beijing Ruidakang Technology Co., Ltd.;
  • Beijing Tianhaida Technology Co., Ltd.;
  • Beijing Zhongshang Dingsheng Mechanical and Electrical Equipment Co., Ltd.;
  • CETC Chip Technology Co., Ltd.;
  • Ceyear Technologies Co., Ltd.;
  • Chengdu Day Communication Technology Co., Ltd.;
  • Chengdu Zongheng Automation Technology Co., Ltd.;
  • China Electronics Technology Group Corporation 16th Research Institute;
  • China Electronics Technology Group Corporation 32nd Research Institute;
  • China Electronics Technology Group Corporation 36th Research Institute;
  • China Electronics Technology Group Corporation 41st Research Institute;
  • China Electronics Technology Group Corporation 45th Research Institute;
  • China Electronics Technology Group Corporation Electronic Equipment Group Co., Ltd.;
  • Chinese Academy of Science, Center for Excellence in Quantum Information and Quantum Physics;
  • Chinese Academy of Sciences, Institute of Physics;
  • Chinese Academy of Sciences, Key Laboratory for Quantum Information;
  • Chinese Academy of Sciences’ Shanghai Institute of Microsystem and Information Technology;
  • CSIC Pride (Nanjing) Cryogenic Technology Co., Ltd.;
  • GEOVIS Technology Co., Ltd.;
  • Hefei National Laboratory for Quantum Information Science;
  • Hexin Xingtong Technology (Beijing) Co., Ltd.,
  • Jinan Institute of Quantum Technology;
  • Origin Quantum Computing Technology (Hefei) Co., Ltd.;
  • Quantum Science and Technology Yangtze River Delta Industrial Innovation Center;
  • Shanghai Center for Quantum Science Research;
  • Shenzhen Institute of Quantum Science and Engineering;
  • Shenzhen Yidian Technology Co., Ltd.;
  • Suzhou Telecom Electric Plant Co., Ltd.;
  • TaiYuan EFT Equipment Manufacturing Co., Ltd;
  • United Microelectronics Center Co., Ltd.;
  • University of Science and Technology of China;
  • Xi’an Hengda Microwave Technology Development Co., Ltd.; and
  • Zhongke Xingtu Space Technology Co., Ltd.

https://www.bis.gov/press-release/commerce-adds-37-prc-entities-entity-list-enabling-prc-quantum-and-aerospace-programs and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

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Department of the Treasury, Office of Foreign Assets Control (OFAC)

 

May 1, 2024: The Department of the Treasury acted to further degrade Russia’s ability to sustain its war machine, continuing a multilateral campaign to limit the Kremlin’s revenue and access to the materiel it needs to prosecute its illegal war against Ukraine. The actions target Russia’s military-industrial base and chemical and biological weapons programs as well as companies and individuals in third countries that help Russia acquire key inputs for weapons or defense-related production.

The United States, along with many international partners, is particularly concerned about entities based in the People’s Republic of China (PRC) and other third countries that provide critical inputs to Russia’s military-industrial base. This support enables Russia to continue its war against Ukraine and poses a significant threat to international security. The almost 300 targets being sanctioned by both Treasury and the Department of State include sanctions on dozens of actors that have enabled Russia to acquire desperately needed technology and equipment from abroad.

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Russia-related General License 95, “Authorizing Civil Aviation Safety and Wind Down Transactions Involving Limited Liability Company Aviakompaniya Pobeda,” Russia-related General License 96, “Authorizing Limited Safety and Environmental Transactions Involving Certain Blocked Persons or Vessels,” and Russia-related General License 97, “Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on May 1, 2024.”

Russia-related General License 95: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the provision, exportation, or reexportation of goods, technology, or services to ensure the safety of civil aviation involving Limited Liability Company Aviakompaniya Pobeda are authorized through 12:01 a.m. eastern daylight time, July 30, 2024, provided that the goods, technology, or services that are provided, exported, or reexported are for use on aircraft operated solely for civil aviation purposes.

Russia-related General License 96: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving blocked persons are authorized through 12:01 a.m. eastern daylight time, July 30, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations.

Russia-related General License 97: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, June 17, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations.

Please see the full list of sanctioned individuals, entities, and vessels at the links below.

https://ofac.treasury.gov/recent-actions/20240501 and https://home.treasury.gov/news/press-releases/jy2318

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May 2, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated five individuals for helping U.S.-designated Hizballah money exchanger Hassan Moukalled (Moukalled) and his company, CTEX Exchange, evade sanctions and facilitate illicit activities in support of Hizballah. These individuals, including two co-founders of CTEX Exchange and two of Moukalled’s sons, operate two companies in Lebanon and the United Arab Emirates (UAE) that were concurrently designated. Individuals and entities targeted are designated pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorist groups, their supporters, and those who aid acts of terrorism.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Al-Zein, Mazen Hassan of Lebanon;
  • Mansur, Firas Hasan of Lebanon;
  • Moukalled, Firas Hasan of Lebanon;
  • Mushantaf, Andriyah Samir of Lebanon; and
  • Youssef, Adnan Mahmoud of Lebanon.

 

The following entities have been added to OFAC’s SDN List:

 

  • Teleport Company Sal of Lebanon; and
  • The Crystal Group of the United Arab Emirates.

 

https://home.treasury.gov/news/press-releases/jy2319 and https://ofac.treasury.gov/recent-actions/20240502

 

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May 6, 2024: OFAC has deployed its new Sanctions List Service (SLS).  SLS is now the primary application OFAC will use to deliver sanctions list files and data to the public.

SLS includes support for all OFAC legacy and modern sanctions list data files.

While certain sanctions list data are now hosted within the SLS cloud, existing links to OFAC list files remain functional through URL redirects.

 

https://ofac.treasury.gov/recent-actions/20240506_33 and

https://ofac.treasury.gov/sanctions-list-service

 

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May 7, 2024:  The United States designated Dmitry Yuryevich Khoroshev, a Russian national and a leader of the Russia-based LockBit group, for his role in developing and distributing LockBit ransomware. This designation is the result of a collaborative effort with the U.S. Department of Justice, Federal Bureau of Investigation, the United Kingdom’s National Crime Agency, the Australian Federal Police, and other international partners. Concurrently, the Department of Justice unsealed an indictment and the Department of State announced a reward offer for information leading to the arrest and/or conviction of Khoroshev. The United Kingdom and Australia also announced the designation of Khoroshev.

 

The following individual has been added to OFAC’s SDN List:

 

  • Khoroshev, Dmitry Yuryevich of Russia.

 

https://home.treasury.gov/news/press-releases/jy2326 and

https://ofac.treasury.gov/recent-actions/20240507

 

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May 8, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC)  amended the Reporting, Procedures and Penalties Regulations (RPPR).  The RPPR sets forth standard reporting and recordkeeping requirements and license application and other procedures relevant to the economic sanctions programs administered by OFAC.

 

https://ofac.treasury.gov/recent-actions/20240508 and

https://ofac.treasury.gov/media/932891/download?inline

 

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May 10, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Venezuela General License 8N, “Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities.”

 

Venezuela General License 8N:  All transactions and activities prohibited by Executive Order (E.O.) 13850 of November 1, 2018, as amended by E.O. 13857 of January 25, 2019, or E.O. 13884 of August 5, 2019, each as incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), that are ordinarily incident and necessary to the limited maintenance of essential operations, contracts, or other agreements, that: (i) are for safety or the preservation of assets in Venezuela; (ii) involve PdVSA or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest; and (iii) were in effect prior to July 26, 2019, are authorized through 12:01 a.m. eastern standard time, November 15, 2024, for the following entities and their subsidiaries (collectively, the “Covered Entities”):

 

  • Halliburton
  • Schlumberger Limited
  • Baker Hughes Holdings LLC
  • Weatherford International, Public Limited Company

 

https://ofac.treasury.gov/recent-actions/20240510 and

https://ofac.treasury.gov/media/932871/download?inline

 

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May 14, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated one Russian individual and three Russia-based companies involved in an attempted sanctions evasion scheme in which an opaque and complex supposed divestment could have unfrozen more than $1.5 billion worth of shares belonging to U.S.-designated Russian oligarch Oleg Vladimirovich Deripaska (Deripaska).

 

OFAC designated Deripaska on April 6, 2018 pursuant to Executive Order (E.O.) 13661 for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation as well as pursuant to E.O. 13662 for operating in the energy sector of the Russian Federation economy. Deripaska is also sanctioned by Australia, Canada, the European Union, New Zealand, and the United Kingdom. On September 29, 2022, the U.S. Department of Justice charged Deripaska with conspiring to violate and evade U.S. sanctions in violation of the International Emergency Economic Powers Act.

 

The following individual has been added to OFAC’s SDN List:

 

  • Beloglazov, Dimitrii Aleksandrovich of Russia.

 

The following entities have been added to OFAC’s SDN List:

 

  • Aktsionerno Obshcestvo Iliadis of Russia;
  • International Company Joint Stock Company Raperia Trading Limited of Russia; and
  • Obschestvo Organichennoi Otvetstvennostiu Titlu of Russia.

 

https://ofac.treasury.gov/recent-actions/20240514 and

https://home.treasury.gov/news/press-releases/jy2337 and

https://home.treasury.gov/news/press-releases/sm0338 and

https://www.justice.gov/opa/pr/russian-oligarch-oleg-vladimirovich-deripaska-and-associates-indicted-sanctions-evasion-and

 

*******

May 15, 2024: the Department of the Treasury’s Office of Foreign Assets Control (OFAC) targeted the Ortega-Murillo regime’s repression of the Nicaraguan people and its ability to manipulate the gold sector and profit from corrupt operations. Treasury imposed sanctions on three Nicaragua-based entities, the Training Center of the Russian Ministry of Internal Affairs in Managua (RTC); Compania Minera Internacional, Sociedad Anónima (COMINTSA); and Capital Mining Investment Nicaragua, Sociedad Anónima (Capital Mining), pursuant to Executive Order (E.O.) 13851, as amended.

The RTC is a Nicaragua-based subdivision of the Government of the Russian Federation’s (GOR) Ministry of Internal Affairs, which trains those under the Ortega-Murillo regime’s command under the Russian authoritarian government’s playbook of oppression. It is a key actor in the Nicaraguan regime’s repression of civil society and unjust detention and imprisonment of individuals for expressing dissent, or otherwise peacefully exercising their human rights and fundamental freedoms.

 

The following entities have been added to OFAC’s SDN List:

 

  • Capital Mining Investment Nicaragua, Sociedad Anonima of Nicaragua;
  • Compania Minera Internacional, Sociedad Anonima of Nicaragua; and
  • Training Center of The Russian Ministry of Internal Affairs in Managua of Nicaragua.

 

https://ofac.treasury.gov/recent-actions/20240515 and

https://home.treasury.gov/news/press-releases/jy2339

 

*******

May 15, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Ali Yagoub Gibril and Osman Mohamed Hamid Mohamed, pursuant to Executive Order (E.O.) 14098, for leading the Rapid Support Forces’ (RSF) war campaign. The RSF’s attacks in North Darfur, which started last month, have caused dozens of civilian casualties, including children. The RSF encirclement of North Darfur’s capital of El Fasher and recent fighting between the RSF and the Sudanese Armed Forces have endangered nearly one million Sudanese civilians in the last major safe haven in Darfur, impeded humanitarian access, increased the risk of mass atrocities, and could undermine vital peace efforts.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Gibril, Ali Yagoub of Sudan; and
  • Mohamed, Osman Mohamed Hamid of Sudan.

 

https://ofac.treasury.gov/recent-actions/20240515 and

https://home.treasury.gov/news/press-releases/jy2340

 

*******

 

 

 

 

May 16, 2024:  The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on two Russian individuals and three Russia-based entities for facilitating weapons transfers between Russia and the Democratic People’s Republic of Korea (DPRK). This action promotes U.S. government objectives to disrupt and expose arms transfers between the DPRK and Russia and builds upon sanctions imposed by the Department of the Treasury and the Department of State related to DPRK-Russia arms transfers, including the transfer and testing of DPRK-origin ballistic missiles for Russia’s use against Ukraine. This action demonstrates our resolve to impose costs on and hold the DPRK and Russia to account for their unlawful activities.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Budnev, Aleksey of Russia; and
  • Gazaryan, Rafael Anatolyevich of Russia.

 

The following entities have been added to OFAC’s SDN List:

 

  • Rafort Limited Liability Company of Russia;
  • Tekhnologiya, OOO of Russia; and
  • Trans Kapital Limited Liability Company of Russia.

 

https://ofac.treasury.gov/recent-actions/20240516 and

https://home.treasury.gov/news/press-releases/jy2345

 

*******

 

May 16, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) amended the Iranian Transactions and Sanctions Regulations (ITSR) to incorporate Iran-related General License D-2 and publishing an associated List of Services, Software, and Hardware Incident to Communications, which can be found under the General Licenses and Federal Register Notices sections of the Iran Sanctions page.

 

In addition, OFAC published a new Frequently Asked Question (FAQ) 1173 and amended 26 ITSR-related FAQs.

 

Frequently Asked Question 1173:

 

Q: What are “user authentication services” for purposes of the general license in 31 CFR § 560.540 of the Iranian Transactions and Sanctions Regulations (ITSR)?

 

A: User authentication services are services used to login or verify the identity of a user to a particular software or service, such as a user identification account often used to login to email, mobile app stores, or other activities authorized by 31 CFR § 560.540.

 

*******

 

 

 

 

 

May 17, 2024: 89 Fed. Reg. 43311: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) adopted a final rule amending the Iranian Transactions and Sanctions Regulations (ITSR) to incorporate a general license that was previously published on OFAC’s website. In particular, the rule incorporates, with amendments, a general license relating to the export, reexport, and provision of certain services, software, and hardware incident to communications over the internet. This amendment also makes additional conforming changes.

 

https://www.federalregister.gov/documents/2024/05/17/2024-10721/iranian-transactions-and-sanctions-regulations

 

*******

 

May 28, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated three individuals, Yunhe Wang, Jingping Liu, and Yanni Zheng, for their activities associated with the malicious botnet tied to the residential proxy service known as 911 S5. OFAC also sanctioned three entities—Spicy Code Company Limited, Tulip Biz Pattaya Group Company Limited, and Lily Suites Company Limited—for being owned or controlled by Yunhe Wang.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Liu, Jingping of China;
  • Wang, Yunhe of China; and
  • Zheng, Yanni of China.

 

The following entities have been added to OFAC’s SDN List:

 

  • Lily Suites Company Limited of Thailand;
  • Spicy Code Company Limited of Thailand; and
  • Tulip Biz Pattaya Group Company Limited of Thailand.

 

https://ofac.treasury.gov/recent-actions/20240528_33 and

https://ofac.treasury.gov/recent-actions

 

*******

 

May 28, 2024:89 Fed. Reg. 46323: The Department of the Treasury’s (Treasury) Office of Foreign Assets Control (OFAC) amended the Cuban Assets Control Regulations, 31 CFR part 515, (CACR) to further implement the policy announced by the Biden-Harris Administration on May 16, 2022 to increase support for the Cuban people.  These regulatory amendments update and clarify authorizations in support of internet-based services to promote internet freedom in Cuba, support independent Cuban private sector entrepreneurs, and expand access to certain financial services for the Cuban people.

 

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) amended the Cuban Assets Control Regulations, 31 C.F.R. 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 authorizations for internet-based services and a range of financial transactions.

 

OFAC is also issuing six new, Cuba-related Frequently Asked Questions (FAQs 1174-1179)

 

FAQ 1174:

 

Q: What level of due diligence are web hosting providers expected to conduct to ensure that a hosted website is not “for the promotion of tourism” pursuant to 31 CFR § 515.578?

 

A: Persons providing web hosting services authorized pursuant to 31 CFR § 515.578 may reasonably rely on information provided to them by their customers in the ordinary course of business, unless they know or have reason to know their provision of web hosting services is for the promotion of tourism.

 

FAQ 1175:

 

Q: Are services related to application programming interfaces (APIs) that are incident to the exchange of communications over the internet authorized for exportation or reexportation to Cuba pursuant to OFAC regulations?

 

A: Yes.  Section 515.578(a)(1)(i) of the CACR authorizes the direct or indirect exportation or reexportation to Cuba, from the United States or by a person subject to U.S. jurisdiction, of certain services. Among these are API-related services incident to the exchange of communications over the internet.  This authorization may include, for example, API services incident to, among other services described in 31 CFR § 515.578(a)(1)(i), web maps, social media platforms, collaboration platforms, video conferencing, and e-gaming and e-learning platforms.  Section 515.578(a)(ii) of the CACR authorizes the direct or indirect exportation or reexportation to Cuba, from the United States or by a person subject to U.S. jurisdiction, of services to support the exchange of communications over the internet, such as software design, business consulting, information technology management services, and cloud-based services (including remote data storage, data transport service, content distribution networks, virtual machines, software-as-a-service, and infrastructure-as-a-service).

With respect to the exportation or reexportation of API software to Cuba, including the download of such software, 31 CFR § 515.533(a) authorizes all transactions ordinarily incident to the export to Cuba of items from the United States, or reexport to Cuba of items from a third country, if the export or reexport is licensed or otherwise authorized by the Department of Commerce pursuant to the Export Administration Regulations (EAR) (15 CFR parts 730 through 774).  For example, the export and reexport to Cuba of certain software is authorized under License Exception Consumer Communications Devices (CCD), 15 CFR § 740.19, and License Exception Support for the Cuban People (SCP), 15 CFR § 740.21.

 

FAQ 1176:

 

Q: What level of due diligence are internet-based service providers expected to conduct to determine whether the intended recipients of an export or reexport are prohibited officials of the Government of Cuba, prohibited members of the Cuban Communist Party, or organizations administered or controlled by the Government of Cuba or the Cuban Communist Party pursuant to 31 CFR § 515.578(b)(1)?

 

A: Section 515.578(b)(1) of the CACR excludes from authorization under 31 CFR 515.578(a)(1)-(3) the direct or indirect exportation or reexportation of services with knowledge or reason to know that such services are intended for a prohibited official of the Government of Cuba, as defined in 31 CFR § 515.337, a prohibited member of the Cuban Communist Party, as defined in 31 CFR § 515.338, or to organizations administered or controlled by the Government of Cuba or the Cuban Communist Party, except as specified in 31 CFR § 515.578(a)(4).

 

For purposes of assessing whether exports or reexports are excluded from 31 CFR § 515.578 pursuant to 31 CFR § 515.578(b)(1), internet-based service providers subject to U.S. jurisdiction may reasonably rely on information provided to them by their customers in the ordinary course of business, unless they know or have reason to know a transaction is not authorized.

 

FAQ 1177:Top of Form

 

Q: What internet-based services can be exported or reexported from the United States or by persons subject to U.S. jurisdiction to prohibited officials of the Government of Cuba, prohibited members of the Cuban Communist Party, or organizations administered or controlled by the Government of Cuba or the Cuban Communist Party?

 

A: Section 515.578(a)(4)(i) of the CACR authorizes the exportation or reexportation, directly or indirectly, from the United States or by a person subject to U.S. jurisdiction, to a prohibited official of the Government of Cuba, as defined in 31 CFR § 515.337, a prohibited member of the Cuban Communist Party, as defined in 31 CFR § 515.338, of certain internet-based services and services related to certain exportations and reexportations, as described in 31 CFR § 515.578(a)(1) or 31 CFR § 515.578(a)(2), respectively, provided that such services are widely available to the public at no cost to the user.  Examples of authorized services include:

  • Social media platforms;
  • Collaboration platforms;
  • Video conferencing;
  • E-gaming and e-learning platforms;
  • Automated translation;
  • Web maps;
  • User authentication services;
  • Cloud-based services to support services described in section § 515.584(a)(1)(i); and

Services to install, repair, or replace items related to communication, or items used to develop software that improves the free flow of information or that will support private sector activities in Cuba consistent with the export or reexport licensing policy of the Department of Commerce.

 

FAQ 1178:

 

Q: Can a good be considered “produced by independent private sector entrepreneurs” for purposes of 31 CFR § 515.582 (authorizing the importation of certain goods and services produced by independent private sector entrepreneurs) if a Cuban state-owned entity is involved?

 

A: Section 515.582 of the CACR authorizes persons subject to U.S. jurisdiction to import certain goods and services produced by independent private sector entrepreneurs, as determined by the State Department and set forth on the State Department’s Section 515.582 List.  See FAQ 770.

In determining whether a good is produced by an independent private sector entrepreneur, as defined in 31 CFR § 515.340, persons subject to U.S. jurisdiction should consider the extent of Cuban state-owned entities’ involvement in the production and exportation of such goods.  For example, goods generally are not considered produced by independent private sector entrepreneurs if the manufacturing or processing conducted by Cuban state-owned entities results in a product with a new name, character, or use.  For example, an agricultural commodity grown by an independent grower but then processed by Cuban state-owned entities into a new product prior to exportation would not be a good produced by an independent private sector entrepreneur for purposes of 31 CFR § 515.582.  However, a good can still be considered produced by an independent private sector entrepreneur if, for example, Cuban state-owned entities are involved only in packing of the final product or acting solely as an export agent.

 

FAQ 1179:

 

Q: What type of small businesses are considered an “independent private sector entrepreneur” (as defined in 31 CFR § 515.340)?

 

A: Section 515.340 defines the term “independent private sector entrepreneur” to mean a Cuban national who is not a prohibited official of the Government of Cuba or a prohibited member of the Cuban Communist Party, and who is one or more of the following:  (a) an owner, including a self-employed individual (cuentapropista), or employee of a small private business entity, private cooperative, or a sole proprietorship located in Cuba, in each case of up to 100 employees; (b) an independent contractor or consultant; (c) a small farmer who owns his or her own land; (d) a small usufruct farmer who cultivates state-owned land to sell products on the open market; or (e) a private cooperative or small private business entity located in Cuba of up to 100 employees that is owned only by individuals described in paragraphs (a) through (d) of § 515.340.  For example, small private business entities or private cooperatives owned only by independent private sector entrepreneurs, as defined, could include:

 

  • Agricultural businesses and farming cooperatives;
  • Animal feed and veterinary services;
  • IT services, software development businesses, and mobile application developers
  • Food and beverage importers, production/processing businesses, packaging and food distributors;
  • Clothing, jewelry, fashion design, and beauty/cosmetics suppliers and services;
  • Historic preservation and cultural preservation businesses;
  • Arts-related businesses;
  • Machinery manufacturing and repair businesses;
  • Shipping, logistics, expediting, and delivery of goods businesses;
  • Medical supply businesses;
  • Restaurants and bars;
  • Taxis and transportation services;
  • Bed and breakfasts;
  • Manufacturing companies;
  • Business consulting services, marketing and branding services;
  • Accounting and bookkeeping services;
  • Home construction business and remodeling, plumbing, electrical, or other repair companies for business or residential facilities and homes;
  • Furniture design and manufacturing companies;
  • Travel services;
  • Vendors of personal care and household items, furniture, and appliances;
  • Interior decoration and design businesses;
  • Film and media production or journalism businesses;
  • Gyms, personal training, or fitness classes; and
  • Mechanical services (automobile, refrigeration, heating and A/C services and repair).

 

 

https://home.treasury.gov/news/press-releases/jy2374 and

https://ofac.treasury.gov/media/932896/download?inline and

https://ofac.treasury.gov/faqs/added/2024-05-28 and

https://ofac.treasury.gov/recent-actions/20240528 and

https://www.federalregister.gov/documents/2024/05/29/2024-11618/cuban-assets-control-regulations

 

*******

 

May 30, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) continued to counter Russia’s destabilizing activities in Africa by sanctioning two companies that are linked to the Private Military Company “Wagner” (Wagner Group). Mining Industries SARLU and Logistique Economique Etrangere SARLU are being designated pursuant to Executive Order (E.O.) 14024 for enabling Wagner Group security operations and Wagner Group-linked illicit mining endeavors in the Central African Republic (CAR).

 

Since its arrival in CAR in late 2017, the Kremlin-backed Wagner Group and companies formerly controlled by the now-deceased Yevgeny Prigozhin have established a vast security and business network in CAR, among other African counties. This network has advanced Russia’s destabilizing activities at the expense of CAR’s sovereignty, including the Wagner Group’s destructive operations and Wagner Group-linked companies’ involvement in illicit gold and diamond mining and logging. OFAC has taken previous action against several Wagner Group-linked companies in CAR, including Lobaye Invest, Midas Ressources SARLU, and Bois Rouge SARLU (Bois Rouge), now known as Wood International Group SARLU.

 

The following entity has been added to OFAC’s SDN List:

 

  • Mining Industries Sarlu of the Central African Republic

 

https://ofac.treasury.gov/recent-actions/20240530

 

*******

 

May 31, 2024: the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has targeted four entities associated with OFAC-designated Rayan Roshd Afzar Company (RRA) that have procured critical parts for Iran’s unmanned aerial vehicle (UAV) program. Additionally, OFAC has targeted an Iranian executive of Iran Aviation Industries Organization (IAIO), a subsidiary of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) that oversees UAV manufacturers Iran Aircraft Manufacturing Industrial Company (HESA) and Qods Aviation Industries (QAI).

 

The following individual has been added to OFAC’s SDN List:

 

  • Khajeh Fard, Afshin of Iran.

 

The following entities have been added to OFAC’s SDN List:

 

  • Fanavarihaye Hava Pishran Sazeh Sepehr Co LLC of Iran;
  • Kish Mechatronics Co of Iran;
  • Mersad Mohajer Co LLC of Iran; and
  • Rayan Fan Kav Andish Co of Iran.

 

https://ofac.treasury.gov/recent-actions/20240531

MAY 2024 EXPORT CONTROL REGULATIONS UPDATES Read More »

APRIL 2024 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through April 30, 2024.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and persons denied export privileges by the United States Government.

REGULATORY UPDATES

President

President Biden Continued the National Emergency with Respect to Somalia

April 9, 2024: On April 12, 2010, by Executive Order 13536, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the deterioration of the security situation and the persistence of violence in Somalia; acts of piracy and armed robbery at sea off the coast of Somalia, which have been the subject of United Nations Security Council resolutions; and violations of the arms embargo imposed by the United Nations Security Council.

On July 20, 2012, the President issued Executive Order 13620 to take additional steps to deal with the national emergency declared in Executive Order 13536 in view of United Nations Security Council Resolution 2036 of February 22, 2012, and Resolution 2002 of July 29, 2011, and to address:  exports of charcoal from Somalia, which generate significant revenue for al-Shabaab; the misappropriation of Somali public assets; and certain acts of violence committed against civilians in Somalia, all of which contribute to the deterioration of the security situation and the persistence of violence in Somalia.

The situation with respect to Somalia continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the national emergency declared on April 12, 2010, and the measures adopted on that date and on July 20, 2012, to deal with that threat, must continue in effect beyond April 12, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13536.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/04/09/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-somalia/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/

*******

President Biden Continued The National Emergency with Respect to Russia

April 9, 2024: On April 15, 2021, by Executive Order 14024, President Biden declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by specified harmful foreign activities of the Government of the Russian Federation.  On March 8, 2022, President Biden issued Executive Order 14066 to expand the scope of the national emergency declared in Executive Order 14024. On August 20, 2021, March 11, 2022, April 6, 2022, and December 22, 2023, President Biden issued Executive Orders 14039, 14068, 14071, and 14114, respectively, to take additional steps with respect to the national emergency declared in Executive Order 14024.

Specified harmful foreign activities of the Government of the Russian Federation — in particular, efforts to undermine the conduct of free and fair democratic elections and democratic institutions in the United States and its allies and partners; to engage in and facilitate malicious cyber-enabled activities against the United States and its allies and partners; to foster and use transnational corruption to influence foreign governments; to pursue extraterritorial activities targeting dissidents or journalists; to undermine security in countries and regions important to United States national security; and to violate well-established principles of international law, including respect for the territorial integrity of states -‑ continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.

For this reason, the national emergency declared in Executive Order 14024, which was expanded in scope by Executive Order 14066, and with respect to which additional steps were taken in Executive Orders 14039, 14068, 14071, and 14114, must continue in effect beyond April 15, 2024.

Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 14024.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/04/09/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-specified-harmful-foreign-activities-of-the-government-of-the-russian-federation/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/page/2/

*******

President Biden Continued The National Emergency with Respect to the Regulation of the Anchorage and Movement of Russian-Affiliated Vessels to United States Ports

April 16, 2024: On April 21, 2022, by Proclamation 10371, President Biden declared a national emergency by reason of a disturbance or threatened disturbance of international relations of the United States and authorized the Secretary of Homeland Security to regulate the anchorage and movement of Russian-affiliated vessels, pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.) and section 1 of title II of Public Law 65-24, ch. 30, June 15, 1917, as amended (Magnuson Act) (46 U.S.C. 70051).

The policies and actions of the Government of the Russian Federation to continue the premeditated, unjustified, unprovoked, and brutal war against Ukraine continue to constitute a national emergency by reason of a disturbance or threatened disturbance of international relations of the United States.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency with respect to the Russian Federation and the emergency authority relating to the regulation of the anchorage and movement of Russian‑affiliated vessels to United States ports set out in Proclamation 10371.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/04/16/press-release-notice-on-the-continuation-of-the-national-emergency-and-of-the-emergency-authority-relating-to-the-regulation-of-the-anchorage-and-movement-of-russian-affiliated-vessels-to-united-stat/ and

https://www.whitehouse.gov/briefing-room/presidential-actions/

*******

Department of State, Directorate of Defense Trade Controls (DDTC)

DDTC Issues General Findings from Visits to Universities and Research Centers

April 10, 2024: The Directorate of Defense Trade Controls issued a white paper providing general findings from visiting various universities and research centers that are engaged in activities of the International Traffic in Arms Regulations from 2020 to early 2024.  The paper provides general compliance commendations, including “best practices” and recommendations that the Office of Defense Trade Controls Compliance provided to the universities following each visit.

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_kb_article_page&sys_id=4f06583fdb78d300d0a370131f961913 and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events

*******

Proposed Rule: DDTC Registration Fees

April 24, 2024: 89 Fed. Reg. 3119: The State Department published in the Federal Register a proposed rule to amend the International Traffic in Arms Regulations (ITAR).  A link to the proposed rule is provided below.

As a brief summary, for the first time in nearly sixteen years the Department of State proposes to amend the ITAR to increase the fee amounts required for registration with the Directorate of Defense Trade Controls (DDTC).  The proposed rule is necessary to account for inflation, increased operating expenses, and to provide better services to the regulated public and to our partners in the defense industrial base.  The proposed amendments also include:

  • A return of the fee structure to the text of the ITAR at § 122.3;
  • Non-substantive movement of text from ITAR § 122.3 to § 122.2 to better organize content;
  • Revision of a section heading to better describe content;
  • Addition of text regarding registration discounts and how to obtain further guidance; and
  • Conforming changes to brokering in ITAR part 129.

The fee increases are summarized below:

  • Tier 1 registrant’s flat fee would increase from $2,250 to $3,000.
  • Tier 2 registrant’s flat fee would increase from $2,750 to $4,000.
  • Tier 3 registrant’s flat fee would increase from $2,750 to $4,000 and each subsequent favorable determination past the first five instead of ten, would rise from $250 to $1,100.

DDTC will accept comments on this rule through June 10, 2024.

See our detailed article on our website.

https://fdassociates.net/the-fifteen-year-freeze-in-ddtc-registration-fees-sees-a-big-thaw/

https://www.federalregister.gov/documents/2024/04/24/2024-08627/international-traffic-in-arms-regulations-registration-fees and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events&timeframe=all

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DDTC Name And Address Changes Posted To Website

April 2 through 29, 2024: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at    

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

 

  • Change in Name from TRIGO Qualitaire GmbH to TRIGO ADR (Aerospace, Defense, & Rail) Germany GmbH due to corporate rebranding;
  • Change in Name from TRIGO Qualitaire S.A.S. to TRIGO ADR (Aerospace, Defense, & Rail) France S.A.S. due to corporate rebranding;
  • Change in Address for Boeing Defence Australia Ltd. from 150 Charlotte Street, Brisbane, QLD 4000, Australia to 123 Albert Street, Brisbane, QLD 4000, Australia;
  • Change in Name from Harris Communications GmbH to L3Harris Technologies Germany GmbH due to corporate rebranding;
  • Change in Name from Brammer S.A. to Rubix Polska S.A due to merger;
  • Change in Address for TransDigm Inc. from 1301 East 9th Street, Suite 3000, Cleveland, OH 44114 to US Bank Centre, 1350 Euclid Avenue, Suite 1600, Cleveland, OH 44115.
  • Change in Name from L-3 Communications India Private Ltd. to L3Harris Maritime & Aero Private Ltd due to corporate rebranding;
  • The following KNDS N.V. entities will change their name as a result of corporate rebranding;

 

Old Name New Name
Nexter Systems KNDS France
Nexter Munitions KNDS Ammo France
NBC Sys KNDS CBRN
Nexter Mechanics KNDS France Mechanics
OPTSys KNDS Optronics
Nexter Training KNDS France Training
Nexter Robotics KNDS France Robotics
Krauss-Maffei Wegmann GmbH & Co. KG KNDS Deutschland GmbH & Co. KG
BTD Battle Tank Dismantling GmbH KNDS Deutschland Battle Tank Dismantling GmbH
ATM ComputerSysteme GmbH KNDS Deutschland Mission Electronics GmbH
DST Defence Service Tracks GmbH KNDS Deutschland Tracks GmbH
DSL Defence Service Logistics GmbH KNDS Deutschland Maintenance GmbH
KMW Schweisstechnik GmbH KNDS Deutschland Steel Contructions GmbH
MECAR KNDS Belgium
Simmel Difesa S.p.A. KNDS Ammo Italy S.p.A.
WFEL Limited to KNDS Defence UK Limited

 

  • Change in Name from Ball Aerospace & Technologies Corporation to BAE Systems Space & Mission Systems, Inc. due to acquisition;
  • Change in Name from H.C. Starck Inc. to Materion Corporation due to acquisition;
  • The following BAE Systems Saudi Development and Training Company Ltd entities will change their name as a result of a merger with Saudi Maintenance and Supply Chain Management Company Ltd (SMSCMC);

 

Old Name New Name
BAE Systems Saudi Development and Training Company Ltd (SDT) BAE Systems Arabian Industries Ltd
BAE Systems SDT Ltd BAE (UK) Ltd to BAE Systems Arabian Industries (Capability & Training-UK) Ltd
SMSCMC (UK) Ltd BAE Systems Arabian Industries (Supply Chain-UK)

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Newsflash:

The use of digital signatures are not acceptable for signing TAAs per DDTC licensing.

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Department of Defense, Defense Security Cooperation Agency (DSCA)

DSCA Notifies Congress of Potential FMS Sale To Ukraine

April 9, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Ukraine has requested to buy sustainment-related articles and services for the HAWK Phase III missile system, including engineering and integration for communications and interoperability; refurbishment and system overhaul of HAWK air defense fire units; missile recertification components; tool kits; test equipment; support equipment; technical documentation; spare parts; training; U.S. Government and contractor technical and field office support; and other related elements of logistics and program support. The estimated total cost is $138 million.

The Secretary of State has determined and provided detailed justification that an emergency exists that requires the immediate sale to the Government of Ukraine of the above defense articles and services in the national security interests of the United States, thereby waiving the congressional review requirements under Section 36(b) of the Arms Export Control Act, as amended.

The principal contractors will be RTX Corporation, located in Andover, MA, and PROJECTXYZ, located in Huntsville, AL. Equipment will be supplied from a combination of U.S. Army stock, country donations, Commercial Off-the-Shelf (COTS), and new production. There are no known offset agreements proposed in connection with this potential sale.

https://www.dsca.mil/press-media/major-arms-sales/ukraine-hawk-phase-iii-missile-system-sustainment

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DSCA Notifies Congress Of Potential FMS Sale to the Kingdom of Saudi Arabia

April 10, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Kingdom of Saudi Arabia has requested to buy fifty (50) Multifunctional Information Distribution System-Low Volume Terminal (MIDS-LVT) Block Upgrade 2 (BU2) Terminals and one hundred (100) additional MIDS-LVT BU2 Retrofit Kits that will be added to a previously implemented case whose value was under the congressional notification threshold. The original Foreign Military Sales (FMS) case, valued at $12.6 million, included thirty-five (35) Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) and twenty-four (24) MIDS-LVT BU2 Retrofit Kits. The Kingdom of Saudi Arabia has also requested a new FMS case that includes one hundred ninety-four (194) MIDS JTRS and thirteen (13) MIDS-LVT BU2 Terminals. This notification is for a combined total of two hundred twenty-nine (229) MIDS JTRS; sixty-three (63) MIDS-LVT BU2 Terminals; and one hundred twenty-four (124) MIDS-LVT BU2 Retrofit Kits. Also included are TacNet Tactical Radios; Low Volume Terminal Cryptographic Modules; other communications equipment; support equipment; engineering and technical support and assistance; training; and other related elements of logistics and program support. The estimated total cost is $101.1 million. The principal contractor has not been determined as there will be a competitive contractual award process after case implementation. There are no known offset agreements proposed in connection with this potential sale.

https://www.dsca.mil/press-media/major-arms-sales/kingdom-saudi-arabia-multifunctional-information-distribution-systems

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DSCA Notifies Congress Of Potential FMS Sale to The Government of Iraq

April 15, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Iraq has requested to buy Contractor Logistics Support (CLS) and training in support of its C-172 and AC/RC-208 aircraft fleet. Included is advising, technical, and proficiency training for Iraqi maintainers and aircrews; CLS; spare and repair parts, components, accessories, and repair and return support; minor modifications and upgrades; subscription services; overhaul and depot level maintenance and maintenance support; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $140 million. The principal contractor will be Northrop Grumman Corporation, located in Falls Church, VA. There are no known offset agreements proposed in connection with this potential sale.

https://www.dsca.mil/press-media/major-arms-sales/iraq-c-172-and-acrc-208-aircraft-contractor-logistics-support

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DSCA Notifies Congress Of Potential FMS Sale to The Government of Argentina

April 18, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Argentina has requested to buy Basler BT-67 aircraft; spare engines; spares and repair parts, consumables, accessories, and repair and return services; major modifications and maintenance support; aircraft and ground handling equipment and support; unclassified publications and technical documentation; Technical Coordination Program participation fees; studies and surveys; ferry and transportation support; personnel training and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $143 million. The principal contractor will be Basler Turbo Conversions located in Oshkosh, WI. There are no known offset agreements proposed in connection with this potential sale.

https://www.dsca.mil/press-media/major-arms-sales/argentina-basler-bt-67-aircraft

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DSCA Notifies Congress of Potential FMS Sale to The Government of Poland

The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Poland has requested to buy three hundred sixty (360) Advanced Anti-Radiation Guided Missile-Extended Range (AARGM-ER) All Up Rounds (AUR); eight (8) AGM-88G AARGM-ER Guidance Sections (spares); and eight (8) AGM-88G AARGM-ER Control Sections (spares). Also included are Dummy Air Training Missiles (DATM); missile containers, software; training; support equipment; spare and repair parts; embedded Global Positioning System receiver, M-Code; publications and technical documentation; transportation, U.S. Government, and contractor engineering; technical and logistical support services; and other related elements of logistics and program support. The estimated total cost is $1.275 billion. The principal contractor will be Northrop Grumman Systems located in Falls Church, VA. There are no known offset agreements proposed in connection with this potential sale.

https://www.dsca.mil/press-media/major-arms-sales/poland-advanced-anti-radiation-guided-missiles-extended-range

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DSCA Notifies Congress of Potential FMS Sale to The Government of the Netherlands

April 24, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of the Netherlands has requested to buy two hundred sixty-five (265) AGM-88G Advanced Anti-Radiation Guided Missiles – Extended Range (AARGM-ER) All Up Rounds (AUR) (includes fifteen (15) Fly-to-Buy Rounds); eight (8) AGM-88G AARGM-ER Guidance Sections (spares); and eight (8) AGM-88G AARGM-ER Control Sections (spares). Also included are Dummy Air Training Missiles (DATM), missile containers; software; training; support equipment; spare and repair parts; embedded GPS receiver, M-Code; publications and technical documentation; transportation; U.S. Government and contractor engineering; technical and logistical support services; and other related elements of logistics and program support. The estimated total cost is $700 million. The principal contractor will be Northrop Grumman Systems located in Falls Church, VA. There are no known offset agreements proposed in connection with this potential sale.

https://www.dsca.mil/press-media/major-arms-sales/netherlands-advanced-anti-radiation-guided-missiles-extended-range

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DSCA Notifies Congress of Potential FMS Sale to The Kingdom of Saudi Arabia

April 30, 2024: The U.S. Department of Defense’s Defense Security Cooperation Agency (DSCA) has notified Congress that The Kingdom of Saudi Arabia has requested to buy additional blanket order training for Royal Saudi Naval Forces (RSNF) that will be added to a previously implemented case whose value was under the congressional notification threshold. The original Foreign Military Sales (FMS) case, valued at $37 million ($0 in Major Defense Equipment (MDE)), included blanket order training for the RSNF, including: precision targeting, collateral damage reduction, core technical and professional development training, ship repair facility maintainer and language proficiency courses, and professional military education provided by the U.S. Navy. This notification is for the entire blanket order training with an estimated total cost of $250 million. The principal contractor(s) will be determined after contract competition and award. There are no known offset agreements proposed in connection with this sale.

https://www.dsca.mil/press-media/major-arms-sales/kingdom-saudi-arabia-blanket-order-training

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Department of Commerce – Bureau of Industry and Security (BIS)

Commerce Releases Clarifications of Export Control Rules to Restrict the PRC’s Access to Advanced Computing and Supercomputing Items and Semiconductor Manufacturing Equipment

April 4, 2024: 89 Fed. Reg. 23976: The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has published an interim final rule (IFR) revising and clarifying two interim final rules released on October 17, 2023: (1) “Export Controls on Semiconductor Manufacturing Items” (SME IFR); and (2) “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections” (AC/S IFR).

The rules released on October 17, 2023, reinforce the October 7, 2022, controls to restrict the People’s Republic of China’s (PRC) ability to both purchase advanced computing chips and manufacture advanced chips critical for military advantage. These rules underscore BIS’ clear focus on strategically addressing the threats to our national security posed by the PRC Government’s military-civil fusion strategy by controlling items necessary to enable the development and production of technologies, such as artificial intelligence (AI), used in military applications. The clarifications in this Interim Final Rule answer questions posed from industry and other stakeholders after the rules were released on October 17, 2023.

Highlights of this new IFR include clarifying that:

  • Computers and other products incorporating integrated circuits that require export notification to BIS also require export notification; and
  • Parts and components exported for ultimate incorporation into indigenous PRC Semiconductor Manufacturing Equipment (SME) require a BIS license for the initial export.

These sector-based controls, originally released on October 7, 2022, are calibrated to address, among other concerns, the PRC Government’s efforts to produce and use advanced integrated circuits. These advanced integrated circuits, produced by critical semiconductor manufacturing equipment, can be used for the next generation of advanced weapon systems. They can also be used for advanced artificial intelligence (AI) applications, which can be leveraged to enhance the speed and accuracy of military decision making, planning, and logistics; cognitive electronic warfare; radar; signals intelligence; and jamming. Advanced AI applications can also be leveraged to monitor, track, and surveil citizens and in other applications that enable human rights violations and abuses.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3355-2023-10-17-bis-press-release-acs-and-sme-rules-final-js/file and

https://www.bis.gov/press-release/commerce-releases-clarifications-export-control-rules-restrict-prcs-access-advanced and

https://www.federalregister.gov/documents/2024/04/04/2024-07004/implementation-of-additional-export-controls-certain-advanced-computing-items-supercomputer-and

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Department of Commerce’s Bureau of Industry and Security (BIS) imposing additional controls to further restrict Iran’s access to low-level technologies.

April 18, 2024: In response to Iran’s unprecedented air attack on Israel, and its continued military cooperation with Russia, the Department of Commerce’s Bureau of Industry and Security (BIS) imposed additional controls to further restrict Iran’s access to low-level technologies, such as basic commercial grade microelectronics. This action will cut off a wider range of items from reaching Iran’s arsenal – including items manufactured outside the U.S. that are produced using U.S. technology. These changes build on BIS’s comprehensive export restrictions on Iran, which already include controls targeting Iran’s involvement in supplying Unmanned Aerial Vehicles (UAVs) in support of Russia’s illegal war in Ukraine.

BIS’s longstanding and expansive controls on dual-use items to Iran and more recent actions against Russia have forced these nations to use lower-level technologies for their military ambitions. Over the past two years, BIS has added controls on thousands of items to inhibit Russia and Iran’s access to necessary components for their war efforts.

https://www.bis.gov/press-release/media-advisory-department-commerces-bureau-industry-and-security-bis-imposing

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Export Control Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced Trilateral Security Partnership

April 19, 2024: 89 Fed. Reg. 28594: The Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to remove export license requirements, expand the availability of license exceptions, and reduce the scope of end-use and end-user-based license requirements for exports, reexports, and transfers (in-country) to or within Australia and the United Kingdom (UK) to enhance technological innovation among the three countries and support the goals of the AUKUS Trilateral Security Partnership.

With this rule, Australia and the UK will have nearly the same export licensing treatment under the EAR as Canada. The biggest changes to the EAR pursuant to this rule are the removal of list-based license requirements for exports, reexports, and transfers (in-country) to Australia and the UK including the removal of license requirements for national security column 1 (NS1), regional stability column 1 (RS1), and missile technology column 1 (MT1) reasons for control for the destinations of Australia and the UK. This is an important change as it removes licensing requirements for exports of ALL 600 Series ECCN items to Australia and the UK and many 9×515 satellite-related license requirements to Australia and the UK.

Other minor changes to the EAR pursuant to this rule include the applicability of License Exceptions under §§ 740.15, 740.16, and 740.17 (License Exceptions Aircraft, Vessels and Spacecraft (AVS), Additional Permissive Reexports (APR), and Encryption Commodities, Software, and Technology (ENC), respectively), for use to Australia, Canada, and the UK.

BIS also exempted Australia and the UK alongside Canada from unilateral reporting requirements for thermal imaging camera transactions.

Consistent with recent changes to the EAR concerning thermal imaging cameras, the interim final rule removes military end-use and end-user-based license requirements for exports, reexports, and transfers (in-country) of certain cameras, systems, or related components detailed under § 744.9(a)(1)(i) and (a)(1)(iii) of the EAR which previously only applied to Canada.  The exception now applies to Australia, Canada, and the UK.

BIS requires certain transactions involving Canada to be reported in Electronic Export Information (EEI) filings, and these changes now include Australia and the UK for clarity in this requirement. Effective May 1, 2023, No License Required License Code C33 is in effect for 600 Series and other controlled items exported to Australia and the UK.

https://www.federalregister.gov/documents/2024/04/19/2024-08446/export-control-revisions-for-australia-united-kingdom-united-states-aukus-enhanced-trilateral

See article posted on our website for more details.

https://fdassociates.net/the-department-of-state-published-a-proposed-rule-to-create-an-exemption-for-certain-exports-reexports-retransfers-or-temporary-imports-of-defense-articles-or-defense-services-or-certain-brokering/

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Export Control Measures Under the Export Administration Regulations (EAR) To Address Iranian Aggression Against Israel and Military Support for Russia

April 22, 2024: 89 Fed. Reg. 2024: The Bureau of Industry and Security (BIS) made changes to the Export Administration Regulations (EAR) to expand the scope of items that require a license for export and reexport to Iran; this rule also expands the scope of the Russia/Belarus/Temporarily occupied Crimea region of Ukraine Foreign Direct Product (FDP) rule and the Iran FDP rule. Certain foreign-made items located outside of the United States are subject to the EAR because they meet criteria specified under one of the FDP rules under the EAR. This final rule expands the product scope of two of the FDP rules to make additional items subject to the EAR and imposes a license requirement when they are reexported or exported from abroad to Iran, Russia, Belarus, or the Temporarily occupied Crimea region of Ukraine. Prior to this rule, BIS had not controlled all foreign transactions involving items covered by this rule, but in light of recent events and the need to fully leverage EAR controls to address U.S. national security and foreign policy interests, these additional controls are now warranted under the EAR.

https://www.federalregister.gov/documents/2024/04/22/2024-08622/export-control-measures-under-the-export-administration-regulations-ear-to-address-iranian and

https://www.federalregister.gov/documents/search?conditions%5Bpublication_date%5D%5Bgte%5D=03%2F30%2F2024&conditions%5Bterm%5D=EAR

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Department of Commerce Establishes New Humanitarian License Exception for Certain Medical Devices

April 25, 2024: 89 Fed Reg 33224: the U.S. Commerce Department’s Bureau of Industry and Security (BIS) published a final rule introducing the new License Exception MED, which enables delivery of humanitarian medical devices to the citizens of Russia, Belarus, and the temporarily occupied areas of Ukraine, consistent with the longstanding practice of authorizing transfers of life-saving medical devices to civilian populaces. At the same time, BIS is maintaining its sweeping restrictions on the export, reexport, or transfer (in-country) of items that could aid Russia’s brutal full-scale invasion of Ukraine.

Specifically, License Exception MED authorizes certain exports, reexports, and transfers (in country) of the following items that are designated as EAR99 to Russia, Belarus, the temporarily occupied Crimea region of Ukraine, and the covered regions of Ukraine: low-level “medical devices” and related low-level “parts,” “components,” “accessories,” and “attachments” that are exclusively for use in or with “medical devices”.

https://www.bis.gov/press-release/department-commerce-establishes-new-humanitarian-license-exception-certain-medical and

https://www.bis.doc.gov/index.php/policy-guidance/countryguidance/russia-belarus and

https://www.federalregister.gov/documents/2024/04/29/2024-09076/amendment-to-existing-controls-on-russia-and-belarus-under-the-export-administration-regulations-ear

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The Department of Commerce, Bureau of Industry and Security Amended The EAR Regarding Firearms And Related Items

April 30, 2024: 89 Fed. Reg. 34680: In this interim final rule (IFR), the Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to enhance the control structure for firearms and related items. These changes will better protect U.S. national security and foreign policy interests, which include countering the diversion and misuse of firearms and related items and advancing human rights. This rule identifies semi-automatic firearms under new Export Control Classification Numbers (ECCNs); 0A506 and 0A507 adds additional license requirements for Crime Control and Detection (CC) items, thereby resulting in additional restrictions on the availability of license exceptions for most destinations; amends license review policies so that they are more explicit as to the nature of review that will accompany different types of transactions and license exception availability (including adding a new list of high-risk destinations); identifies 36 countries that will be subject to a policy of denial; updates and expands requirements for support documentation submitted with license applications; and better accounts for the import documentation requirements of other countries (such as an import certificate or other permit prior to importation) when firearms and related items are authorized under a BIS license exception. BIS is publishing this rule as an IFR to solicit comments from the public on additional changes to export controls on firearms and related items that would better protect U.S. national security and foreign policy interests. The IFT will become effective May 30, 2024.

Prior to this Interim Final Rule, ECCN 0A501 controlled rifles, pistols, and related “parts,” “components,” and certain “attachments,” and “accessories” on the CCL, while ECCN 0A502 controlled shotguns and related “parts,” “components,” and certain “attachments,” and “accessories.” Neither ECCN distinguished between non-automatic and semi-automatic firearms. BIS was unable to readily identify what share of firearms exports to a country were semi-automatic rifles versus non-automatic pistols because they were controlled under the same item paragraph of ECCN 0A501. Accordingly, BIS was unable to readily disaggregate and review licensing and export data for specific types of end-item firearms or specific “parts,” “components,” “attachments” and “accessories” of most concern. This data gap limited BIS’s ability to efficiently evaluate the export, reexport, transfer (in-country) and diversion of specific types of rifles, pistols, shotguns, and certain “parts,” “components,” “attachments,” and “accessories” that may pose risks to U.S. national security and foreign policy. However, such information is useful to assess the risk of diversion.

To better track the export, reexport, transfer (in-country) and diversion of different types of firearms and related items, this Interim Final Rule adds four new ECCNs to the CCL. ECCN 0A506 controls semi-automatic rifles, ECCN 0A507 controls semi-automatic pistols, ECCN 0A508 controls semi-automatic shotguns, and ECCN 0A509 controls certain “parts,” “components,” devices, “accessories,” and “attachments” for items controlled under ECCNs 0A506, 0A507, and 0A508. The creation of these four new ECCNs will enable BIS to better track and more readily identify exports of end-item semi-automatic firearms and shotguns and certain related “parts,” “components,” “accessories,” and “attachments” of concern when reviewing the Electronic Export Information (EEI) that exporters file in the Automated Export System (AES). Pursuant to § 758.1(g)(1) and (2), an EEI must specify the ECCN of the exported item.

https://www.federalregister.gov/documents/2024/04/30/2024-08813/revision-of-firearms-license-requirements and https://www.federalregister.gov/documents/search?conditions%5Bpublication_date%5D%5Bgte%5D=03%2F30%2F2024&conditions%5Bterm%5D=EAR

In a separate action, BIS has begun sending out letters advising exporters that their existing licenses for non-government end-users in 36 countries are revoked as of July 1, 2024.

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Department of Commerce and Department of Justice

The Departments Of Justice And Commerce Launch The Disruptive Technology Protection Network With Japan And The Republic Of Korea

April 26, 2024: the U.S. Departments of Justice and Commerce launched the Disruptive Technology Protection Network with Japan and the Republic of Korea (ROK), hosting the first high-level trilateral summit in Washington, D.C.  The creation of this network follows an August 2023 Camp David summit between the leaders of the three countries, during which they committed to expanding collaboration on technology protection measures and build connections between representatives of the U.S. Disruptive Technology Strike Force and Japan and ROK counterparts.  The Disruptive Technology Protection Network expands information-sharing and the exchange of best practices across the three countries’ enforcement agencies.

https://www.bis.gov/press-release/departments-justice-and-commerce-launch-disruptive-technology-protection-network and

https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/18/fact-sheet-the-trilateral-leaders-summit-at-camp-david/ and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

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U.S. Census Bureau

April 18, 2024: Tips on How to Resolve AES Response Message

When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  Though the shipment is accepted, the filer may still receive a Verify Message, Compliance Alert, Informational Message or Warning Message along with their ITN.  However, if the shipment is rejected, a Fatal Error notification is received and must be corrected to receive a valid ITN.

To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

Response Code:  170

Narrative: Air Waybill Format: NNN-NNNNNNNN

Severity: Fatal

Reason: The Transportation Reference Number reported for this Air shipment was not in the correct format.

Resolution: A number identifying the carrier’s master air waybill may be declared on an air shipment. When reported, a master air waybill number must be reported in the following format: ‘NNN-NNNNNNNN’ (where ‘N’ = a numeric value).

Verify the Transportation Reference Number, correct the shipment and resubmit.

Response Code:  336

Narrative: Ultimate Consignee State Cannot be Reported

Severity: Fatal

Reason: The Country of Destination reported does not allow a State Code.

Resolution: Report a State Code only if the Country of Destination is the United States or Mexico.

Verify the Ultimate Consignee Country Code and State Code, correct the shipment and resubmit.

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NEW BIS LICENSE TYPES C69 License Exception (MED) – for exports authorized under License Exception Medical Devices (MED)

April 30, 2024: On Monday, April 29, 2024, the Department of Commerce, Bureau of Industry and Security (BIS) published a final rule, Amendment to Existing Controls on Russia and Belarus Under the Export Administration Regulations (EAR) Adding New License Exception Medical Devices (MED); Corrections with an effective date of April 29, 2024.  This final rule established a new License Exception Medical Devices (MED) in § 740.23 of the Export Administrations Regulations (EAR), 15 C.F.R. parts 730 – 774. This license exception as specified under the paragraph (a) (Scope) authorizes the export, reexport, and transfer (in-country) of “medical devices” designated as EAR99 to or within Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine (as specified in § 746.6(a)(2) of the EAR).  Paragraph (a) directs exporters, reexporters, and transferors to see Supplement no. 3 to part 774 – Statements of Understanding under paragraph (a) (Statement of Understanding ‑ medical equipment) for guidance on classifying medical equipment and the definition of “medical device” in § 772.1 of the EAR.

Paragraph (a) also specifies that License Exception MED authorizes the export, reexport, or transfer (in country) to or within Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine of “parts,” “components,” “accessories,” and “attachments” designated as EAR99 that are exclusively for use in or with “medical devices” designated as EAR99.  For “parts,” “components,” “accessories,” and “attachments” authorized under License Exception MED, such replacement “parts,” “components,” “accessories,” and “attachments” may only be exported, reexported, or transferred (in-country) if they also meet the additional requirements under paragraphs (a)(1) and (2) of § 740.23.

Exports, reexports, and transfers (in-country) authorized under License Exception MED must not be restricted under § 740.23(b) (Restrictions), which restricts “proscribed persons” and any item destined to a “production” “facility” or when you have “knowledge” that the item is intended to develop or produce items.  Exports, reexports, and transfers (in-country) authorized under License Exception MED must also comply with the verification requirements specified in paragraph (c) (Verification) and the recordkeeping requirements specified in paragraph (d) Recordkeeping and review or inspection of records.

As a result of these actions, the following changes will be made to the AES in order for exporters and authorized agents to successfully report electronic export information in the AES.

New License Code C69 License Exception (MED)

An update has been made to AES to create License Type Code C69 MED.

An update has been made to AES to create new License Code C69 “License Exception Medical Devices” (MED), which authorizes certain exports, reexports of any item “medical devices” designated as EAR99 and “parts,” “components,” “accessories,” and “attachments” designated as EAR99 that are exclusively for use in or with “medical devices” designated as EAR99.

The full terms of License Exception MED are described in § 740.23.

AES filers must adhere to the following new reporting when using C69 (MED) to prevent the return of fatal errors from AES:

  • Report License Code: C69 MED.
  • Allowable ECCNs: No ECCNs are allowed. Only EAR99 is allowable.
  • Allowable countries: Belarus, Russia, and Ukraine. (Note that although all of Ukraine is specified as an allowable country in AES, that License Exception MED is only needed to authorize exports exports, reexports, and transfers (in-country) to or within temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine (as specified in § 746.6(a)(2) of the EAR)).
  • Allowable Export Information Codes: All except UG
  • Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)

https://www.federalregister.gov/documents/2024/04/29/2024-09076/amendment-to-existing-controls-on-russia-and-belarus-under-the-export-administration-regulations-ear?utm_campaign=&utm_content=&utm_medium=email&utm_source=govdelivery and https://www.cbp.gov/document/guidance/aestir-appendix-f-license-and-license-exemption-type-codes?utm_campaign=&utm_content=&utm_medium=email&utm_source=govdelivery

 

LATEST SANCTIONS FINES & PENALTIES

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

Fines and Penalties

April 4, 2024: Two Russian nationals pleaded guilty to conspiracy to violate the Export Control Reform Act (ECRA) in connection with a scheme to acquire and unlawfully export controlled aviation technology to Russian end users. One of the defendants, Oleg Sergeyevhich Patsulya, also pleaded guilty to conspiracy to commit international money laundering.

According to court documents, Patsulya and Vasilii Sergeyevich Besedin, both of whom reside in Miami-Dade County, Florida, conspired with each other and several others to evade U.S. export laws and regulations to send aircraft technology from the United States to Russia. According to court documents, the unlawful scheme began in or about May 2022, in the wake of Russia’s most recent invasion of Ukraine and enhanced U.S. sanctions on Russia.

Both Besedin and Patsulya pleaded guilty to conspiracy to export items from the United States without a license in violation of the Export Control Reform Act, which carries a maximum penalty of 20 years in prison. Patsulya additionally pleaded guilty to one count of conspiracy to commit international money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for June 17.

https://www.justice.gov/opa/pr/russian-nationals-admit-illegally-sending-controlled-aviation-technology-russia

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April 5, 2024: 89 Fed. Reg. 23967: On April 21, 2022, an order denying Aviastar export privileges was signed for a period of 180 days on the ground that issuance of the order was necessary in the public interest to prevent an imminent violation of the Regulations. The temporary denial order was subsequently renewed on October 17, 2022, April 14, 2023, and October 6, 2023.

On March 11, 2024, BIS, through OEE, submitted a written request for a fourth renewal of the TDO. The written request was made more than 20 days before the TDO’s scheduled expiration and, given the temporary suspension of international mail service to Russia, OEE has attempted to deliver a copy of the renewal request to Aviastar by alternative means. No opposition to the renewal of the TDO has been received.

The Office of Export Enforcement (“OEE”) renewed the temporary denial order (“TDO”) issued in this matter on April 14, 2023. It was found that the renewal of this order is necessary in the public interest to prevent an imminent violation of the Regulations and that renewal for an extended period is appropriate because Aviastar—TU’s (“Aviastar”) has engaged in a pattern of repeated, ongoing and/or continuous apparent violations of the EAR.

https://www.federalregister.gov/documents/2024/04/05/2024-07303/order-renewing-temporary-denial-of-export-privileges

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April 15, 2024: Ross Roggio (Roggio) was sentenced to 70 years in prison for torturing an Estonian citizen in 2015 in the Kurdistan region of Iraq and for the illegal export of weapons parts and related services.

According to court documents and evidence presented at trial, Roggio, 55, of Stroudsburg, arranged for Kurdish soldiers to abduct and detain the victim at a Kurdish military compound, where Roggio suffocated the victim with a belt, threatened to cut off one of his fingers, and directed Kurdish soldiers to repeatedly beat, choke, tase, and otherwise physically and mentally abuse the victim over a 39-day period. The victim was an employee at a weapons factory that Roggio was developing in the Kurdistan region of Iraq that was intended to manufacture automatic rifles and pistols.

https://www.justice.gov/opa/pr/pennsylvania-man-sentenced-prison-torture-and-illegally-exporting-weapons-parts-and-related

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April 16, 2024: An indictment was unsealed charging Syria national Mohamad Deiry and Lebanese national Samer Rayya, both principals of an Iraq-based arms company, Black Shield Ltd., with conspiring to export munitions from the United States to Sudan and Iraq without the necessary licenses and approvals, in violation of the Arms Export Control Act. Additionally, Deiry and Rayya were charged with conspiring to commit money laundering in furtherance of their illicit procurement activities.

Deiry and Rayya are charged with conspiracy to unlawfully export defense articles from the United States, which carries a maximum statutory penalty of five years in prison; and conspiracy to engage in international money laundering, which carries a maximum statutory penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

https://www.justice.gov/opa/pr/international-arms-dealers-charged-conspiring-unlawfully-export-weapons-and-ammunition

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April 19, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a settlement with SCG Plastics Co., Ltd. (“SCG Plastics”), part of a multinational enterprise headquartered in Bangkok, Thailand.  SCG Plastics has agreed to pay $20,000,000 to settle its potential civil liability for 467 apparent violations of OFAC sanctions on Iran.  From 2017 to 2018, SCG Plastics caused U.S. financial institutions to process $291 million in wire transfers for sales of Iranian origin polyethylene resin manufactured by a joint venture in Iran. The $20,000,000 settlement amount reflects OFAC’s determination that SCG Plastics’ apparent violations were egregious and, with the exception of certain transactions, were not voluntarily self-disclosed.

 

https://ofac.treasury.gov/recent-actions/20240419_33 and

https://ofac.treasury.gov/media/932836/download?inline and

https://ofac.treasury.gov/media/932841/download?inline

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April 25, 2024: The Justice Department announced the unsealing of an indictment charging 10 defendants with conspiring to violate the International Economic Emergency Powers Act (IEEPA) for their roles in a scheme to evade U.S. sanctions imposed on Petróleos de Venezuela, S.A. (PDVSA), the Venezuelan state-owned oil company, in January 2019. One of the defendants, George Clemente Semerene Quintero, 60, was arrested on April 19, 2024, upon arrival at the Miami International Airport.

As alleged in the indictment, between January 2019 and December 2021, after learning of the sanctions imposed on PDVSA, the defendants devised a scheme to illegally procure aircraft parts, including Honeywell Turbofan Engines, from the United States to service PDVSA’s aircraft fleet in Venezuela, in violation of U.S. sanctions and export controls. To carry out this scheme, the defendants concealed from U.S. companies that the goods were destined for Venezuela and PDVSA by exporting them to third parties in other countries, including Novax Group SA (Novax), a Costa Rican company, and Aerofalcon SL (Aerofalco), a Spanish company.

According to court documents, the defendants include:

  • Four individuals associated with PDVSA: Gilberto Ramon Araujo Prieto, 54, a PDVSA air transport manager and colonel in the Venezuelan military; Guillermo Ysrael Marval Rivero, 62, and Fernando Jose Blequett Landaeta, 52, both PDVSA air transport managers and logistics analysts responsible for procurement; and Semerene, PDVSA’s head of logistics, procurement and warehousing.
  • Four individuals associated with Novax: Luis Alberto Duque Carvajal, 63, of San Jose, Costa Rica, the owner of Novax; Melvin Aleman Espinoza, 39, Novax’s director of operations; Mikhail Largin, 60, Novax’s director of special projects; and Pedro Elias Sucre Salazar, 58, a Novax employee located in Venezuela.
  • Two individuals associated with Aerofalcon: Juan Carlos Gonzalez Perez, 60, the owner of Aerofalcon; and Juan David Guerra Viera, 54, a director for Aerofalcon.

The defendants are charged with conspiring to violate IEEPA, and if convicted, face a maximum penalty of 20 years in prison. Defendants Duque, Aleman, Sucre, Gonzalez, and Guerra Viera are additionally charged with submitting false or misleading export information and smuggling of goods, which respectively carry maximum penalties of five and 10 years in prison.

https://www.justice.gov/usao-sdfl/pr/ten-charged-and-one-arrested-connection-sanctions-evasion-scheme and

https://www.bis.gov/news-updates/search?close_filters=1&content_type=press_release&sort_by=created&sort_order=DESC

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April 25, 2024: An indictment was unsealed charging two Chinese nationals, Han Li, also known as Anson Li, 44, and Lin Chen, 64, with crimes related to a conspiracy to illegally export U.S. technology, including a machine manufactured by a California-based company that is used to process silicon wafer microchips, to prohibited end users in China, in violation of the International Emergency Economic Powers Act (IEEPA) and Export Administration Regulations (EAR). Chen was arrested in Chicago yesterday.

Li and Chen are each charged with the following offenses, and if convicted, face maximum penalties as indicated: Conspiracy to violate IEEPA, up to 20 years in prison and a $1 million fine; false electronic export information activities, up to five years in prison and a $250,000 fine; smuggling, up to 10 years in prison and a $250,000 fine; and IEEPA violations, up to 20 years in prison and a $1 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

https://www.justice.gov/opa/pr/chinese-national-arrested-united-states-alleged-scheme-illegally-export-semiconductor

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April 30, 2024: Nikolay Grigorev, 36, of Brooklyn, pleaded guilty to conspiring to defraud the United States for his role in an illicit export control scheme to ship electronic components from the United States to companies affiliated with the Russian military. Co-defendants Nikita Arkhipov and Artem Oloviannikov remain at large.

As a result of the guilty plea, Grigorev faces a maximum penalty of five years in prison. A sentencing hearing has not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

https://www.justice.gov/opa/pr/new-york-man-pleads-guilty-conspiracy-unlawfully-export-dual-use-electronics-used-russian

Sanctions

Department of Commerce, Bureau of Industry and Security (BIS)

April 11, 2024: 89 Fed Reg. 25503: The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding 11 entries to the Entity List, under the destinations of the Peoples Republic of China (China) (6), the Russian Federation (Russia) (3), and the United Arab Emirates (UAE) (2). These entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. This rule also modifies one existing entity on the Entity List under the destination of China.

China

  • Beijing Anwise Technology Co., Ltd.;
  • Jiangxi Xintuo Enterprise Co., Ltd.;
  • Linkzol Technology Co., Ltd.;
  • Shenzhen Jiasibo Technology Co., Ltd.;
  • Sitonholy Co., Ltd.; and
  • Xi’an Like Innovative Information Technology Co., Ltd.

Russia

  • Aerosila JSC SPE;
  • Delta-Aero LLC; and
  • JSC ODK-Star.

United Arab Emirates

  • Khalaj Trading LLC; and
  • Mahdi Khalaj Amirhosseini.

https://www.federalregister.gov/documents/2024/04/11/2024-07760/addition-of-entities-to-and-revision-of-entry-on-the-entity-list

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Department of the Treasury, Office of Foreign Assets Control (OFAC)

April 4, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) took additional action against Iranian military revenue generation, targeting Oceanlink Maritime DMCC for facilitating the shipment of Iranian commodities on behalf of Iran’s Armed Forces General Staff (AFGS) and Ministry of Defense and Armed Forces Logistics (MODAFL). OFAC is also identified 13 vessels managed by Oceanlink Maritime DMCC as blocked property. The Oceanlink Maritime DMCC-managed vessel HECATE recently loaded Iranian commodities valued at over $100 million dollars via a ship-to-ship (STS) transfer from another sanctioned tanker, the DOVER, on behalf of Iran’s Sepehr Energy Jahan Nama Pars (Sepehr Energy), which OFAC sanctioned in November 2023 for its role selling Iranian commodities for the AFGS and MODAFL.

The following entity has been added to OFAC’s SDN List:

  • Oceanlink Maritime DMCC of The United Arab Emirates.

The following vessels have been added to OFAC’s SDN List:

  • Anthea (D6A3314) Crude Oil Tanker Comoros flag; Vessel Registration Identification IMO 9281683; MMSI 620999315 (vessel);
  • Baxter (V3TF5) Oil Products Tanker Belize flag; Vessel Registration Identification IMO 9282522; MMSI 312513000 (vessel);
  • Boreas (D6A3315) Crude Oil Tanker Comoros flag; Vessel Registration Identification IMO 9248497; MMSI 620999316 (vessel);
  • Calypso Gas (V2YC2) LPG Tanker Antigua and Barbuda flag; Vessel Registration Identification IMO 9131101; MMSI 304563000 (vessel);
  • Cape Gas (D6A2739) LPG Tanker Comoros flag; Vessel Registration Identification IMO 9002491; MMSI 620739000 (vessel);
  • Demeter (HPGV) Oil Products Tanker Panama flag; Vessel Registration Identification IMO 9258674; MMSI 370921000 (vessel);
  • Elisa (V3RZ8) Crude Oil Tanker Belize flag; Vessel Registration Identification IMO 9256468; MMSI 312038000 (vessel);
  • Glaucus (D6A3421) Crude Oil Tanker Comoros flag; Vessel Registration Identification IMO 9337389; MMSI 620999422 (vessel);
  • Hebe (D6A3378) Crude Oil Tanker Comoros flag; Vessel Registration Identification IMO 9259185; MMSI 620999378 (vessel);
  • Hecate (D6A3379) Crude Oil Tanker Comoros flag; Vessel Registration Identification IMO 9233753; MMSI 620999379 (vessel);
  • Meraki (V2YB7) Crude Oil Tanker Antigua and Barbuda flag; Vessel Registration Identification IMO 9194139; MMSI 304552000 (vessel);
  • Oceanus Gas (D6A3372) LPG Tanker Comoros flag; Vessel Registration Identification IMO 9397080; MMSI 620999373 (vessel); and
  • Ourea (E5U5002) LPG Tanker Cook Islands flag; Vessel Registration Identification IMO 9350422; MMSI 518999021 (vessel).

https://ofac.treasury.gov/recent-actions/20240404 and https://ofac.treasury.gov/recent-actions?page=0

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April 12, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) published a Determination for Prohibitions Related to Imports of Aluminum, Copper, and Nickel of Russian Federation Origin, and a Determination for Prohibitions on Certain Services for the Acquisition of Aluminum, Copper, or Nickel of Russian Federation Origin.

OFAC also issued Russia-related General License 13I, “Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024”.

General License 13I: U.S. persons, or entities owned or controlled, directly or indirectly, by a U.S. person, are authorized to pay taxes, fees, or import duties, and purchase or receive permits, licenses, registrations, certifications, or tax refunds to the extent such transactions are prohibited by Directive 4 under Executive Order 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation, provided such transactions are ordinarily incident and necessary to the day-to-day operations in the Russian Federation of such U.S. persons or entities.

OFAC also issued five new, Russia-related Frequently Asked Questions (FAQs 1168 – 1172)

 

Question 1168: What action did Treasury take on April 12, 2024 with regards to aluminum, copper, and nickel of Russian Federation origin?

Answer: On December 6, 2023, and February 24, 2024, the G7 Leaders issued statements signaling their intent to reduce Russia’s revenues from metals.  On April 12, 2024, in coordination with the United Kingdom, the United States issued two new prohibitions that will further disrupt the revenue that Russia earns from its export of aluminum, copper, and nickel of Russian Federation origin, including using U.S. global metal exchanges.

 

Question 1169: What is prohibited by the determination “Prohibitions on Certain Services for the Acquisition of Aluminum, Copper, or Nickel of Russian Federation Origin” pursuant to Executive Order (E.O.) 14071 (the “Metals Services Determination”)?

Answer: The Metals Services Determination prohibits the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of the following categories of services to any person located in the Russian Federation:  warranting services for aluminum, copper, or nickel of Russian Federation origin on a global metal exchange; and services to acquire aluminum, copper, or nickel of Russian Federation origin as part of the physical settlement of a derivative contract (collectively, “Covered Metals Acquisition Services”).  This determination does not apply to services related to aluminum, copper, or nickel of Russian Federation origin that was produced prior to April 13, 2024.

 

Question 1170: For the purposes of the determination “Prohibitions Related to Imports of Aluminum, Copper, and Nickel of Russian Federation Origin” pursuant to Executive Order (E.O.) 14068, as amended by E.O. 14114, (the “Metals Import Determination”) and the determination “Prohibitions on Certain Services for the Acquisition of Aluminum, Copper, or Nickel of Russian Federation Origin” pursuant to Executive Order (E.O.) 14071 (the “Metals Services Determination”), what is meant by the terms “aluminum,” “nickel,” and “copper”?

Answer: For the purposes of the Metals Import Determination and the Metals Services Determination, OFAC anticipates publishing regulations defining “aluminum,” “nickel,” and “copper” to include articles or products defined at the following Harmonized Tariff Schedule of the United States (HTSUS) chapter headings:

  • “Aluminum”: defined at HTSUS Chapter 76.
  • “Nickel”: defined at HTSUS Chapter 75.
  • “Copper”: defined at HTSUS Chapter 74.

 

Question 1171: Do the determinations “Prohibitions Related to Imports of Aluminum, Copper, and Nickel of Russian Federation Origin” pursuant to Executive Order (E.O.) 14068, as amended by E.O. 14114, (the “Metals Import Determination”) and the determination “Prohibitions on Certain Services for the Acquisition of Aluminum, Copper, or Nickel of Russian Federation Origin” pursuant to Executive Order (E.O.) 14071 (the “Metals Services Determination”) apply to aluminum, copper, or nickel that has been incorporated or substantially transformed into other products outside of the Russian Federation?

Answer: The term “Russian Federation origin” excludes “any Russian Federation origin good that has been incorporated or substantially transformed into a foreign-made product.”

 

Question 1172: Does the determination “Prohibitions on Certain Services for the Acquisition of Aluminum, Copper, or Nickel of Russian Federation Origin” pursuant to Executive Order (E.O.) 14071 (the “Metals Services Determination”) impose new prohibitions on banks acting as intermediaries for payments related to Russian metals?

Answer: No.  The processing, clearing, or sending of payments related to Russian metals by a U.S. bank on behalf of non-U.S. persons is not prohibited by the Metals Services Determination where the bank:  (1) is operating solely as an intermediary; and (2) does not have any direct relationship with the person providing a service covered by the Metals Services Determination (i.e., the person is a non-account party) as it relates to the relevant transaction.  Thus, the Metals Services Determination does not impose any new prohibitions or requirements relating to the processing, clearing, or sending of payments by intermediary banks.

https://ofac.treasury.gov/recent-actions/20240412_33 and

https://home.treasury.gov/news/press-releases/jy2249 and

https://ofac.treasury.gov/media/932796/download?inline and

https://ofac.treasury.gov/media/932801/download?inline and

https://ofac.treasury.gov/media/932806/download?inline and

https://ofac.treasury.gov/faqs/added/2024-04-12 and

https://ofac.treasury.gov/media/932801/download?inline

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April 12, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action against Hamas, targeting Gaza- and Lebanon-based leaders of the terrorist group’s offensive cyber and unmanned aerial vehicle (UAV) operations. Concurrent with this action, the European Union is imposing sanctions targeting Hamas.

The following individuals have been added to OFAC’s SDN List:

  • Abu Shanab, William of Lebanon;
  • Al-Kahlut, Hudhayfa Samir ‘Abdallah of Palestine;
  • ‘Azzam, Khalil Muhammad of Palestine; and
  • Farhat, Bara’a Hasan of Palestine.

https://home.treasury.gov/news/press-releases/jy2248 and https://ofac.treasury.gov/recent-actions/20240412

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April 15, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Venezuela-related General License 50 “Authorizing Certain Transactions Related to the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond on or After August 13, 2024.”

General License 50: On or after August 13, 2024, all transactions related to, the provision of financing for, and other dealings in the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by subsection l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018, as amended by E.O. 13857 of January 25, 2019, and incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized.

https://ofac.treasury.gov/recent-actions/20240415 and https://ofac.treasury.gov/media/932811/download?inline

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April 15, 2024: the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 12 entities and 10 individuals pursuant to Executive Order (E.O.) 14038. This action builds on U.S. sanctions imposed in response to Belarus’s fraudulent August 2020 election, as well as President Alyaksandr Lukashenka’s (Lukashenka) support for Russia’s illegal full-scale invasion of Ukraine. This action sustains U.S. financial pressure on the Lukashenka regime for its continuing support for Russia’s war against Ukraine and the financial benefit it derives from this activity.

The individuals and entities OFAC targeted include six revenue-generating state-owned enterprises (SOEs) and one entity and five individuals involved in facilitating transactions for a U.S.-designated major Belarusian defense sector enterprise. OFAC is additionally targeting five entities and five individuals involved in a global arms network doing business with a U.S.-designated Belarusian defense firm.

The following individuals have been added to OFAC’s SDN List:

  • Akisianchuk, Aliaksandra of Belarus;
  • Ali, Alhaitham Al of Slovakia;
  • Braim, Dmitry of Belarus;
  • Charheika, Siarhei of Belarus;
  • Deiry, Mohamad Majd of Syria;
  • Mikhaltsou, Dzmitry of Belarus;
  • Protopovich, Tatyana of Belarus;
  • Rayya, Samer of Lebanon;
  • Yagmur, Nora of Sweden; and
  • Yurchik, Oleg of Belarus.

 

The following entities have been added to OFAC’s SDN List:

  • Black Shield Company For General Trading LLC of Iraq;
  • Centuronic Ltd of Cyprus;
  • Joint Stock Company Communication Equipment of Belarus;
  • JSC Agat-System of Belarus;
  • JSC Niievm of Belarus;
  • LLC Innotech Solutions of Belarus;
  • OJSC Agat-Control System-Managing Company of Geoinformation of Belarus;
  • Open Joint Stock Company Stankgomel of Belarus;
  • Phoenix Lines S.R.O of Slovakia ;
  • Rayya Danismanlik Hizmetleri Limited Sirketi of Belarus;
  • Group Airlines LTD of Cyprus; and
  • Shenzen 5G High-Tech Innovation Co., of China.

https://ofac.treasury.gov/recent-actions/20240415 and https://home.treasury.gov/news/press-releases/jy2251

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April 16, 2024: 89 Fed. Reg. 27386: The Office of Foreign Assets Control (OFAC) issued  a final rule to remove the Zimbabwe Sanctions Regulations, 31 CFR part 541, from the Code of Federal Regulations.  OFAC took this action because the national emergency on which part 541 was based was terminated by the President on March 4, 2024.

 

https://ofac.treasury.gov/media/932816/download?inline and

https://ofac.treasury.gov/recent-actions/20240416

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April 17, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued  Venezuela-related General License 44A, “Authorizing the Wind Down of Transactions Related to Oil or Gas Sector Operations in Venezuela.”

General License 44A: All transactions prohibited by the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), including transactions involving Petróleos de Venezuela, S.A. (PdVSA) or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest (collectively, “PdVSA Entities”), that are ordinarily incident and necessary to the wind down of any transaction related to oil or gas sector operations in Venezuela previously authorized by Venezuela General License 44 are authorized through 12:01 a.m. eastern daylight time May 31, 2024.

https://ofac.treasury.gov/media/932826/download?inline and https://ofac.treasury.gov/recent-actions/20240417

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April 18, 2024: In response to Iran’s unprecedented attack on Israel on April 13, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) targeted 16 individuals and two entities enabling Iran’s UAV production, including engine types that power Iran’s Shahed variant UAVs, which were used in the April 13 attack. These actors work on behalf of Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), its UAV production arm, Kimia Part Sivan Company (KIPAS), and other Iranian manufacturers of UAVs and UAV engines. OFAC also designated five companies in multiple jurisdictions providing component materials for steel production to Iran’s Khuzestan Steel Company (KSC), one of Iran’s largest steel producers, or purchasing KSC’s finished steel products. Iran’s metals sector generates the equivalent of several billion dollars in revenue annually, with the majority coming from steel exports.

The following individuals have been added to OFAC’s SDN List:

  • Abutalebi, Ali Asghar of Iran;
  • Abutalebi, Mohammad Sadegh of Iran;
  • Al-Taf, Ali Asghar of Iran;
  • Arambuenezhad, Hasan of Iran;
  • Azizkhani Esma’il, Sepahan of Iran;
  • Dehghan, Majid of Iran;
  • Ebrahimi Forushani, Hamid Hajji of Iran;
  • Fatehi, Mohammad Sadegh of Iran;
  • Moshkani, Abolfazl Ramazanzadeh of Iran;
  • Naghneh, Mehdi Ghaffari of Iran;
  • Nahar Dani, Reza of Iran;
  • Najafi Ali Habibi of Iran;
  • Ramsheh, Ali Reza Nurian of Iran;
  • Sartaji, Abbas of Iran;
  • Turanlu, Mohsen Sayyadi of Iran; and
  • Zavarki, Hadi Jamshidi of Iran.

The following entities have been added to OFAC’s SDN List:

  • Aseman Pishraneh Co. Ltd of Iran;
  • Bahman Diesel Co. of Iran;
  • Fateh Aseman Sharif Company of Iran;
  • Good Run Limited of Iran;
  • HSF DIS Ticaret Limited Sirketi of Turkey;
  • Iean Chassis Manufacturing Co of Iran;
  • Iran Docharkh Co. of Iran;
  • Kara Industrial Trading GMBH of Germany;
  • Magellanic Phoenix Marine and Trading of China; and
  • PSI DMCC of United Arab Emirates.

https://ofac.treasury.gov/recent-actions/20240418 and https://ofac.treasury.gov/recent-actions?page=0

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April 19, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on two entities for their roles in establishing fundraising campaigns on behalf of Yinon Levi (Levi) and David Chai Chasdai (Chasdai), two violent extremists who were sanctioned on February 1, 2024 in connection with violence in the West Bank. The fundraising campaigns established by Mount Hebron Fund for Levi and by Shlom Asiraich for Chasdai generated the equivalent of $140,000 and $31,000, respectively.

The following individual has been added to OFAC’s SDN List:

  • Gopstein, Ben-Zion of Israel.

The following entities have been added to OFAC’s SDN List:

  • Granpect Co. Ltd. of China;
  • Mount Hebron Fund of Israel;
  • Shlom Asiraich of Israel;
  • Tianjin Creative Source International Trade Co Ltd of China; and
  • Xi’an Longde Technology Development Company Limited of China

https://home.treasury.gov/news/press-releases/jy2281 and https://ofac.treasury.gov/recent-actions/20240419

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April 19, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Russia-related General License 94, “Authorizing Transactions Involving OWH SE i.L. (Formerly Known as VTB Bank Europe SE).”

General License 94: All transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR) or the Ukraine-/Russia-Related Sanctions Regulations, 31 CFR part 589 (URSR), involving OWH SE i.L. (formerly known as VTB Bank Europe SE), or any entity in which OWH SE i.L. owns, directly or indirectly, a 50 percent or greater interest (“OWH SE i.L. Entities”), are authorized.

https://ofac.treasury.gov/media/932831/download?inline and https://ofac.treasury.gov/recent-actions/20240419

*******

April 23, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two companies and four individuals involved in malicious cyber activity on behalf of the Iranian Islamic Revolutionary Guard Corps Cyber Electronic Command (IRGC-CEC). These actors targeted more than a dozen U.S. companies and government entities through cyber operations, including spear phishing and malware attacks. In conjunction with this action, the U.S. Department of Justice and the Federal Bureau of Investigation unsealed an indictment against the four individuals for their roles in cyber activity targeting U.S. entities.

The following individuals have been added to OFAC’s SDN List:

  • Haruni, Hosein Mohammad of Iran;
  • Nasab, Alireza Shafie of Iran;
  • Rahman, Reza Kazemifar of Iran; and
  • Salmani, Komeil Baradaran of Iran.

The following entities have been added to OFAC’s SDN List:

  • Dadeh Afzar Arman of Iran; and
  • Mehrsam Andisheh Saz Nik of Iran.

https://www.justice.gov/opa/pr/justice-department-charges-four-iranian-nationals-multi-year-cyber-campaign-targeting-us and https://home.treasury.gov/news/press-releases/jy2292

*******

April 23, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two leaders of al-Qa’ida-aligned terrorist group Jama’at Nusrat al-Islam wal-Muslimin (JNIM) for hostage-taking of U.S. persons in West Africa. OFAC designated these individuals pursuant to Executive Order (E.O.) 14078, “Bolstering Efforts To Bring Hostages and Wrongfully Detained United States Nationals Home,” which targets those involved in, hostage-taking of a U.S. national or the wrongful detention of a U.S. national abroad. The Department of State concurrently designated five JNIM leaders pursuant to E.O. 14078, and designated two of these, as well as two additional leaders of JNIM, pursuant to E.O. 13224, as amended.

The following individuals have been added to OFAC’s SDN List:

  • Al-Libi, Talha, of Mauritania;
  • Belhireche, Messaoud of Mali;
  • Dicko, Jafar of Burkina Faso;
  • Hammada, Hussein Ould of Mali; and
  • Khouier, Hamama Ould of Mali.

https://home.treasury.gov/news/press-releases/jy2293 and https://ofac.treasury.gov/recent-actions/20240423

*******

April 25, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned over one dozen entities, individuals, and vessels that have played a central role in facilitating and financing the clandestine sale of Iranian unmanned aerial vehicles (UAVs) for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), which itself is involved in supporting Iran’s Islamic Revolutionary Guard Corps (IRGC) and Russia’s war in Ukraine. Sahara Thunder is the main front company that oversees MODAFL’s commercial activities in support of these efforts. Sahara Thunder also plays a key role in Iran’s design, development, manufacture, and sale of thousands of UAVs, many of them ultimately transferred to Russia for use in its war of aggression against Ukraine. OFAC is also sanctioning two companies and a vessel involved in the shipment of Iranian commodities for Sepehr Energy Jahan Nama Pars, which similarly plays a leading role in the commercial activities of Iran’s Armed Forces General Staff (AFGS). Concurrent with this action, the United Kingdom and Canada are imposing sanctions targeting several entities and individuals involved in Iran’s UAV procurement and other military-related activities.

The following individuals have been added to OFAC’s SDN List:

  • Abdi Asjerd, Abbas of Iran;
  • Abdi Asjerd, Zahra of Iran;
  • Abdulahi Fard, Hojat of Iran;
  • Bakhshayesh, Hossein of Iran;
  • Eidi Ashjerdi, Hamid of Iran;
  • Mirzai Kondori, Kazem of Iran;
  • Moradipour, Mohammad Ali of Iran; and
  • Vahabzadeh Moghadam, Seyed of Iran.

The following entities have been added to OFAC’s SDN List:

  • Arsang Safe Trading Co. of Iran;
  • Asia Marine Crown Agency of Iran;
  • Baran Sazan Caspian Anzali Free Zone Company of Iran;
  • Bonyan Danesh Shargh Private Company of Iran;
  • Coral Trading EST of Iran;
  • Etemad Tejarat Misagh of Iran;
  • Onden General Trading FZE of Iran;
  • Pishro Sanat Aseman Sharif Private Company of Iran;
  • Safe Seas Ship Management FZE of the United Arab Emirates;
  • Sahara Thunder of Iran;
  • Sanaye Motorsazi Alvand Private Company of Iran;
  • Saone Shipping Corporation of Panama;
  • Sea Art Ship Management OPC Private Limited of India;
  • Trans Gulf Agency Llc of The United Arab Emirates; and
  • Zen Shipping & Port India Private Limited of India.

The following vessels have been added to OFAC’s SDN List:

  • Chem (E5U4368) Chemical/Products Tanker Cook Islands flag; Vessel Registration Identification IMO 9240914; MMSI 518998388 (vessel);
  • Conrad (E5U4542) Oil Products Tanker Cook Islands flag; Vessel Registration Identification IMO 9546722; MMSI 518998562 (vessel);
  • Dancy Dynamic (T8A3476) Oil Products Tanker Palau flag; Vessel Registration Identification IMO 9158161; MMSI 511100350 (vessel);
  • K M A (E5U4542) Chemical/Products Tanker Cook Islands flag; Vessel Registration Identification IMO 9234616; MMSI 518998425 (vessel);
  • La Pearl (5IM808) Crude Oil Tanker Tanzania flag; Vessel Registration Identification IMO 9174660; MMSI 677070800 (vessel).

The following aircraft has been added to OFAC’s SDN List:

  • EP-PUS; Aircraft Manufacture Date 1992; Aircraft Mode S Transponder Code 7342B3; Aircraft Model Ilyushin IL-76TD; Aircraft Manufacturer’s Serial Number (MSN) 1023409321

https://ofac.treasury.gov/recent-actions/20240425 and https://ofac.treasury.gov/recent-actions?page=0

*******

April 29, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Russia-related General License 8I “Authorizing Transactions Related to Energy.

General License 8I: All transactions prohibited by Executive Order (E.O.) 14024 involving one or more of the following entities that are related to energy are authorized, through 12:01 a.m. eastern daylight time, November 1, 2024:

(1) State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank;

(2) Public Joint Stock Company Bank Financial Corporation Otkritie;

(3) Sovcombank Open Joint Stock Company;

(4) Public Joint Stock Company Sberbank of Russia;

(5) VTB Bank Public Joint Stock Company;

(6) Joint Stock Company Alfa-Bank;

(7) Public Joint Stock Company Rosbank;

(8) Bank Zenit Public Joint Stock Company;

(9) Bank Saint-Petersburg Public Joint Stock Company;

(10) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest; or

(11) the Central Bank of the Russian Federation.

For the purposes of this general license, the term “related to energy” means the extraction, production, refinement, liquefaction, gasification, regasification, conversion, enrichment, fabrication, transport, or purchase of petroleum, including crude oil, lease condensates, unfinished oils, natural gas liquids, petroleum products, natural gas, or other products capable of producing energy, such as coal, wood, or agricultural products used to manufacture biofuels, or uranium in any form, as well as the development, production, generation, transmission, or exchange of power, through any means, including nuclear, thermal, and renewable energy sources.

https://ofac.treasury.gov/media/932846/download?inline and https://ofac.treasury.gov/recent-actions/20240429

APRIL 2024 EXPORT CONTROL REGULATIONS UPDATES Read More »

MARCH 2024 EXPORT CONTROL REGULATIONS UPDATES

 

This newsletter is a listing of the latest changes in export control regulations through March 31, 2024.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities.  It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

 

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and

persons denied export privileges by the United States Government.

 

REGULATORY UPDATES

 

President

 

President Biden Terminated The National Emergency with Respect to Zimbabwe

 

March 4, 2024: President Biden found that the declaration of a national emergency in Executive Order 13288 of March 6, 2003, with respect to the actions and policies of certain members of the Government of Zimbabwe and other persons to undermine Zimbabwe’s democratic processes or institutions, as relied upon for additional steps taken in Executive Order 13391 of November 22, 2005, and as expanded by Executive Order 13469 of July 25, 2008, should no longer be in effect.  Although President Biden continues to be concerned with the situation in Zimbabwe, particularly with respect to acts of violence and other human rights abuses against political opponents and with respect to public corruption, including misuse of public authority, the declaration of a national emergency in Executive Order 13288 is no longer needed.  Accordingly, President Biden terminated the national emergency declared in Executive Order 13288, and revoke that order, Executive Order 13391, and Executive Order 13469.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/03/04/executive-order-on-the-termination-of-emergency-with-respect-to-the-situation-in-zimbabwe/

 

Editors note: The declaration of termination of the national emergency may result in revisions to the ITAR and EAR for an arms embargo on Zimbabwe. Follow our monthly newsletter for updates.

 

President Biden Continued The National Emergency with Respect to Ukraine

 

 

March 4, 2024: On March 6, 2014, by Executive Order 13660, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in relation to Ukraine. The situation in and in relation to Ukraine undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets, as well as the actions and policies of the Government of the Russian Federation, including its purported annexation of Crimea and its use of force in Ukraine, continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States

Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13660.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/03/04/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-ukraine/

*******

President Biden Continued The National Emergency with Respect to Venezuela

March 5, 2024: On March 8, 2015, the President issued Executive Order 13692, declaring a national emergency with respect to the situation in Venezuela, including the Government of Venezuela’s erosion of human rights guarantees, persecution of political opponents, curtailment of press freedoms, use of violence and human rights violations and abuses in response to antigovernment protests, and arbitrary arrest and detention of antigovernment protesters, as well as the exacerbating presence of significant government corruption.

The situation in and in relation to Venezuela, continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13692.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/03/05/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-venezuela/

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President Biden Continued The National Emergency with Respect to Iran

March 12, 2024: On March 15, 1995, by Executive Order 12957, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701‑1706) to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the actions and policies of the Government of Iran. The actions and policies of the Government of Iran — including its proliferation and development of missiles and other asymmetric and conventional weapons capabilities, its network and campaign of regional aggression, its support for terrorist groups, and the malign activities of the Islamic Revolutionary Guard Corps and its surrogates — continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.

The situation in and relation to Iran continue to pose threat to the national security and foreign policy of the United States.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency with respect to Iran declared in Executive Order 12957.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/03/12/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-iran/

*******

 

President Biden Continued The National Emergency with Respect to Significant Malicious Cyber-Enabled Activities

 

March 26, 2024: On April 1, 2015, by Executive Order 13694, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the increasing prevalence and severity of malicious cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States.  On December 28, 2016, the President issued Executive Order 13757 to take additional steps to address the national emergency declared in Executive Order 13694.

These significant malicious cyber-enabled activities continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.  For this reason, the national emergency declared on April 1, 2015, must continue in effect beyond April 1, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13694.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/03/26/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-significant-malicious-cyber-enabled-activities/

 

*******

 

President Biden Continued The National Emergency with Respect to South Sudan

 

March 26, 2024: On April 3, 2014, by Executive Order 13664, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in and in relation to South Sudan, which has been marked by activities that threaten the peace, security, or stability of South Sudan and the surrounding region, including widespread violence and atrocities, human rights abuses, recruitment and use of child soldiers, attacks on peacekeepers, and obstruction of humanitarian operations.

 

The situation in and in relation to South Sudan continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. For this reason, the national emergency declared on April 3, 2014, must continue in effect beyond April 3, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13664.

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/03/26/press-release-notice-on-the-continuation-of-the-national-emergency-with-respect-to-south-sudan-2/

 

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The U.S. Department of State

 

Change in Policy on Exports of Defense Articles and Defense Services to Nicaragua

 

March 15, 2024: 89 Fed. Reg. 18796: In response to growing concerns regarding Nicaragua’s continuing dismantling of democratic institutions, attacks on civil society, and increased security cooperation with Russia, to include support of Russia’s full-scale invasion of Ukraine, the Department of State amended the International Traffic in Arms Regulations (ITAR) to add Nicaragua to the 22 CFR § 126.1 list of countries for which it is the policy of the United States to deny licenses or other approvals for exports and imports of defense services and defense articles, except as otherwise provided.

 

The policy of denial toward Nicaragua applies to licenses or other approvals for exports and imports of defense articles or defense services, except that a license or other approval may be issued on a case-by-case basis for non-lethal military equipment intended solely for humanitarian assistance, to include natural disaster relief.

 

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fpublic-inspection.federalregister.gov%2F2024-05695.pdf%3Futm_campaign%3Dpi%2Bsubscription%2Bmailing%2Blist%26utm_medium%3Demail%26utm_source%3Dfederalregister.gov&data=05%7C02%7CJaniferDK%40state.gov%7Cc15f3fbaaf2b4daa7ca308dc4431627e%7C66cf50745afe48d1a691a12b2121f44b%7C0%7C0%7C638460226108622737%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=9ywCUi2YHxcB8bIcY9%2FGiVDcuaY1qEt5kdJFwg7shho%3D&reserved=0

 

Editors note: The EAR also takes a corresponding action for items with a 600 series ECCN by adding Nicaragua to the list of D:5 countries.

 

*******

 

State/DDTC Publishes FAQ re Value of Paragraph (x) Items

 

March 18, 2024: The Department of State published a new Frequently Asked Question (FAQ) on its website regarding the values of Paragraph (x) items:

 

Question:

 

“Will the value of the paragraph (x) items be used to decrement the authorization or count toward congressional notification threshold?”

 

Answer:

 

“No, however applicants must include the appropriate value of the paragraph (x) articles on the license applications. When adjudicating a license request, although the value of the paragraph (x) items is included in the total license value, DDTC will exclude the paragraph (x) value from threshold determinations such as congressional notifications. When the license is approved and the exporter files via Automated Export System (AES) for a shipment against the license, the exporter must include the declared value of the paragraph (x) items and that value will be decremented in AES against the total value of the license.”

 

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_faq_detail&sys_id=558b2d9cdb3d5b4044f9ff621f961931

 

Editor’s note: Paragraph (x) items are items subject to the EAR that have been licensed on an ITAR license.

*******

 

International Traffic in Arms Regulations: Removal of Certain Capacitors from Category XI(c)(5) of the U.S. Munitions List

 

March 25, 2024: 89 Fed. Reg. 20546: The Department of State published a final rule in the Federal Register that amends, effective April 24, 2024, U.S. Munitions List Category XI(c)(5), which describes certain high-energy storage capacitors.

 

The Department of State published an interim final rule on April 27, 2023, effective May 21, 2023, amending the International Traffic in Arms Regulations (ITAR) to remove from U.S. Munitions List (USML) Category XI certain high-energy storage capacitors and to clearly identify the high-energy storage capacitors that remain in USML Category XI. After reviewing the comments received in response to that interim final rule, the Department is now further amending USML Category XI to remove additional high-energy storage capacitors and to more clearly identify those that remain in USML Category XI.

 

The Department received four comments from the public, all of which recommended that the Department define the voltage criterion according to “voltage rating” or “rated voltage,” rather than “capable of operating.” The Department accepts these comments and will implement the term “rated voltage” to specify the voltage criterion in place of the phrase “capable of operating,” which does not have a broadly accepted definition. The Department notes that rated voltage is commonly provided in manufacturers' product literature worldwide, thereby giving persons other than the manufacturer valuable information in assessing the capabilities of the capacitors. Accordingly, the Department has decided to specify the voltage criterion in paragraph (c)(5)(i) of USML Category XI in terms of “rated voltage.”

 

USML Category XI(c)(5) includes the following changes:

 

Category XI—Military Electronics

 

(c)

(5) High-energy storage capacitors that:

(i) Have a rated voltage of greater than five hundred volts (500 V);

(ii) Have a repetition rate greater than or equal to six (6) discharges per minute;

(iii) Have a full energy life greater than or equal to 10,000 discharges at greater than 0.2 Amps per Joule peak current; and

(iv) Have any of the following:

(A) Volumetric energy density greater than or equal to 1.5 J/cc; or

(B) Mass energy density greater than or equal to 1.3 kJ/kg;

 

Note to paragraph (c)(5):

 

Volumetric energy density is Energy per unit Volume. Mass energy density is Energy per unit Mass, sometimes referred to as Gravimetric energy density or Specific energy. Energy (E = 1/2 CV2 , where C is Capacitance and V is the rated voltage) in these calculations must not be confused with useful energy or extractable energy. Rated voltage is the value, based on the capacitor's design, testing, and evaluation, that describes the maximum amount of continuous voltage, at an operating temperature less than or equal to 85 degrees Celsius (85 °C), that will not damage the capacitor. Rated voltage does not include short-term transient or surge operating conditions.

 

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events and

https://www.federalregister.gov/documents/2024/03/25/2024-06199/international-traffic-in-arms-regulations-revision-to-us-munitions-list-category-xi-high-energy

 

*******

The Directorate of Defense Trade Controls Released New Joint Venture FAQs

 

March 25, 2024: The Directorate of Defense Trade Controls has released new Frequently Asked Questions (FAQs) regarding when and how joint ventures (JV) must be added to Block 8 (Affiliate/Subsidiary Information) of an DDTC registrant’s Statement of Registration (DS-2032 form). DDTC views JVs as separate legal entities which are established by two or more parties and are governed by a Joint Venture Agreement.

 

Question:

 

How do I register a foreign-incorporated joint venture (JV) in Defense Export Control and Compliance System (DECCS)?

 

Answer:

 

If a Directorate of Defense Trade Controls (DDTC) registrant owns more than 50% of the outstanding voting securities of the foreign JV then the registrant must add the JV to Block 8 of its DS-2032 form as a subsidiary. If a DDTC registrant does not own more than 50% of the outstanding voting securities of the foreign JV, but otherwise manages the day-to-day operations of the foreign-incorporated JV, then such DDTC registrant must add the JV to Block 8 of its DS-2032 form as a controlled affiliate. Otherwise, without U.S. persons managing the day-to-day operations of the foreign-incorporated JV then such JV is not able to be DDTC registered. Alternatively, if the DDTC registrant is a foreign broker and they own more than 50% of the outstanding voting securities of the foreign JV then they must add the foreign JV to Block 8 of its DS-2032 form as a subsidiary and the JV would only be registered as a foreign broker. If the foreign broker manages the day-to-day operations of the foreign JV then they must add the foreign JV to Block 8 of its DS-2032 form as a controlled affiliate and the JV would only be registered as a foreign broker.

 

DDTC registrants participating in a JV engaged in ITAR-related activities with foreign-persons are reminded that foreign-person employees who will receive ITAR-controlled technical data must first obtain appropriate licenses or other approvals. Special protocols may be appropriate to address the day-to-day involvement of foreign-person personnel including officers and senior managers. Export compliance briefings should be prepared for foreign-person personnel to ensure they understand ITAR-related restrictions as well as protocols/procedures to request access to ITAR-controlled activities (including defense articles, including technical data, and defense services). Furthermore, it is prohibited to perform defense services or export or temporary import ITAR-controlled defense articles to subsidiaries/affiliates located in proscribed countries under ITAR Section 126.1 (for example, the People’s Republic of China, North Korea, Syria, etc.) without first obtaining a license or other approval from DDTC. DDTC registrants should counsel their employees not to discuss the substance of ITAR-controlled technical data with foreign-person employees without a license or other approval. Also, DDTC registrants should ensure all employees are appropriately briefed on their ITAR compliance responsibilities.

 

Question:

 

Which Directorate of Defense Trade Controls (DDTC)-registered U.S. joint venture (JV) member holds responsibility for listing the JV on its Statement of Registration (DS-2032 form) in Defense Export Control and Compliance System (DECCS)?

 

Answer:

 

The answer will depend on several factors. If a DDTC registrant owns more than 50% of the outstanding voting securities of the JV, then such DDTC registrant must add the JV to Block 8 of its DS-2032 form in DECCS Registration as a subsidiary, so long as the JV is separately incorporated as its own legal entity (i.e., not an unincorporated collection of property and/or assets). Alternatively, if an DDTC registrant does not own more than 50% of the outstanding voting securities of the JV, but otherwise manages the day-to-day operations of the JV, then such DDTC registrant must add the JV to Block 8 of its DS-2032 form in DECCS Registration as a controlled affiliate, so long as the JV is separately incorporated as its own legal entity (i.e., not an unincorporated collection of property and/or assets).

If a DDTC registrant does not own or have ability to manage the day-to-day operations of the JV, the JV must send a registration submission using a DS-2032 form in DECCS Registration to receive its own, separate registration.

 

To confirm management control by the DDTC registrant, the Office of Defense Trade Controls Compliance may consider (including but not limited to): ownership distribution of the JV, whether the JV has an independent board of directors, terms of the JV agreement, and/or staffing and resources of the JV.

 

Question:

 

My joint venture (JV) is incorporated in the United States, but management and control are split 50/50 between two foreign persons—can I have my JV register on its own?

 

Answer:

 

If an U.S.-incorporated JV is engaged in ITAR activities, but both of its managing members are foreign persons as defined in ITAR 120.63, then the JV must send a registration submission, signed by a U.S. person senior officer, in Defense Export Control and Compliance System (DECCS) Registration to receive its own, separate registration and code. If an U.S.-incorporated JV does not have a U.S. person senior officer, then the JV will either not be able to register with DDTC or it must hire a U.S. person senior officer who has authority to manage the day-to-day operations of the JV. The U.S. person senior officer must sign and submit the DS-2032 form in DECCS Registration to receive a registration and code. Directorate of Defense Trade Controls Office of Defense Trade Controls Compliance (DDTC) registrants participating in a JV engaged in ITAR-related activities with foreign-persons are reminded that foreign-person employees who will receive ITAR-controlled technical data must first obtain appropriate licenses or other approvals.

 

 

 

 

Question:

 

What type of legal entities can be added to Block 8 of a Directorate of Defense Trade Controls (DDTC) registrant's DS-2032 form?

 

Answer:

 

Entities listed as subsidiaries or controlled affiliates in Block 8 of the DS-2032 form must be separate and distinct legal entities from the registrant in the DS-2032 form. Such legal entities will have their own articles of incorporation and/or formation separate and distinct from their parent company.

However, office and factory locations owned by a DDTC registrant, but not separately incorporated from such registrant must not be added to Block 8 of the DS-2032 form as subsidiaries or controlled affiliates. Similarly, a joint venture consisting of certain resources (e.g., joint money, property, effort, and knowledge) must not be added to the DS-2032 form if such joint venture is not separately incorporated as a distinct legal entity.

 

If a DDTC registrant operates under a trade name distinct from its legal name, it must not separately list its trade name in Block 8 of the DS-2032 form. Instead, Block 5 of the DS-2032 form affords the registrant the opportunity to distinguish their “doing business as name” from the legal name reflected in their articles of incorporation or formation.

 

Question:

 

My Directorate of Defense Trade Controls (DDTC) U.S. registered company and another DDTC U.S. registered company each own 50% of an ITAR related legal entity. Which DDTC registrant must add the company to its DS-2032 form?

 

Answer:

 

Generally, the DDTC registrant that manages the day-to-day operations of the joint venture (JV), must add the JV to Block 8 of its DS-2032 form as a controlled affiliate. If both DDTC registered parties have equal management control of the JV, the Office of Defense Trade Controls Compliance may consider other factors which may be determinative of control (including but not limited to): responsibilities related to specific ITAR related activities enumerated in the JV agreement, specifically stipulated tie-breakers, arbitration agreements, etc. If the JV has a 50/50 ownership split and is independently managed, then the JV must send a registration submission using a DS-2032 form in Defense Export Control and Compliance System (DECCS) Registration to receive its own, separate registration and code.

 

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_faq_detail&sys_id=0fb3961fdb4942908fe6e01a13961922 and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_faq_detail&sys_id=c7f1529bdb4942908fe6e01a139619e7 and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_faq_detail&sys_id=0c83561fdb4942908fe6e01a13961922 and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_faq_detail&sys_id=1c24525fdb4942908fe6e01a13961933 and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_faq_detail&sys_id=68e212dbdb4942908fe6e01a13961912 and

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events

*******

 

DDTC Name And Address Changes Posted To Website

 

March 11 through 26, 2024: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at    

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

 

  • Change in Address from Pilatus Training Solutions Australia Pty Ltd formerly at 249 Somerton Park Road, Sale, Victoria 3850, Australia to Pilatus Training Solutions Australia Pty Ltd at 81 Pearson Street, Sale, Victoria 3850, Australia;
  • Change in Address from D3O, LLC formerly at 2270 Kraft Drive, Suite 1260, Blacksburg, VA 24060 to D3O, LLC at 1750 Kraft Drive, Suite 1275, Blacksburg, VA 24060;
  • Change in Address from GEC Aviation Inc. formerly at 1919 Minnesota Court, Suite 100, Mississauga, Ontario L5N 0C9, Canada to GEC Aviation Inc. at 60 Queen Street, Suite 601, Ottawa, Ontario K1P 5YZ, Canada; and
  • Change in Name from Ayesa Air Control GmbH to Alten GmbH due to merger.

 

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U.S. Department of Defense, Defense Security Cooperation Agency (DSCA)

 

DSCA Notifies Congress Of Potential FMS Sale To Canada

 

March 7, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Canada has requested to buy telecommunications services providing Tactical Narrowband Satellite Communications (SATCOM) access to Canadian armed forces users over the Mobile User Objective System (MUOS) service; communication technical assistance to provide operational support, lifecycle management support, and engineering technical assistance and services; personnel training and training equipment; U.S. Government and contractor engineering; technical and logistics support services; and other related elements of logistics and program support. The estimated total cost is $138 million. The principal contractor will be General Dynamics, Reston, VA. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/canada-mobile-user-objective-system-access

 

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DSCA Notifies Congress Of Potential FMS Sale to South Korea

 

March 7, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Republic of Korea (ROK) has requested to buy five (5) BQM-177A Subsonic Sea-Skimming Aerial Targets (SSAT) for KDX-III Batch-II AEGIS Class Destroyers. Also included are GQM-163 target drones; classified books and other publications (technical and non-technical); test support; technical documentation; personnel training; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $170.6 million. The principal contractor for the BQM-177A SSAT will be Kratos Defense, Sacramento, CA, and Fort Walton Beach, FL. The principal contractor for the GQM-163A target drones will be Northrop Grumman, Chandler, AZ. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/republic-korea-subsonic-sea-skimming-aerial-targets-kdx-iii-batch-ii

 

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DSCA Notifies Congress Of Potential FMS Sale to South Korea

 

March 8, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Republic of Korea (ROK) has requested to buy six (6) T-700 GE 401C or 401D engines. Also included are spare engine containers; spare and repair parts; ferry support; publications and technical documentation; personnel training and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $350 million. The principal contractor will be the General Electric Company, located in Lynn, MA. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/republic-korea-engines-and-sustainment-mh-60r-multi-mission

 

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DSCA Notifies Congress Of Potential FMS Sale to North Macedonia

 

March 8, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of North Macedonia has requested to buy an additional eighteen (18) M1278A1/A2 Joint Light Tactical Vehicle (JLTV) Heavy Gun Carriers (HGC); and seven (7) M1280A1/A2 Joint Light Tactical Vehicle (JLTV) General Purpose (GP) that will be added to a previously implemented case whose value was under the congressional notification threshold. The original Foreign Military Sales (FMS) case, valued at $78.54 million ($23.16 million in MDE), included a total of seventy-one (71) JLTVs, consisting of forty-eight (48) M1278A1/A2 JLTVs HGC; seventeen (17) M1280A1/A2 JLTVs GP; and six (6) M1281A1/A2 JLTVs Close Combat Weapons Carrier (CCWC). This notification is for a combined total of sixty-six (66) M1278A1/A2 JLTV HGC; twenty-four (24) M1280A1/A2 JLTV GP; and six (6) M1281A1/A2 JLTV CCWC. Also included are Common Remotely Operated Weapon Stations (CROWS); CROWS spare parts; CROWS Basic Issue Items (BII) – Boresight Kit Components; CROWS packaging and handling; CROWS installation and training; M2A1 machine guns with support equipment; MK19 Mod III with support equipment; M240B machine guns with support equipment; MK93 weapon mount; Driver’s Visor Enhancer (DVE); Maintenance Tool Set Toughbook Laptops; high frequency radios; communications equipment; Defense Advanced Global Positioning System Receivers (DAGR) with Selective Availability Anti-Spoofing Modules (SAASM) and support equipment; JLTV kits; Vehicle Integration kits; LCD 4.0; spare and repair parts; Supplemental Common Tool Kit (SCTK); Special Tools and Test Equipment (STTE); Objective Gunner Protection Kit (OGPK); Javelin Integration Bracket Kit; turret rings and hatches; technical manuals and publications; New Equipment Training (NET); U.S. Government and contractor technical engineering, logistics, and personnel services; JLTV Field Service Representative support; JLTV integration support, and other related elements of logistics and program support. The estimated total cost is $111 million. The principal contractors will be Oshkosh Defense, Oshkosh, WI; AM General, Auburn Hills, MI; Leonardo DRS, West Plains, MO, and L3Harris, Melbourne, FL. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/north-macedonia-joint-light-tactical-vehicles

 

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DSCA Notifies Congress Of Potential FMS Sale to Poland

 

March 12, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Poland has requested to buy two hundred thirty-two (232) AIM-9X Sidewinder Block II Tactical Missiles and sixteen (16) AIM-9X Sidewinder Block II Tactical Missile Guidance Units. Also included are missile containers; training aids; active optical target detectors; spares; support equipment; missile support; U.S. Government and contractor technical assistance; and other related elements of logistics and program support. The estimated total cost is $219.1 million. The principal contractor will be RTX Corporation, Tucson, AZ. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/poland-aim-9x-block-ii-sidewinder-missiles

 

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DSCA Notifies Congress Of Potential FMS Sale to Poland

 

March 12, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Poland has requested to buy up to seven hundred forty-five (745) AIM-120C-8 Advanced Medium Range Air-to-Air Missiles (AMRAAM), up to sixteen (16) AIM-120C-8 AMRAAM guidance sections, and fifty (50) LAU-129 Guided Missile Launchers. Also included are AIM-120 Captive Air Training Missiles, missile containers, and control section spares; Common Munitions Built-in-Test Reprogramming Equipment; ADU-891 Adapter Group Test Sets; munitions support and support equipment; spare and repair parts, consumables, accessories, and repair and return support; contract logistics support; classified software delivery and support; classified and unclassified publications and technical documentation; personnel training and training support; transportation support; studies and surveys; U.S. Government and contractor engineering, technical, and logistical support services; and other related elements of logistics and program support. The estimated total cost is $1.69 billion. The principal contractor will be RTX Corporation, Tucson, AZ. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/poland-aim-120c-8-advanced-medium-range-air-air-missiles

 

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DSCA Notifies Congress Of Potential FMS Sale to Poland

 

March 12, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Poland has requested to buy up to eight hundred twenty-one (821) AGM-158B-2 Joint Air-to-Surface Standoff Missiles with Extended Range (JASSM-ER) All-Up-Rounds. Also included are AGM-158 JASSM classified test equipment; weapon system support; integration and test support and equipment; classified software delivery and support; unclassified publications and technical documentation; transportation; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $1.77 billion. The principal contractor will be Lockheed Martin, Orlando, FL. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/poland-agm-158b-2-joint-air-surface-standoff-missile-extended-range

 

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DSCA Notifies Congress Of Potential FMS Sale to Italy

 

March 15, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Italy has requested to buy twenty-eight (28) AIM-9X Sidewinder Block II+ Tactical Missiles; four (4) AIM-9X Block II+ Tactical Guidance Units; eight (8) AIM-9X Captive Air Training Missiles (CATM); and two (2) AIM-9X CATM Guidance Units that will be added to previously implemented cases whose values were under the congressional notification threshold. The original Foreign Military Sales cases, valued at $34.1 million ($24.1 million in MDE) and $17.6 million ($9.7 million in MDE), respectively, included a total of thirty-eight (38) AIM-9X Sidewinder Block II+ Tactical Missiles; three (3) AIM-9X Block II+ Tactical Guidance Units; sixteen (16) AIM-9X CATM; and two (2) AIM-9X CATM Guidance Units. This notification is for a combined total of sixty-six (66) AIM-9X Sidewinder Block II+ Tactical Missiles; seven (7) AIM-9X Block II+ Tactical Guidance Units; twenty-four (24) AIM-9X CATM; and four (4) AIM-9X CATM Guidance Units. Also included are active optical target detectors; containers; personnel training and training equipment; classified and unclassified publications and technical documents; warranties; U.S. Government engineering, technical, and logistics support services; and other related elements of logistics and program support. The estimated total cost is $90.6 million. The principal contractor will be RTX Corporation, located in Arlington, VA. There are no known offset agreements proposed in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/italy-aim-9x-sidewinder-missiles

 

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DSCA Notifies Congress Of Potential FMS Sale to Bahrain

 

March 19, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Bahrain has requested to buy fifty (50) M1A2 SEPv3 Abrams Main Battle Tanks; four (4) M88A2 HERCULES Combat Recovery Vehicles; eight (8) M1110 Joint Assault Bridges; eight (8) M1150 Assault Breacher Vehicles; eight (8) Heavy Assault Scissor Bridge (HASB); one hundred (100) M240 Coaxial 7.62mm machine guns; three (3) AGT1500 Gas Turbine engines; six thousand (6,000) 120mm M1002 Target Practice Multipurpose Tracer (TPMP-T) projectiles; and five thousand seven hundred sixty (5,760) 120mm M1147 High Explosive Multipurpose Tracers. Also included are M2A1 .50 caliber machine guns; Common Remote Operated Weapons Station Low Profile (CROWS-LP); Forward Repair System; M250 smoke grenade launchers; service and training ammunition; M1300/M1302 Enhanced Heavy Equipment Transporter System (EHETS); M978A4 Heavy Expanded Mobility Tactical Truck (HEMTT) tanker and Load Handling System (LHS); M074A1 Palletized Load Systems and trailers and flat racks; support and test equipment; integration and test support; spare and repair parts; Special Tools and Test Equipment (STTE); communications equipment; Selective Availability Anti-Spoofing Module (SAASM)-based Global Positioning System (GPS) receivers; software delivery and support; Identification Friend or Foe (IFF) equipment; publications and technical manuals; maintenance trainers; training equipment; U.S. Government and contractor engineering, technical, and logistics support services; Next Generation Automatic Test System (NGATS); and other related elements of logistics and program support. The estimated total cost is $2.2 billion. The principal contractors will be General Dynamics Land Systems, Sterling Heights, MI; BAE Systems, York, PA; Leonardo DRS, Arlington, VA; Honeywell Aerospace, Phoenix, AZ; RTX Corporation, McKinney, TX; and Lockheed Martin, Orlando, FL. The purchaser typically requests offsets. Any offset agreement will be defined in negotiations between the purchaser and the contractor.

 

https://www.dsca.mil/press-media/major-arms-sales/bahrain-m1a2-abrams-main-battle-tanks

 

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DSCA Notifies Congress Of Potential FMS Sale to Morocco

 

March 19, 2024: The U.S. Department of Defense's Defense Security Cooperation Agency (DSCA) has notified Congress that The Government of Morocco has requested to buy six hundred twelve (612) Javelin FGM-148F missiles (includes twelve (12) fly-to-buy missiles) and two hundred (200) Javelin Lightweight Command Launch Units (LWCLUs). Also included are missile simulation rounds; Javelin support equipment; hand and measuring tools; books and publications; power plus distribution equipment; component parts and support equipment; life cycle support and other technical assistance; gunner training; ammunition officer’s training; System Integration and Checkout (SICO); maintenance training; Tactical Aviation and Ground Munitions (TAGM); and other related elements of logistics and program support. The total estimated cost is $260 million. The prime contractors will be the Javelin Joint Venture between Lockheed Martin in Orlando, FL, and RTX Corporation in Tucson, AZ. There are no known offset agreements in connection with this potential sale.

 

https://www.dsca.mil/press-media/major-arms-sales/morocco-javelin-missiles

 

 

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U.S. Department of Commerce, Bureau of Industry and Security (BIS)

 

 

Clarification of Controls on Radiation Hardened Integrated Circuits and Expansion of License Exception GOV

 

March 13, 2024: 89 Fed. Reg. 18353: The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to clarify controls on radiation hardened integrated circuits, including controls on computer and telecommunications equipment incorporating such radiation hardened integrated circuits. This rule also addresses certain scenarios that apply to certain integrated circuits acquired, tested, or otherwise used by or for the United States Government and affirms the availability of License Exception GOV for such items when pursuant to an official written request or directive from the Department of Defense or the Department of Energy. Lastly, this rule expands the availability of License Exception GOV for microelectronics items being exported, reexported, or transferred (in-country) in furtherance of a contract between the exporter, reexporter, or transferor and a department or agency of the U.S. Government when the contract provides for the export, reexport, transfer (in-country) of the item by the exporter, reexporter, or transferor in order to remove export control obstacles for official business of the U.S. Government, including the Department of Energy and the Department of Defense.

 

https://www.federalregister.gov/documents/2024/03/13/2024-05267/clarification-of-controls-on-radiation-hardened-integrated-circuits-and-expansion-of-license

 

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Commerce Updates Rules To Further Restrict Exports To Nicaragua Due To Foreign Policy Concerns

 

March 15, 2024: 89 Fed. Reg. 18780: U.S. Commerce Department’s Bureau of Industry and Security (BIS) published revisions to the Export Administration Regulations (EAR) to apply more restrictive treatment to exports and reexports to Nicaragua of items subject to the EAR.  This action is consistent with the State Department’s recent addition of Nicaragua to the list of proscribed countries under Section 126.1 of the International Traffic in Arms Regulations. BIS’s amendments also address concerns regarding the Nicaraguan Government’s human rights abuses against citizens and civil society groups, as well as the government’s continuing military and security cooperation with Russia. Specifically, BIS is moving Nicaragua from Country Group B to Country Group D:5, a more restrictive country grouping, applying a stricter licensing policy for items controlled for national security reasons, and making the country subject to ‘military end use’ and ‘military end user’ restrictions.

 

https://www.bis.doc.gov/index.php/about-bis/newsroom/press-releases and

https://www.bis.doc.gov/index.php/component/docman/?task=doc_download&gid=3463

 

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BIS Imposes Stricter End-User Controls: Ensuring Consistency with OFAC Programs

 

March 20, 2024: 89 Fed. Reg. 20107: The U.S. Commerce Department’s Bureau of Industry and Security (BIS) released a final rule to impose additional restrictions under the Export Administration Regulations (EAR) on persons identified under fourteen sanctions programs, on the List of Specially Designated Nationals and Blocked Persons (SDN List) maintained by the Department of the Treasury’s Office of Foreign Assets Control (OFAC). This action builds on long-standing end-user restrictions under the EAR.

 

While the EAR has for many years restricted the export, reexport, and transfer (in-country) transactions involving certain persons and entities identified on the SDN List or pursuant to certain statutory authorities, this rule ensures that persons and entities blocked under fourteen OFAC sanctions programs will also automatically be subject to stringent export, reexport, and transfer (in-country) controls under the EAR. The fourteen OFAC sanctions programs consist of:

 

  • Seven Executive Orders related to Russia’s harmful foreign activities, including its aggression in Ukraine dating back to its 2014 annexation of Crimea as well as the recent further invasion in 2022 and the undermining of democratic processes or institutions in Belarus (EOs 13405, 13660, 13661, 13662, 13685, 14024, and 14038);
  • Two programs related to terrorism (Foreign Terrorist Organizations Sanctions Regulations and Global Terrorism Sanctions Regulations);
  • The Weapons of Mass Destruction Proliferators Sanctions Regulations; and Four programs related to narcotics trafficking and other criminal networks (EOs 13581 and 1 14059, the Narcotics Trafficking Sanctions Regulations, and the Foreign Narcotics Kingpin Sanctions Regulations)

 

https://www.bis.doc.gov/index.php/component/docman/?task=doc_download&gid=3466 and

https://www.bis.doc.gov/index.php/about-bis/newsroom/press-releases and

https://www.federalregister.gov/documents/2024/03/21/2024-06067/export-administration-regulations-end-user-controls-imposition-of-restrictions-on-certain-persons

 

 

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BIS Updated Website

 

March 20, 2024: The Bureau of Industry and Security (BIS) has moved websites. You can now find it at https://www.bis.gov/

 

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BIS ANNUAL Update – Assistant Secretary Speech Highlights

 

March 28, 2024: Assistant Secretary for Export Enforcement Matthew S. Axelrod gave BIS’s 2024 update on export controls and policy. He highlighted 4 key actions taken by BIS as follows:

 

  1. Updated guidance for freight forwarders (including antiboycott guidance) is on the BIS website.

 

  1. A new “Don't Let This Happen to You” (enforcement action summary document) packet is available on the BIS website. This captures many new actions since the Russian invasion of Ukraine.

 

  1. A list of parties requiring engagement with a foreign boycott is now available on the BIS website. This list was created from data provided in response to a new field on the OAC antiboycott reporting form (the field was added to the form last year).
  2. U.S. companies identified as having certain risky counterparties by BIS (based on, it seems, AES data) are being sent "red flag letters." These letters now demonstrate how those counterparties are risky by providing "commercially available datasets" identifying those counterparties (over 600 foreign companies) as continuing to export to Russia. Contacted exporters are being encouraged not to export to these potentially diversionary parties. 20 companies have received these notices so far.

 

Additional Facts:

 

  • Russia and China prohibited diversion of US goods to these countries continue to be a primary focus for BIS.

 

  • In 2023, BIS received over 1,100 license application for exports to Russia, the majority for EAR99 medical products. The agency is now working on developing a License Exception to simplify the process for exporters.
  • BIS could soon consider controls on exports of EAR99 software to Russia to align with international counterparts.

 

  • Publication of a new Advanced Computing Semiconductor clarifications and conforming changes rule is imminent.

 

 

  • BIS is now sending letters to U.S. companies that identify their foreign customers that have been determined to be exporting high-priority items to Russia.

 

https://www.bis.gov/speeches/remarks-prepared-delivery-assistant-secretary-export-enforcement-matthew-s-axelrod-biss and

https://www.bis.doc.gov/index.php/documents/enforcement/1005-don-t-let-this-happen-to-you-1/file

 

See below for more expanded articles on some of the update.

 

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BIS Updates Freight Forwarder Guidance And Best Practices

 

March 28, 2024: the Department of Commerce’s Bureau of Industry and Security (BIS) published a document containing updated guidance and best practices for freight forwarders and exporters who use freight forwarders to help them ensure compliance with U.S. export controls and regulatory requirements.

 

The freight forwarding community has a key role and obligation in securing the global supply chain and stemming the flow of illegal exports. Fulfilling this role helps to prevent activities contrary to U.S. national security and foreign policy interests, including the proliferation of weapons of mass destruction, destabilizing military activities, and the enabling of human rights abuses. The guidance and best practices document contains discussions on: freight forwarder roles and responsibilities; responsibilities with respect to routed and non-routed exports; expectations of the exporter or U.S. principal party in interest (USPPI); considerations in selecting a freight forwarder; how the antiboycott regulations apply to freight forwarders; and red flags specific to freight forwarders and USPPIs.

 

https://www.bis.gov/press-release/bis-updates-freight-forwarder-guidance-and-best-practices and

https://www.bis.doc.gov/index.php/all-articles/24-compliance-a-training/export-management-a-compliance/48-freight-forwarder-guidance

 

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BIS Issues New Resources To Facilitate Antiboycott Compliance

 

March 28, 2024: The Department of Commerce’s Bureau of Industry and Security (BIS) published a new resource for companies, financial institutions, freight forwarders, and others to help them identify boycott-related requests they may receive during the regular course of business. The resource is a public list of entities who have been identified as having made a boycott-related request in reports received by BIS. The list is posted on the Office of Antiboycott Compliance (OAC) webpage with the objective of helping U.S. persons comply with the antiboycott regulations set forth in Part 760 of the Export Administration Regulations, 15 CFR Parts 730-774 (EAR).

 

Each entity on this list has been recently reported to BIS on a boycott request report form, as required by Section 760.5 of the EAR, as having made a boycott-related request in connection with a transaction in the interstate or foreign commerce of the United States. The list is not exhaustive and will be updated quarterly. If you believe that you have been listed in error or would like to discuss the listing, please contact the OAC.

 

U.S. persons are encouraged to diligently review transaction documents from all sources, but especially transaction documents with or involving these listed parties – given that they’ve been identified by others as a source of boycott requests – to identify possible boycott-related language and to determine whether U.S. persons have a reporting requirement to BIS pursuant to Part 760 of the EAR. The boycott request reporting form can be found here.

 

https://www.bis.gov/press-release/bis-issues-new-resource-facilitate-antiboycott-compliance and

https://www.bis.doc.gov/index.php/documents/policy-guidance/3301-strengthening-antiboycott-reporting-and-compliance/file and

https://www.bis.doc.gov/index.php/component/docman/?task=doc_download&gid=3485 and

https://www.bis.doc.gov/index.php/enforcement/oac?id=300

 

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U.S. Census Bureau

 

Tips on How to Resolve AES Response Messages

 

March 18, 2024: When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  Though the shipment is accepted, the filer may still receive a Verify Message, Compliance Alert, Informational Message or Warning Message along with their ITN.  However, if the shipment is rejected, a Fatal Error notification is received and must be corrected to receive a valid ITN.

 

To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

 

Response Code: 118

Narrative: Carrier Code Missing

Severity: Fatal

Reason: The Carrier ID (SCAC/ IATA) is missing.

Resolution: The Carrier ID identifies the carrier that transports the goods out of the United States. The Standard Carrier Alpha Code (SCAC) is valid for vessel, rail, and truck shipments. The International Air Transport Association (IATA) code is valid for air shipments.

Verify the Carrier ID and Mode of Transport, correct the shipment and resubmit.

 

Response Code: 649

Narrative: Quantity 1 Cannot Exceed Shipping Weight

Severity: Fatal

Reason: The Unit of Measure 1 for the reported Schedule B/HTS requires kilograms and Quantity 1 exceeds the Shipping Weight.

Resolution: For the Schedule B/HTS reported, Quantity 1 must be reported in kilograms. Quantity 1 in kilograms cannot exceed the Shipping Weight.

Verify the Quantity 1 and Shipping Weight, correct the shipment and resubmit.

For a complete list of AES Response Codes, their reasons, and resolutions, see Appendix A – Commodity Filing Response Messages.

 

Appendix A – Commodity Filing Response Messages

 

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NOTICE: Expansion of Data Elements in the AES 203 Report

 

March 20, 2024: There are three different export reports provided in the Automated Commercial Environment (ACE) system: the Automated Export System (AES) 201 Filer Report, the AES 202 USPPI Report and the AES 203 USPPI Routed Report.  At the request of the trade community, the U.S. Census Bureau along with the U.S. Customs and Border Protection has expanded the AES 203 Report to include ten additional data elements.  The Census Bureau authorizes that the additional data elements do not compromise the competitiveness between the USPPI and the FPPI, and the expanded report provides a greater visibility to users to measure compliance with routed export transactions.  The following data elements will be added to AES 203 Report effective March 22, 2024:

  • USPPI Contact Name
  • USPPI Contact Phone
  • Forwarder Company Name
  • Forwarder Contact Name
  • Forwarder Contact Phone
  • Unit of Measure (Quantity 1)
  • Unit of Measure (Quantity 2)
  • Late File Indicator
  • License Type Code
  • License Number

For more information or questions regarding AES Export Reports, please contact the U.S. Census Bureau's Data User and Trade Outreach Branch at 1-800-549-0595, Option 5 or through email at exportreports@census.gov.

 

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New BIS License Types C67 ((NAC) Notification Required)) and C68 (NAC) (No Notification Required) – for exports authorized under License Exception Notified Advanced Computing (NAC)

 

March 22, 2024: The Department of Commerce, Bureau of Industry and Security (BIS) published an interim final rule with an effective date of October 17, 2023 for most provisions.  Among other actions, this interim final rule established a new License Exception Notified Advanced Computing (NAC) in § 740.8 of the Export Administrations Regulations (EAR), 15 C.F.R. parts 730 - 774. This license exception as specified under the paragraph (a) (Eligibility requirements) authorizes the export, reexport, and transfer (in-country) of any item classified in ECCNs 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a.

New License Code C67 (NAC) (Notification required)

An update has been made to AES to create License Type Code C67 “Notified Advanced Computing Authorized” (NAC) (Notification required).

An update has been made to AES to create new License Code C67 “Notified Advanced Computing” (NAC), which authorizes certain exports and reexports of any item classified in ECCNs 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a.  The notification requirements under NAC are limited to exports and reexports to Macau or any destination specified in Country Group D:5, or to an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, wherever located.   Transactions under NAC must meet all of the applicable criteria identified under paragraph § 740.8(a) and must comply with the restrictions set forth in paragraph § 740.8(b).

The full terms of License Exception NAC are described in § 740.8.

AES filers must adhere to the following new reporting when using C67 (NAC) (Notification required) to prevent the return of fatal errors from AES:

  • Report License Code: C67 Notified Advanced Computing (NAC) (Notification required), if advanced notification was required.
  • Report License Number: Report the NAC confirmation number “(A######)” received from BIS in the license number block.
  • Allowable ECCNs: 3A090, 4A090, 3A001, 4A003, 4A004, 4A005, 5A002, 5A004, 5A992, 5D002, or 5D992.
  • Allowable countries: All destinations.
  • “.z” must be entered as the first characters to appear in the Commodity Description block for 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z.
  • Allowable Export Information Codes: All except UG
  • Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)

New License Code C68 (NAC) (NO notification required)

An update has been made to AES to create License Type Code C68 “Notified Advanced Computing Authorized” (NAC) (NO notification required)

An update has been made to AES to create new License Code C68 “Notified Advanced Computing” (NAC) (NO notification required), which authorizes certain exports, reexports, and transfers (in-country) of any item classified in ECCNs 3A090, 4A090, 3A001z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z to destinations specified in Country Group D:1 and D:4, and transfers (in-country) to Macau and destinations in Country Group D:5, for which no notification is required.  Transactions under NAC must meet all of the applicable criteria identified under paragraph § 740.8(a) and must comply with the restrictions set forth in paragraph § 740.8(b).

The full terms of License Exception NAC are described in § 740.8.

AES filers must adhere to the following new reporting when using C68 (NAC) (No notification required) to prevent the return of fatal errors from AES:

  • Report License Code: C68 Notified Advanced Computing (NAC) (No notification required), if no advanced notification was required.
  • Report License Number: Report “NAC” in the license number block.
  • Allowable ECCNs: 3A090, 4A090, 3A001, 4A003, 4A004, 4A005, 5A002, 5A004, 5A992, 5D002, or 5D992.
  • Allowable countries: Destinations specified in Country Groups D:1, D:4, and D:5.
  • “.z” must be entered as the first characters to appear in the Commodity Description block for 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z.
  • Allowable Export Information Codes: All except UG
  • Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)

https://www.bis.doc.gov/index.php/documents/federal-register-notices-1/3369-88-fr-73458-acs-ifr-10-25-23/file

 

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The U.S. Department of Justice, the U.S. Department of Commerce, and the U.S. Department of the Treasury’s Office of Foreign Assets Control

 

Publication of Tri-Seal Compliance Note

 

March 6, 2024: The U.S. Department of Justice, the U.S. Department of Commerce, and the U.S. Department of the Treasury’s Office of Foreign Assets Control, have issued a Tri-Seal Compliance Note: Obligations of foreign-based persons to comply with U.S. sanctions and export control laws.

 

https://ofac.treasury.gov/recent-actions/20240306_33 and

https://ofac.treasury.gov/media/932746/download?inline

 

LATEST SANCTIONS FINES & PENALTIES

 

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don't let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

 

Fines and Penalties

 

March 1, 2024: Maxim Marchenko, a Russian citizen who has resided in Hong Kong, pleaded guilty to charges of money laundering and smuggling goods from the United States. Marchenko was arrested in September 2023.

 

Marchenko and two co-conspirators operated an illicit procurement network in Russia, Hong Kong, and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, on behalf of Russia-based end users. To carry out this scheme, Marchenko and his co-conspirators used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia.

 

The technology that Marchenko and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night-vision googles, thermal optics and other weapon systems.

 

https://www.justice.gov/opa/pr/russian-international-money-launderer-pleads-guilty-illicitly-procuring-large-quantities-us

 

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March 5, 2024: A federal criminal complaint was unsealed in the District of Arizona charging Abraham Chol Keech, 44, of Utah, and Peter Biar Ajak, 40, of Maryland, with conspiring to purchase and illegally export millions of dollars’ worth of fully automatic rifles, grenade launchers, Stinger missile systems, hand grenades, sniper rifles, ammunition, and other export-controlled items from the United States to South Sudan, in violation of the Arms Export Control Act (AECA) and the Export Control Reform Act (ECRA).

 

https://www.justice.gov/opa/pr/two-defendants-arrested-conspiring-illegally-export-weapons-south-sudan

 

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March 7, 2024: A federal grand jury indicted Leon Ding, charging him with four counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to artificial intelligence (AI) technology. Ding, 38, a national of the People’s Republic of China and resident of Newark, California, transferred sensitive Google trade secrets and other confidential information from Google’s network to his personal account while secretly affiliating himself with PRC-based companies in the AI industry.

 

https://www.justice.gov/opa/pr/chinese-national-residing-california-arrested-theft-artificial-intelligence-related-trade

 

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March 7, 2024: Korbein Schultz, a U.S. Army soldier and intelligence analyst, was arrested at Fort Campbell following an indictment by a federal grand jury charging him with conspiracy to obtain and disclose national defense information, exporting technical data related to defense articles without a license, conspiracy to export defense articles without a license, and bribery of a public official.

 

During the course of the conspiracy, Schultz also sent Conspirator A three documents that violated the Arms Export Control Act (AECA). The three documents included an Air Force Tactics Techniques and Procedures manual for the HH-60W helicopter, an Air Force Tactics Techniques and Procedures manual for the F22-A fighter aircraft, and an Air Force Tactics Techniques and Procedures manual for intercontinental ballistic missiles.

 

https://www.justice.gov/opa/pr/us-army-intelligence-analyst-arrested-and-charged-conspiracy-obtain-and-disclose-national and

https://www.justice.gov/opa/media/1341561/dl?inline

 

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March 14, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a settlement with EFG International AG, a Switzerland-based global private banking group.  EFG has agreed to pay $3,740,442 to settle its potential civil liability for processing 873 securities transactions in apparent violation of the Cuban Asset Control Regulations, the Kingpin Act, and Executive Order 14024. The settlement amount reflects OFAC’s determination that EFG’s apparent violations were voluntarily self-disclosed and were non-egregious.

 

https://ofac.treasury.gov/media/932766/download?inline

 

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March 20, 2024: 89 Fed. Reg. 19799: On May 12, 2022, in the U.S. District Court for the District of Arizona, Thomas Allen Glomski (“Glomski”) was convicted of violating 18 U.S.C. 371 and 18 U.S.C. 554(a). Specifically, Glomski was convicted of conspiring to smuggle and smuggling ammunition from the United States to Mexico. As a result of his conviction, the Court sentenced Glomski to time served, 36 months of supervised release, and a $200 special assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05818/in-the-matter-of-thomas-allen-glomski-8030-e-lakeside-parkway-apt-2207-tucson-az-85730-order-denying

 

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March 20, 2024: 89 Fed. Reg. 19801: On January 17, 2023, in the U.S. District Court for the Southern District of Texas, Oziel Zuniga (“Zuniga”) was convicted of violating 18 U.S.C. 554(a). Specifically, Zuniga was convicted of smuggling a Romarm/Cugir, Model Draco, 7.62x39 mm caliber pistol from the United States to Mexico. As a result of his conviction, the Court sentenced Zuniga to 51 months of imprisonment, three years of supervised release, and a $100 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05808/in-the-matter-of-oziel-zuniga-inmate-number-00783-579-inmate-number-00783-579-fci-beaumont-low

 

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March 20, 2024: 89 Fed. Reg. 19805: On February 14, 2022, in the U.S. District Court for the District of Arizona, Alejandro Valles (“Valles”) was convicted of violating 18 U.S.C. 554(a). Specifically, Valles was convicted of smuggling a M203 40mm grenade launcher barrel from the United States to Mexico. As a result of his conviction, the Court sentenced Valles to 15 months of imprisonment with credit for time served, three years of supervised release, and a special $100 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05811/in-the-matter-of-alejandro-valles-507-19-n-eagle-eye-rd-aguila-az-85320-and-po-box-744-aguila-az

 

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March 20, 2024: 89 Fed. Reg. 19805: On June 26, 2023, in the U.S. District Court for the Central District of California, Igor Panchernikov (“Panchernikov”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C 2778) (“AECA”). Specifically, Panchernikov was convicted of conspiring to knowingly and willfully export from the United States to Russia defense articles, including thermal imaging riflescopes and night vision goggles, that were covered by the United States Munitions List without first obtaining the required license or written approval from United States Department of State. As a result of his conviction, the Court sentenced Panchernikov to 27 months in prison, one year of supervised release and a $100 special assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05814/in-the-matter-of-igor-panchernikov-13870-ellis-park-trl-corona-ca-92880-3312-order-denying-export

 

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March 20, 2024: 89 Fed. Reg. 19800: On January 19, 2023, in the U.S. District Court for the Southern District of Miami, Hendel Laurent (“Laurent”) was convicted of violating 50 U.S.C. 4819. Specifically, Laurent was convicted of knowingly and willfully attempting to export and attempting to cause the export of firearms and related commodities, specifically, non-automatic and semi-automatic firearms equal to .50 caliber (12.7 mm) or less, and detachable magazines with a capacity of greater than 16 rounds specially designed for those firearms, from the United States to Haiti, without first having obtained the required licenses from the U.S. Department of Commerce. As a result of his conviction, the Court sentenced Laurent to 46 months of imprisonment, two years of supervised release and a $100 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05812/in-the-matter-of-hendel-laurent-inmate-number-13937-510-fpc-pensacola-federal-correctional

 

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March 20, 2024: 89 Fed. Reg. 19802: On June 21, 2023, in the U.S. District Court for the District of Colorado, Victor Avalos-Tavera (“Avalos-Tavera”) was convicted of violating 18 U.S.C. 554(a). Specifically, Avalos-Tavera was convicted of smuggling from the United States to Mexico several firearms. As a result of his conviction, the Court sentenced Avalos-Tavera to 57 months of imprisonment and a $200 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05815/in-the-matter-of-victor-avalos-tavera-aka-leonardo-torres-avalos-inmate-number-34749-013-fci-herlong

 

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March 20, 2024: 89 Fed. Reg. 19803: On September 24, 2019, in the U.S. District Court for the District of Utah, Ron Rockwell Hansen (“Hansen”) was convicted of violating 18 U.S.C. 794. Specifically, Hansen was convicted of attempting espionage by knowingly and unlawfully attempting to communicate, deliver, and transmit directly and indirectly to the People's Republic of China, documents and information relating to the national defense of the United States including documents marked as SECRET//NOFORN that related to military readiness in a particular region, with intent and reason to believe that such documents and information would be used to the injury of the United States and to the advantage of any foreign nation. As a result of his conviction, the Court sentenced Hansen to 10 years of imprisonment, 60 months of supervised release and a $100 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05810/in-the-matter-of-ron-rockwell-hansen-inmate-number-49078-086-fci-safford-federal-correctional

 

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March 20, 2024: 89 Fed. Reg. 19804: On April 13, 2023, in the U.S. District Court for the Southern District of Texas, Noe De Hoyos (“Hoyos”) was convicted of violating 18 U.S.C. 554(a). Specifically, Hoyos was convicted of smuggling from the United States to Mexico various firearms, various firearms accessories and various ammunition without the required license or written approval from the Department. As a result of his conviction, the Court sentenced Hoyos to 51 months of imprisonment, three years of supervised release, and a $100 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05816/in-the-matter-of-noe-de-hoyos-inmate-number-27637-509-fci-beaumont-medium-federal-correctional

 

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March 20, 2024: 89 Fed. Reg. 19806: On December 19, 2022, in the U.S. District Court for the Western District of Texas, Martin Najera (“Najera”) was convicted of violating 18 U.S.C. 371 and 18 U.S.C. 554(a). Specifically, Najera was convicted of conspiring to smuggle firearms from the United States to Mexico. As a result of his conviction, the Court sentenced Najera to 37 months of imprisonment, three years of supervised release, restitution of $7,513.70 and a $100 special assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05817/in-the-matter-of-martin-najera-inmate-number-00416-510-fci-texarkana-federal-correctional

 

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March 20, 2024: 89 Fed. Reg. 19807: On July 19, 2022, in the U.S. District Court for the Southern District of Texas, Jonathan Guadalupe Almanza (“Almanza”) was convicted of violating 18 U.S.C. 554(a). Specifically, Almanza was convicted of smuggling one Glock 17 GEN5 pistol with three magazines, one Stoeger 9mm STR–9 pistol with one magazine, and one Springfield 9mm Hellcat pistol with two magazines without a license or written approval from the United States Department of Commerce. As a result of his conviction, the Court sentenced Almanza to 38 months of imprisonment, three years of supervised release, and $100 assessment.

 

https://www.federalregister.gov/documents/2024/03/20/2024-05809/in-the-matter-of-jonathan-guadalupe-almanza-311-sally-ave-san-juan-tx-78589-order-denying-export

 

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March 26, 2024: 89 Fed. Reg. 20942: On November 29, 2022, in the U.S. District Court for the Eastern District of Texas, Michael David Mummert (“Mummert”) was convicted of violating 18 U.S.C. 371 and 18 U.S.C. 554. Specifically, Mummert was convicted of conspiring to smuggle firearms and firearms parts from the United States to Mexico without first having obtained the required export license and authorization from the United States Department of State or United States Department of Commerce. As a result of his conviction, the Court sentenced him to 36 months in prison, three years of supervised release, a $100 assessment and a $10,000 fine.

 

https://www.federalregister.gov/documents/2024/03/26/2024-06267/in-the-matter-of-michael-david-mummert-inmate-number-38011-509-us-penitentiary-po-box-1000

 

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March 26, 2024: 89 Fed. Reg. 20943: On April 7, 2023, in the U.S. District Court for the Southern District of New York, Niloufar Bahadorifar (“Bahadorifar”), was convicted of violating the International Emergency Economic Powers Act (50 U.S.C 1701, et seq.) (“IEEPA”). Specifically, Bahadorifar was convicted of conspiring to provide services to Iran and the Government of Iran from the United States without first obtaining the required approval from U.S. Department of Treasury, Office of Foreign Assets Control. As a result of her conviction, the Court sentenced Bahadorifar to 48 months of imprisonment, three years of supervised release, and a $200 assessment.

 

https://www.federalregister.gov/documents/2024/03/26/2024-06268/in-the-matter-of-niloufar-bahadorifar-6417-spectrum-irvine-ca-92618-order-denying-export-privileges

 

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March 26, 2024: 89 Fed. Reg. 20943: On August 29, 2022, in the U.S. District Court for the Southern District of Texas, Juan Jose Roque (“Roque”) was convicted of violating 18 U.S.C. 554. Specifically, Roque was convicted of smuggling from the United States to Mexico, 12,800 rounds of 7.62 x 39mm ammunition, 150 rounds of 38 Special ammunition 60 rounds of .223 caliber ammunition and one Stoeger Cougar 9mm pistol, without a license or written approval from the U.S. Department of Commerce. As a result of his conviction, the Court sentenced him to 46 months in prison, and a $100 special assessment.

 

https://www.federalregister.gov/documents/2024/03/26/2024-06266/in-the-matter-of-juan-jose-roque-inmate-number-74029-509-fmc-fort-worth-po-box-15330-fort-worth-tx

 

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March 28, 2024: In a superseding indictment returned by a grand jury, a citizen of the Republic of Latvia was charged with crimes related to a years-long conspiracy to sell sophisticated avionics equipment to Russian companies, in violation of U.S. export laws. The defendant is the third to be arrested and charged in connection with the conspiracy led by a Kansas company and two U.S. nationals.

 

According to the superseding indictment, Oleg Chistyakov, also known as Olegs Čitsjakovs, 55, conspired with U.S. citizens Cyril Gregory Buyanovsky and Douglas Edward Robertson, of Kansas, to facilitate the sale, repair, and shipment of U.S. avionics equipment to customers in Russia and in other countries that operate Russian-built aircraft, including the Federal Security Service of Russia (FSB). Chistyakov was arrested on March 19 near Riga, Latvia, and remains detained pending extradition proceedings. In December 2023, Buyanovsky pleaded guilty to conspiracy and conspiracy to commit money laundering and consented to the forfeiture of over $450,000 worth of avionics equipment and a $50,000 personal forfeiture judgment.

 

https://www.justice.gov/opa/pr/latvian-broker-arrested-allegedly-smuggling-advanced-us-aircraft-technology-russia

 

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March 29, 2024: Fares Abdo Al Eyani, 41, of Oakland, California, was sentenced to 12 months and a day in prison, followed by three years of supervised release, for conspiring to export defense articles and attempting to export defense articles.

 

Court documents establish that the items Al Eyani attempted to export — four firearms, magazines, ammunition, and night-vision rifle scopes — were defense articles prohibited from export without a license by the AECA and the ITAR. Al Eyani did not have a license to export the defense articles.

 

In a separate sentencing, Al Eyani’s wife, Saba Mohsen Dhaifallah, 42, also of Oakland, was sentenced to three years of probation for making false statements to FBI special agents during the investigation of this matter.

 

https://www.justice.gov/opa/pr/california-man-sentenced-attempting-illegally-export-firearms-and-night-vision-rifle-scopes

 

Sanctions

 

Department of the Treasury, Office of Foreign Assets Control (OFAC)

 

March 1, 2024: 89 Fed. Reg. 15744: The Department of the Treasury's Office of Foreign Assets Control (OFAC) amended the “Darfur Sanctions Regulations”.  The newly updated “Sudan Stabilization Sanctions Regulations,” still found at 31 CFR part 546, implement Executive Order 14098 of May 4, 2023, as well as additional administrative updates.

 

https://ofac.treasury.gov/media/932691/download?inline and

https://ofac.treasury.gov/recent-actions/20240301

 

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March 1, 2024: 89 Fed. Reg. 15740: OFAC published a final rule to update terms across several sanctions programs’ regulations, to reflect current office names and email addresses, as well as to update grammatical terminology.

 

https://ofac.treasury.gov/media/932696/download?inline and

https://ofac.treasury.gov/recent-actions/20240301

 

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March 1, 2024: OFAC has published Frequently Asked Question (1167).

 

Question 1167: How does Venezuela General License (GL) 45B differ from Venezuela GL 45A?

 

Answer: On February 29, 2024, OFAC issued Venezuela GL 45B, “Authorizing Certain Repatriation Transactions Involving Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A.,” which narrowed the scope of transactions previously authorized by GL 45A.  GL 45B no longer authorizes transactions ordinarily incident and necessary to non-commercial flights between non-U.S. jurisdictions in the Western Hemisphere and Venezuela that are not exclusively for the purposes of repatriation.

 

https://ofac.treasury.gov/faqs/1167 and

https://ofac.treasury.gov/recent-actions/20240301

 

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March 4, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 11 individuals, including Zimbabwe’s President Emmerson Mnangagwa, and three entities for their involvement in corruption or serious human rights abuse pursuant to E.O. 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

 

The following individuals have been added to OFAC's SDN List:

 

  • Mnangagwa, Auxillia, of Zimbabwe; and
  • Tapfumaneyi, Asher Walter of Zimbabwe.

 

https://home.treasury.gov/news/press-releases/jy2154 and

https://ofac.treasury.gov/media/932741/download?inline and

https://home.treasury.gov/system/files/136/Treasury-2021-sanctions-review.pdf

 

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March 5, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two individuals and five entities associated with the Intellexa Consortium for their role in developing, operating, and distributing commercial spyware technology used to target Americans, including U.S. government officials, journalists, and policy experts. The proliferation of commercial spyware poses distinct and growing security risks to the United States and has been misused by foreign actors to enable human rights abuses and the targeting of dissidents around the world for repression and reprisal.

 

The following individuals have been added to OFAC's SDN List:

 

  • Dillan, Tal Jonathan of Israel; and
  • Hamous, Sara Aleksandra Fayssal of Poland.

 

The following entities have been added to OFAC's SDN List:

 

  • Cytrox Ad of Macedonia;
  • Cytrox Holdings Zartkoruen Mukodo Reszvenytarsasag of Hungary;
  • Intellexa Limited of Ireland;
  • Iyellexa S.A. of Greece; and
  • Thalestris Limited of Ireland.

 

https://ofac.treasury.gov/recent-actions/20240306 and

https://home.treasury.gov/news/press-releases/jy2155

 

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March 6, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) took additional action to target shipments of Iranian commodities undertaken by the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial facilitator Sa’id al-Jamal. This action targeted two Hong Kong- and Marshall Islands-based ship owners and two vessels for their role in shipping commodities on behalf of al-Jamal, and follows a February 27 action targeting a related vessel, the ARTURA. The revenue generated through al-Jamal’s network continues to enable Houthi militant efforts, including ongoing and unprecedented attacks on international maritime commerce in the Red Sea and Gulf of Aden.

 

The following entities have been added to OFAC's SDN List:

 

  • Hongkong Unitop Group Ltd of China; and
  • Reneez Shipping of the Marshall Islands.

 

The following vessels have been added to OFAC's SDN List:

 

  • Eternal Fortune (3E5962) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9230907; MMSI 352003073 (vessel); and
  • Reneez (T8A3663) Crude Oil Tanker Palau flag; Vessel Registration Identification IMO 9232450; MMSI 511100508 (vessel).

 

https://ofac.treasury.gov/recent-actions/20240306 and

https://home.treasury.gov/news/press-releases/jy2159

 

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March 8, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two companies - one in Russia and one in the Central African Republic (CAR) - for their efforts in advancing Russia’s malign activities in CAR. These targets have played an important role enabling the Private Military Company ‘Wagner’ (Wagner Group) and, by extension, the activities of the Russian Federation. Those designated sought monetary gain from illicit natural resource extraction and provided material and financial support to the Wagner Group and other organizations associated with the enterprise of Yevgeniy Prigozhin, the former Wagner Group owner who died in August 2023 in a plane explosion in Russia.

 

The following changes have been made to OFAC's SDN List:

 

  • Bois Rogue Sarlu of Central African Republic; and
  • Limited Liability Company Broker Expert of Russia

 

https://ofac.treasury.gov/recent-actions/20240308 and

https://home.treasury.gov/news/press-releases/jy2164

 

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March 11, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on 16 entities and individuals who compose an expansive business network spanning the Horn of Africa, the United Arab Emirates (UAE), and Cyprus that raises and launders funds for al-Shabaab, a terrorist group affiliated with al-Qa’ida.  Individuals within this network include influential businesspeople in the region that lend financial backing to al-Shabaab, a terrorist group responsible for some of the worst terrorist attacks in East Africa’s modern history.  These attacks have claimed the lives of thousands of innocent civilians.  These individuals and entities are being designated pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorist groups and their enablers.

 

OFAC is also issuing Counter Terrorism General License 29, "Authorizing the Wind Down of Transactions Involving Haleel Commodities LLC”.

 

General License 29: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), that are ordinarily incident and necessary to the wind down of any transaction involving Haleel Commodities LLC (Haleel Commodities), or any entity in which Haleel Commodities owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, April 10, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the GTSR.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Abdullahi, Abdulkadir Omar of Kenya;
  • Awale, Mohamed Jumale Ali of Kenya;
  • Dini, Faysal Yusuf of Kenya;
  • Abdulaziz Yusuf of Somalia;
  • Haydar, Farhan Hussein of Somalia;
  • Hilowle, Omar Sheikh Ali of Somalia;
  • Mahmad, Hassan Abdirahman of Somalia;
  • Momahed, Abdikarin Farah of Somalia; and
  • Robel, Mohammed Artan of Sweden.

 

The following entities have been added to OFAC's SDN List:

 

  • Crown Bus Services Limited of Kenya;
  • Haleel commodities L. L C. of the United Arab Emirates;
  • Haleel commodities limited of Kenya;
  • Haleel commodities ltd. Of Uganda;
  • Haleel finance ltd of Cyprus;
  • Haleel holdings ltd of Cyprus;
  • Haleel ltd of Cyprus; and
  • Qemat Al Najah General Trading L.L.C of the United Arab Emirates .

 

https://ofac.treasury.gov/recent-actions/20240311 and

https://home.treasury.gov/news/press-releases/jy2168 and

https://ofac.treasury.gov/media/932761/download?inline and

https://ofac.treasury.gov/media/932756/download?inline

 

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March 12, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action in coordination with the Kingdom of Bahrain against key Iran-based operatives and a financial facilitator for designated terrorist group Al-Ashtar Brigades. The Department of State designated Al-Ashtar Brigades as a Foreign Terrorist Organization and a Specially Designated Global Terrorist in 2018.

 

The following individuals have been added to OFAC's SDN List:

 

  • Al-Dammami, Hussein Ahmad 'Abdallah Ahmad Hussein of Bahrain;
  • Alshofa, Ali Abdulnabi Ahmed Ebrahim M of Bahrain;
  • Salman, Isa Saleh Isa Mohamed of Bahrain; and
  • Sarhan, Hasan Ahmed Radhi Husain of Bahrain.

 

https://home.treasury.gov/news/press-releases/jy2171 and

https://ofac.treasury.gov/recent-actions/20240312

 

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March 13, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated three individuals who have contributed to Specially Designated National (SDN) and Republika Srpska (RS) President Milorad Dodik’s (Dodik) efforts to undermine the peace and stability of Bosnia and Herzegovina (BiH) by organizing and executing the commemoration of “Republika Srpska Day” (RS Day) on January 9, 2024, an activity determined to be unconstitutional in BiH. These individuals facilitated Dodik’s efforts to undermine the Dayton Peace Agreement (DPA) and the authority of the BiH Constitutional Court and the High Representative.

 

The following individuals have been added to OFAC's SDN List:

 

  • Golic, Srebrenka of Bosnia and Herzegovina;
  • Okuka, Branislav of Bosnia and Herzegovina; and
  • Pajic Basinac, Jelena Banja Luka of Bosnia and Herzegovina.

 

https://ofac.treasury.gov/recent-actions/20240313 and

https://home.treasury.gov/news/press-releases/jy2175

 

*******

 

March 15, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is taking action against Marshall Islands-registered shipping company Vishnu Inc., whose vessel, the LADY SOFIA, is involved in illicit shipments to the People’s Republic of China (PRC) in support of Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Houthi financial facilitator Sa’id al-Jamal, who is sanctioned under U.S. counterterrorism authorities.

 

The following entity has been added to OFAC's SDN List:

 

  • Vishnu Inc of Marshall Islands.

 

The following vessel has been added to OFAC’s SDN List:

 

  • Lady Sofia (3ESB9) Crude Oil Tanker Panama flag; Executive Order 13886; Vessel Registration Identification IMO 9212759; MMSI 371698000 (vessel).

 

 

https://ofac.treasury.gov/recent-actions/20240315 and

https://ofac.treasury.gov/recent-actions

 

*******

 

March 20, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) targeted three procurement networks –– based in Iran, Türkiye, Oman, and Germany –– that have supported Iran’s ballistic missile, nuclear, and defense programs. These networks have procured carbon fiber, epoxy resins, and other missile-applicable goods for Iran’s Islamic Revolutionary Guard Corps Aerospace Force Self Sufficiency Jihad Organization (IRGC ASF SSJO), Ministry of Defense and Armed Forces Logistics (MODAFL), other U.S.-designated entities in Iran’s defense industrial base, and Iran Centrifuge Technology Company (TESA), which is linked to the Atomic Energy Organization of Iran (AEOI).

 

OFAC designated two individuals and two entities for services they provided the Government of the Russian Federation (GoR) in connection with a foreign malign influence campaign, including attempting to impersonate legitimate media outlets.

 

The following individuals have been added to OFAC's SDN List:

 

  • Gambashidze, Ilya Andreevich of Russia;
  • Gok, Mahmut, Istanbul of Turkey;
  • Inanlu, Mitra of Iran;
  • Kanoglu, Hidayet, Rize, of Turkey;
  • Karimi, Maziar of Iran;
  • Shahmari Ghojeh Biklo, Rostam of Iran; and
  • Tupikin, Nikolai Aleksandrovich of Russia.

 

The following entities have been added to OFAC’s SDN List:

 

  • Alborz Organic Material Engineering Company of Iran;
  • Company Group Structura LLC of Russia;
  • DM Gold Kiymelti Madenler Anonim Sirketi of Turkey;
  • Gokler Dis Ticaret Limited Sirketi of Tukey;
  • Klas Kimyasal Urunler Ticaret Limited Sirketi of Turkey;
  • Mahmut Gok Skies Petroleum Dis Ticaret of Turkey;
  • Mazya Alardh Aldhabia LLC of Oman;
  • Mazixon Gmbh and Co KG of Germany;
  • Mazixon Verwaltungs GMBH of Germany;
  • Pishro Mobtaker Peyvand of Iran;
  • Social Design Agency of Russia; and
  • Tit Uluslararasi Nakliyat Deri Tekstil Gida Sanayi Ve Ticaret Limited Sikreti of Turkey.

 

https://ofac.treasury.gov/recent-actions/20240320 and

https://home.treasury.gov/news/press-rleases/jy2194 and

https://home.treasury.gov/news/press-rleases/jy2195

 

*******

 

March 21, 2024:  The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Wendy Carolina Morales Urbina, Nicaragua’s Attorney General, for being complicit in the Ortega-Murillo regime’s oppression. This action, taken pursuant to Executive Order (E.O.) 13851, as amended, targets a key actor in the Nicaraguan regime’s unjust persecution of political prisoners and civil society within the country.

 

In 2018, anti-government protests erupted in Nicaragua, prompting ongoing violent repression by the Ortega-Murillo regime. President Ortega and the Vice President, Rosario Murillo, Ortega’s wife, have consolidated power, suppressed popular protests, incarcerated political opponents, and silenced critical voices in the media or forced them into exile. President Ortega governs with a tight-knit group of trusted figures in the police, the military, and parliament. On February 9, 2023, President Ortega expelled 222 political prisoners and put them on a flight to Washington, D.C. According to the Nicaraguan government, the deportation of the prisoners was intended to protect peace and national security and those freed have been declared traitors who can never serve in Nicaraguan public office. As a result, Nicaragua stripped the 222 former political prisoners of their Nicaraguan citizenship.

 

The following individual has been added to OFAC's SDN List:

 

  • Morales Urbina, Wendy Carolina of Nicaragua.

 

https://ofac.treasury.gov/recent-actions/20240321 and

https://home.treasury.gov/news/press-releases/jy2200

 

*******

March 22, 2024: Deputy Secretary of the Treasury Wally Adeyemo announced, alongside local leaders and law enforcement in Arizona, that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned operatives in a Black Market Peso Exchange (BMPE) scheme to launder millions in illicit fentanyl proceeds for the Sinaloa Cartel. OFAC designated 15 Sinaloa Cartel members—several of whom are fugitives—and six Mexico-based businesses pursuant to Executive Order (E.O.) 14059. The Sinaloa Cartel, which is one of the most notorious and pervasive drug trafficking organizations in the world, is responsible for a significant portion of the illicit fentanyl and other deadly drugs trafficked into the United States.

 

The following individuals have been added to OFAC's SDN List: 

 

  • Garcia Velazco, Jorge Alejandro, of Mexico
  • Gonzalez Cordero, Mayra Gisel, of Mexico
  • Larranaga Herrera, Jesus Norberto of Mexico
  • Leon Valdez, Jesus Manuel of Mexico
  • Lizarraga Martinez, Victor of Mexico
  • Lizarrage Sanchez, Karla Gabriela of Mexico
  • Marin Gonzalez, Arturo D'Artagnan of Mexico
  • Marin Gonzalez, Porthos, of Mexico
  • Nunez Herrera, Alan Gabriel of Mexico
  • Robledo Arredondo, Adilene Mayre of Mexico
  • Robledo Arredondo, Ivan Yarethof Mexico
  • Tirado Andrade, Jesus of Mexico
  • Verduzco Castro, Rolando of Mexico
  • Vergara Meza, Alexis of Mexico
  • Vergara Meza, Edy of Mexico

 

The following entities have been added to OFAC's SDN List: 

 

  • Bufaluss of Mexico
  • Celulandia Taller & Store SLRC of Mexico
  • Dulce Vulcan of Mexico
  • Royal Room Dress of Mexico
  • Smart Depot of Mexico
  • Total Look of Mexico

 

 

https://ofac.treasury.gov/recent-actions/20240322 and

https://home.treasury.gov/news/press-releases/jy2201 and

 

*******

 

March 25, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Wuhan Xiaoruizhi Science and Technology Company, Limited (Wuhan XRZ), a Wuhan, China-based Ministry of State Security (MSS) front company that has served as cover for multiple malicious cyber operations. OFAC is also designating Zhao Guangzong and Ni Gaobin, two Chinese nationals affiliated with Wuhan XRZ, for their roles in malicious cyber operations targeting U.S. entities that operate within U.S. critical infrastructure sectors, directly endangering U.S. national security. This action is part of a collaborative effort with the U.S. Department of Justice, Federal Bureau of Investigation (FBI), Department of State, and the United Kingdom Foreign, Commonwealth & Development Office (FCDO).

 

People’s Republic of China (PRC) state-sponsored malicious cyber actors continue to be one of the greatest and most persistent threats to U.S. national security, as highlighted in the most recent Office of the Director of National Intelligence Annual Threat Assessment.

 

The following individuals have been added to OFAC's SDN List:

  •  Ni, Gaobin of China; and
  • Zhao, Guangzong of China

 

The following entities have been added to OFAC's SDN List:

 

  • Wuhan Xiaoruizhi Science And Technology Company, Limited of China.

 

https://home.treasury.gov/news/press-releases/jy2205 and

https://ofac.treasury.gov/recent-actions/20240325

 

*******

 

March 25, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned thirteen entities and two individuals for operating in the financial services and technology sectors of the Russian Federation economy including persons developing or offering services in virtual assets that enable the evasion of U.S. sanctions. Five entities were designated for being owned or controlled by OFAC-designated persons.

 

Many of the individuals and entities designated facilitated transactions or offered other services that helped OFAC-designated entities evade sanctions. These designations build upon OFAC’s February 23, 2024 action to target companies servicing Russia’s core financial infrastructure and curtail Russia’s use of the international financial system to further its war against Ukraine.

 

The following individuals have been added to OFAC's SDN List:

 

  • Bukanov, Timur Evgenyevich of Russia;
  • Kaigorodov, Igor Veniaminovich of Russia;

 

The following entities have been added to OFAC's SDN List:

 

  • Autonomous Non-Profit Organization of Additional Professional Education Echelon Training Center of Russia;
  • Bitfingroup OU of Estonia;
  • Bitpapa IC FZC LLC of United Arab Emirates;
  • Crypto Explorer DMCC of Russia;
  • Joint-Stock Company Echelon Technologies of Russia;
  • Joint-Stock Company B-Crypto of Russia;
  • Limited Liability Company Cybersecurity Laboratory of Russia;
  • Limited Liability Company Echelon Innovations of Russia;
  • Limited Liability Company Key Information Systems of Russia;
  • Limited Liability Company Project Consulting Bureau of Russia;
  • Obschestvo S Organichennoy Osvetstvennostyu Atomaiz of Russia;
  • Obschestvo S Organichennoy Osvetstvennostyu Kripto Eksplorer of Russia;
  • Obschestvo S Organichennoy Osvetstvennostyu Laitkhaus of Russia;
  • Obschestvo S Organichennoy Osvetstvennostyu Sistemy Raspredelennogog Reyestra
  • of Russia;
  • Obschestvo S Organichennoy Osvetstvennostyu Tsentr Obrabotki Elektronnykh Platezhy of Russia ;
  • Obschestvo S Organichennoy Osvetstvennostyu Veb3 Integrator of Russia;
  • Obschestvo S Organichennoy Osvetstvennostyu Veb3 Teknologii of Russia
  • Tokentrust Holdings Limited of Russia; and

 

https://home.treasury.gov/news/press-releases/jy2204 and

https://ofac.treasury.gov/recent-actions/20240325

 

*******

 

March 26, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning six entities, one individual and two tankers that are based or registered in Liberia, India, Vietnam, Lebanon, and Kuwait that have engaged in facilitating commodity shipments and financial transactions for the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), the Houthis, and Hizballah. This action, the sixth round of sanctions targeting the network of Iran-based, IRGC-QF-backed Houthi financial facilitator Sa’id al-Jamal since December 2023, represents yet another step in a concerted campaign to disrupt IRGC-QF finances and its support to terrorist proxies such as the Houthis.

 

The following individuals have been added to OFAC's SDN List:

 

  • Makarov, Aleksey of Russia.

 

The following vessels have been added to OFAC's SDN List:

 

  • Abyss Palau flag Vessel Registration Identification IMO 9157765; MMSI 511101287 (vessel); and
  • Dawn II Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9185530; MMSI 374100000 (vessel).

 

https://home.treasury.gov/news/press-releases/jy2209 and

https://ofac.treasury.gov/recent-actions/20240326

 

*******

 

March 26, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 11 individuals and entities supporting the regime of Syrian President Bashar Al-Assad through the facilitation of illicit financial transfers and trafficking of illegal drugs, as well as the extraction and export of Syrian commodities.  Syria has become the leading producer and exporter of Captagon, a highly addictive amphetamine-type stimulant trafficked illegally throughout the Middle East and Europe.

 

The following individuals have been added to OFAC's SDN List:

 

  • Al-Dj, Mahmoud Abdulilah of Syria;
  • Al-Kayali, Taher of Syria;
  • Al-law, Tawfiq Muhammad Sa'id of Syria;
  • Al-Minala, Muhammad 'Ali, of Syria; and

 

The following entities have been added to OFAC's SDN List:

 

  • Al-Ta'ir Company of Syria;
  • Freebird Travel and tourism of Syria;
  • Grains Middle East Trading DWC-LLC of United Arab Emirates;
  • Hassaleh International Company of Liberia;
  • KNH Shipping Private Limited of India;
  • Limited Liability Company STG Logistic of Russia;
  • Mass Com Group General Trading and Contracting Company of Kuwait;
  • Maya Exchange Company of Syria;
  • Melody Shipment Pvt Ltd of India;
  • Neptunus LLC of Syria;
  • Orchida Regional For General Trading and Contracting Company of Kuwait; and
  • Quoc Viet Marine Transport JSC of Vietnam.

 

https://home.treasury.gov/news/press-releases/jy2210 and

https://ofac.treasury.gov/recent-actions/20240326

 

*******

 

March 27, 2024: In coordination with the Republic of Korea (ROK), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned six individuals and two entities based in Russia, China, and the United Arab Emirates, that generate revenue and facilitate financial transactions for the Democratic People’s Republic of Korea (DPRK). Funds generated through these actors are ultimately funneled to support the DPRK’s weapons of mass destruction (WMD) programs.  The ROK is jointly designating six of the same individuals and entities for their involvement in illicit financing and revenue generation through overseas DPRK information technology (IT) workers. This action also accompanies the 6th U.S.-ROK Working Group on DPRK Cyber Threats.

 

This action targets agents of designated DPRK banks along with companies that employ DPRK IT workers abroad. DPRK banking representatives, IT workers, and the companies that employ them generate revenue and gain access to foreign currencies vital to the Kim regime. These actors, operating primarily through networks located in Russia and China, orchestrate schemes, set up front or shell companies, and manage surreptitious bank accounts to move and disguise illicit funds, evade sanctions, and finance the DPRK’s unlawful WMD and ballistic missile programs.

 

The following individuals have been added to OFAC's SDN List:

 

  • Han, Chol Man of North Korea;
  • Jon, Yun Gun of North Korea;
  • Jong, Song Ho of North Korea;
  • O, In Chun of North Korea;
  • Ri, Tong Hyok of North Korea; and
  • Yu, Pu Ung of North Korea.

 

The following entities have been added to OFAC's SDN List:

 

  • Limited Liability Company Alis of Russia; and
  • Pioneer Bencot Star Real Estate of United Arab Emirates.

 

https://ofac.treasury.gov/recent-actions/20240327_33 and

https://home.treasury.gov/news/press-releases/jy2215

 

*******

 

March 27, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two individuals and three entities as key financial facilitators involved in fundraising for Hamas. In the wake of the October 7, 2023 terrorist attack perpetrated by Hamas against Israel, Gaza Now engaged in fundraising efforts to support Hamas. Gaza Now and its founder Mustafa Ayash, as well Al-Qureshi Executives and Aakhirah Limited, and their director Aozma Sultana, partnered on multiple fundraising efforts. This action is being taken as part of a collaborative effort with the United Kingdom’s Office of Foreign Sanctions Implementation, which is implementing sanctions on these same targets.

 

The following individuals have been added to OFAC's SDN List:

  • Ayash, Mustafa of Austria; and
  • Sultana, Aozma of United Kingdom.

 

The following entities have been added to OFAC's SDN List:

  • Aakhiran Limited of United Kingdom;
  • Al-Quereshi Executives of United Kingdom; and
  • Gaza Now.

 

https://ofac.treasury.gov/recent-actions and

https://ofac.treasury.gov/recent-actions/20240327

MARCH 2024 EXPORT CONTROL REGULATIONS UPDATES Read More »

FEBRUARY 2024 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through February 29, 2024.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities.  It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and persons denied export privileges by the United States Government.

REGULATORY UPDATES

President

President Biden Signed A New Executive Order Imposing Certain Sanctions on Persons Undermining Peace, Security, and Stability in the West Bank

February 5, 2024: 89 Fed. Reg. 7605: President Biden issued Executive Order 14115 and found that the situation in the West Bank-in particular high levels of extremist settler violence, forced displacement of people and villages, and property destruction-has reached intolerable levels and constitutes a serious threat to the peace, security, and stability of the West Bank and Gaza, Israel, and the broader Middle East region. These actions undermine the foreign policy objectives of the United States, including the viability of a two state solution and ensuring Israelis and Palestinians can attain equal measures of security, prosperity, and freedom. They also undermine the security of Israel and have the potential to lead to broader regional destabilization across the Middle East, threatening United States personnel and interests. For these reasons, these actions constitute an unusual and extraordinary threat to the national security and foreign policy of the United States. All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any foreign branch, are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in pursuant to this Executive Order. See actions taken by the Department of the Treasury, Office of Foreign Assets Control’s (OFAC) and the Department of the Treasury, and the Department of Treasury, Financial Crimes Enforcement Network (FinCEN) in response to this Executive Order for the list of affected persons and entities.

https://ofac.treasury.gov/media/932576/download?inline

*******

President Biden Continued The National Emergency with Respect to Afghanistan

February 7, 2024: The widespread humanitarian crisis in Afghanistan — including the urgent needs of the people of Afghanistan for food security, livelihoods support, water, sanitation, health, hygiene, and shelter and settlement assistance, among other basic human needs — and the potential for a deepening economic collapse in Afghanistan continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  In addition, the preservation of certain property of Da Afghanistan Bank (DAB) held in the United States by United States financial institutions is of the utmost importance to addressing this national emergency and the welfare of the people of Afghanistan.  Various parties, including representatives of victims of terrorism, have asserted legal claims against certain property of DAB or indicated in public court filings an intent to make such claims.  This property is blocked under Executive Order 14064.

For these reasons, the national emergency declared in Executive Order 14064 of February 11, 2022, must continue in effect beyond February 11, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 14064 with respect to the widespread humanitarian crisis in Afghanistan and the potential for a deepening economic collapse in Afghanistan.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/02/07/notice-on-the-continuation-of-the-national-emergency-with-respect-to-the-widespread-humanitarian-crisis-in-afghanistan-and-the-potential-for-a-deepening-economic-collapse-in-afghanistan-2/

*******

President Biden Continued The National Emergency with Respect to Burma

February 7, 2024: On February 10, 2021, by Executive Order 14014, President Biden declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in and in relation to Burma.

The situation in and in relation to Burma, and in particular the February 1, 2021 coup, in which the military overthrew the democratically elected civilian government of Burma and unjustly arrested and detained government leaders, politicians, human rights defenders, journalists, and religious leaders, thereby rejecting the will of the people of Burma as expressed in elections held in November 2020 and undermining the country’s democratic transition and rule of law, continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.

Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 14014 with respect to the situation in and in relation to Burma.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/02/07/notice-on-the-continuation-of-the-national-emergency-with-respect-to-the-situation-in-and-in-relation-to-burma-2/

*******

President Biden Continued The National Emergency with Respect to Cuba and of the Emergency Authority Relating to the Regulation of the Anchorage and Movement of Vessels

February 21, 2024: In accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued the national emergency with respect to Cuba and the emergency authority relating to the regulation of the anchorage and movement of vessels set out in Proclamation 6867, as amended by Proclamation 7757, Proclamation 9398, and Proclamation 9699.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/02/21/notice-on-the-continuation-of-the-national-emergency-with-respect-to-cuba-and-of-the-emergency-authority-relating-to-the-regulation-of-the-anchorage-and-movement-of-vessels-3/

*******

President Biden Continued the National Emergency With Respect to Libya

February 21, 2024: The situation in Libya continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, and measures are needed to protect against the diversion of assets or other abuses by members of Qadhafi’s family, their associates, and other persons hindering Libyan national reconciliation.

For this reason, the national emergency declared on February 25, 2011, and expanded on April 19, 2016, must continue in effect beyond February 25, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden continued for 1 year the national emergency declared in Executive Order 13566.

https://www.whitehouse.gov/briefing-room/presidential-actions/2024/02/21/press-release-notice-on-the-continuation-of-the-national-emergency-with-national-emergency-with-respect-to-libya/

*******

Department of State, Directorate of Defense Trade Controls (DDTC)

DECCS Pending Payment Notification Email Update

February 5, 2024: The Department of State, Directorate of Defense Trade Controls (DDTC) made changes to the pending payment notification email message text.

The Notifications being updated are:

  • Status = “Pending Payment”
  • After 5 Days in “Pending Payment” Status
  • After 10 Days in “Pending Payment” Status

These updates clarify the instructions on how to proceed with making payments, ensuring a smoother and more user-friendly experience.

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events&cat=Notice

*******

DDTC Name And Address Changes Posted To Website

February 2 through 20, 2024: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at    

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

  • Change in Name from Hitachi Kokusai Electric, Inc. to Kokusai Denki Electric, Inc., due to acquisition;
  • Change in Name from Stichting Nationaal Lucht-en Ruimtevaartlaboratorium to Stichting Koninklijk Nederlands Lucht-en Ruimtevaartcentrum (Royal Netherlands Aerospace Centre) due to corporate rebranding;
  • Change in Name from Progeny Systems, LLC to General Dynamics Mission Systems, Inc., due to acquisition;
  • Change in Name from Atkins Limited to AtkinsRéalis UK Limited due to corporate rebranding;
  • Change in Name from Raytheon BBN Technologies Corp. to RTX BBN Technologies Inc., due to corporate rebranding;
  • Change in Address from NHIndustries SAS formerly at Building Alizé, 765, rue Albert Einstein, CS 70402, 13591 Aix-en-Provence Cedex 3, France to NHIndustries SAS at Parc Lumiére, 405 rue Emilien Gautier, 13090 Aix-en-Provence, France;
  • Change in Name from Airbus Defence and Space Savunma Uzay Havacilik Sanayi Ve Ticaret Anonim Sirketi to Airbus Havacilik Sanayi Ve Ticaret Anonim Sirketi due to corporate rebranding;
  • Change in Name from Zodiac US Corporation to Safran USA, Inc., due to acquisition;
  • Change in Name and Address from MASER Engineering B.V. formerly at Capitool 56, 7521 PR ENSCHEDE, The Netherlands to Eurofins MASER B.V. at Auke Vleerstraat 26, 7521 PG ENSCHEDE, The Netherlands due to corporate rebranding;
  • Change in Name from AI Yah Satellite Communications Company PJSC to Bayanat AI PLC due to merger;
  • Change in Name from Herley Industries LLC to CAES Mission Systems LLC due to acquisition;
  • Change in Name from W.S. Atkins International Limited to AtkinsRéalis UK International Limited due to corporate rebranding.

*******

2024 DECCS User Group (DUG) Enrollment

February 2024:

DDTC announced the enrollment period is open for the 2024 DECCS User Group

What is it?

  • The mission of the Defense Export Controls and Compliance System (DECCS) User Group (DUG) is to allow individual industry users to provide feedback on DECCS by establishing and maintaining a forum for active and regular communication between DECCS users and the Directorate of Defense Trade Controls (DDTC).
  • DUG members will have the opportunity to:
    • Identify functional and technical challenges when interacting with DECCS, and
    • Provide feedback and input for future DECCS enhancements and system support initiatives.

How to get involved:

  • To express your interest, email PM_DDTCProjectTeam@state.gov by COB February 29, 2024, and provide your name & company/government affiliation (as applicable).
  • DDTC will inform applicants by March 31, 2024, on DUG membership selection.

*******

DSCA Notifies Congress Of Potential FMS Sale To India

February 1, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of India of MQ-9B Remotely Piloted Aircraft and related equipment for an estimated cost of $3.99 billion. The Government of India has requested to buy thirty-one (31) MQ-9B Sky Guardian aircraft; one hundred sixty-one (161) Embedded Global Positioning & Inertial Navigation Systems (EGIs); thirty-five (35) L3 Rio Grande Communications Intelligence Sensor Suites; one hundred seventy (170) AGM-114R Hellfire missiles; sixteen (16) M36E9 Hellfire Captive Air Training Missiles (CATM); three hundred ten (310) GBU-39B/B Laser Small Diameter Bombs (LSDB); and eight (8) GBU-39B/B LSDB Guided Test Vehicles (GTVs) with live fuzes. Also included are Certifiable Ground Control Stations; TPE-331-10-GD engines; M299 Hellfire missile launchers; KIV-77 cryptographic appliques and other Identification Friend or Foe (IFF) equipment; KOR-24A Small Tactical Terminals (STT); AN/SSQ-62F, AN/SSQ-53G, and AN/SSQ-36 sonobuoys; ADU-891/E Adapter Group Test Sets; Common Munitions Built-In-Test (BIT) Reprogramming Equipment (CMBRE); GBU-39B/B tactical training rounds, Weapons Load Crew Trainers, and Reliability Assessment Vehicles-Instrumented; Portable Pre-flight/Post-flight Equipment (P3E); CCM-700A encryption devices; KY-100M Narrowband/wideband terminals; KI-133 cryptographic units; AN/PYQ-10 Simple Key Loaders; Automatic Identification System (AIS) transponders; ROVER 6Si and TNR2x transceivers; MR6000 ultra high frequency (UHF) and very high frequency (VHF) radios; Selex SeaSpray Active Electronically Scanned Array (AESA) surveillance radars; HISAR-300 Radars; SNC 4500 Auto Electronic Surveillance Measures (ESM) Systems; SAGE 750 ESM systems; Due Regard Radars (DRR); MX-20 Electro-Optical Infrared (EO-IR) Laser Target Designators (LTDs); Ku-Band SATCOM GAASI Transportable Earth Stations (GATES); C-Band Line-of-Sight (LOS) Ground Data Terminals; AN/DPX-7 IFF transponders; Compact Multi-band Data Links (CMDL); initial spare and repair parts, consumables, accessories, and repair and return support; secure communications, precision navigation, and cryptographic equipment; munitions support and support equipment; testing and integration support and equipment; classified and unclassified software delivery and support; classified and unclassified publications and technical documentation; personnel training and training equipment; transportation support; warranties; studies and surveys; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/india-mq-9b-remotely-piloted-aircraft

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DSCA Notifies Congress Of Potential FMS Sale To The Netherlands

February 2, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of the Netherlands of Hellfire Missiles and related equipment for an estimated cost of $150 million. The Government of the Netherlands has requested to buy up to three hundred eighty-six (386) Hellfire Air-to-Ground Missiles, AGM-114R2. Also included is U.S. Army Aviation and Missile Command (AMCOM) Security Assistance Management Directorate (SAMD) technical assistance; Tactical Aviation and Ground Munitions (TAGM) Project Office technical assistance; non-standard books, publications, and other Hellfire publications; integration support; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/netherlands-hellfire-missiles

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DSCA Notifies Congress Of Potential FMS Sale To The Netherlands

February 5, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of the Netherlands of Joint Air-to-Surface Standoff Missiles with Extended Range and related equipment for an estimated cost of $908 million. The Government of the Netherlands has requested to buy one hundred twenty (120) AGM-158B/B-2 Joint Air-to-Surface Standoff Missiles with Extended Range (JASSM-ER) All-Up-Rounds; fifteen (15) AGM-158 Inert JASSMs with Test Instrumentation Kits; two (2) AGM-158 JASSM Separation Test Vehicles; one (1) AGM-158 Instrumented Test Vehicle; and two (2) JASSM Jettison Test Vehicles. Also included are AGM-158 JASSM Dummy Air Training Missiles (DATM) and containers; KGV-135A encryption devices; test and integration equipment and support; spare parts, consumables, accessories, and repair and return support; munitions support and support equipment; classified and unclassified publications and technical documentation; Contractor Logistics Support (CLS); transportation support; personnel training and training equipment; studies and surveys; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/netherlands-joint-air-surface-standoff-missiles-extended-range

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DSCA Notifies Congress Of Potential FMS Sale To Poland

February 7, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Poland of Airspace and Surface Radar Reconnaissance aerostat systems and related elements of logistics and program support for an estimated cost of $1.2 billion. The Government of Poland has requested to buy Airspace and Surface Radar Reconnaissance (ASRR) aerostat systems; Airborne Early Warning (AEW) Radars with Identification of Friend or Foe (IFF) capability; electronic sensor systems; mooring systems with powered tether with embedded fiber optics; Ground Control Systems (GCS); associated installation hardware; special tools and test equipment; Basic Issue Items (BII); program management support; verification testing; systems technical support; transportation; spare and repair parts; communications equipment; operators and maintenance manuals; personnel training and training equipment; tool and test equipment; repair and return; publications and technical documentation; Quality Assurance Team (QAT); U.S. Government and contractor engineering, technical, and logistics support services; in-country Field Service Representatives (FSR); and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/poland-aerostat-systems

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DSCA Notifies Congress Of Potential FMS Sale To Italy

February 15, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Italy of AIM-120C-8 Advanced Medium-Range Air-to-Air Missiles and related equipment for an estimated cost of $69.3 million. The Government of Italy has requested to buy twelve (12) AIM-120C-8 Advanced Medium Range Air-to-Air Missiles (AMRAAM) that will be added to a previously implemented case whose value was under the congressional notification threshold. The original Foreign Military Sales (FMS) case, valued at $32.5 million ($23.0 million in Major Defense Equipment (MDE)), included twelve (12) AIM-120C-8 AMRAAM missiles. This notification is for a combined total of twenty-four (24) AIM-120C-8 AMRAAM missiles. Also included are Common Munitions Built-in-Test (BIT)/Reprogramming Equipment (CMBRE); ADU-891 Adaptor Group Test Set; AMRAAM containers and support equipment; integration and test support and equipment; munitions support and support equipment; spare parts, consumables and accessories, and repair and return support; contractor logistics support; classified software delivery and support; classified and unclassified publications and technical documentation; studies and surveys; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/italy-aim-120c-8-advanced-medium-range-air-air-missiles

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DSCA Notifies Congress Of Potential FMS Sale To Italy

February 15, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Italy of Small Diameter Bomb II and related equipment for an estimated cost of $150 million. The Government of Italy has requested to buy one hundred twenty-five (125) Guided Bomb Unit (GBU)-53/B Small Diameter Bombs-Increment II (SDB-II) All-Up-Rounds (AURs); and eight (8) GBU-53/B SDB-II Captive Carry Reliability Tests (CCRTs) that will be added to a previously implemented case whose value was under the congressional notification threshold. The original FMS case, valued at $22.5 million ($9.7 million in MDE), included twenty-four (24) GBU-53/B SDB-II AURs; and four (4) GBU-53/B SDB-II CCRTs. The Government of Italy has also requested a new FMS case that includes twenty-four (24) GBU-53/B SDB-II AURs; and two (2) GBU-53/B SDB-II CCRTs. This notification is for a combined total of one hundred seventy-three (173) GBU-53/B SDB-II AURs; and fourteen (14) GBU-53/B SDB-II CCRTs. Also included are SDB-II Weapon Load Crew Trainers (WLCT) and Practical Explosive Ordnance Disposal Trainers (PEST); munitions support and support equipment; unclassified software delivery and support; spare parts, consumables and accessories, and repair and return support; modifications and maintenance support; unclassified publications and technical documentation; studies and surveys; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/italy-small-diameter-bomb-ii

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DSCA Notifies Congress Of Potential FMS Sale To Taiwan

February 21, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Taipei Economic and Cultural Representative Office in the United States of a Taiwan Advanced Tactical Data Link System Upgrade Planning and related equipment for an estimated cost of $75 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale.

The Taipei Economic and Cultural Representative Office in the United States (TECRO) has requested to buy Foreign Military Sales (FMS) Cross Domain Solutions (CDS); High Assurance devices; Global Positioning System (GPS) receivers; communications equipment; requirements analysis; engineering; technical services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-32

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DSCA Notifies Congress Of Potential FMS Sale To Germany

February 27, 2024: The State Department made a determination approving a possible Foreign Military Sale to the Government of Germany of High-Frequency, Very-High Frequency, and Ultra-High Frequency Radios and related equipment for an estimated cost of $281 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale.

The Government of Germany has requested to buy AN/PRC-117 radios; AN/PRC-160 radios; spare and repair parts; support equipment; tools and test equipment; diagnostic equipment; technical data and publications; personnel training and training equipment; U.S. Government and contractor technical assistance; technical and logistics support services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/germany-high-frequency-very-high-frequency-and-ultra-high-frequency

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Department of Commerce – Bureau of Industry and Security (BIS)

Commerce and Industry Export Control Principals from the United States, Japan, and the Republic of Korea (ROK) Convened As A Follow-up to the Commerce and Industry Ministerial initiative from the Trilateral Leaders’ Summit

February 21, 2024: Commerce and Industry Export Control Principals from the United States, Japan, and the Republic of Korea (ROK) convened as a follow-up to the Commerce and Industry Ministerial initiative from the Trilateral Leaders’ Summit at Camp David last August. This meeting was the first in-person meeting of its kind under the trilateral relationship focused on further aligning export controls, enhancing the ability to effectively collaborate on shared priorities. The United States hosted the convening at the U.S. Embassy in Tokyo. The principals agreed to further align on Russia controls, collaborate on outreach to countries in Southeast Asia, and cooperate on controls for critical and emerging technologies.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3449-02-21-2024-trilat-readout-final/file

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February 23, 2024: 89 Fed. Reg. 13590: The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR), which it maintains, by revising license requirements for certain cameras, systems, and related components. These revisions will better align controls with technological and commercial developments, such as the items’ global commercial availability, while recognizing the cooperative strategic relationship the United States has with our closest allies. In addition to these changes, BIS is adding controls on certain cameras that are not already controlled by either export control classification number (ECCN) 6A003 or 6A203. These new controls are detailed under new ECCN 6A293, which is a classification for temporary controls for which BIS is seeking multilateral agreement.

89 FR 13590.pdf (SECURED) (doc.gov)

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Department of Treasury, Financial Crimes Enforcement Network (FinCEN)

FinCEN Issued An Alert Related To The Financing Of Israeli Extremist Settler Violence Against Palestinians In The West Bank Per Executive Order 14115

February 2, 2024: The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert related to the financing of Israeli extremist settler violence against Palestinians in the West Bank per Executive Order 14115. The alert provides select red flags to assist U.S. financial institutions in identifying and reporting suspicious activity that finances such violence.

While the alert highlights the potential involvement of certain nonprofit organizations (NPOs) in facilitating payments to fund violence in the West Bank, FinCEN continues to emphasize that legitimate charities should have access to financial services and can transmit funds through legitimate and transparent channels. FinCEN is also reminding financial institutions to apply a risk-based approach to Customer Due Diligence (CDD) requirements when developing the risk profiles of charities and other non-profit customers. No specific customer types, including charities and NPOs, automatically presents a higher risk of illicit activity. Additionally, as no single red flag is necessarily indicative of illicit or suspicious activity, U.S. financial institutions are encouraged to consider all the surrounding facts and circumstances before determining whether a specific transaction is suspicious or associated with potential Israeli violent extremist groups or campaigns.

Finally, through the alert, Treasury’s Office of Foreign Assets Control (OFAC) is highlighting for members of the public that under the Executive Order of February 1, 2024, “Imposing Certain Sanctions on Persons Undermining Peace, Security, and Stability in the West Bank,” the U.S. government is authorized to impose sanctions on foreign persons that are responsible for or complicit in, or have directly or indirectly engaged or attempted to engage in (1) actions that threaten the peace, security, or stability of the West Bank; or (2) planning, ordering, otherwise directing, or participating in specified actions affecting the West Bank, such as violence targeting civilians and property destruction. The United States seeks to impose tangible and significant consequences on those engaged in such activities, as well as to protect the U.S. financial system from abuse.

https://www.fincen.gov/news/news-releases/fincen-issues-alert-israeli-extremist-settler-violence-against-palestinians-west

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U.S. Census Bureau

Tips on How to Resolve AES Response Messages February 20, 2024: When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  Though the shipment is accepted, the filer may still receive a Verify Message, Compliance Alert, Informational Message or Warning Message along with their ITN.  However, if the shipment is rejected, a Fatal Error notification is received and must be corrected to receive a valid ITN.

To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

 

Response Code: 107

Narrative:     Country of Ultimate Destination Unknown

Severity:       Fatal

Reason:       The Country of Ultimate Destination reported is not valid in AES.

Resolution: The Country of Ultimate Destination Code must be a valid ISO country code listed in the Appendix C – ISO Country Codes.

Verify the Country of Ultimate Destination, correct the shipment and resubmit.

 

Response Code:  511

Narrative:     Mode of Transportation Not Allowed for License Code

Severity:       Fatal

Reason:       The Mode of Transportation reported is not valid for the License Code/License Exemption reported.

Resolution: The Mode of Transportation must be compatible with the reported License Code/License Exemption. See ‘Appendix F, License and License Exemption Type Codes’ to determine the appropriate Mode of Transportation and License Code/License Exemption combination.

Verify the Mode of Transportation and License Code/License Exemption, correct the shipment and resubmit.

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NOTICE: “Forwarding Agent” will be changing to “Authorized Agent” across the AESTIR and AESDirect portal

February 27, 2024: At the request of the U.S. Census Bureau, the terms “Forwarding Agent” and “FWRD AGT” found in the Automated Export System Trade Interface Requirements (AESTIR) commodity record format, appendices (i.e., commodity filing response messages, AES acronyms and definitions) and the AESDirect portal will be replaced with the term “Authorized Agent” and “AUTH AGT,” consistent with the Foreign Trade Regulations (DTR) 15 CFR 30.6(b)(1).

This change will be effective April 1, 2024.

Background:

Authorized Agent is the term used in the FTR to identify the individual or legal entity physically located in or otherwise under the jurisdiction of the United States that has obtained power of attorney or written authorization from a U.S. Principal Party in Interest (USPPI) or Foreign Principal Party in Interest (FPPI) to act on its behalf and to complete and file the Electronic Export Information (EEI).

When the Filer ID in the header and trailer records of the AES commodity format is an Authorized Agent, the Census Bureau relies on the details in the party records/section (N01-N03 records) of the Authorized Agent for verification purposes. Without that level of detail, the Filer ID by itself does not suffice for verification purposes.

The trade community has informed the Census Bureau that the term Forwarding Agent, currently in the party record/section and the appendices, is misleading.  In most cases, the Forwarding Agent and the Authorized Agent are the same company.  However, when there are scenarios when the Authorized Agent files the EEI and a Forwarding Agent facilitates the movement of the export of that same shipment, the Census Bureau must ensure that the Authorized Agent information is collected in the party record for verification purposes.  The Census Bureau has had multiple occasions where the Forwarding Agent in the N01-N03 party records was not able to verify the data because they were not the filer. The Forwarding Agent in these filings only facilitated the export but did not prepare and file the EEI in AES. The same situation also applies when a USPPI files the EEI on their own behalf.

 

LATEST SANCTIONS FINES & PENALTIES

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

Fines and Penalties

February 1, 2024: Saber Fakih, 48, of the United Kingdom, to 18 months in prison for violations of the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions and Sanctions Regulations. In addition to the prison term, Saber Fakih was ordered to serve three years of supervised release.

According to his plea agreement, Saber Fakih conspired with Bader Fakih, 43, of Canada, Altaf Faquih, 72, of the United Arab Emirates, and Alireza Taghavi, 48, of Iran, to export and attempt to export an Industrial Microwave System (IMS) and counter-drone system from the United States to Iran, without first obtaining the requisite license from the Department of Treasury’s Office of Foreign Assets Control (OFAC).

https://www.justice.gov/usao-dc/pr/uk-citizen-sentenced-18-months-prison-attempt-procure-high-powered-microwave-system-iran

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February 1, 2024: Joly Germine, 31, of Croix-des-Bouquets, Haiti, the self-described “King” of a notoriously violent Haitian gang known as 400 Mawozo, pleaded guilty to his role in a gunrunning conspiracy that smuggled firearms to Haiti in violation of U.S. export laws, and the laundering of ransoms paid for U.S. hostages to the gang in 2021.

The conspiracy resulted in the purchase in the United States of at least 24 firearms, including AK-47s, AR-15s, an M4 Carbine rifle, an M1A rifle, and a .50 caliber rifle, described by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as a military weapon, which were smuggled from the United States to the gang in Haiti for their criminal activities. Co-defendant Eliande Tunis, 45, of Pompano Beach, Florida, pleaded guilty on Jan. 17 to the same offenses.

https://www.justice.gov/opa/pr/king-violent-haitian-gang-pleads-guilty-gun-smuggling-and-money-laundering-after-governments

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February 7, 2024: In two separate cases on opposite coasts, several individuals are charged – one of whom was arrested on February 6, 2024, in connection with sophisticated schemes to transfer sensitive technology, goods, and information for the benefit of hostile foreign adversaries, in violation of U.S. law.

In the Eastern District of New York, two Iranian nationals were charged with conspiring to export equipment used in the aerospace industry to the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA), in connection with an alleged conspiracy to illegally export U.S. goods and technology without the required licenses.

In the Central District of California, a man was arrested for allegedly stealing trade secrets developed for use by the U.S. government to detect nuclear missile launches and track ballistic and hypersonic missiles.

https://www.justice.gov/opa/pr/justice-department-announces-charges-and-arrest-two-separate-illicit-technology-transfer

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February 7, 2024: David Murar, 73, waived his right to indictment by a grand jury and pleaded guilty in U.S. District Court in St. Louis to one felony count of conspiracy to commit wire fraud. Murar admitted that from roughly April through October of 2022, he bid on and received at least nine U.S. government contracts by way of fraudulent misrepresentations, including that he would provide parts from domestic sources. Murar actually provided parts from China and other foreign countries. By doing so, Murar was able to underbid domestic suppliers. Murar broke the law by providing “military critical technical data,” which was restricted and protected information, to foreign individuals and/or entities. Murar also admitted to fraudulently using his wife’s name to gain a competitive advantage for one of his companies as a woman-owned small business, when he was really the actual owner and operator.

Murar fraudulently obtained contracts worth at least $333,465 for parts including nuts, bolts, washers, sleeves, and tools.

https://www.justice.gov/usao-edmo/pr/defense-department-contractor-missouri-admits-fraud

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February 12, 2024: The Department of Justice completed enforcement of a final order for forfeiture of a U.S.-manufactured Boeing 747 cargo plane, previously owned by Mahan Air, a sanctioned Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization (FTO).

On February 11, 2024, the government of Argentina transferred physical custody of the aircraft to the United States pursuant to the final order of forfeiture, which rests all right, title, and interest in the aircraft in the United States of America. The Boeing 747 cargo plane arrived in the Southern District of Florida where it will be prepared for disposition.

The plane was previously detained by Argentine law enforcement. On July 19, 2022, the U.S. District Court for the District of Columbia issued a seizure warrant for the aircraft, which Argentine authorities promptly enforced. On Oct. 20, 2022, in support of its ongoing criminal investigation, the United States filed a civil forfeiture complaint alleging that the aircraft’s transfer from Mahan Air to Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company, violated U.S. export control laws. As alleged, Mahan Air was subject to a Department of Commerce Temporary Denial Order, which prohibited, among other things, Mahan Air from engaging in any transactions involving any commodity exported from the United States that is subject to the Export Administration Regulations. The complaint further alleged that the unauthorized transfer of this aircraft directly benefited the IRGC-QF.

https://www.justice.gov/opa/pr/former-iranian-owned-boeing-aircraft-successfully-returned-united-states

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February 12, 2024: Kristina Puzyreva pleaded guilty to money laundering conspiracy for her role in a multimillion-dollar scheme to send components used in unnamed aerial vehicles (UAVs) and guided missile systems and other weapons to sanctioned entities in Russia.  The components shipped in violation of export control and sanctions laws were later found in Russian weapons platforms and signals intelligence equipment in Ukraine.  At sentencing, Puzyreva faces up to twenty years in prison.

Kristina Puzyreva and her co-defendants allegedly purchased and dispatched millions of dollars in U.S.-sourced electronics to support the Kremlin in its ongoing attacks of Ukraine. Her money laundering conspiracy was directly linked to 298 shipments of restricted technology, valued at $7 million, to the Russian battlefield.

As alleged in the indictment and other court filings, the defendant laundered money as part of a sophisticated export control and sanctions evasion scheme involving SH Brothers Inc. (SH Brothers) and SN Electronics, Inc. (SN Electronics), two companies registered in Brooklyn, New York.  Using the SH Brothers and SN Electronics corporate entities, the defendant’s co-conspirators unlawfully sourced, purchased and shipped millions of dollars in dual-use electronics from U.S. manufacturers to end users, including sanctioned entities, in Russia.  The electronic components and integrated circuits shipped were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including in UAVs and guided missiles.  During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.

https://www.justice.gov/usao-edny/pr/russian-canadian-national-pleads-guilty-conspiracy-launder-money-scheme-send-uav-and

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February 28, 2024: The Boeing Company (“Boeing”) entered into a three (3) year Consent Agreement to settle allegations that it violated the International Traffic in Arms Regulations (ITAR) in connection with unauthorized exports and retransfers of technical data to foreign-person employees and contractors; unauthorized exports to the People’s Republic of China, a proscribed country; and violations of license terms, conditions, and provisos of Directorate of Defense Trade Controls – DDTC authorizations. All of the violations were Voluntarily Disclosed to the Department of State by Boeing over a period of years pursuant to multiple Voluntary Disclosures. Boeing agreed to pay a fine of $51,000,000 of which $24,000,000 will be used by Boeing for remedial compliance measures.

Remedial Measures:

Boeing shall ensure that adequate resources are dedicated to ITAR compliance throughout its ITAR-regulated operating divisions, subsidiaries, and business units. Boeing shall establish policies and procedures for all of Boeing ‘s employees with responsibility for AECA and ITAR compliance to address lines of authority, staffing levels, performance evaluations, and career paths.

Boeing, in coordination with the Designated Official (as defined below), shall conduct an internal review of AECA and ITAR compliance resources and establish the necessary actions to ensure that sufficient resources are dedicated to AECA and IT AR compliance.

Boeing shall appoint, in accordance with the provisions of this Consent Agreement and in consultation with and the approval of the Director, Defense Trade Controls Compliance – DTCC, a qualified individual to serve as a Designated Official for the entire term that the Consent Agreement is in force. The term “Designated Official” in this Consent Agreement refers to a Special Compliance Officer (SCO) 1 or Internal Special Compliance Officer (ISCO)2 during the term of their appointment.

Boeing shall strengthen corporate compliance procedures focused principally on Boeing’s business operations such that: (a) all Boeing employees engaged in AECA and ITAR-regulated activities are

familiar with the AECA and the ITAR, and their own and Boeing’s responsibilities thereunder; (b) all persons responsible for supervising those employees, including senior managers of those units, are knowledgeable about the underlying policies and principles of the AECA and the ITAR; and (c) there are records indicating the names of employees, trainers, and level and area of training received.

Boeing shall enhance its AECA and ITAR compliance program with specific attention to the areas described in paragraphs 9(k)(I)(i) through 9(k)(1)(vii). Respondent shall provide to DTCC written confirmation that the company has completed this action.

Boeing agreed to implement a comprehensive, automated export compliance system throughout its operating divisions, subsidiaries, and business units engaged in AECA and ITAR-regulated activities to strengthen its internal controls for ensuring compliance with the AECA and the ITAR. This system shall track the decision process from the initiation to conclusion of a request for export, reexport, or retransfer

authorization. The automated export compliance system shall improve Boeing’s ability to oversee and monitor export, reexport, and retransfer activity. This system shall also cover the initial identification of all technical data and technical assistance in any form proposed to be disclosed to any foreign persons. Boeing shall ensure the use of a means of alerting users to the AECA and ITAR requirements on electronic transmissions of ITAR-controlled technical data. In order to prevent unintentional or accidental transmissions to unauthorized recipients, Boeing shall also provide training lo all employees to ensure that any type of electronic transmissions of ITAR-controlled technical data are sent in accordance with Boeings’ export compliance policies and procedures.

Classification Review:

Boeing shall, under the supervision of the Designated Official, review, verify, and complete the export control jurisdiction of all hardware and/or software that Boeings’ AECA and ITAR-regulated operating divisions, subsidiaries and business units, and any defense services or technical data, directly related to such hardware and not related to any hardware.

Also, separately, prior to export, re-export and/or retransfer, Boeing shall review, verify, and complete the export control jurisdiction of each hardware item (and any defense services or technical data, including software, directly related to such hardware item and not related to any hardware) and items procured from

suppliers for which such jurisdiction was not previously and accurately determined and/or verified in accordance with this paragraph.

Audits:

Two audits shall be performed during the Consent Agreement. Boeing shall have the first audit conducted by an outside consultant with expertise in AECA and ITAR matters, approved by the Direcror, DTCC. The audit shall be conducted under the supervision of the Designated Official. The first audit shall provide a thorough assessment of the effectiveness of Boeing’s implementation of all measures set forth in this Consent Agreement with focus on those actions undertaken to address the compliance issues identified in the Proposed Charging Letter, the policies, procedures, and training established by Boeing. The Designated Official or the Director, DTCC, may identify other areas (e.g., transactional review of agreements, Respondent’s information technology systems) for the first audit.

Debarment:

Boeing has cooperated with the Department’s review, has expressed regret for these activities, and has taken steps to improve its compliance programs. It has also undertaken to pay a cash penalty and agrees to implement the significant additional remedial compliance actions specified in the Consent Agreement. For these reasons, the Department determined not to impose an administrative debarment of Boeing.

Onsite Reviews by the Department:

For the purpose of assessing compliance with the provisions of the AECA, the ITAR and future authorizations, Boeing agreed to arrange and facilitate, with minimum advance notice, onsite reviews by the Department while this Consent Agreement remains in effect.

Violations:

Boeing disclosed the following violations to the Department:

Unauthorized Exports to Foreign-Person Employees and Contractors:

Boeing disclosed in two separate voluntary disclosures that from 2013- 2018 foreign-person employees (FPEs) at multiple Boeing and partner facilities overseas downloaded without authorization on more than 100 occasions files containing ITAR-controlled technical data from the Boeing Library System (BLS), the company’s digital technical document repository.

From 2013-2017 three FPEs from the People’s Republic of China (PRC), which is a proscribed destination under ITAR 126.1(d)(1), working at Boeings’ facilities in the PRC downloaded ITAR-controlled technical data from the BLS on 25 occasions. The files were controlled under multiple USML categories, including IV(i), VIII(i), IX(e)(1), XI(d), XII(f), XIII(l), XIX(g), and involved multiple U.S. Department of Defense (DoD) platforms, including the F18, F-15, F-22, E-3 Airborne Warning and Control System, AH-64 Apache, AGM84E Standoff Land Attack Missile, and AGM-131 Short Range Attack Missile II.

In a subsequent voluntary disclosure, Boeing disclosed that from 2013-2018 an indeterminate number of FPEs and contractors working at Boeing and – 4 – partner facilities in 18 countries, including Australia, Canada, France, Germany, Hong Kong, India, Italy, Japan, Kenya, Morocco, Russia, Singapore, South Korea, Spain, Thailand, Taiwan, Ukraine, and the United Kingdom (UK) downloaded ITAR-controlled technical data on 80 occasions. At the time of these unauthorized exports, Russia was subject to restrictive measures on defense exports per the Department of State public announcement on April 28, 2014. The documents were controlled under multiple USML categories, including IV(i), VIII(i), IX(e)(1), XI(d), XII(f), and XIX(g).

Unauthorized Exports, Reexports, Retransfers, and Temporary Imports of Defense Articles, including Technical Data:

In addition to violations involving FPEs, Boeing submitted multiple voluntary disclosures involving unauthorized exports, reexports, retransfers, and temporary imports of defense articles, including technical data.

Unauthorized Exports Resulting from Fabricated Permanent Export Licenses:

A trade compliance specialist working at Boeing’s U.S. subsidiary, Aviall Services, Inc., fabricated five permanent export licenses, which resulted in Boeing exporting USML Category XIX(f)(1)-(3) nozzle segments and seal strips to Portugal and Turkey without DDTC authorization on seven occasions between July and November 2018. When the company became aware of the employee’s actions, it promptly took corrective measures and voluntarily disclosed the matter.

Unauthorized Exports and Retransfers of Technical Data Resulting from Jurisdiction and Classification Issues:

Boeing submitted multiple disclosures involving unauthorized exports stemming from jurisdiction and classification issues. For example, Boeing disclosed that due to misclassification, it temporarily imported and subsequently exported while improperly relying on Department of Commerce authorizations USML Category VIII(h)(18) parts for the AH-64 Apache Helicopter flight control system to multiple countries on five occasions between August 2018 and August 2022. Respondent

Unauthorized Exports, Retransfers, and Temporary Imports of Defense Articles:

Boeing exported USML Category XI(d) technical data to Canada without authorization on two occasions in March 2017. The exports occurred when an employee at Boeing’s U.S. subsidiary Argon exported without authorization requests for quotation to a potential supplier in Canada that contained a total of nine drawings with USML XI(d) technical data related to the ceramic acoustic structure of towed torpedo decoys used on U.S. and allied warships. The U.S. Government reviewed copies of the files and determined that it would not have authorized the exports had a license application been submitted.

Violation of Terms, Conditions, and Provisos of DDTC Authorizations:

Respondent submitted multiple voluntary disclosures that demonstrated issues with managing export authorizations, including failures to comply with the terms, conditions, and provisos of DDTC authorizations.

Copies of the Charging Letter, Agreement and Order can be found at the following links:

Article – DDTC Public Portal (state.gov) and

Article – DDTC Public Portal (state.gov) and

Article – DDTC Public Portal (state.gov)

Sanctions

Department of State

February 23, 2024: Following Russia’s two years of unprovoked full-scale war, the death of opposition politician and anticorruption activist Aleksey Navalny, and a decade of aggression against Ukraine, the United States sanctioned more than 500 individuals and entities in Russia and globally. There is a clear link between Russia’s authoritarianism, its domestic crackdown on dissent, and its aggression abroad.

The Department of State sanctioned three individuals in connection with the death of Navalny in Russian Penal Colony IK-3: the prison warden, regional prison head, and deputy director of the Federal Penitentiary Service of Russia. In addition, the Department imposed sanctions on more than 250 entities and individuals, including those engaged in sanctions evasion and circumvention, and those bolstering Russia’s future energy and metals and mining production.

Along with these actions, the Department sanctioned several individuals to promote accountability for acts supporting Russia’s war, including by those involved in the unlawful transfer and/or deportation of Ukrainian children. These financial sanctions targets were designated pursuant to Executive Order (E.O.) 14024, as amended, which authorizes sanctions with respect to specified harmful foreign activities of the Government of the Russian Federation.

The Department also took steps to impose visa restrictions on Russian Federation-installed purported authorities involved in human rights abuses in connection with the transfer, deportation and confinement of Ukrainian children.

Additionally, the U.S. government issued a business advisory to assist companies in making informed decisions regarding the risks of conducting business in Russia.

See the links below for the list of persons and entities sanctioned by the Department as the list is too voluminous to for this newsletter.

https://www.state.gov/imposing-measures-in-response-to-navalnys-death-and-two-years-of-russias-full-scale-war-against-ukraine/ and https://www.state.gov/russia-business-advisory/

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Department of Commerce, Bureau of Industry and Security (BIS)

February 23, 2024: 89 Fed. Reg. 14385: Following the death of opposition politician and anti-corruption activist Aleksey Navalny, and after two years of Russia’s unprovoked and unlawful full-scale invasion of Ukraine, the Commerce Department’s Bureau of Industry and Security (BIS) imposed additional export restrictions on 93 entities under 95 entries in Russia and seven other destinations. This action, along with others announced by the Department of State and the Department of Treasury, demonstrates the Biden-Harris Administration’s unwavering commitment to supporting those affected by Russia’s aggression.

Entity List additions continue efforts to cut off the Russian defense industrial base and military from even the low-technology consumer goods it seeks to sustain its war effort. Prior to this action, the Biden Harris Administration had added 815 entities in Russia, Belarus, and numerous third countries to the Entity List since March 2nd, 2022, for reasons related to Russia’s full-scale invasion of Ukraine or for otherwise supporting Russia’s military and/or defense industry.

Pursuant to this action, BIS added an additional 93 entities under 95 entries (due to some entities operating in multiple countries) to the Entity List for a variety of reasons related to their activities in support of Russia’s defense-industrial sector and war effort. Sixty-three of the entities are based in Russia, eight in the People’s Republic of China, sixteen in Turkiye, four in the United Arab Emirates (UAE), two in the Kyrgyz Republic, and one each in India and South Korea.

More than 50 of the entities added to the list will also receive a “footnote 3” designation as Russian-Belarusian military end users. A footnote 3 designation subjects these entities to some of the most severe restrictions under the Export Administration Regulations (EAR). The entities are added with a license requirement for all items subject to the EAR and a license review policy of denial, apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis. These rules are meant to serve as a response to Russian aggression against Ukraine. BIS added entities in several allied and partner countries, but it is not an action against the countries in which the entities are located or registered or the governments of those countries. The restrictions imposed in this rule serve as an action against those entities listed, which have supported the Russian military industrial base and other activities contrary to U.S. national security and foreign policy interests.

See the links below for the list of persons and entities sanctioned by BIS as the list is too voluminous to for this newsletter.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3452-2024-02-23-bis-press-release-russia-two-year-actions/file and https://www.federalregister.gov/public-inspection/2024-03969/additions-of-entities-to-the-entity-list

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February 27, 2024: 89 Fed. Reg. 14403: The Commerce Department’s Bureau of Industry and Security (BIS) added two entities to the Entity List under seven entries for activities contrary to U.S. national security and foreign policy interests. One entity was found to have been involved in supporting online censorship and surveillance to target political actors and human rights activities, and the other is being added for diversion of U.S. items to an Entity Listed party.

Two entities are being added to the Entity List under seven entries in multiple countries. One entity operating in multiple destinations globally is being listed due to information that it supplies deep packet inspection technology to a foreign government, where it is used in mass web-monitoring and censorship to block news as well as target political actors and human rights activists. One entity is based in the People’s Republic of China (PRC) and is being added for acquiring and attempting to acquire U.S.-origin items on behalf of a party on the Entity List. As a result of this rule, any transactions with these entities that involve items subject to the Export Administration Regulations (EAR) will require a license from the BIS, and applications for those licenses are likely to be denied.

The following 2 entities are added to the Entity List under 7 entries to the Entity List and includes, where appropriate, aliases:

Canada

  • Sandvine Incorporated.

China

  • Chengdu Beizhan Electronics Co., Ltd.

India

  • Sandvine Incorporated.

Japan

  • Sandvine Incorporated.

Malaysia

  • Sandvine Incorporated.

Sweden

  • Sandvine Incorporated.

United Arab Emirates

  • Sandvine Incorporated.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3454-2024-02-26-bis-press-release-entity-list-additions/file and https://www.bis.doc.gov/index.php/documents/regulations-docs/federal-register-notices/federal-register-2024/3456-2024-03674/file

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February 29, 2024: The U.S. Department of Commerce issued an advance notice of proposed rulemaking (ANPRM) seeking public comment to inform the potential development of regulations to secure and safeguard the Information and Communications Technology and Services (ICTS) supply chain for connected vehicles (CVs).

The ANPRM explains how the incorporation of foreign adversary ICTS in CVs can create risks, for example, by offering a direct entry point to sensitive U.S. technology and data or by bypassing measures intended to protect U.S. persons’ safety and security. In such cases, ICTS provided by persons or entities owned, controlled, or subject to the jurisdiction or direction of a foreign adversary may pose undue risks to critical infrastructure in the United States and unacceptable risks to national security. The People’s Republic of China presents a particularly acute and persistent threat to the U.S. ICTS supply chain related to CVs. This ANPRM demonstrates the Biden-Harris Administration’s proactive efforts to address the potential national security risks associated with the ICTS integral to CVs and is a significant step in advancing the ICTS mission. In this ANPRM, the Department seeks feedback on a number of issues, including: definitions; how potential classes of ICTS transactions integral to CVs may present undue or unacceptable risks to U.S. national security; implementation mechanisms to address these risks through potential prohibitions or, where feasible, mitigation measures; and whether to create a process for the public to request approval to engage in an otherwise prohibited transaction by demonstrating that the risk to U.S. national security is sufficiently mitigated in the context of a particular transaction.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3458-2024-02-29-citing-national-security-concerns-biden-harris-administration-announces-inquiry-into-connected-vehicles/file

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Department of the Treasury, Office of Foreign Assets Control (OFAC)

February 1, 2024:  The Department of the Treasury’s Office of Foreign Assets Control (OFAC) published the Price Cap Coalition Compliance and Enforcement Alert. The oil price cap (OPC), introduced by the “Price Cap Coalition” (or “G7+ Coalition”, comprising the G7, the European Union, and Australia) in December 2022, has two key objectives: 1) constraining Russian revenues that could otherwise be used to fund Russia’s war of aggression against Ukraine; while 2) maintaining global oil flows and protecting energy security.

This alert includes:

  • An overview of key OPC evasion methods and recommendations for identifying such methods and mitigating their risks and negative impacts; and
  • Information on how to report OPC suspected breaches across the Price Cap Coalition.

The OPC evasion methods covered in this alert are related to:

  • Falsified documentation and attestations;
  • Opaque shipping and ancillary costs;
  • Third country supply chain intermediaries and complex and irregular corporate structures;
  • Flagging;
  • The “shadow” fleet; and
  • Voyage irregularities.

https://ofac.treasury.gov/recent-actions/20240201_33 and https://ofac.treasury.gov/media/932571/download?inline

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February 1, 2024: Pursuant to Executive Order 14115 (See first entry above) the Department of the Treasury, Office of Foreign Assets Control’s (OFAC) updated its Specially Designated Nationals and Blocked Persons List:

The following individuals have been added to OFAC’s SDN List:

  • Chasdai, David Chai of Israel;
  • Levi, Yinon of Israel;
  • Tanjil, Einan of Israel; and
  • Zicherman, Shalom of Israel.

https://ofac.treasury.gov/recent-actions/20240201

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February 2, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC)  amended FAQ 629 and published an updated document titled, “Frequently Asked Questions Related to the Suspension of Certain U.S. Sanctions with Respect to Venezuela on October 18, 2023.”

Frequently Asked Question 629: Executive order (E.O.) 13850 of November 1, 2018, “Blocking Property of Additional Persons Contributing to the Situation in Venezuela,” authorizes the imposition of sanctions on persons operating in Venezuela’s gold sector. For purposes of this E.O., how will OFAC target those who “operate in the gold sector of the Venezuela economy or any other sector of the Venezuela economy as may be determined by the Secretary of the Treasury in consultation with the Secretary of State”?

Answer: OFAC expects to use its discretion to target in particular those who operate corruptly in the gold or other identified sectors of the Venezuela economy, and not those who are operating legitimately in such sectors. This includes, for example, persons engaging in dishonest or fraudulent conduct, illicit activity, or deceptive transactions within Venezuela’s gold sector or other identified Venezuela sectors, with the purpose or effect of misappropriating Venezuelan resources in those sectors for personal, professional, or political gain.

https://ofac.treasury.gov/recent-actions/20240202_33 and https://ofac.treasury.gov/faqs/629 and https://ofac.treasury.gov/media/932581/download?inline

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February 2, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a key procurement network of prolific suppliers of materials and sensitive technology for Iran’s ballistic missile and Unmanned Aerial Vehicle (UAV) programs, including the Shahed-series UAV produced by Iran’s Shahed Aviation Industries Research Center (SAIRC). The four Iran- and Hong Kong-based entities designated have operated as covert procurement entities for OFAC designated Hamed Dehghan and Pishtazan Kavosh Gostar Boshra (PKGB), who are actively engaged in supporting multiple Iranian military organizations, including the Islamic Revolutionary Guard Corps (IRGC). Additionally, OFAC designated a Hong Kong-based front company involved in the sale of hundreds of millions of dollars’ worth of Iranian commodities for the benefit of the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).

OFAC also sanctioned six officials in the Iranian Islamic Revolutionary Guard Corps Cyber-Electronic Command (IRGC-CEC), an Iranian government organization responsible for a series of malicious cyber activities against critical infrastructure in the United States and other countries.

The United States is taking action against these individuals in response to IRGC-affiliated cyber actors’ recent cyber operations in which they hacked and posted images on the screens of programmable logic controllers manufactured by Unitronics, an Israeli company.  Industrial control devices, such as programmable logic controllers, used in water and other critical infrastructure systems, are sensitive targets.  Although this particular operation did not disrupt any critical services, unauthorized access to critical infrastructure systems can enable actions that harm the public and cause devastating humanitarian consequences.

The following individuals have been added to OFAC’s SDN List:

  • Homayunfal, Hamid of Iran;
  • Lashgarian, Hamid Reza of Iran;
  • Lashgarian, Mahdi of Iran;
  • Mansuri, Milad of Iran; and
  • Saberian, Reza Mohammad Amin of Iran.

The following entities have been added to OFAC’s SDN List:

  • Advantage Trading Co., Limited, of China;
  • China Oil And Petroleum Company Limited of China;
  • Duling Technology Hk Limited of China;
  • Fy International Trading Co., Limited of China; and
  • Narin Sepehr Mobin Isatis of Iran.

https://home.treasury.gov/news/press-releases/jy2073 and https://home.treasury.gov/news/press-releases/jy2072 and https://ofac.treasury.gov/recent-actions/20240202

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February 7, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned one of Ecuador’s most violent gangs, Los Choneros, and its leader, José Adolfo Macías Villamar (also known by the alias “Fito”), pursuant to counter narcotics authorities. OFAC’s action follows a steep rise in violence in Ecuador attributed to the actions of Los Choneros and other drug trafficking gangs in the country.

The following individual has been added to OFAC’s SDN List:

  • Macias Villamar, Jose Adolfo of Ecuador.

The following entity has been added to OFAC’s SDN List:

  • Los Choneros of Ecuador.

https://home.treasury.gov/news/press-releases/jy2082 and https://ofac.treasury.gov/recent-actions/20240207

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February 8, 2024:  The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took its second price cap enforcement action of 2024, imposing sanctions on four entities and identifying one vessel as blocked property. The network of these entities and the vessel were involved in a price cap violation scheme in late 2023. OFAC is also issued two new determinations that implement G7 commitments to ban the importation of Russian diamonds.

The following entities have been added to OFAC’s SDN List:

  • NS Leader Shipping Incorporated Of Liberia;
  • Oil Tankers Scf Mgmt FZCO of the United Arab Emirates;
  • Talassa Shipping DMCC of he United Arab Emirates; and
  • Zeenit Supply And Trading DMCC of the United Arab Emirates.

The following vessel has been added to OFAC’s SDN List:

  • NS Leader (A8LU7) Crude Oil Tanker Gabon flag; Identification Number IMO 9339301; MMSI 636013272 (vessel).

OFAC also published a Determination for Prohibitions Related to Imports of Diamond Jewelry and Unsorted Diamonds of Russian Federation Origin and Diamond Jewelry and Unsorted Diamonds Exported From the Russian Federation, and a Determination for Prohibitions Related to Imports of Certain Categories of Diamonds.

OFAC also issued Russia-related General License 87, “Authorizing Limited Safety and Environmental Transactions Involving Certain Persons or Vessels Blocked on February 8, 2024.”

Russia-related General License 87: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons described below are authorized through 12:01 a.m. eastern daylight time, May 8, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations (RuHSR):

(1) The safe docking and anchoring in port of any vessels in which any person or entity listed in below  has a property interest (“blocked vessels”);

(2) The preservation of the health or safety of the crew of any of the blocked vessels; or

(3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

The authorization above applies to the following blocked persons listed on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List and any entity in which any of the following persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest:

(1) Oil Tankers SCF MGMT FZCO; and

(2) NS Leader Shipping Incorporated.

https://home.treasury.gov/news/press-releases/jy2085 and https://ofac.treasury.gov/recent-actions/20240208 and https://ofac.treasury.gov/media/932606/download?inline and https://ofac.treasury.gov/media/932611/download?inline and https://ofac.treasury.gov/media/932601/download?inline

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February 14, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a procurement network responsible for facilitating the illegal export of goods and technology from over two dozen U.S. companies to end-users in Iran, including the Central Bank of Iran (CBI), which is designated for its role in providing financial support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Hizballah. These designations target three individuals and four entities tied to the procurement of sophisticated U.S. technology for use by CBI in violation of U.S. export restrictions and sanctions. Among the goods and technology acquired by CBI were items classified as information security items subject to national security and anti-terrorism controls by the U.S. Department of Commerce’s Bureau of Industry and Security.

The following individuals have been added to OFAC’s SDN List:

  • Khademi, Mohammad Reza of the United Arab Emirates;
  • Mirdamadi, Pouria of Iran and France; and
  • Najafi, Seyed Abotaleb of Iran.

The following entities have been added to OFAC’s SDN List:

  • Advance Banking Solution Trading DMCC of the United Arab Emirates;
  • Freedom Star General Trading CO. L.L.C. of the United Arab Emirates;
  • Informatics Services Corporation of Iran; and
  • Ted Teknoloji Gelistirme Hizmetleri Sanayi Ticaret Anonim Sirketi of Turkey.

https://ofac.treasury.gov/recent-actions/20240214 and https://home.treasury.gov/news/press-releases/jy2095

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February 15, 2024: 89 Fed. Reg. 12233: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is amended the North Korea Sanctions Regulations to amend or add general licenses to facilitate certain humanitarian-related and journalistic activities.  Specifically, OFAC amended an existing general license for nongovernmental organizations and adding general licenses to authorize certain transactions related to the exportation and re-exportation of items authorized by the U.S. Department of Commerce; the provision of certain agricultural commodities, medicine, and medical devices; and certain journalistic activities in North Korea.

OFAC has also issued several new North Korea-related Frequently Asked Questions (1160, 1161, 1162, 1163).

Frequently Asked Question 1160: What changes did the February 15, 2024 regulatory amendment to the North Korea Sanctions Regulations, 31 CFR part 510 (NKSR), make?  

Answer: On February 15, 2024, OFAC, in consultation with the Department of State, amended the NKSR to modify an existing general license (GL) and add three new GLs to facilitate humanitarian-related and other activities in North Korea.  These changes include:

  • Additional non-governmental organization (NGO) activities

OFAC amended the GL at § 510.512 to authorize NGOs to engage in a broader range of humanitarian-related activities involving North Korea, including certain educational activities and activities to support disarmament, demobilization, and reintegration (DDR) programs and peacebuilding, conflict prevention, and conflict resolution programs.  The general license at § 510.512 allows transactions that are ordinarily incident and necessary to such NGO activities involving certain Government of North Korea entities, including limited partnerships, subject to certain conditions and limitations–including that the NGO must submit a report to the U.S. Department of State at least 30 days before their proposed activities, as further described in FAQ 1162.

The amended NGO GL at § 510.512 authorizes the export and reexport to North Korea of items not subject to the Export Administration Regulations (15 CFR parts 730 through 774) (EAR) to North Korea that are ordinarily incident and necessary to authorized NGO activities, provided the items would be designated as EAR99 if located in the United States.

  • Removal of dual licensing burden

To avoid duplicative licensing requirements, OFAC added a new GL at § 510.520 to authorize all transactions ordinarily incident to the exportation or reexportation of items (i.e., commodities, software, or technology) to North Korea, provided the exportation or reexportation is licensed or otherwise authorized by the Department of Commerce.  Such transactions may include transactions with the Government of North Korea, or any other person blocked pursuant to the NKSR, and services provided outside North Korea to install, repair, or replace authorized items.  Accordingly, U.S. persons no longer need to seek a specific license from OFAC to engage in transactions ordinarily incident to exports and reexports that are already licensed or otherwise authorized by the Department of Commerce.

  • Expansion of authorization for the exportation or reexportation of certain food, medicine, and other agricultural and medical items

OFAC added a new GL at § 510.521 to authorize certain transactions related to the export and reexport to North Korea of certain agricultural commodities (including food), medicine, medical devices, and replacement parts and components for medical devices, that are not subject to the EAR but that would be designated EAR99 if they were located in the United States, subject to certain conditions and limitations.

  • Journalistic activities

OFAC added a new GL at § 510.522 to authorize U.S. news reporting organizations and certain of their U.S. person employees to engage in certain transactions ordinarily incident and necessary to their journalistic activities or the establishment or operation of a news bureau in North Korea.

 

Frequently Asked Question 1161: Does the general license for non-governmental organization (NGO) activities at section 510.512 of the North Korea Sanctions Regulations, 31 CFR part 510 (NKSR), authorize NGOs to engage in transactions involving the Government of North Korea?

Answer: Yes, subject to certain conditions and limitations.  NGOs may engage in transactions with the Government of North Korea to the extent ordinarily incident and necessary to the activities authorized by § 510.512(a).  Such transactions may not include partnerships and partnership agreements with Government of North Korea military, intelligence, or law enforcement entities, except as necessary to export or import items to or from North Korea that are licensed or otherwise authorized pursuant to the NKSR or pursuant to the Export Administration Regulations (15 CFR parts 730 through 774) (EAR).  For example, NGOs may engage with North Korea’s Ministry of Public Health to provide assistance to clean water projects; with customs officials to import humanitarian-related items into the country; and with local jurisdictions, such as city governments and hospitals, to provide food and medical devices.  However, this general license does not authorize the exportation or reexportation of services to, charitable donations to or for the benefit of, or any other transactions involving, the Government of North Korea, the Workers’ Party of Korea, or any other person whose property and interests in property are blocked pursuant to the NKSR, except as ordinarily incident and necessary to an activity authorized pursuant to § 510.512(a).

 

Frequently Asked Question 1162: What must a non-governmental organization (NGO) do before relying on the general license (GL) at § 510.512 of the North Korea Sanctions Regulations, 31 CFR part 510 (NKSR)?

Answer: To be eligible for the NGO GL, an NGO must first submit a report to the U.S. Department of State via email to DPRK-NGO-GL-Notification-DL@state.gov no fewer than 30 days before the commencement of their activities, with one of the following:  (1) a copy of approval by the UN Security Council 1718 Committee (1718 Committee) with respect to the NGO’s activities; (2) a copy of a 1718 Committee exemption request or notification that has been or will be submitted to the 1718 Committee with respect to the NGO’s activities; or (3) a detailed explanation of why the NGO’s proposed activities do not require such an exemption or notification, including details about the type and scope of the proposed activities.  In the two-week period following submission of this information, the U.S. Department of State may notify the NGO that it is not eligible to rely upon the GL.  An NGO that does not receive this type of notification may proceed with the activities described in the report.

 

Frequently Asked Question 1163: Can I export tobacco or other luxury goods to North Korea?

Answer: No.  The general license for the exportation or reexportation of certain agricultural and medical items at § 510.521 of the North Korea Sanctions Regulations, 31 CFR part 510, does not authorize the exportation or reexportation to North Korea of luxury goods, including tobacco, as set forth in 15 CFR § 746.4(b)(1) of the Export Administration Regulations (15 CFR parts 730 through 774).

https://ofac.treasury.gov/recent-actions/20240215 and https://ofac.treasury.gov/media/932631/download?inline and https://ofac.treasury.gov/faqs/1160 and https://ofac.treasury.gov/faqs/1161 and https://ofac.treasury.gov/faqs/1162 and https://ofac.treasury.gov/faqs/1163

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February 16, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an OFAC Compliance Communiqué: Guidance for the Provision of Humanitarian-Related Assistance and Critical Commodities to the Yemeni People in response to questions from the NGO community and the general public on how to ensure humanitarian assistance and trade continue to flow to the Yemeni people while complying with OFAC sanctions.

OFAC is also issued Counter Terrorism General License 28, “Authorizing Transactions for Third-Country Diplomatic and Consular Missions Involving Ansarallah.”

The following entity has been added to OFAC’s SDN List:

Ansarallah of Yemen.

Counter Terrorism General License 28:

All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest, that are ordinarily incident and necessary to the official business of third-country diplomatic or consular missions to Yemen are authorized.

This general license does not authorize:

(1) Financial transfers to any blocked person described above, other than for the purpose of effecting the payment of taxes, fees, or import duties, or the purchase or receipt of permits, licenses, or public utility services; or

(2) Any transactions otherwise prohibited by the GTSR, including transactions involving any person blocked pursuant to the GTSR other than the blocked persons described above, unless separately authorized.

https://ofac.treasury.gov/recent-actions/20240216 and https://ofac.treasury.gov/media/932621/download?inline and https://ofac.treasury.gov/media/932626/download?inline

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February 20, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Russia-related General License 83A, “Authorizing Certain Transactions Related to Imports of Certain Categories of Fish, Seafood, and Preparations Thereof Prohibited by Executive Order 14068.”

Russia-related General License 83A: All transactions prohibited by the determination of December 22, 2023 made pursuant to section 1(a)(i)(B) of Executive Order (E.O.) 14068, as amended by E.O. 14114 (“Prohibitions Related to Imports of Certain Categories of Fish, Seafood, and Preparations Thereof”), that are ordinarily incident and necessary to the importation into the United States of seafood derivative products that were loaded onto a vessel at the port of loading prior to 12:01 a.m. eastern standard time on February 20, 2024, pursuant to written contracts or written agreements entered into prior to December 22, 2023, are authorized through 12:01 a.m. eastern daylight time, May 31, 2024. (b) This general license does not authorize any transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), including transactions involving any person blocked pursuant to the RuHSR, unless separately authorized. Effective February 20, 2024, General License No. 83, dated December 22, 2023, is replaced and superseded in its entirety by this General License No. 83A.

https://ofac.treasury.gov/recent-actions/20240220_33 and https://ofac.treasury.gov/media/932636/download?inline

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February 20, 2024: The United States designated two individuals who are affiliates of the Russia-based ransomware group LockBit. This action is the first in an ongoing collaborative effort with the U.S. Department of Justice, Federal Bureau of Investigation, and our international partners targeting LockBit.

Russia continues to offer safe harbor for cybercriminals where groups such as LockBit are free to launch ransomware attacks against the United States, its allies, and partners. These ransomware attacks have targeted critical infrastructure, including hospitals, schools, and financial institutions. Notably, LockBit was responsible for the November 2023 ransomware attack against the Industrial and Commercial Bank of China’s (ICBC) U.S. broker-dealer. The United States is a global leader in the fight against cybercrime and is committed to using all available authorities and tools to defend Americans from cyber threats. In addition to the actions announced, the U.S. government provides critical resources to support potential victims in protecting against and responding to ransomware attacks. For example, last year, the Cybersecurity & Infrastructure Security Agency in conjunction with other U.S. Departments and Agencies and foreign partners published two cybersecurity advisories, “Understanding Ransomware Threat Actors: LockBit” and “LockBit 3.0 Ransomware Affiliates Exploit CVE 2023-4966 Citrix Bleed Vulnerability.” These advisories detail the threats posed by this group and provide recommendations to reduce the likelihood and impact of future ransomware incidents.

The following individuals have been added to OFAC’s SDN List:

  • Kondratiev, Ivan Gennadievich of Russia; and
  • Sungatov, Artur Ravilevich, Kazan, of Russia.

https://home.treasury.gov/news/press-releases/jy2114 and https://ofac.treasury.gov/recent-actions/20240220

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February 23, 2024: Marking Russia’s two years of unprovoked and unlawful full-scale war against Ukraine and in response to the death of opposition politician and anticorruption activist Aleksey Navalny, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned almost 300 individuals and entities. Together with actions from the U.S. Department of State (State), this is the largest number of sanctions imposed since Russia’s full-scale invasion of Ukraine. State designated three Government of Russia officials in connection with Navalny’s death; together, Treasury and State  sanctioned over 500 targets to impose additional costs for Russia’s repression, human rights abuses, and aggression against Ukraine. The Department of Commerce also added more than 90 companies to the Entity List.

To deny Russia the resources necessary to support its brutal war against Ukraine, Treasury designatedg targets including a major cog in Russia’s financial infrastructure; more than two dozen third-country sanctions evaders in Europe, East Asia, Central Asia, and the Middle East; and hundreds of entities in Russia’s military-industrial base and other key sectors.

State’s concurrent actions include sanctions on those involved in supporting Russian future energy revenue sources, maintaining Russia’s capacity to wage its war of aggression, and facilitating sanctions evasion and circumvention. State also took steps to impose visa restrictions on Russian Federation-installed purported authorities involved in the transfer, deportation, and confinement of Ukraine’s children.

See the links below for the list of persons and entities added to the SDN list as the list is too voluminous for this newsletter.

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Russia-related General License 88, “Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on February 23, 2024;” Russia-related General License 89, “Authorizing the Wind Down and Rejection of Transactions Involving Certain Financial Institutions Blocked on February 23, 2024;” Russia-related General License 90, “Authorizing Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, Certain Entities Blocked on February 23, 2024;” and Russia-related General License 91, “Authorizing Limited Safety and Environmental Transactions Involving Certain Blocked Persons or Vessels.”

Russia-related General License 88: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, April 8, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) PJSC Transcontainer; (2) Publichnoe Aktsionernoe Obshchestvo Mechel; (3) JSC SUEK; (4) ILLC Geopromining Investment; (5) LLC Holding GPM; (6) Joint Stock Company Samara Metallurgical Plant; (7) Joint Stock Company Rimera; (8) Public Joint Stock Company Pipe Metallurgical Company; (9) Vostochnaya Stevedoring Company LLC; (10) JSC Rosgeologia; (11) National Payment Card System Joint Stock Company; (12) Limited Liability Company BSF Capital; (13) Limited Liability Company Investment Consultant Elbrus Capital; (14) Limited Liability Company Orbita Capital Partners; (15) Nonprofit Organization Investment and Venture Fund of the Republic of Tatarstan; (16) Obshchestvo S Ogranichennoi Otvetstvennostyu Guard Kapital; (18) Limited Liability Company Shipbuilding Complex Zvezda; (19) Joint Stock Company Sovcomflot; and (20) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

https://ofac.treasury.gov/media/932671/download?inline

Russia-related General License 89: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, April 8, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) Avangard Joint Stock Bank; (2) Bank RostFinance; (3) Joint Stock Commercial Bank Chelindbank; (4) Joint Stock Commercial Bank International Financial Club; (5) Joint Stock Commercial Bank Modulbank; (6) Joint Stock Company Databank; (7) Maritime Joint Stock Bank Joint Stock Company; (8) Public Joint Stock Company Bystrobank; and (9) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

https://ofac.treasury.gov/media/932646/download?inline

Russia-related General License 90: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the divestment or transfer, or the facilitation of the divestment or transfer, of debt or equity issued or guaranteed by the following blocked entities (“Covered Debt or Equity”) to a non-U.S. person are authorized through 12:01 a.m. eastern daylight time, April 8, 2024: (1) LLC Holding GPM; (2) Limited Liability Company Geopromaining Verkhne Menkeche; (3) Joint Stock Company Sarylakh Surma; (4) Joint Stock Company Zvezda; (5) ILLC Geopromining Investment; (6) Public Joint Stock Company PIK Specialized Homebuilder; and (7) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to facilitating, clearing, and settling trades of Covered Debt or Equity that were placed prior to 4:00 p.m. eastern standard time, February 23, 2024 are authorized through 12:01 a.m. eastern daylight time, April 8, 2024.

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the wind down of derivative contracts entered into prior to 4:00 p.m. eastern standard time, February 23, 2024 that (i) include a blocked person described in paragraph (a) of this general license as a counterparty or (ii) are linked to Covered Debt or Equity are authorized through 12:01 a.m. eastern daylight time, April 8, 2024, provided that any payments to a blocked person are made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

https://ofac.treasury.gov/media/932651/download?inline

Russia-related General License 91: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons described below are authorized through 12:01 a.m. eastern daylight time, May 23, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) The safe docking and anchoring in port of any vessels in which any person listed below has a property interest (“blocked vessels”); (2) The preservation of the health or safety of the crew of any of the blocked vessels; or (3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

The authorization above applies to the following blocked persons listed on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List and any entity in which any of the following persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest: (1) Ladoga Shipping Company Limited Liability Company; (2) JSC Polar Marine Geosurvey Expedition; (3) Yuzhmorgeologiya AO; (4) Sevmorneftegeofizika AO; and (5) Amige AO.

https://ofac.treasury.gov/media/932656/download?inline

OFAC is also issuing three new, Russia-related Frequently Asked Questions (FAQs 1164-1166) and amending eight Russia-related Frequently Asked Questions (FAQs 886, 887, 1019, 1022, 1025, 1027, 1092, and 1154).

FAQ 1164: What prohibitions has OFAC implemented with respect to diamonds and diamond jewelry under the Russian Harmful Foreign Activities Sanctions program?

Answer: On March 11, 2022, the Biden Administration issued Executive Order (E.O.) 14068, prohibiting the importation into the United States of non-industrial diamonds of Russian Federation origin.  See FAQs 1019 and 1027 for the definition of Russian Federation origin and non-industrial diamonds, respectively.  On December 6, 2023, the G7 Leaders announced a coordinated international effort to impose phased restrictions on the importation of certain Russian diamonds, including diamonds processed in third countries.  As a part of this G7 commitment, OFAC has issued additional restrictions on the importation of non-industrial diamonds mined, extracted, produced, or manufactured wholly or in part in the Russian Federation as well as unsorted diamonds and diamond jewelry.

Specifically, on February 8, 2024, OFAC issued two determinations, “Prohibitions Related to Imports of Certain Categories of Diamonds” pursuant to Executive Order (E.O.) 14068 (the “Diamonds Determination”) and “Prohibitions Related to Imports of Diamond Jewelry  and Unsorted Diamonds of Russian Federation Origin and Diamond Jewelry and Unsorted Diamonds Exported From the Russian Federation” pursuant to Executive Order (E.O.) 14068 (the “Diamond Jewelry and Unsorted Diamonds Determination”).

 

FAQ 1165: What does the determination “Prohibitions Related to Imports of Certain Categories of Diamonds” pursuant to Executive Order (E.O.) 14068 (the “Diamonds Determination”), prohibit?

Answer: The Diamonds Determination prohibits the importation and entry into the United States of two categories of diamonds, effective on the dates indicated below.

Effective March 1, 2024, the Diamonds Determination prohibits the importation of non-industrial diamonds that were mined, extracted, produced, or manufactured wholly or in part in the Russian Federation with a weight of 1.0 carat or greater, even if such diamonds have been substantially transformed into other products outside of the Russian Federation.

Effective September 1, 2024, the Diamonds Determination prohibits the importation of Russian non-industrial diamonds with a weight of 0.5 carats or greater, even if such diamonds have been substantially transformed into other products outside of the Russian Federation.

For example, a non-industrial diamond that is mined in Russia but then undergoes manufacturing operations such as being cut, faceted, or polished in a third country, is prohibited from importation and entry into the United States, if at the time of importation, it is 1.0 carat or greater as of March 1, 2024 or 0.5 carats or greater as of September 1, 2024.

See FAQ 1027 for the definition of non-industrial diamonds.  See FAQ 1166 for information on the prohibition related to diamond jewelry and unsorted diamonds.

 

FAQ 1166: What does the determination “Prohibitions Related to Imports of Diamond Jewelry and Unsorted Diamonds of Russian Federation Origin and Diamond Jewelry and Unsorted Diamonds Exported From the Russian Federation” pursuant to Executive Order (E.O.) 14068 (the “Diamond Jewelry Determination”), prohibit?

Answer: The Diamond Jewelry Determination prohibits the importation and entry into the United States of diamond jewelry and unsorted diamonds of Russian Federation origin, as well as diamond jewelry and unsorted diamonds that were exported from the Russian Federation.  For example, it prohibits the importation into the United States of a diamond bracelet that has been manufactured in the Russian Federation, regardless of where the diamonds originated.

This prohibition comes into effect on March 1, 2024.  See FAQ 1027 for the definition of diamond jewelry.  See FAQ 1019 for the definition of Russian Federation origin.  See FAQ 1165 for information on the prohibition related to certain categories of non-industrial diamonds.  For additional information on certification and traceability of diamonds, please contact U.S. Customs and Border Protection.

https://home.treasury.gov/news/press-releases/jy2117 and https://ofac.treasury.gov/faqs/added/2024-02-23 and https://ofac.treasury.gov/faqs/search/886+887+1019+1022+1025+1027+1092+1154

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February 23, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action to responsibly reduce Russia’s revenue from oil sales by targeting Joint Stock Company Sovcomflot (Sovcomflot), Russia’s state-owned shipping company and fleet operator. In addition to designating Sovcomflot, OFAC is identified 14 crude oil tankers as property in which Sovcomflot has an interest.

Concurrent with the designation of Sovcomflot, OFAC issued a  general license authorizing the offloading of crude oil (or other cargo) from these 14 vessels for a period of 45 days. In addition, OFAC issued a general license authorizing transactions with all other Sovcomflot-owned vessels at this time. Nothing in these general licenses changes any of the restrictions imposed by the price cap sanctions regime.

Sovcomflot was designated pursuant to Executive Order (E.O.) 14024 for operating or having operated in the marine sector of the Russian Federation economy and for being owned or controlled by, or having acted for or on behalf of, directly or indirectly, the Government of the Russian Federation. Sovcomflot has also been sanctioned by Australia, Canada, New Zealand, and the United Kingdom (UK) and is under certain European Union (EU) restrictions.

The following entity has been added to OFAC’s SDN List:

  • Joint Stock Company Sovcomflot of Russia.

The following vessels have been added to OFAC’s SDN List:

  • Anatoly Kolodkin (3E7525) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9610808; MMSI 352003372;
  • Georgy Maslov (TRBD9) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9610793; MMSI 626362000;
  • Krymsk (TRBE3) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9270529; MMSI 626364000 (vessel);
  • Liteyny Prospect (TRBE6) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9256078; MMSI 626367000 (vessel);
  • Nevskiy Prospect (TRBE8) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9256054; MMSI 626369000 (vessel);
  • NS Antarctic (TRBF3) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9413559; MMSI 626372000 (vessel);
  • NS Bravo (TRBF8) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9412359; MMSI 626377000 (vessel);
  • NS Burgas (TRBF9) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9411020; MMSI 626378000 (vessel);
  • NS Captain (TRBG2) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9341067; MMSI 626379000 (vessel);
  • NS Columbus (TRBG5) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9312884; MMSI 626382000 (vessel);
  • NS Consul (TRBH3) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9341093; MMSI 626388000 (vessel);
  • NS Creation (TRBH5) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9312896; MMSI 626390000 (vessel);
  • NS Lion (TRBH8) Crude Oil Tanker Gabon flag; Vessel Registration Identification IMO 9339313; MMSI 626393000 (vessel);
  • Sakhalin Island (3E4139) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9249128; MMSI 352002202 (vessel).

Russia Related General License 88A: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern daylight time, April 8, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) PJSC Transcontainer; (2) Publichnoe Aktsionernoe Obshchestvo Mechel; (3) JSC SUEK; (4) ILLC Geopromining Investment; (5) LLC Holding GPM; (6) Joint Stock Company Samara Metallurgical Plant; (7) Joint Stock Company Rimera; (8) Public Joint Stock Company Pipe Metallurgical Company; (9) Vostochnaya Stevedoring Company LLC; (10) JSC Rosgeologia; (11) National Payment Card System Joint Stock Company; (12) Limited Liability Company BSF Capital; (13) Limited Liability Company Investment Consultant Elbrus Capital; (14) Limited Liability Company Orbita Capital Partners; (15) Nonprofit Organization Investment and Venture Fund of the Republic of Tatarstan; (16) Obshchestvo S Ogranichennoi Otvetstvennostyu Guard Kapital; (18) Limited Liability Company Shipbuilding Complex Zvezda; (19) Joint Stock Company Sovcomflot; and (20) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

https://ofac.treasury.gov/media/932671/download?inline

Russia Related General License 91A: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons described in paragraph (b) are authorized through 12:01 a.m. eastern daylight time, May 23, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) The safe docking and anchoring in port of any vessels in which any person listed in paragraph (b) of this general license has a property interest (“blocked vessels”); (2) The preservation of the health or safety of the crew of any of the blocked vessels; or (3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

The authorization above applies to the following blocked persons listed on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List and any entity in which any of the following persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest: (1) Ladoga Shipping Company Limited Liability Company; (2) JSC Polar Marine Geosurvey Expedition; (3) Yuzhmorgeologiya AO; (4) Sevmorneftegeofizika AO (5) Amige AO; and (6) Joint Stock Company Sovcomflot.

https://ofac.treasury.gov/media/932676/download?inline

Russia Related General License 92: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the delivery and offloading of cargo from any vessel identified on the Office of Foreign Assets Control’s List of Specially Designated Nationals and Blocked Persons that is blocked solely due to a property interest of Joint Stock Company Sovcomflot (Sovcomflot), or any entity in which Sovcomflot owns, directly or indirectly, a 50 percent or greater interest, are authorized through 11:59 p.m. eastern daylight time, April 8, 2024, provided that the cargo was loaded prior to February 23, 2024.

https://ofac.treasury.gov/media/932661/download?inline

Russia Related General License 93: All transactions prohibited by Executive Order (E.O.) 14024 involving any vessel that is blocked solely due to a property interest of Joint Stock Company Sovcomflot or any entity in which Sovcomflot owns, directly or indirectly, a 50 percent or greater interest, are authorized, provided that such vessel is not identified on the Office of Foreign Assets Control’s List of Specially Designated Nationals and Blocked Persons.

https://ofac.treasury.gov/media/932666/download?inline

https://home.treasury.gov/news/press-releases/jy2121 and https://ofac.treasury.gov/recent-actions/20240223_33

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February 27, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC), in coordination with the United Kingdom, took action against the Deputy Commander of Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), Mohammad Reza Falahzadeh, as well as a Houthi group member. OFAC is also designating the owner and operator of a vessel used to ship Iranian commodities that were sold to support both the Houthis and the IRGC-QF. The revenue generated through these illicit networks enables the Houthis’ militant efforts, including numerous terrorist attacks in the region using advanced unmanned aerial vehicles and missiles. This action follows the recent U.S. Department of State designation of Ansarallah (commonly known as the Houthis) as a Specially Designated Global Terrorist as a result of their ongoing and unprecedented attacks on international maritime commerce in the Red Sea and Gulf of Aden. This action was taken pursuant to the counterterrorism authority Executive Order (E.O.) 13224, as amended, which targets terrorist groups, their supporters, and those who aid acts of terrorism.  The IRGC-QF was designated pursuant to E.O. 13224 on October 25, 2007, for providing support to multiple terrorist groups.

OFAC also took action against two companies registered in Hong Kong and the Marshall Islands that own and operate a vessel, the Panama-flagged KOHANA, shipping over $100 million in Iranian commodities to businesses in the People’s Republic of China (PRC) on behalf of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). MODAFL continues to facilitate the delivery of Iranian weapons, most notably unmanned aerial vehicles (UAVs), to Russia in support of its war of aggression in Ukraine and to Iranian-aligned militia groups in the Middle East.

The following individuals have been added to OFAC’s SDN List:

  • Al-Nashiri, Ibrahim of Yemen; and
  • Falahzadeh, Mohammad Reza of Iran.

The following entities have been added to OFAC’s SDN List:

  • Cap Tees Shipping Co., Limited of China;
  • Iridescent Co LTD of the Marshall Islands and China; and
  • Kohana Company Limited of China.

The following vessels have been added to OFAC’s SDN List:

  • Artura (3E3496) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9150365; MMSI 352002279 (vessel); and
  • Kohana (3E4115) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9254082; MMSI 352002176 (vessel).

https://home.treasury.gov/news/press-releases/jy2125 and https://home.treasury.gov/news/press-releases/jy2127 and https://ofac.treasury.gov/recent-actions/20240227

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February 28, 2024:  The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) redesignated, pursuant to Executive Order (E.O.) 14059, the Los Pochos Drug Trafficking Organization (DTO), and designated three members and four affiliated companies based in Guatemala. First sanctioned in 2019 pursuant to the Kingpin Act, the Los Pochos DTO is a Guatemala-based organization primarily engaged in cocaine trafficking from Guatemala through Mexico to the United States. This action placed renewed attention on the Los Pochos DTO following a change in leadership and involvement of its members in local Guatemalan politics. The Los Pochos DTO controls narcotics trafficking activities on the Guatemala-Mexico border and is associated with Mexico’s Sinaloa Cartel, one of the world’s most notorious drug trafficking organizations.

The following individuals have been added to OFAC’s SDN List:

  • Morales Cifuentes, Juan Jose of Guatemala;
  • Ochoa Villagran, Erick Manuel of Guatemala; and
  • Suniga Morfin, Isel Aneli of Guatemala.

The following entities have been added to OFAC’s SDN List:

  • Condado Real of Guatemala;
  • Construhogar of Guatemala;
  • Importadora Jireh of Guatemala; and
  • Wiv, Sociedad Anonima of Guatemala.

https://home.treasury.gov/news/press-releases/jy2133 and https://ofac.treasury.gov/recent-actions/20240228

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February 29, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Venezuela General License 45B, “Authorizing Certain Repatriation Transactions Involving Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A.”

Venezuela General License 45B: All transactions ordinarily incident and necessary to the repatriation of Venezuelan nationals from non-U.S. jurisdictions in the Western Hemisphere to Venezuela, and which are exclusively for the purposes of such repatriation, involving Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A. (Conviasa), or any entity in which Conviasa owns, directly or indirectly, a 50 percent or greater interest, that are prohibited by Executive Order (E.O.) 13850, as amended by E.O. 13857, or E.O. 13884, each as incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized.

This General License includes transactions for the maintenance (including repair) of the aircraft being used for such repatriation flights.

This general license does not authorize any transactions otherwise prohibited by the VSR, including any transactions involving any person blocked pursuant to the VSR other than the blocked persons described in paragraph (a) of this general license, Government of Venezuela persons blocked solely pursuant to E.O. 13884, Banco Central de Venezuela, or Banco de Venezuela SA Banco Universal.

https://ofac.treasury.gov/recent-actions/20240229 and https://ofac.treasury.gov/media/932686/download?inline

FEBRUARY 2024 EXPORT CONTROL REGULATIONS UPDATES Read More »

JANUARY 2024 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through January 31, 2024.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and persons denied export privileges by the United States Government.

REGULATORY UPDATES

Department of State, Directorate of Defense Trade Controls (DDTC)

Anticipated ITAR Rulemaking Developments for 2024

January 4, 2024: The State Department’s Directorate of Defense Trade Controls (DDTC) recently updated its list of planned rulemaking concerning the International Traffic in Arms Regulations (ITAR) and U.S. Munitions List (USML).

Anticipated Developments

DDTC’s anticipated rulemaking list includes 16 intended actions, as well as a civil monetary penalty adjustment. The following are some of the significant rulemaking items.

Proposed Revisions to Defense Services. DDTC plans to publish a proposed rule regarding the ITAR’s control of defense services. Specifically, the proposed rule involves “revisions to definitions and controls related to defense services.” Although this planned rulemaking is new to the regulatory agenda, it is already going through its final interagency review, as DDTC submitted it for that clearance in early November. This proposal will be the fourth proposed rule by DDTC concerning defense services. It published the first proposed rule in 2011, the second in 2013, and the third in 2015. Each time, DDTC conceded that the current rule is “overly broad.”

The ITAR’s defense services controls have been essentially unchanged for four decades—with two notable changes. First, in 1984, when DDTC added the definition of defense services to the ITAR, it changed its policy by controlling technical assistance “regardless of whether technical data will be used or disclosed.” In making that “significant” change, DDTC stated that it was previously the agency’s practice to control assistance “only if it involved the disclosure of technical data or the use of technical data that was not exempt from the licensing requirements of Part 125.” Second, in 1997, DDTC amended the definition to cover military training, now appearing within ITAR § 120.32(a)(3).

USML Revisions. In addition to the defense services proposed rule, DDTC intends to issue the following three rulemakings concerning USML revisions:

  • An interim final rule “to revise and exclude entries on the [USML] that no longer warrant inclusion and to add entries for critical and emerging technologies that do.”
  • A proposed rule that will seek to revise several areas of the USML that may involve revisions to Category IV and XV and circuit boards and semiconductors covered within Category XI(c).
  • A final rule that will respond to public comments and complete the control criteria revisions from the April 2023 interim final rule to Category XI(c)(5), which involves certain high-energy storage capacitors.

DDTC’s regulatory agenda also includes a proposal to modernize the USML and Supplement No. 1 to Part 126 to enhance their “clarity, consistency, and ease of use.” The agenda additionally includes issuing a final rule to address the public comments DDTC received for the USML revisions to Categories IV, V, VIII, XI, and XV that took place through an interim final rule in 2018.

Proposed Registration Fee Increase. DDTC expects to issue a proposed rule to increase the ITAR’s registration fees. The last fee change occurred in 2008, with other previous changes occurring in 2004, 1997, and 1985. The ITAR’s registration fees were the subject of litigation in 2015 concerning DDTC’s ability to raise those fees, but that case did not address the merits because the plaintiff lacked standing. This proposed rule is going through a final interagency review, and DDTC expects to publish it for public comment in the first half of 2024.

Final Rule Concerning Technical Data Releases to Foreign Persons. DDTC plans to issue a final rule to change how the ITAR handles “deemed exports” and “deemed reexports” of technical data to foreign persons so that there is “a release only to any countries in which that foreign person currently holds citizenship or permanent residency.” Both situations currently control such releases “to all countries in which the foreign person has held or holds citizenship or holds permanent residency.” DDTC issued a proposed rule regarding this rulemaking in February 2022.

Final Revisions Clarifying Non-Controlled Events. DDTC intends to issue a final rule amending ITAR § 120.54 to add two activities that are not exports, reexports, retransfers, or temporary imports. As DDTC explained in the proposed rule, the two activities cover:

  • “the taking of defense articles outside a previously approved country by the armed forces of a foreign government or United Nations personnel on a deployment or training exercise is not a controlled event, provided there is no change in end-use or end-user”; and
  • “the transfer of a foreign defense article originally imported into the United States that has since been exported out of the United States, is not a controlled event, unless certain enumerated circumstances have occurred.”

Notably, DDTC acknowledged that the rule intends to “codify” the agency’s “long-standing policy” that these two activities “are not controlled events.”

Proposed Rule Concerning Regular Employees. DDTC intends to issue another proposed rule seeking to revise the meaning of a regular employee within ITAR § 120.64. Specifically, the proposed revisions would update the definition by allowing “subject persons to work remotely, and to clarify the contractual relationships that meet the definition of regular employee.” The first proposed rule, published in May 2021, received several public comments critical of the proposed approach to distinguish between contract employees based on the duration of employment.

Proposed Rule Consolidating Licensing Provisions and Exemptions. DDTC plans to issue a proposed rule involving the consolidation of ITAR Parts 123, 124, and 125. That consolidation will place most licensing exemptions into Part 125, while Part 123 will focus on the licensing requirements and Part 124 will focus on the licensing process. The Defense Trade Advisory Group (DTAG) recently reviewed this consolidation process in October 2023.

Final Rule Concerning the Personal Protective Equipment (PPE) Exemption. DDTC is preparing a final rule “to expand the list of personal protective equipment covered by the exemption in ITAR section 123.17.” DTAG reviewed this exemption in May 2021 and submitted proposed revisions based on its recommendations.

Corrections and Clarifications. DDTC expects to build upon the initial Part 120 consolidation effort with a final rule covering non-substantive corrections and clarifications. DDTC calls this corrections and clarifications rule “ITAR Reorg 1.5.”

https://www.stagg.law/insights/anticipated-itar-rulemaking-developments-for-2024/ and https://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST&currentPub=true&agencyCode=&showStage=active&agencyCd=0600&csrf_token=BF6B3C61CAF8BE26D24EF0A905F8FE61840DA695942104980FE1A083F9518CC504B25D8BCB417A2685F9343620BDA15DED13

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DDTC Updates The Civil Penalty Amount For Inflation

January 5, 2024: 89 Fed. Reg. 700: The U.S. Department of State adjusted the civil monetary penalties (CMP) for regulatory provisions maintained and enforced by the Department of State. The revised CMP adjusts the amount of civil monetary penalties assessed by the Department of State based on the December 2023 guidance from the Office of Management and Budget and by recent legislation. For violations of the International Traffic in Arms Regulations (“ITAR”) the penalty is now:

  • The greater of $1,238,892 or the amount that is twice the value of the transaction that is the basis of the violation with respect to which the penalty is imposed.

https://www.federalregister.gov/documents/2024/01/05/2023-29003/department-of-state-2024-civil-monetary-penalties-inflationary-adjustment

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DDTC Name and Address Changes Posted To Website

January 5 through 12, 2024: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at    

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

  • Change in Name and Address from General Electric International, Inc. at Bureaux 17 et 18 Immeuble Crystal 3, Boulevard des Almoahades, 3 Eme Etage, Casablanca 20030, Morocco to GE Aviation Systems North America LLC – Morocco at CFC Tower Lot 57, 5th Floor, Avenue Main Street, Casa Anfa, Hay Hassani, Casablanca 20250, Morocco due to corporate rebranding;
  • Change in Name from L3Harris Micro Pty Limited to L3Harris Space and Airborne Systems Australia Pty Ltd., due to corporate rebranding;
  • Fokker Technologies Holding B.V. and its operating units in The Netherlands have completed an internal corporate reorganization resulting in the following changes:
    • Fokker Landing Gear B.V. and Fokker Elmo B.V. will change their main addresses to Anthony Fokkerweg 4, 3551 NL Papendrecht, the Netherlands.
    • Fokker Landing Gear B.V. and Fokker Technologies Holding B.V. will merge into Fokker Aerostructures B.V.
    • Fokker Aerostructures B.V. will become a direct subsidiary of Fokker Technologies Group B.V. and will change its name to GKN Fokker Aerospace B.V. (“GKN Fokker Aero”).
    • GKN Fokker Aero will, on occasion, use the trade names “Fokker Landing Gear”, “Fokker Technologies Holding,” and “Fokker Aerostructures” but Fokker Landing Gear B.V. and Fokker Technologies Holding B.V. will no longer exist as separate legal entities.
    • Fokker Elmo B.V. will remain a separate legal entity owned by GKN Fokker Aero;
  • Change in Name from Consilium Technology Proprietary Limited to Aurizn Solutions Proprietary Limited due to merger;
  • Raytheon Company’s headquarters change in Address from 870 Winter Street, Waltham, Massachusetts 02451 to 1100 Wilson Blvd., Arlington, Virginia 22209; and
  • Change in Name from Airbus Group India Private Limited to Airbus India Private Limited due to corporate rebranding.

DSCA Notifies Congress Of Potential FMS Sale To Australia

January 10, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Australia of General Tomahawk Weapons System Support Services Uplift and related equipment for an estimated cost of $250 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Government of Australia has requested to buy services to support the Tomahawk Weapon System, including general weapons support services; logistics support management; material support; engineering technical support; management of technical data; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/australia-general-tomahawk-weapons-system-support-services-uplift

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DSCA Notifies Congress Of Potential FMS Sale To Egypt

January 10, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Egypt of Light Tactical Vehicle Chassis and Fleet Build and related equipment for an estimated cost of $200 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Government of Egypt has requested to buy additional light tactical vehicle chassis and fleet build that will be added to a previously implemented case. The original Foreign Military Sales case, valued at $41.9 million, included 4-Man REV1-B Rolling Chassis with 190 horsepower (HP) diesel engines upgraded to 205HP turbocharged engines; training for chassis assembly process, operations, and maintenance; spare and repair parts; testing equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistical and program support.

https://www.dsca.mil/press-media/major-arms-sales/egypt-light-tactical-vehicle-chassis-and-fleet-build

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DSCA Notifies Congress Of Potential FMS Sale To Egypt

January 10, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Egypt of 28-Meter Patrol Craft Kits and related equipment for an estimated cost of $129 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Government of Egypt has requested to buy additional non-Major Defense Equipment (MDE) 28-meter patrol craft production kits and technical support. The kits consist of Rigid Hull Inflatable Boats, forward-looking infrared systems, and computer packages; technical and logistics support services; transportation; spare parts, materials, equipment, and components; and other related elements of logistical and program support.

https://www.dsca.mil/press-media/major-arms-sales/egypt-28-meter-patrol-craft-kits

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DSCA Notifies Congress Of Potential FMS Sale To Kosovo

January 11, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Republic of Kosovo of Javelin Missiles and related equipment for an estimated cost of $75 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Republic of Kosovo has requested to buy two hundred forty-six (246) Javelin FGM-148F missiles (includes six (6) fly-to-buy missiles); and twenty-four (24) Javelin Lightweight Command Launch Units (LWCLU). Also included are Javelin LWCLU Basic Skills Trainers; Javelin Outdoor Trainers; Missile Simulation Rounds; Outdoor Training Instructor Stations (OTIS); Battery Coolant Units (BCUs); System Integration and Check out (SICO); Life Cycle Support (LCS); Javelin Restricted Interactive Electronic Technical Manual (IETM); Javelin Operator Manual and Technical Assistance (TAGM); tools; Javelin gunner training; Ammunition Technical Officer (ATO) training; Javelin maintenance training; and other elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/kosovo-javelin-missiles

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DSCA Notifies Congress Of Potential FMS Sale To Croatia

January 26, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Croatia of UH-60M Black Hawk helicopters and related equipment and services for an estimated cost of $500 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Government of Croatia has requested to buy eight (8) UH-60M Black Hawk helicopters; nineteen (19) T700-GE 701D engines (16 installed, 3 spares); twenty (20) AN/ARC-231A RT-1987 very high frequency (VHF) / ultra high frequency (UHF) / Line of Sight (LOS) satellite communications (SATCOM) radios; ten (10) AN/AAR-57 Counter Missile Warning Systems (CMWS); twenty (20) H-764U Embedded Global Position Systems with Inertial Navigation (EGI) and Selective Availability Anti-Spoofing Module (SAASM) (or future replacement); and eighteen (18) M240H machine guns. Also included are: AN/ARC-231 RT-1808A (or future replacement) VHF/UHF/ LOS SATCOM radios; APR-39C(V)1/4 radar warning receivers; AVR-2B laser detecting sets; APX-123A Identification Friend or Foe (IFF) transponders (or future replacement); ARC-220 high frequency (HF) radio with KY-100M; VRC-100 ground stations; AN/PYQ-10 Simple Key Loader (SKL); KIV-77 Common Identification Friend or Foe (IFF) crypto applique computers; KY-100M; communications security (COMSEC) encryption devices AN/ARN-147(V) VHF Omni-Directional Range (VOR)/instrument landing system (ILS) receiver radio; AN/ARN-149(V) low frequency (LF)/automatic direction finder (ADF) radio receiver; AN/ARN-153 tactical air navigation system (TACAN) receiver-transmitter; AN/APN-209 radar altimeter; AN/ARC-210 radios; EBC-406HM emergency locator transmitter (ELT); Encrypted Aircraft Wireless Intercommunications Systems (EAWIS); Improved Heads-Up Display (IHUD); signal data converters for IHUD; signal data converters for heads-up display (HUD); forward-looking infrared (FLIR) with electro-optical and infrared (EO/IR) capabilities; EO/IR cabin monitoring systems; EO/IR digital video recorder; AN/ARC-201D RT-1478D (or future replacement); Enhanced Ballistic Armor Protection Systems (EBAPS); Internal Auxiliary Fuel Tank Systems (IAFTS); Fast Rope Insertion & Extraction System (FRIES); External Rescue Hoist (ERH); rescue hoist equipment sets; Dual Patient Litter System (DPLS) Sets; Martin Baker palletized Crew Chief/Gunner seats with crashworthy floor structural modifications; External Stores Support System (ESSS); Integrated Tow Plates Production Assets; universal software loading kits; 60k volt-ampere (VA) generator kits; instrument panel sets; external gun mount systems; Black Hawk Aircrew Trainer (BAT); Black Hawk Maintenance Trainer (BHMT-M); Black Hawk Avionics Trainer; Maintenance Blended Reconfigurable Avionics Trainer (MBRAT); training devices; helmets; transportation; organizational equipment; spare and repair parts; support equipment; tools and test equipment; technical data and publications; personnel training and training equipment; U.S. government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/croatia-uh-60m-black-hawk-helicopters-0

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DSCA Notifies Congress Of Potential FMS Sale To Türkiye

January 26, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Republic of Türkiye of F-16 Aircraft Acquisition and Modernization and related equipment for an estimated cost of $23.0 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Republic of Türkiye has requested to buy 40 new F-16 aircraft and to modernize 79 existing F-16 aircraft to V-Configuration. The request includes: thirty-two (32) F-16 C Block 70 aircraft; eight (8) F-16 D Block 70 aircraft; forty-eight (48) F110-GE-129D engines (40 installed, 8 spares); one hundred forty-nine (149) Improved Programmable Display Generators (iPDG) (40 installed, 10 spares, 99 for modernization program (79 installed, 20 spares)); one hundred forty-nine (149) AN/APG-83 Active Electronically Scanned Array (AESA) Scalable Agile Beam Radars (SABR) (40 installed, 10 spares, 99 for modernization program (79 installed, 20 spares)); one hundred sixty-nine (169) Modular Mission Computers (MMC) 7000AHC (or available mission computer) (40 installed, 10 spares, 119 for modernization program (79 installed, 40 spares)); one hundred fifty nine (159) Embedded Global Positioning System (GPS) Inertial Navigation Systems (INS) (EGI) with Selective Availability Anti-Spoofing Module (SAASM) or M-Code capability and Precise Positioning Service (PPS) (40 installed, 8 spares, 111 for modernization program (79 installed, 32 spares)); one hundred sixty-eight (168) Integrated Viper Electronic Warfare Suite (IVEWS) or equivalent Electronic Warfare (EW) systems (40 installed, 10 spares, 118 for modernization program (79 installed, 39 spares)); eight hundred fifty-eight (858) LAU-129 guided missile launchers; forty-four (44) M61 Vulcan cannons (40 installed, 4 spares); sixteen (16) AN/AAQ-33 Sniper Advanced Targeting Pods (ATP); one hundred fifty-one (151) Multifunctional Information Distribution System-Joint Tactical Radio Systems (MIDS-JTRS) (40 installed and 4 ground terminals, 8 spares, and 99 for modernization program (79 installed and 4 ground terminals, 16 spares)); nine hundred fifty-two (952) Advanced Medium Range Air-to-Air Missiles (AMRAAM) AIM-120C-8 or equivalent missiles; ninety six (96) AMRAAM guidance sections; eight hundred sixty-four (864) GBU-39/B Small Diameter Bombs Increment 1 (SDB-1); two (2) GBU-39(T-1)/B SDB-1 guided test vehicles; two (2) GBU-39(T-1)/B SDB-1 practice bombs; ninety-six (96) AGM-88B High-Speed Anti-Radiation Missiles (HARM); ninety-six (96) AGM-88E Advanced Anti-Radiation Guided Missiles (AARGM); ten (10) AARGM Captive Air Training Missiles (CATM); eleven (11) AARGM control sections; twelve (12) AARGM guidance sections; four hundred one (401) AIM-9X Block II Sidewinder missiles; twelve (12) AIM-9X Block II Sidewinder Captive Air Training Missiles (CATMs); forty (40) AIM-9X Block II Sidewinder tactical guidance units; twelve (12) AIM-9X Block II Sidewinder CATM guidance units; twelve (12) MK82 Inert Filled general purpose bombs; eight hundred fifty (850) Joint Direct Attack Munition (JDAM) KMU-556 tail kits for GBU-31; two hundred (200) JDAM KMU-557 tail kits for GBU-31v3; three hundred eighty-four (384) JDAM KMU-559 tail kits for GBU-32; three (3) JDAM KMU-572 tail kits for GBU-38 or Laser JDAM GBU-54; one thousand fifty (1,050) FMU-152 fuzes. Also included are AMRAAM CATMs; AIM-9X Sidewinder training missiles and Active Optical Target Detectors (AOTD); HARM control sections, rocket motors, and warhead spares; FMU-139 Joint Programmable Fuzes; DSU-38 Laser Guidance Sets for GBU-54; missile containers; AN/ARC-238 radios; AN/APX-127 or equivalent Advanced Identification Friend or Foe (AIFF) Combined Interrogator Transponders (CIT) with mode 5; Joint Helmet Mounted Cueing Systems (JHMCS) II or Scorpion Hybrid Optical-based Inertial Tracker (HObIT) helmet mounted displays; Infrared Search and Track (IRST) pods; AN/ALE-47 Countermeasure Dispenser Systems (CMDS); KY-58 and KIV-78 cryptographic devices; Simple Key Loaders (SKLs); additional secure communications, precision navigation, and cryptographic equipment; Flight Mission Planning Systems (FMPS); Remote Operated Video Enhanced Receivers (ROVER) 6i/6Sis; Tactical Network ROVER kits, and STINGER Multi Bi-Directional (MBI) antennas; SNIPER pod pylons; impulse cartridges, chaff, flares, and ammunition; bomb components and Common Munitions Built-in-Test Reprogramming Equipment (CMBRE); Rackmount Improved Avionics Intermediate Shop (RIAIS); Cartridge Actuated Devices/Propellant Actuated Devices (CAD/PAD); Triple Missile Launcher Adapters (TMLA); aircraft, avionics, and weapons integration, test support, and equipment; major modernization upgrade kits for F-16 Block 40 and Block 50+ aircraft and Service Life Extension Program (SLEP) modifications; aircraft and engine repair and refurbishment after maintenance; engine and aircraft spare and repair parts, consumables, and accessories and repair and return support; aircraft, engine, ground, and pilot support equipment; Classified/Unclassified Computer Program Identification Number (CPIN) systems; electronic warfare database support; pylons, launcher adaptors, weapon interfaces, bomb and ejection racks, conformal fuel tanks, and travel pods; precision measurement equipment laboratory and calibration support; Classified/Unclassified software and software support; Classified/Unclassified publications, manuals, and technical documentation; maps and mapping data; facilities and construction support; simulators and training devices; personnel training and training equipment; U.S. Government and contractor engineering, technical and logistics support services, studies and surveys; and other related elements of logistical and program support.

https://www.dsca.mil/press-media/major-arms-sales/turkiye-f-16-aircraft-acquisition-and-modernization

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DSCA Notifies Congress Of Potential FMS Sale To Greece

January 26, 2024: The State Department has made a determination approving a possible Foreign Military Sale to the Government of Greece of F-35 Joint Strike Fighter Conventional Take Off and Landing (CTOL) aircraft and related equipment for an estimated cost of $8.6 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale. The Government of Greece has requested to buy up to forty (40) F-35 Joint Strike Fighter Conventional Take Off and Landing (CTOL) aircraft; and forty-two (42) Pratt & Whitney F135-PW-100 engines (40 installed, 2 spares). Also included are AN/PYQ-10 Simple Key Loaders; KGV-135A embedded secure communications devices; Cartridge Actuated Devices/Propellant Actuated Devices (CAD/PAD); impulse cartridges, chaff, and flares; Full Mission Simulators and system trainers; electronic warfare systems and Reprogramming Lab support; logistics management and support systems; threat detection, tracking, and targeting systems; Contractor Logistics Support (CLS); classified software and software development, delivery and integration support; transportation, ferry, and refueling support; weapons containers; aircraft and munitions support and support equipment; integration and test support and equipment; aircraft engine component improvement program (CIP) support; secure communications, precision navigation, and cryptographic systems and equipment; Identification Friend or Foe (IFF) equipment; spare and repair parts, consumables, and accessories, and repair and return support; minor modifications, maintenance, and maintenance support; personnel training and training equipment; classified and unclassified publications and technical documents; warranties; and U.S. Government and engineering, technical, and logistics support services, studies, and surveys; and other related elements of logistics and program support.

https://www.dsca.mil/press-media/major-arms-sales/greece-f-35-joint-strike-fighter-conventional-take-and-landing-ctol

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Michael Vaccaro Named The New Deputy Assistant Secretary of State for Defense Trade

January 16, 2024: The Directorate of Defense Trade Controls (DDTC) welcomed Michael Vaccaro, the new permanent Deputy Assistant Secretary of State for Defense Trade. As of Tuesday, January 16, 2024, DAS Vaccaro began overseeing DDTC’s mission to ensure commercial exports of defense articles and defense services advance U.S. national security and foreign policy objectives.

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events

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Department of Commerce – Bureau of Industry and Security (BIS)

BIS Published Frequently Asked Questions for “Export Controls on Semiconductor Manufacturing Items” (SME IFR) and “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections” (AC/S IFR)

January 2024: The Frequently Asked Questions (“FAQs”) address comments received in response to the “Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use” (October 7 IFR)(87 Fed. Reg. 62186, October 13, 2022) and amend the Export Administration Regulations (EAR) to implement export controls on semiconductor manufacturing equipment (SME), advanced computing items, and supercomputers more effectively and to address ongoing national security concerns that items in these rules can be used for military modernization and other applications such as the development and production of weapons of mass destruction (WMD). See the following link for the list of FAQs and answers:

https://www.bis.doc.gov/index.php/documents/policy-guidance/3434-2023-frequently-asked-questions-003-clean-for-posting/file

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BIS Increases The Civil Penalty Amount For Inflation

January 15, 2024: 88 Fed. Reg. 89300: Effective on January 15, 2024, the U.S. Department of Commerce, Bureau of Industry and Security adjusted its penalties for violations of Export Controls Act of 2018 (2018), from a maximum of $353,534 to $364,992 pursuant to the 2024 the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

https://www.federalregister.gov/documents/2023/12/27/2023-28484/civil-monetary-penalty-adjustments-for-inflation

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BIS Enhances Its Voluntary Self-Disclosure Process

January 16, 2024: Accordingly, to better support industry’s and academia’s compliance efforts and to further

streamline BIS’ internal processes, BIS announced that it was making several key updates

regarding our Voluntary Self-Disclosure (VSD) process.

 

Manner of Submission

BIS strongly encourages the submission of VSDs via email. Electronic submissions of initial notifications, extension requests, and narrative accounts of disclosure through the email address bisvsdintake@bis.doc.gov will allow BIS to receive, monitor, and track submissions more effectively, thus enabling a quicker and more responsive interface with those making disclosures. The submissions can also be electronically signed. As before, BOS will continue to accept hard-copy, written paper submissions for VSDs, but BIS has made a change to its VSD webpage to encourage parties to provide an email address in any hard-copy submission to allow for more expedient follow-up and response.

 

Abbreviated Narrative Account of Certain Disclosures

Regarding VSDs that involve only minor or technical infractions, BIS implemented a “fasttrack”

resolution policy on June 30, 2022. Under this dual-track system, VSDs falling under this

category now receive a warning or no-action letter within 60 days of final submission. The current

updates further enhance the “fast-track” resolution policy by adopting an abbreviated “narrative

account” option for the overwhelming majority of VSD submissions.

 

Specifically, parties disclosing violations where no aggravating factors are present may now

submit an abbreviated narrative account as part of their disclosure. The abbreviated narrative account

should briefly describe the nature of the violations as outlined in Section 764.5(c)(3), but need not

include all of the accompanying documentation outlined in Section 764.5(c)(4), unless specifically

requested by the Office of Export Enforcement (OEE). Additionally, parties submitting such

abbreviated narratives do not need to conduct the full five-year lookback recommended in Section

764.5(c)(3), unless specifically requested by OEE.

 

If OEE suspects the presence of aggravating factors that are not disclosed, the OEE Director

will request a full narrative account, including the five-year lookback, with accompanying

documentation. For VSDs that involve circumstances with aggravating factors, submitting parties

should continue to conduct a thorough review of all export-related transactions where possible

violations are suspected. In those instances, BIS continues to recommend that the review of the

suspected violations cover a period of up to five years prior to the date of the initial notification,

consistent with Section 764.5(c)(3).

 

Aggravating factors are addressed in Section IIl(A) of Supplement No. 1 to Part 766. Section 764.5(c)(3) of the EAR outlines the contents of the VSD narrative, which should include:

(i) The kind of violation involved, for example a shipment without the required license or dealing with a party denied export privileges;

(ii) An explanation of when and how the violations occurred;

(iii) The complete identities and addresses of all individuals and organizations, whether foreign or domestic, involved in the activities giving rise to the violations;

(iv) License numbers;

(v) The description, quantity, value in U.S. dollars and ECCN or other classification of the items involved; and

(vi) A description of any mitigating circumstances.”

 

Section 764.5(c)(4)(ii) reads: “Any relevant documents not attached to the narrative account must be retained by the person making the disclosure until OEE requests them, or until a final decision on the disclosed information has been made. After a final decision, the documents should be maintained in accordance with the recordkeeping rules in part 762 of the EAR.”

 

Parties should continue to note, however, that, as explained in Section 764.5(c)(3), “[a]ny violations not voluntarily disclosed do not receive consideration under this section.”

 

What Makes a Violation Significant?

Many apparent violations are minor or technical ones, the result of a good-faith misinterpretation or the checking of a wrong box on a form. If no aggravating factors are present, BIS will generally consider these violations minor and address them through the “fast track” for resolution. Resolutions for minor violations include either a no-action determination letter or a warning letter. In contrast, significant violations are those involving aggravating factors that may result in an administrative penalty or other action.

 

In BIS’ April 18, 2023 policy memorandum, BIS noted that parties could bundle multiple minor

or technical violations – i.e., those without aggravating factors – into one overarching submission, if

the violations occurred close in time. Now, BIS’ VSD webpage further clarifies that parties can

bundle these disclosures for submission on a quarterly basis. This clarification will help streamline

the process for minor or technical infractions and help us to more easily fast-track a response.

 

Treatment of Unlawfully Exported Items

By definition, a party making a voluntary self-disclosure believes that a violation may have

occurred. Therefore, when dealing with an item subject to a VSD, the party making the disclosure is

prohibited from engaging in the activities listed in Section 764.2(e), such as buying, disposing of,

transferring, or storing the item. BIS recognizes that the list of activities prohibited by Section

764.2(e) is an expansive one, and BIS also understand that parties who disclose violations often seek

to take corrective actions. Accordingly, parties may request special permission from BIS to engage

in activities that would otherwise be prohibited by Section 764.2(e).

 

While these requests must be formally submitted to BIS’ s Office of Exporter Services, the VSD webpage updates notify the regulated community that to help expedite the requests, BIS suggest that courtesy copies of such requests be sent to O EE via email. BIS will then work with the Office of Exporter Services to help expedite its review and analysis of the request to ensure decisions to grant such requests are appropriate, thereby allowing the items to be placed back into the lawful stream of commerce.

 

In addition, the VSD webpage updates now make clear that any person (i.e., not just a party

submitting a VSD) may notify the OEE Director that a violation has occurred and request permission

from the Office of Exporter Services to engage in otherwise prohibited activities. OEE will consider

such disclosures to have fulfilled the requirements of Section 764.S(f) even when the request does not

disclose a violation by the submitter (assuming there was no violation by the submitter to disclose),

but instead just seeks permission to engage in otherwise prohibited activities.

 

Furthermore, for parties seeking to return an unlawfully exported item back to the United States from abroad, OEE’s presumptive recommendation will be for BIS to authorize such reexports, regardless of who is seeking such permission.

https://www.bis.doc.gov/index.php/documents/enforcement/3435-vsd-policy-memo-01-16-2024/file

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BIS Deploys Assessment On The Use Of Mature-Node Chips

January 18, 2024: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) is conducting a comprehensive assessment of the use of mature-node semiconductor devices in the supply chains that support—directly or indirectly—U.S. national security and critical infrastructure.  The intent of the survey is to identify how U.S. companies are sourcing mature-node semiconductors, also known as legacy chips. This analysis will inform U.S. policy to bolster the semiconductor supply chain, promote a level playing field for legacy chip production, and reduce national security risks posed by the People’s Republic of China (PRC). The assessment was requested by the Secretary of Commerce in response to findings in a Congressionally mandated report released in December 2023 that assessed the capabilities of the U.S. microelectronics industrial base to support U.S. national defense.

The survey will be performed under Section 705 of the Defense Production Act of 1950 to evaluate the extent of, and visibility into, the use of mature-node chips manufactured by PRC-based companies in supply chains of critical U.S. industries like telecommunications, automotive, medical device, and the defense industrial base.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3437-2024-01-18-bis-press-release-legacy-chip-survey-final/file

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BIS Strengthens Controls Against Russia And Belarus In Response To Russia’s Continued War Against Ukraine

January 23, 2024: The Commerce Department’s Bureau of Industry and Security (BIS) strengthened its existing controls under the Export Administration Regulations (EAR) against Russia and Belarus in response to the Russian Federation’s (Russia’s) ongoing aggression against Ukraine and Belarus’s complicity in the invasion.  This action expands the scope of the EAR’s Russian and Belarusian Industry Sector Sanctions by adding 94 6-digit Harmonized Tariff Schedule (HTS) codes to the list of items requiring a license for export, reexport, or transfer (in-country) to Russia or Belarus.

The expanded list of items includes certain chemicals, lubricants, and metals, and it covers the entirety of Chapter 88 of the HTS (aircraft, spacecraft, and parts thereof), thereby further restricting Russia’s access to inputs for its defense industrial base and better aligning U.S. controls with those implemented by U.S. partners and allies.  The rule also expands controls on certain EAR99 antennas, antenna reflectors, and parts thereof to further restrict these items from going to Iran and Russia, including when produced abroad with U.S. technology or software.

This action also removes the lowest-level military and spacecraft-related items (i.e., .y items) from being eligible for de minimis treatment when incorporated into foreign-made items for export from abroad or reexport to Russia or Belarus.

Finally, the new rule makes several clarifying changes, including by adding an exclusion from BIS license requirements in situations involving transactions that are related to deployments by the Armed Forces of Ukraine to or within the temporarily occupied Crimea region of Ukraine and covered regions of Ukraine.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3439-commerce-strengthens-rules-against-russia-and-belarus/file

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BIS Published A Notice Of Proposed Rulemaking (NPRM) For Establishing New Requirements For Infrastructure As A Service Providers (Iaas Or “Cloud Infrastructure Providers”)

January 29, 2024: 89 Fed. Reg. 5698: The Department of Commerce (Department) published a notice of proposed rulemaking (NPRM) for establishing new requirements for Infrastructure as a Service providers (IaaS or “cloud infrastructure providers”). The NPRM outlines proposed requirements to address the risk of foreign malicious actors using U.S. cloud services that could be used in malicious cyber-enabled activity to harm U.S. critical infrastructure or national security, including to train large artificial intelligence (AI) models.

This NPRM demonstrates the Biden-Harris Administration’s proactive efforts to address the potential national security risks associated with frontier AI models and the abuse of U.S. cloud infrastructure by malicious actors and is a significant step in implementing the President’s Executive Order (EO) on “Safe, Secure, and Trustworthy Use and Development of Artificial Intelligence” (EO 14110) and the National Cybersecurity Strategy.

The proposed rule introduces potential regulations that require U.S. cloud infrastructure providers and their foreign resellers to implement and maintain Customer Identification Programs (CIPs), which would include the collection of “Know Your Customer” (KYC) information. Similar KYC requirements already exist in other industries and seek to assist service providers in identifying and addressing potential risks posed by providing services to certain customers.  Such risks include fraud, theft, facilitation of terrorism, and other activities contrary to U.S. national security interests.

The NPRM also authorizes the imposition of certain special measures that can restrict malicious cyber-enabled actors’ access to U.S. IaaS. In this NPRM, the Department seeks feedback on a number of issues, including: minimum verification standards, access, and record-keeping requirements that providers must adopt; the procedures by which the Secretary of Commerce decides when and how to impose a special measure; and the definitions of several key IaaS and AI-related terms as they apply to the regulations.   This NPRM incorporates many of the public comments received in response to a September 24, 2021, Advanced Notice of Proposed Rulemaking (ANPRM). That ANPRM sought feedback on how the Department should implement various provisions of EO 13984, “Taking Additional Steps To Address the National Emergency With Respect to Significant Malicious Cyber Enabled Activities.” Based on these comments, the Department has drafted the proposed rule to clarify requirements for the public in ways that are consistent with industry and public understanding of IaaS-related products and services.   The deadline for public comments is April 29, 2024.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3443-2024-01-29-bis-press-release-infrastructure-as-as-service-know-your-customer-nprm-final/file and https://www.federalregister.gov/documents/2024/01/29/2024-01580/taking-additional-steps-to-address-the-national-emergency-with-respect-to-significant-malicious

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U.S. Census Bureau

The U.S. Census Bureau Updated AES Tables Regarding Schedule B, Harmonized Tariff Schedule (HTS), and HTS Codes That Are Not Valid

January 2, 2024: The Schedule B, Harmonized Tariff Schedule (HTS), and HTS Codes That Are Not Valid for AES tables have been updated to accept the changes to the January 1, 2024 codes.

AES will accept shipments with outdated codes during a grace period for 30 days beyond the expiration date of December 31, 2023Reporting an outdated code after the 30-day grace period will result in a fatal error.

The ACE program has been updated with the 2024 codes and will accept shipments with outdated codes during the grace period as well.

The 2024 Schedule B and HTS tables are available for downloading at:

http://www.census.gov/foreign-trade/aes/documentlibrary/#concordance

The current list of HTS codes that are not valid for AES are available at:

https://www.census.gov/foreign-trade/aes/documentlibrary/concordance/hts-not-for-aes.txt

Editors tip: Now is the time for exporters to reverify their HTS and Schedule B # classifications to ensure codes used exist in the 2024 tables.

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AES Response Messages Updates

January 17, 2024:  When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  Though the shipment is accepted, the filer may still receive a Verify Message, Compliance Alert, Informational Message or Warning Message along with their ITN.  However, if the shipment is rejected, a Fatal Error notification is received and must be corrected to receive a valid ITN.

To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

 

Response Code: 341

Narrative:     Ultimate Consignee Must Be Reported Within 4 Days

Severity:       Warning

Reason:        The Party Type is C for Ultimate Consignee and the ‘To Be Sold en Route’ indicator is reported as Yes.

Resolution:  Incomplete Ultimate Consignee information may be declared on an EEI when a ‘To Be Sold en Route’ declaration has been made.  However, the actual Ultimate Consignee must be declared within 4 days of the Estimated Departure Date.

Verify the ‘To Be Sold en Route’ indicator, correct the shipment and resubmit.

 

Response Code:  8VW

Narrative:     Value/Shipping Weight Out of Range

Severity:       Verify

Reason:        For the reported Schedule B/HTS Number, the Value of Goods/Shipping Weight ratio is outside of the expected range.

Resolution:  For a particular Schedule B/HTS Number reported, the value of goods divided by the shipping weight should fall within a certain parameter based on historical statistical averages for that commodity.  Ratios outside this pre-determined parameter might indicate either a keying error or misclassification of the product. Verify the Value of Goods, Shipping Weight and Schedule B/HTS Number, correct the shipment and resubmit (if necessary).  If the line item is verified correct as reported, no action is necessary.

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Department of the Treasury

Treasury Increases The Civil Penalty Amount For Inflation

January 11, 2024: 89 Fed. Reg. 2139: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) amended its regulations to implement for 2024 the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.  This regulatory amendment adjusts for inflation the maximum amount of the civil monetary penalties that may be assessed under relevant OFAC regulations.  This regulatory amendment took effect on Friday, January 12, 2024.

Maximum CMP Amounts For Relevant Statutes

TWEA $105,083 to $108,489;

IEEPA $356,579 to $368,136;

AEDPA $94,127 to $97,178;

FNKDA $1,771,754 to $1,829,177; and

CDTA $16,108 to $16,630.

https://ofac.treasury.gov/recent-actions/20240111 and https://ofac.treasury.gov/media/932506/download?inline

In The News

Nvidia Semiconductors Acquired By Chinese Entities Despite US Ban

January 15, 2024: Chinese government and military-linked institutions – including AI research institutes and universities – have reportedly succeeded in acquiring Nvidia semiconductors over the past year, skillfully evading stringent export bans by the US. As detailed in comprehensive tender documents reviewed by Reuters, this revelation underscores the complexities surrounding the U.S.-China technological landscape and raises questions about the efficacy of export controls.

The acquisitions, involving small quantities of Nvidia semiconductors, were not facilitated by Nvidia itself or its approved retailers, but rather by lesser-known Chinese suppliers. Notably, the procured Nvidia chips include the A100, H100, A800, and H800 models, all of which were subject to U.S. export bans implemented in the last two years. The U.S. export bans targeted specific Nvidia chips with potential military applications, aiming to curtail China’s access to advanced technologies. Despite these targeted measures, the tender documents reviewed by Reuters indicate a successful circumvention of these restrictions, bringing to light the challenges faced by the United States in imposing comprehensive controls on semiconductor exports.

The list of purchasers includes not only elite universities but also entities subject to U.S. export restrictions, such as the Harbin Institute of Technology and the University of Electronic Science and Technology of China. The procurement of Nvidia chips by these entities, accused of involvement in military matters, showcases the multifaceted nature of this technological landscape. It is noteworthy that none of the entities mentioned in the Reuters review responded to requests for comment. The acquisition of Nvidia chips, renowned for their prowess in AI applications, enhances China’s potential breakthroughs in AI. This, in turn, could contribute to the development of sophisticated computing systems with military applications. The use of these semiconductors may bolster China’s AI capabilities, posing challenges to U.S. technological dominance in this critical field.

https://thetechportal-com.cdn.ampproject.org/c/s/thetechportal.com/2024/01/15/nvidia-semiconductors-acquired-by-chinese-entities-despite-us-ban-report/?amp

LATEST FINES, PENALTIES AND SANCTIONS

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

Fines and Penalties

January 2, 2024: The New Hampshire charity NuDay, a/k/a NuDay Syria, was sentenced in federal court for export offenses.  NuDay was sentenced to five years of probation, the maximum penalty for an organizational defendant.  NuDay was also ordered to pay a $25,000 fine.  On September 8, 2023, NuDay pleaded guilty to three counts of Failure to File Export Information. NuDay was founded by Nadia Alawa as a non-profit charity in 2013 and is headquartered in Windham, New Hampshire.  Alawa served as NuDay’s President, and several family members served as board members and employees.

 

Between 2018 and 2021, NuDay made over 100 shipments to Syria, a country that was subject to sanctions and export restrictions.  NuDay claimed that these shipments were worth over $100 million.  NuDay had the items shipped to Mersin, Turkey, where another company would transship them into Syria.  U.S. Department of Commerce regulations require exporters, such as NuDay, to report true and accurate information about the items being exported, including the shipment’s description, end user, and monetary value.  However, NuDay falsely reported that the end destination of the shipments was Turkey and not Syria, and artificially deflated the value of the goods to be below the $2,500 reporting threshold.  Alawa’s Facebook messages indicated that she and NuDay were aware of export restrictions, including the need to obtain export licenses, but ignored them.

https://www.justice.gov/usao-nh/pr/nuday-charity-sentenced-illegal-exports-syria

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January 3, 2024: Three siblings admitted to buying, transporting and concealing ammunition intended to be smuggled into Mexico. Rolando Herrera, 26, plead guilty to these charges and to another charge of conspiracy to smuggle ammunition with intent to promote a felony. His sisters, Ashley Herrera, 22, and Yamileth Herrera, 21, entered their guilty pleas on Dec. 12, 2023. All are U.S. citizens and maintain residences in Laredo and in Nuevo Laredo, Tamaulipas, Mexico.

Between May 16, 2023, through May 24, 2023, the siblings placed orders at a local sporting goods store for 7,000 rounds of 5.56-millimeter ammunition. Ashley placed the first order of 3,000 rounds which she and Rolando picked up at the store. Ashley later placed a second order in another person’s name for 3,000 rounds who picked up that ammunition and delivered it to the Herreras’ parents’ home. Yamileth later ordered and picked up 1,000 rounds of ammunition.

Rolando admitted he intended to smuggle the ammunition to persons in Mexico, provided the funds for all purchases and requested his sisters order the ammunition for him.

Ashley transported cartons of 6,000 rounds of ammunition to her parents’ home where she and Yamileth moved them into a bedroom where it remained concealed until Rolando would pick it up to smuggle to Mexico.

Law enforcement intercepted Yamileth Herrera who was in possession of 1,000 rounds she had just purchased.

https://www.justice.gov/usao-sdtx/pr/siblings-convicted-purchasing-7000-rounds-ammunition-transport-across-border

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January 8, 2024: A U.S. Navy service member, Petty Officer Wenheng Zhao, 26, aka Thomas Zhao (Zhao) was sentenced to 27 months in prison and ordered to pay a $5,500 fine for transmitting sensitive U.S. military information to an intelligence officer from the People’s Republic of China (PRC) in exchange for bribery payments.

According to court documents, Zhao pleaded guilty in October 2023 to one count of conspiring with the intelligence officer and one count of receiving a bribe.

Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, engaged in a corrupt scheme to collect and transmit sensitive U.S. military information to the intelligence officer in violation of his official duties.

Between August 2021 and at least May 2023, Zhao received at least $14,866 in at least 14 separate bribe payments from the intelligence officer. In exchange for the illicit payments, Zhao secretly collected and transmitted to the intelligence officer sensitive, non-public information regarding U.S. Navy operational security, military trainings and exercises, and critical infrastructure. Zhao entered restricted military and naval installations to collect and record this information.

Zhao transmitted plans for a large-scale maritime training exercise in the Pacific theatre, operational orders and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.

https://www.justice.gov/opa/pr/us-navy-sailor-sentenced-27-months-prison-transmitting-sensitive-us-military-information

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January 18, 2024: Ilya Kahn, 66, a citizen of the United States, Israel and Russia, and resident of Brooklyn, New York, and Los Angeles, California, was arrested on January 17, 2024, in Los Angeles for his alleged involvement in a years-long scheme to secure and unlawfully export sensitive technology from the United States for the benefit of a Russian business. The business was sanctioned by the U.S. government following Russia’s unprovoked invasion of Ukraine in February 2022 and whose clients included elements of the Russian military and the Federal Security Service (FSB), the main successor agency to the Soviet Union’s KGB.

According to court documents, Kahn is charged by criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA). Kahn will make his initial appearance in the Central District of California.

https://www.justice.gov/opa/pr/businessman-arrested-scheme-illegally-export-semiconductors-and-other-controlled-technology

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January 18, 2024: Jalal Hajavi (Hajavi) was sentenced to 24 months in prison followed by three years of supervised release for criminal conduct in connection with a scheme to unlawfully export heavy equipment from the United States to Iran by routing the shipments though the United Arab Emirates (UAE).

Hajavi was convicted by a jury in September 2023, of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR), smuggling, and unlawfully exporting and reexporting goods from the United States to Iran without a license.

https://www.justice.gov/opa/pr/exporter-sentenced-prison-shipping-heavy-equipment-iran-violation-us-sanctions

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January 25, 2024: 89 Fed. Reg. 4901: The Bureau of Industry and Security (“BIS”), U.S. Department of Commerce, through its Office of Export Enforcement (“OEE”), renewed the temporary denial order (“TDO”) issued against Venezuela-based cargo airline Empresa de Transporte Aéreocargo del Sur, S.A., a/k/a Aerocargo del Sur Transportation Company, a/k/a EMTRASUR (“EMTRASUR”) on July 25, 2023 for a period of 180 days on the ground that issuance of the order was necessary in the public interest to prevent an imminent violation of the Regulations.

https://www.federalregister.gov/documents/2024/01/25/2024-01411/order-renewing-temporary-denial-of-export-privileges

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January 30, 2024: The Department of Commerce’s Bureau of Industry and Security (BIS) imposed a civil penalty of $153,175 against Wabtec Corporation (Wabtec), a global manufacturer and supplier of rail technology headquartered in Pittsburgh, Pennsylvania, to resolve 43 violations of the antiboycott provisions of the Export Administration Regulations (EAR) (antiboycott regulations) alleged in BIS’s Proposed Charging Letter. Wabtec voluntarily disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took remedial measures after discovering the conduct at issue, which resulted in a significant reduction in the penalty.

As part of the BIS settlement, Wabtec admitted to the conduct set forth in a Proposed Charging Letter, which alleged 43 violations of Section 760.5 of the EAR (Failing to Report the Receipt of a Request to Engage in a Restrictive Trade Practice or Foreign Boycott Against a Country Friendly to the United States). Specifically, between February 2018 and July 2022, on forty-three occasions, Wabtec received a request from a customer in Pakistan to refrain from importing Israeli-origin goods into Pakistan in fulfillment of its orders. Wabtec failed to report to BIS the receipt of these requests, as required by Section 760.5 of the EAR, thereby giving rise to the 43 alleged violations.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3444-antiboycott-1-30-2024/file and https://efoia.bis.doc.gov/index.php/documents/antiboycott/alleged-antiboycott-violations-2024/1591-a773/file

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January 31, 2024: Four Chinese nationals were charged in an indictment in the District of Columbia with various federal crimes related to a years-long conspiracy to unlawfully export and smuggle U.S.-origin electronic components from the United States to Iran.

According to court documents, Baoxia Liu, aka Emily Liu; Yiu Wa Yung, aka Stephen Yung; Yongxin Li, aka Emma Lee; and Yanlai Zhong, aka Sydney Chung, unlawfully exported and smuggled U.S. export controlled items through China and Hong Kong ultimately for the benefit of entities affiliated with the Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL), which supervises Iran’s development and production of missiles, weapons, and military aerial equipment to include Unmanned Aerial Vehicles (UAVs).

According to the indictment, beginning as early as May 2007 and continuing until at least July 2020, the defendants utilized an array of front companies in the People’s Republic of China (PRC) to funnel dual-use U.S.-origin items, including electronics and components that could be utilized in the production of UAVs, ballistic missile systems, and other military end uses, to sanctioned Iranian entities with ties to the Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL) such as Shiraz Electronics Industries (SEI), Rayan Roshd Afzar, and their affiliates.

The defendants are charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA), violating IEEPA, smuggling goods from the United States, and one count of submitting false or misleading export information. If convicted, the defendants face a maximum penalty of 20 years in prison for violating the IEEPA; up to 10 years in prison for smuggling goods from the United States; and up to five years in prison for each count of conspiracy and submitting false or misleading export information. Arrest warrants have been issued for Liu, Yung, Li and Zhong who all remain fugitives.

https://www.justice.gov/opa/pr/chinese-nationals-charged-illegally-exporting-us-origin-electronic-components-iran-and

Sanctions

U.S. Department of State

January 17, 2024: The Department of State announced the designation of Ansarallah, commonly referred to as the Houthis, as a Specially Designated Global Terrorist group, effective 30 days from January 17, 2024.

Since November, the Houthis have launched unprecedented attacks against international maritime vessels in the Red Sea and Gulf of Aden, as well as military forces positioned in the area to defend the safety and security of commercial shipping.  These attacks against international shipping have endangered mariners, disrupted the free flow of commerce, and interfered with navigational rights and freedoms.  This designation seeks to promote accountability for the group’s terrorist activities.  If the Houthis cease their attacks in the Red Sea and Gulf of Aden, the United States will reevaluate this designation.

The Houthis must be held accountable for their actions, but it should not be at the expense of Yemeni civilians.  As the Department of State moves forward with this designation, it is are taking significant steps to mitigate any adverse impacts this designation may have on the people of Yemen.  During the 30-day implementation delay, the U.S. government will conduct robust outreach to stakeholders, aid providers, and partners who are crucial to facilitating humanitarian assistance and the commercial import of critical commodities in Yemen.  The Department of the Treasury is also publishing licenses authorizing certain transactions related to the provision of food, medicine, and fuel, as well as personal remittances, telecommunications and mail, and port and airport operations on which the Yemeni people rely.

https://www.state.gov/terrorist-designation-of-the-houthis/

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U.S. Department of Commerce, Bureau of Industry and Security (BIS)

January 25, 2024: 89 Fed. Reg. 4804: In response to the Russian Federation’s (Russia’s) ongoing aggression against Ukraine and Belarus’s complicity in the invasion, the Department of Commerce is strengthening its existing sanctions under the Export Administration Regulations (EAR) against Russia and Belarus, including by expanding the scope of the EAR’s Russian and Belarusian Industry Sector Sanctions and making certain changes to the licensing requirements that apply to the occupied Crimea region of Ukraine as well. Additionally, this rule revises recent restrictions targeting Iran’s supply of Unmanned Aerial Vehicles to Russia. This rule also refines certain existing export controls on Russia and Belarus. The Department of Commerce is taking these actions to enhance the effectiveness of its controls on these countries and to better align them with those implemented by U.S. allies and partners.

This rule revises the EAR to enhance and strengthen the existing sanctions against Russia and Belarus by expanding the scope of the Russian and Belarusian industry sector sanctions to better align them with the controls that have been implemented by U.S. allies and partners imposing substantially similar controls on Russia and Belarus, including a control added on Iran pursuant to the Iran UAV rule, that targeted Iran’s supply of UAVs to Russia (88 FR 12150, February 27, 2023) (Iran UAVs rule). For similar policy reasons, this rule also refines other controls on Russia and Belarus that were imposed in response to Russia’s February 2022 further invasion of Ukraine.

This rule enhances and strengthens the sanctions that have been implemented on Russia, Belarus, the occupied Crimea region of Ukraine, and Iran under the EAR, as described under sections A and B below. The regulatory revisions described under Section A. Imposition of new export controls on Russia, Belarus, and Iran, including changes to align controls with those imposed by U.S. allies and partners include:

  • Expansion of Russian and Belarusian Industry Sector Sanctions that apply to items listed in supplement no. 4 to part 746 to add additional items to align with controls imposed by U.S. partners and allies and to make other changes to render the EAR’s controls stronger, more effective, and easier to understand; Expansion of items that require a license under §746.7 when destined to Iran and under §746.8 when destined to Russia or Belarus under supplement no. 7 to part 746 to add an additional item to align with controls imposed by U.S. partners and allies and to make other changes to render the EAR’s controls stronger, more effective, and easier to understand; and
  • Eliminating the lowest-level military and spacecraft-related items (i.e., .y items) from being eligible for de minimis treatment when incorporated into foreign-made items for export from abroad or reexport to Russia or Belarus. A. Imposition of New Export Controls on Russia, Belarus, and Iran, Including Changes To Align Controls With Those Imposed by U.S. Allies and Partners.

This rule expands the scope of the Russian and Belarusian Industry Sector Sanctions (§746.5 of the EAR) by adding additional items to supplement no. 4 to part 746 that will require a license under §746.5(a)(1)(ii), as described further below. This rule also adds an additional item to supplement no. 7 to part 746 that will require a license under §746.7 when destined to Iran and under §746.8 when destined to Russia or Belarus.

https://www.bis.doc.gov/index.php/documents/regulations-docs/federal-register-notices/federal-register-2024/3442-89-fr-4804-russian-and-belarus-sanctions-rule-effective-1-23-24-and-published-1-25-24/file and https://www.bis.doc.gov/index.php/regulations/federal-register-notices#89FR4804

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Department of the Treasury, Office of Foreign Assets Control (OFAC)

January 11, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) updated its Specially Designated Nationals and Blocked Persons List:

The following individual have been added to OFAC’s SDN List:

  • Mikheychik, Vladimir Vladimirovich of Russia.

The following entities have been added to OFAC’s SDN List:

  • Ashuluk Firing Range of Russia; and
  • Vladimirovka Advanced Weapons And Research Complex of Russia.

The following aircraft have been added to OFAC’s SDN List:

  • RF-78757; Aircraft Manufacture Date 27 Apr 1988; Aircraft Mode S Transponder Code 1533A5; Aircraft Model IL-76MD; Aircraft Manufacturer’s Serial Number (MSN) 83484547; Aircraft Tail Number RF-78757;
  • RF-82011; Aircraft Manufacture Date 31 Dec 1986; Aircraft Mode S Transponder Code 15405B; Aircraft Model AN-124; Aircraft Manufacturer’s Serial Number (MSN) 9773054616023; Aircraft Tail Number RF-82011; and
  • RF-86898; Aircraft Manufacture Date 28 Jan 1982; Aircraft Mode S Transponder Code 155372; Aircraft Model IL-76; Aircraft Manufacturer’s Serial Number (MSN) 23435028; Aircraft Tail Number RF-86898.

https://ofac.treasury.gov/recent-actions/20240111

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January 12, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two companies in Hong Kong (PRC) and the United Arab Emirates for shipping Iranian commodities on behalf of the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial facilitator Sa’id al-Jamal. OFAC is also identified four vessels as blocked property in which these companies have an interest. The revenue from the commodity sales supports the Houthis and their continued attacks against international shipping in the Red Sea and the Gulf of Aden.

These action is being taken pursuant to the counterterrorism authority in Executive Order (E.O.) 13224, as amended. Sa’id al-Jamal was designated pursuant to E.O. 13224, as amended, on June 10, 2021 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF. The IRGC-QF was designated pursuant to E.O. 13224 on October 25, 2007 for providing support to multiple terrorist groups.

The following entities have been added to OFAC’s SDN List:

  • Cielo Marine LTD of China; and
  • Global Tech Marine Services Inc of the Marshall Islands and the United Arab Emirates.

The following vessels have been added to OFAC’s SDN List:

  • Fortune Galaxy (3E2520) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9257010; MMSI 352001505;
  • Mehle (3E3893) Crude Oil Tanker Panama flag; Vessel Registration Identification IMO 9191711; MMSI 352002537;
  • Molecule (TJMC241) Crude Oil Tanker Cameroon flag; Vessel Registration Identification IMO 9209300; MMSI 613003214; and
  • Sincere 02 (3E4733) Oil Products Tanker Kiribati flag; Vessel Registration Identification IMO 9226011; MMSI 352002984.

https://home.treasury.gov/news/press-releases/jy2022 and https://ofac.treasury.gov/recent-actions/20240112

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January 16, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Venezuela-related General License 5N “Authorizing Certain Transactions Related to the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond on or After April 16, 2024.”

Venezuela-related General License 5N: On or after April 16, 2024, all transactions related to, the provision of financing for, and other dealings in the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by subsection l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018, as amended by E.O. 13857 of January 25, 2019, and incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized.

This general license does not authorize any transactions or activities otherwise prohibited by the VSR, or any other part of 31 CFR chapter V.

Effective January 16, 2024, General License No. 5M, dated October 18, 2023, is replaced and superseded in its entirety by this General License No. 5N.

https://ofac.treasury.gov/media/932511/download?inline and https://ofac.treasury.gov/recent-actions/20240116

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January 17, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing a new Counter Terrorism-related Frequently Asked Question (1158).

Frequently Asked Question (1158): On January 17, 2024, the Department of State (State) announced the designation of Ansarallah under Executive Order (E.O.) 13224, as amended, effective February 16, 2024.  What will be the impact of this action?  What steps are the U.S. government taking to ensure that commercial goods and humanitarian assistance continues to flow to the Yemeni people?

Answer: Following the designation of Ansarallah (commonly referred to as “the Houthis”) under E.O. 13224, as amended, on February 16, 2024, OFAC will add the group to the List of Specially Designated Nationals and Blocked Persons (SDN List) as a Specially Designated Global Terrorist.  As a result of the designation, transactions by U.S. persons or within (or transiting) the United States involving Ansarallah will be blocked, unless they are otherwise authorized.  Note that Yemen is not subject to jurisdiction-based sanctions, nor will it become subject to jurisdiction-based sanctions on February 16, 2024.

In order to ensure that the humanitarian aid community and commercial actors can continue providing humanitarian aid and commercial goods in Yemen, on January 17, 2024, OFAC issued five general licenses (GLs) to authorize certain categories of transactions, including:  (1) agriculture, medicine, and medical devices; (2) telecommunications mail, and certain internet communications; (3) personal remittances; (4) refined petroleum products (including fuel); and (5) operation and use of ports and airports for import of goods.  These GLs will take effect on February 16, 2024, the same date on which the designation will take effect.

The above GLs supplement broad preexisting humanitarian GLs in the Global Terrorism Sanctions Regulations (GTSR) covering the United States government, certain international organizations and entities, nongovernmental organizations (NGOs), and for the provision of food, other agricultural commodities, medicine, and medical devices.  For more information on these baseline humanitarian general licenses, please consult OFAC’s Supplemental Guidance for the Provision of Humanitarian Assistance, and FAQs 1105, 1106, 1107, and 1108.  Other humanitarian-related guidance documents are available in the NGO section of OFAC’s Information for Industry Groups webpage.  OFAC also intends to issue further public guidance specifically related to the Ansarallah designation on or before February 16, 2024.

Non-U.S. persons may engage in or facilitate transactions for which a U.S. person would not require a specific license pursuant to the GTSR without exposure to sanctions under the GTSR or E.O. 13224, as amended.

https://ofac.treasury.gov/recent-actions/20240117_33 and https://ofac.treasury.gov/faqs/1106

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January 17, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Alberto Pimentel Mata (Pimentel) for his role in exploiting the Guatemalan mining sector through widespread bribery schemes, including schemes related to government contracts and mining licenses. Pimentel is being designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. This action follows the Department of State’s October 2023 announcement of visa restriction on Pimentel and other individuals for their involvement in significant corruption.

Corrupt and anti-democratic acts undermine Guatemala’s public institutions and threaten the stability of Guatemala and the region as a whole. This action demonstrates the U.S. government’s continued commitment to promote accountability for corrupt and undemocratic actors in Guatemala and expands upon the Administration’s efforts to address corruption as a root cause of irregular migration through the northern Central America region.

The following individual has been added to OFAC’s SDN List:

  • Pimentel Mata, Alberto of Guatemala.

https://home.treasury.gov/news/press-releases/jy2024 and https://ofac.treasury.gov/recent-actions/20240117

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January 17, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued issuing Counter Terrorism General License 22, “Transactions Related to the Provision of Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates Involving Ansarallah,” General License 23, “Authorizing Transactions Related to Telecommunications Mail, and Certain Internet-Based Communications Involving Ansarallah,” General License 24, “Authorizing Noncommercial, Personal Remittances Involving Ansarallah,” General License 25, “Authorizing Transactions Related to Refined Petroleum Products in Yemen Involving Ansarallah,” and General License 26, “Authorizing Certain Transactions Necessary to Port and Airport Operations Involving Ansarallah.”

General License 22: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest, that are ordinarily incident and necessary to the provision (including sale) of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices to Yemen, or to persons in third countries purchasing specifically for provision to Yemen, are authorized.

For the purposes of this general license, agricultural commodities, medicine, and medical devices are defined as follows:

(1) Agricultural commodities.  Agricultural commodities are products that:

(i) Fall within the term “agricultural commodity” as defined in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602); and

(ii) Are intended for ultimate use in Yemen as:

(A) Food for humans (including raw, processed, and packaged foods; live animals; vitamins and minerals; food additives or supplements; and bottled drinking water) or animals (including animal feeds);

(B) Seeds for food crops;

(C) Fertilizers or organic fertilizers; or

(D) Reproductive materials (such as live animals, fertilized eggs, embryos, and semen) for the production of food animals.

(2) Medicine.  Medicine is an item that falls within the definition of the term “drug” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

(3) Medical devices.  A medical device is an item that falls within the definition of “device” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

This General License takes effect February 16, 2024.

https://ofac.treasury.gov/media/932516/download?inline

General License 23: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest, with respect to the receipt or transmission of telecommunications to, from, or in Yemen are authorized.

https://ofac.treasury.gov/media/932521/download?inline

General License 24: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest, that are ordinarily incident and necessary to the transfer of noncommercial, personal remittances to or from an individual in Yemen, are authorized, provided the individual is not a person whose property or interests in property are blocked pursuant to the GTSR.

Noncommercial, personal remittances do not include charitable donations of funds to or for the benefit of an entity or funds transfers for use in supporting or operating a business, including a family-owned business.

Transferring institutions may rely on the originator of a funds transfer with regard to compliance, provided that the transferring institution does not know or have reason to know that the funds transfer is not in compliance.

https://ofac.treasury.gov/media/932526/download?inline

General License 25: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest, that are ordinarily incident and necessary to the provision (including sale) of refined petroleum products for personal, commercial, or humanitarian use in Yemen are authorized.

https://ofac.treasury.gov/media/932531/download?inline

General License 26: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest, that are ordinarily incident and necessary to the operation of, or import or export of goods or transit of passengers through, ports and airports in Yemen are authorized.

https://ofac.treasury.gov/media/932536/download?inline and https://ofac.treasury.gov/recent-actions/20240117

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January 18, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is taking its first oil price cap enforcement action of 2024, targeting a shipping company linked to a price cap violation.

The United States is part of an international coalition of countries (the Price Cap Coalition), including the G7, the European Union, and Australia, that have committed to prohibit the import of crude oil and petroleum products of Russian Federation origin. These countries, home to many best-in-class financial and professional services, have also committed to restrict a broad range of services related to the maritime transport of crude oil and petroleum products of Russian Federation origin (“Russian oil”)—unless that Russian oil is bought and sold at or below the specific price caps established by the Coalition or is authorized by a license. This policy is known as the “price cap.” The price cap is intended to maintain a reliable supply of crude oil and petroleum products to the global market while reducing the revenues the Russian Federation earns from oil after its own war of choice against Ukraine inflated global energy prices.

The following entity has been added to OFAC’s SDN List:

  • Hennesea Holdings Limited of the United Arab Emirates.

The following vessels have been added to OFAC’s SDN List:

  • Aristo (5LJI7) Chemical/Products Tanker Liberia flag; Vessel Registration Identification IMO 9327413; MMSI 636022549;
  • Hai II (D5HH9) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9259599; MMSI 636016693;
  • HS Arge (5LIK5) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9299745; MMSI 636022360;
  • HS Buraq (5LIK9) Products Tanker Liberia flag; Vessel Registration Identification IMO 9381732; MMSI 636022364;
  • HS Esberg (5LIN6) Products Tanker Liberia flag; Vessel Registration Identification IMO 9410894; MMSI 636022386;
  • HS Everett (5LIP7) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9410870; MMSI 636022403;
  • HS Glory (D5OH4) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9249087; MMSI 636018127;
  • HS Legend (5LIK7) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9381744; MMSI 636022362;
  • HS Star (D5RV6) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9274446; MMSI 636018885;
  • LA Pride (5LHW6) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9274616; MMSI 636022251;
  • Mona (5LIS6) Chemical/Oil Tanker Liberia flag; Vessel Registration Identification IMO 9314818; MMSI 636022424;
  • Nellis (5LJI8) Chemical/Oil Tanker Liberia flag; Vessel Registration Identification IMO 9322267; MMSI 636022550;
  • Osperous (5LHE4) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9412995; MMSI 636022098;
  • Peria (5LIZ6) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9322827; MMSI 636022479;
  • Sara II (5LJI4) Chemical/Oil Tanker Liberia flag; Vessel Registration Identification IMO 9301615; MMSI 636022546;
  • Sensus (5LHJ7) Products Tanker Liberia flag; Vessel Registration Identification IMO 9296585; MMSI 636022146; and
  • UZE (5LHB3) Chemical/Oil Tanker Liberia flag; Vessel Registration Identification IMO 9323338; MMSI 636022072.

https://home.treasury.gov/news/press-releases/jy2028 and https://ofac.treasury.gov/recent-actions/20240118

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January 18, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Russia-related General License 13H, “Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024,” and Russia-related General License 86, “Authorizing Limited Safety and Environmental Transactions Involving Certain Persons or Vessels Blocked on January 18, 2024.” OFAC is also amending Frequently Asked Question 1157.

Russia-related General License 13H: U.S. persons, or entities owned or controlled, directly or indirectly, by a U.S. person, are authorized to pay taxes, fees, or import duties, and purchase or receive permits, licenses, registrations, certifications, or tax refunds to the extent such transactions are prohibited by Directive 4 under Executive Order 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation, provided such transactions are ordinarily incident and necessary to the day-to-day operations in the Russian Federation of such U.S. persons or entities, through 12:01 a.m. eastern daylight time, April 17, 2024.

https://ofac.treasury.gov/media/932541/download?inline

Russia-related General License 86: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons described below are authorized through 12:01 a.m. eastern daylight time, April 17, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations (RuHSR):

(1) The safe docking and anchoring in port of any vessels in which any person or entity listed in this general license has a property interest (“blocked vessels”);

(2) The preservation of the health or safety of the crew of any of the blocked vessels; or

(3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

The authorization of this general license applies to Hennesea Holdings Limited (Hennesea) and any entity in which Hennesea owns, directly or indirectly, a 50 percent or greater interest.

https://ofac.treasury.gov/media/932546/download?inline

Frequently Asked Question 1157: For the purposes of the determination of December 22, 2023 pursuant to Executive Order (E.O.) 14068, as amended by E.O. 14114 of December 22, 2023, (Seafood Determination) what is meant by the terms “salmon,” “cod,” “pollock,” and “crab”? 

Answer: For the purposes of the Seafood Determination, OFAC anticipates publishing regulations defining these terms to include articles defined at the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings:

  • “Salmon:” articles defined at HTSUS subheadings 0302.13.0013, 0302.13.0014, 0302.13.0022, 0302.13.0032, 0302.13.0042, 0302.13.0053, 0302.13.0054, 0302.13.0062, 0302.14.0003, 0302.14.0004, 0302.14.0062, 0303.11.0000, 0303.12.0012, 0303.12.0022, 0303.12.0032, 0303.12.0052, 0303.12.0062, 0303.13.0000, 0303.91.4040, 0304.41.00, 0304.41.0010, 0304.41.0020, 0304.41.0090, 0304.52.00, 0304.52.0010, 0304.52.0015, 0304.52.0020, 0304.52.0090, 0304.81.1000, 0304.81.5010, 0304.81.5090, 0305.20.4020, 0305.41.0000, 0305.69.4000, 1604.11.2020, 1604.11.2030, 1604.11.2090, 1604.11.4010, 1604.11.4020, 1604.11.4030, 1604.11.4040, 1604.11.4050, including any subsequent revisions to the list of HTSUS classifications.
  • “Cod:” articles defined at HTSUS subheadings 0302.51.0010, 0302.51.0090, 0303.63.0010, 0303.63.0090, 0304.44.0010, 0304.44.0015, 0304.53.0010, 0304.53.0015, 0304.71.1000, 0304.71.5000, 0304.95.1010, 0304.95.1015, 0304.95.1020, 0305.32.0010, 0305.32.0090, 0305.51.0000, 0305.62.0010, 0305.62.0025, 0305.62.0030, 0305.62.0045, 0305.62.0050, 0305.62.0060, 0305.62.0070, 0305.62.0080, including any subsequent revisions to the list of HTSUS classifications.
  • “Pollock:” articles defined at HTSUS subheadings 0302.55.1100, 0302.55.5000, 0302.59.5010, 0303.67.0000, 0304.44.0025, 0304.53.0025, 0304.75.1000, 0304.75.5000, 0304.79.1010, 0304.94.1005, 0304.94.1010, 0304.94.1090, 0304.94.9000, 0304.95.1030, 0305.69.1022, 0305.69.1042, 1604.19.1000, 1604.19.2500, including any subsequent revisions to the list of HTSUS classifications.
  • “Crab:” articles defined at HTSUS subheadings 0306.14.2000, 0306.14.40, 0306.14.4003, 0306.14.4006, 0306.14.4009, 0306.14.4012, 0306.14.4015, 0306.14.4020, 0306.14.4030, 0306.14.4090, 0306.33.2000, 0306.33.4000, 0306.93.2000, 0306.93.4000, 1605.10.0510, 1605.10.0590, 1605.10.2010, 1605.10.2022, 1605.10.2025, 1605.10.2030, 1605.10.2051, 1605.10.2059, 1605.10.2090, 1605.10.4002, 1605.10.4005, 1605.10.4010, 1605.10.4015, 1605.10.4025, 1605.10.4030, 1605.10.4035, 1605.10.4040, 1605.10.6010, 1605.10.6090, including any subsequent revisions to the list of HTSUS classifications.

Additionally, these terms apply to products of salmon, cod, pollack and crab classified under the HTSUS subheadings 0301.99.0390, 0302.59.1100, 0304.95.1005, 0304.95.1090, 0304.99.1104, 0304.99.1109, 0304.99.1183, 0305.20.4065, 0305.39.6180, 0305.49.4020, 0305.49.4045, 0305.59.0001, 0305.72.0000, 0305.79.0000, 1603.00.9090, 1604.19.2200, 1604.19.3200, 1604.19.4100, 1604.19.5100, 1604.19.6100, 1604.19.8200, 1604.20.0510, 1604.20.0590, 1604.20.1000, 1604.20.1500, 1604.20.2000, 1604.20.2500, 1604.20.3000, 1604.20.4000, 1604.20.5010, 1604.20.5090, 1604.20.6010, 1604.20.6090, including any subsequent revisions to the list of HTSUS classifications.

https://ofac.treasury.gov/faqs/1157 and https://ofac.treasury.gov/recent-actions/20240118

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January 19, 2024: OFAC released the first video in its “OFAC Basics” video series.  The OFAC Basics: Sanctions List Search video provides viewers with a brief tutorial on how to use OFAC’s Sanctions List Search Tool and recommended steps for assessing a potential match to one of OFAC’s published sanctions lists.  The “OFAC Basics” series serves as a companion series to the “Introduction to OFAC” series.

https://www.youtube.com/watch?v=aQAb7Cf6keI and https://www.youtube.com/watch?v=A1QAv7eNgVo

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January 22, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Counter Terrorism General License 27, “Authorizing Civil Aviation Safety and Wind Down Transactions Involving Fly Baghdad.”  OFAC is also issuing one new Counter Terrorism Frequently Asked Question (1159).

Counter Terrorism General License 27: All transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), that are ordinarily incident and necessary to the provision, exportation, or reexportation of goods, technology, or services to ensure the safety of civil aviation involving Fly Baghdad are authorized through 12:01 a.m. eastern daylight time, March 22, 2024, provided that the goods, technology, or services that are provided, exported, or reexported are for use on aircraft operated solely for civil aviation purposes.

All transactions prohibited by the GTSR that are ordinarily incident and necessary to the wind down of any transaction involving Fly Baghdad are authorized through 12:01 a.m. eastern daylight time, March 22, 2024, provided that any payment to Fly Baghdad must be made into a blocked account in accordance with the GTSR.

This general license does not authorize any transactions otherwise prohibited by the GTSR, including transactions involving any person blocked pursuant to the GTSR other than Fly Baghdad, unless separately authorized.

https://ofac.treasury.gov/media/932556/download?inline

Counter Terrorism Frequently Asked Question 1159: What transactions does Global Terrorism Sanctions Regulations (GTSR) General License (GL) 27 authorize?

Answer: Wind down transactions:  GL 27 authorizes all transactions prohibited by the GTSR that are ordinarily incident and necessary to the wind down of any transaction involving Fly Baghdad through 12:01 a.m. eastern daylight time, March 22, 2024, provided that any payment to Fly Baghdad must be made into a blocked account in accordance with the GTSR.  This includes transactions necessary to wind down leases, refueling contracts, and other commercial agreements with Fly Baghdad or to repossess aircraft leased to Fly Baghdad.

U.S. persons are not required to seek a license from OFAC to initiate legal proceedings against Fly Baghdad, including lawsuits for the repossession of aircraft from Fly Baghdad, although a specific license is required to enter into a settlement or enforce an order transferring property blocked pursuant to the GTSR.

Civil aviation safety transactions:  GL 27 authorizes all transactions prohibited by the GTSR that are ordinarily incident and necessary to the provision, exportation, or re-exportation of goods, technology, or services to ensure the safety of civil aviation involving Fly Baghdad through 12:01 a.m. eastern daylight time, March 22, 2024, provided that the goods, technology, or services are for use on aircraft operated solely for civil aviation purposes.  This includes transactions necessary to ensure the safety of aircraft crew and passengers and the safe operation of aircraft owned or operated by Fly Baghdad and used solely for civil aviation purposes, including maintenance, insurance, and ground services ordinarily incident and necessary to such activities.

U.S. and non-U.S. persons may need to obtain a license from the Department of Commerce’s Bureau of Industry and Security (BIS) for the export or reexport or certain items subject to the Export Administration Regulations (EAR) involving Fly Baghdad or other Specially Designated Global Terrorists (SDGTs).

https://ofac.treasury.gov/faqs/1159

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January 22, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Iraqi airline Fly Baghdad and its CEO for providing assistance to the Islamic Revolutionary Guard Corps–Qods Force (IRGC-QF) and its proxy groups in Iraq, Syria, and Lebanon. OFAC is also designating three leaders and supporters of one of the IRGC-QF’s main Iran-aligned militias in Iraq, Kata’ib Hizballah (KH), as well as a business that moves and launders funds for KH. This action underscores the ongoing threat the IRGC-QF and its proxy network pose to U.S. personnel and the region. KH has carried out a series of sharply escalating drone and missile attacks against U.S. personnel in Iraq and Syria since Hamas’s horrific attack on Israel on October 7. KH and other Iran-aligned militia groups in Iraq have consistently issued statements in support of Hamas’s terrorism and declared their commitment to attacking U.S. personnel.

This action is being taken pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorists and their supporters. The Treasury Department designated the IRGC-QF as a Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224 on October 25, 2007 for providing support to multiple terrorist groups, and the Department of State designated the group as a Foreign Terrorist Organization (FTO) pursuant to the Immigration and Nationality Act on April 8, 2019. State designated KH as an SDGT pursuant to E.O. 13224 and as a FTO pursuant to the Immigration and Nationality Act on July 2, 2009.

OFAC has updated its Specially Designated Nationals and Blocked Persons List:

The following individuals have been added to OFAC’s SDN List:

  • Al-Azzawi, Riyadh Ali Hussein of Iraq;
  • Al-Hamidawi, Awqad Muhsin Faraj of Iraq;
  • Al-‘Ibudi, Hossein Moanes of Iraq;
  • Al-Shabbani, Basheer Abdulkadhim Alwan of Iraq;
  • Hirzallah, Muhammad Fallah Kamil of Palestine;
  • Hirzallah, Na’im Kamil Raghib of Palestine;
  • Hirzallah, Salah Kamil Raghib of Palestine;
  • Hirzallah, Samir ‘Abd Al-Mu’in ‘Abd of Palestine;
  • Hirzallah, Thair Abd Al Raziq Shukri of Israel;
  • Shamlakh, Ahmed of Palestine;
  • Shamlakh, Alaa of Turkey and Palestine;
  • Shamlakh, Imad Younes of Palestine; and
  • Shamlakh, Zuhair of Palestine.

The following entities have been added to OFAC’s SDN List:

  • Al-Markaziya Li-Siarafa of Palestine and Turkey;
  • Al-Massal Land Travel And Tourism Company of Iraq;
  • Arab China Trading Company of Turkey;
  • Fly Baghdad Airlines Company of Iraq;
  • Herzallah Exchange And General Trading Company LLC of Palestine; and
  • Samir Herzallah And Brothers For Money Exchange And Remittances of Palestine.

The following aircraft have been added to OFAC’s SDN List:

  • YI-BAF; Aircraft Model B 737; Aircraft Operator Fly Baghdad; Aircraft Manufacturer’s Serial Number (MSN) 32412; Aircraft Tail Number YI-BAF; and
  • YI-BAN; Aircraft Model B 737; Aircraft Operator Fly Baghdad; Aircraft Manufacturer’s Serial Number (MSN) 35064; Aircraft Tail Number YI-BAN.

https://ofac.treasury.gov/recent-actions/20240122 and https://home.treasury.gov/news/press-releases/jy2037

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January 23, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC), in coordination with Australia and the United Kingdom, designated Alexander Ermakov (Ermakov), a cyber actor who played a pivotal in the 2022 ransomware attack against Medibank Private Limited, an Australian healthcare insurer.

Australia sanctioned Ermakov for utilizing ransomware to attack the Medibank network and for the exfiltration of sensitive data of 9.7 million users of Medibank services. The United States and the United Kingdom, in solidarity with Australia, are taking action against the same individual because of the similar risk presented by this actor to the United States and the UK.

This action demonstrates that the United States stands with our partners to disrupt ransomware actors who victimize the backbone of our economies and critical infrastructure. Ransomware attacks against healthcare firms, which are frequent targets of ransomware attacks in the United States, present risks to patient care, safety, and sensitive personally identifiable data. Russia continues to provide a safe haven to ransomware actors like Ermakov, enabling cyber actors to freely perpetrate ransomware attacks and other malicious cyber activities from Russia. In addition, Russia has also enabled ransomware attacks by cultivating and co-opting criminal hackers. Treasury has previously stressed that Russia must take concrete steps to prevent cyber criminals from freely operating in its jurisdiction.

The following individual has been added to OFAC’s SDN List:

Ermakov, Aleksandr of Russia.

https://home.treasury.gov/news/press-releases/jy2041 and https://ofac.treasury.gov/recent-actions/20240123

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January 25, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on key officials of the forces of Ansarallah, commonly known as the Houthis, for their support to acts of terrorism targeting commercial shipping. This action targets four individuals who have supported the Houthis’ recent attacks against commercial vessels in the Red Sea and Gulf of Aden, including holding civilian crews hostage. Concurrent with OFAC’s designations, the United Kingdom is also imposing sanctions on these key figures of Houthi forces.

On January 17, 2024, the U.S. Department of State announced the designation of Ansarallah as a Specially Designated Global Terrorist (SDGT), effective February 16, 2024. This OFAC designation of Houthi forces officials, taken in advance of the effective date of the designation of Ansarallah, serves to further promote accountability for the group’s recent terrorist attacks. Individuals targeted are being designated pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorist groups, their supporters, and those who aid acts of terrorism.

The following individuals have been added to OFAC’s SDN List:

  • Al-Atifi, Mohamed of Yemen;
  • Al-Nabi, Muhammad Fadl Abd of Yemen;
  • Al-Qadiri, Muhammad Ali of Yemen; and
  • Al-Talibi, Muhammad Ahmad of Yemen.

https://home.treasury.gov/news/press-releases/jy2048 and https://ofac.treasury.gov/recent-actions/20240125

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January 29, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Venezuela-related General License 43A, “Authorizing the Wind Down of Transactions Involving CVG Compania General de Mineria de Venezuela CA.”

Venezuela-related General License 43A: All transactions that are ordinarily incident and necessary to the wind down of any transaction involving CVG Compania General de Mineria de Venezuela CA (Minerven), or any entity in which Minerven owns, directly or indirectly, a 50 percent or greater interest, that are prohibited by Executive Order (E.O.) 13850, as amended by E.O. 13857, or E.O. 13884, each as incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized through 12:01 a.m. eastern standard time, February 13, 2024.

This general license does not authorize any transactions otherwise prohibited by the VSR, including any transactions involving any person blocked pursuant to the VSR other than the blocked persons described in this general license, Government of Venezuela persons blocked solely pursuant to E.O. 13884, Banco Central de Venezuela, or Banco de Venezuela SA Banco Universal.

https://ofac.treasury.gov/recent-actions/20240129_33 and https://ofac.treasury.gov/media/932561/download?inline

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January 29, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets

Control (OFAC) and the United Kingdom took joint action against a network of individuals that targeted Iranian dissidents and opposition activists for assassination at the direction of the Iranian regime. The network is led by Iranian narcotics trafficker Naji Ibrahim Sharifi-Zindashti (Zindashti) and operates at the behest of Iran’s Ministry of Intelligence and Security (MOIS). Zindashti’s network has carried out numerous acts of transnational repression including assassinations and kidnappings across multiple jurisdictions in an attempt to silence the Iranian regime’s perceived critics. The network has also plotted operations in the United States. This action was taken in conjunction with the unsealing of an indictment by the Department of Justice and the Federal Bureau of Investigation. The United Kingdom is also designating Mohammad Reza Ansari, who was previously designated by OFAC.

This action was taken pursuant to Executive Order (E.O.) 13553, which authorizes sanctions on certain persons with respect to serious human rights abuses by the Government of Iran. The MOIS was designated pursuant to E.O. 13553 on February 16, 2012 for being responsible for or complicit in the commission of serious human rights abuses against the Iranian people since June 12, 2009. The MOIS was also concurrently designated pursuant to the counterterrorism authority, E.O. 13224, for its support to multiple terrorist groups, including Hizballah, Hamas, and Al-Qa’ida, and pursuant to E.O. 13572, an authority that targets those responsible for human rights abuses in Syria, for its support to the Syrian General Intelligence Directorate.

OFAC also used powerful tools to protect the Iraqi and international financial system from abuse by terrorist financiers, fraudsters, and money launderers. OFAC issued a finding and notice of proposed rulemaking (NPRM) that identifies Al-Huda Bank, an Iraqi bank that serves as a conduit for terrorist financing, as a foreign financial institution of primary money laundering concern. Along with its finding, the Financial Crimes Enforcement Network (FinCEN) proposed a rule that would sever the bank from the U.S. financial system by prohibiting domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of Al-Huda Bank. In addition, the Office of Foreign Assets Control (OFAC) is imposing sanctions on the bank’s owner.

Al-Huda Bank and its foreign sponsors, including Iran and its proxy groups, divert funds that could otherwise support legitimate business and the economic aspirations of the Iraqi people. These bad actors fuel violence that threatens the stability of Iraq and the lives of U.S. and Iraqi citizens alike. Treasury remains committed to its longstanding shared work with the Government of Iraq to strengthen the Iraqi economy and protect both the U.S. and Iraqi financial systems from abuse.

The following individuals have been added to OFAC’s SDN List:

  • Al-Moussawi, Hamad of Iraq;
  • Asan, Nihat Abdul Kadir of Iran and Turkey;
  • Esfanjani, Ali of Iran;
  • Hamidiravari, Reza of Iran;
  • KOCAK, Abdulvahap of Turkey;
  • Kocak, Ali of Turkey;
  • Naserzadeh, Muhammad Reza of Iran;
  • Oztunc, Ekrem Abdulkerym of Iran;
  • Pearson, Adam Richard of Canada;
  • Ryan, Damion Patrick John of Canada;
  • Sharifi-Zindashti, Naji Ibrahim of Iran; and
  • Tamarzadeh Zavieh Jakki, Shahram Ali Reza of Iran.

https://home.treasury.gov/news/press-releases/jy2052 and https://home.treasury.gov/news/press-releases/jy2053 and https://ofac.treasury.gov/recent-actions/20240129

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January 30, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two cybersecurity experts affiliated with the Islamic State of Iraq and Syria (ISIS) for providing ISIS leadership and supporters with cybersecurity training, enabling their use of virtual currency, and supporting the terrorist group’s recruitment.  Additionally, OFAC designated an ISIS financial facilitator involved in transferring funds to ISIS-affiliated individuals in Syria.

These actions reinforce the United States’ commitment to the mission of the Counter ISIS Finance Group (CIFG), a working group of the Global Coalition to Defeat ISIS comprising over 80 countries and international organizations.  These designations also coincide with the 19th meeting of the CIFG to discuss the disruption of ISIS financing networks worldwide.

The following individuals have been added to OFAC’s SDN List:

  • Al-Sayyid, Sarah Jamal Muhammad of Egypt;
  • Guzel, Faruk of Turkey; and
  • Salim, Mu’min al-Mawji Mahmud of Egypt.

https://home.treasury.gov/news/press-releases/jy2056 and https://ofac.treasury.gov/recent-actions/20240130

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January 31, 2024:  The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three entities and one individual located in Lebanon and Türkiye for providing critical financial support to an Iranian Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Hizballah financial network. These entities have generated hundreds of millions of dollars’ worth of revenue from selling Iranian commodities, including to the Syrian government. These commodity sales provide a key source of funding for the IRGC-QF and Hizballah’s continued terrorist activities and support to other terrorist organizations throughout the region.

OFAC also sanctioned three entities for their role in undermining the peace, security, and stability of Sudan. These designations signal the continued commitment of the United States to identify and isolate funding sources for both the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), the two main belligerent parties responsible for the conflict in Sudan.

OFAC also designated two entities closely associated with Burma’s military regime, as well as four cronies, pursuant to Executive Order (E.O.) 14014. OFAC has coordinated this sanctions action to include individuals and entities that were previously designated by Canada’ on October 31, 2023.

Based on the above, OFAC has updated its Specially Designated Nationals and Blocked Persons List:

The following individuals have been added to OFAC’s SDN List:

  • Al-‘Uwayr, Ibrahim Talal of Turkey and Syria;
  • Htet, Theint Win of Burma;
  • Kyaw, Win Paing of Burma;
  • Min, Tin Latt of Burma; and
  • Zaw, Thein Win of Burma.

The following entities have been added to OFAC’s SDN List:

  • Al-Fakher Advanced Works CO. LTD. of Sudan;
  • Alkhaleej Bank CO LTD of Sudan;
  • Hydro Company For Drilling Equipment Rental of Lebanon;
  • Mira Ihracat Ithalat Petrol Urunleri Sanayi Ticaret Limited Sirketi of Turkey;
  • Myanma Five Star Line Company Limited of Burma;
  • Shwe Byain Phyu Group of Companies of Burma;
  • Yara S.A.L. Offshore Company of Lebanon; and
  • Zadna International Co For Investment LTD of Sudan.

https://home.treasury.gov/news/press-releases/jy2065 and https://home.treasury.gov/news/press-releases/jy2066 and https://home.treasury.gov/news/press-releases/jy2067 and https://ofac.treasury.gov/recent-actions/20240131

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January 31, 2024: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issued Burma General License 6, “Authorizing the Wind Down of Transactions Involving Shwe Byain Phyu Group of Companies.”

Burma General License 6: All transactions prohibited by the Burma Sanctions Regulations, 31 CFR part 594 (BuSR), that are ordinarily incident and necessary to the wind down of any transaction involving Shwe Byain Phyu Group of Companies (SBPG) or any entity in which SBPG owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern standard time, March 1, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the BuSR.

This general license does not authorize any transactions otherwise prohibited by the BuSR, including transactions involving any person blocked pursuant to the BuSR other than the blocked persons described in this general license, unless separately authorized.

https://ofac.treasury.gov/recent-actions/20240131 and https://ofac.treasury.gov/media/932566/download?inline

JANUARY 2024 EXPORT CONTROL REGULATIONS UPDATES Read More »

DECEMBER 2023 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through December 31, 2023.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

 

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and persons denied export privileges by the United States Government.

 

REGULATORY UPDATES

 

The President

 

President Biden Issued Executive Order On Taking Additional Steps With Respect to the Russian Federation’s Harmful Activities

 

December 22, 2023: Pursuant to the Constitution and the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code, President Biden, in view of the Russian Federation’s continued use of its military-industrial base to aid its effort to undermine security in countries and regions important to United States national security, including its reliance on the international financial system for the procurement of dual-use and other critical items from third countries, and in order to take additional steps with respect to the national emergency declared in Executive Order 14024 of April 15, 2021, expanded by Executive Order 14066 of March 8, 2022, and relied on for additional steps taken in Executive Order 14039 of August 20, 2021, Executive Order 14068 of March 11, 2022, and Executive Order 14071 of April 6, 2022 amended Executive Order 14024. A new Section 11 was added to Executive Order 14024, which imposes sanctions  on a foreign financial institution if it has:

(i)   conducted or facilitated any significant transaction or transactions for or on behalf of any person designated pursuant to section 1(a)(i) Executive Order 14024for operating or having operated in the technology, defense and related materiel, construction, aerospace, or manufacturing sectors of the Russian Federation economy, or other such sectors as may be determined to support Russia’s military-industrial base by the Secretary of the Treasury, in consultation with the Secretary of State; or
(ii)  conducted or facilitated any significant transaction or transactions, or provided any service, involving Russia’s military-industrial base, including the sale, supply, or transfer, directly or indirectly, to the Russian Federation of any item or class of items as may be determined by the Secretary of the Treasury, in consultation.

 

 

https://www.whitehouse.gov/briefing-room/presidential-actions/2023/12/22/executive-order-on-taking-additional-steps-with-respect-to-the-russian-federations-harmful-activities/

 

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Department of State, Directorate of Defense Trade Controls (DDTC)

 

DDTC Name and Address Changes Posted To Website

 

December 14 through 20, 2023: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at    

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

 

  • Change in Name from Teledyne FLIR Detection, Inc. to Teledyne FLIR Defense, Inc., due to corporate rebranding;
  • Change in Name from Qualitair & Sea International to Qualitair & Sea Dimotrans Group due to corporate rebranding;
  • Change in Address for Fokker Technologies Holding B.V. and Fokker Aerostructures B.V. from Industrieweg 4, 3351 LB Papendrecht, the Netherlands to Anthony Fokkerweg 4, 3351 NL Papendrecht, the Netherlands;
  • Change in Address for Verify Europe Ltd. from 8 Clarendon Drive, Wymbush, Milton Keynes, Bucks, England MK8 8ED to 25 Shirwell Crescent, Furzton, Milton Keynes, Buckinghamshire, England, United Kingdom, MK4 1GA; and
  • Change in Name from Datron World Communications, Inc. to Cyberlux Corporation due to acquisition;
  • Change in Name from Elmtek Proprietary Limited to Aurizn Defence Proprietary Limited due to merger;
  • Change in Name from General Electric International Operations Company’s Israel operations to GE Aviation Systems North America LLC due to corporate rebranding;
  • Change in Name from Pinnacle Solutions, Inc. to Pinnacle Solutions, LLC due to acquisition by NANA Regional Corporation, Inc.

 

DSCA Notifies Congress Of Potential FMS Sale To South Korea

 

December 1, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Republic of Korea of F-35 Munitions and related equipment for an estimated cost of $271 million. The Government of the Republic of Korea has requested to buy thirty-nine (39) AIM-120C-8 Advanced Medium Range Air-to-Air Missiles (AMRAAM); two (2) AIM-120C-8 AMRAAM Guidance Sections; eighty-eight (88) KMU-556 Tail Kits for the GBU-31v1 Joint Direct-Attack Munition (JDAM); eighty-six (86) Mk-84 General Purpose (GP) 2000-lb bombs for the GBU-31v1 JDAM; seventy (70) KMU-557 Tail Kits for the GBU- 31v3 JDAM; seventy (70) BLU-109C/B 2000-lb bombs for the GBU-31v3 JDAM; seventy-eight (78) KMU- 572 Tail Kits for the GBU-54 Laser JDAM (LJDAM); two hundred sixty-nine (269) MAU-169 Computer Control Groups/Guidance Sections for the GBU-12 Paveway II; two hundred sixty-nine (269) MXU-650 Air Foil Groups for the GBU-12 Paveway II; three hundred forty-two (342) Mk-82 500-lb GP bombs for the GBU-12 Paveway II or GBU-54 LJDAM; twelve (12) Mk-82 inert bombs; thirty-five (35) GBU-39 Small Diameter Bomb-Increment 1 (SDB-I) All-Up-Rounds (AUR) with containers; and one hundred eighteen (118) GBU-53 Small Diameter Bomb-Increment 2 (SDB-II) AURs. Also included are AIM-120 control section spares and containers; DSU-38 Laser Illuminated Target Detectors; SDB-I Tactical Training Rounds and carriage systems; SDB-II Practical Explosive Ordnance Disposal Trainers (PEST) and Weapon Load Crew Trainer (WLCT) units; FMU-139 fuzes; Common Munitions Built-in-Test (BIT)/Reprogramming Equipment (CMBRE); ADU-891 adapter group computer test sets; Mk-84 practice bombs and other training bombs/components; munitions support and support equipment including propellant and explosive charges; classified software delivery and support; spare parts, consumables, and accessories, and repair and return support; major modifications, maintenance, and maintenance support; transportation and airlift support; classified/unclassified publications and technical documentation; personnel training and training equipment; contractor logistics support (CLS); studies and surveys; U.S. Government and contractor engineering, technical and logistics support services; and other related elements of logistical and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/korea-f-35-munitions

 

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DSCA Notifies Congress Of Potential FMS Sale To Australia

 

December 1, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Australia of AUKUS-related Training and Training Devices and related equipment for an estimated cost of up to $2.0 billion. The Government of Australia has requested to buy articles and services in support of the Trilateral AUKUS Pillar I program. Included are training devices, personnel training, planning, and Non-Recurring Engineering (NRE) services; support equipment; special tools; training software and courseware; design; supply chain and industrial base support; facilities and construction support; publications and technical documentation; personnel training and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; test and trials support; studies and surveys; other related elements of engineering and repair services for associated equipment and program support; and other related elements of logistic and program support. U.S. training of private Australian industry personnel will occur only after explicitly authorized by the U.S. Department of State in accordance with U.S. law.

 

https://www.dsca.mil/press-media/major-arms-sales/australia-aukus-pillar-i-training-and-training-devices

 

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DSCA Notifies Congress Of Potential FMS Sale To The United Arab Emirates

 

December 4, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of the United Arab Emirates of AN/TPQ-50 Radar and related equipment for an estimated cost of $85 million. The Government of the United Arab Emirates (UAE) has requested to buy eighteen (18) AN/TPQ-50 Radar Systems – man portable version. Also included are 107mm High Explosive (HE) rockets (for CONUS testing only); Computer Digital Military Laptop Radar Control Display units; 5kW Advanced Medium Mobile Power Source (AMMPS) Trailer-Mounted, Diesel Engine Driven Power Unit PU-2001; spares; mission equipment; communication and navigation equipment; support equipment; repair parts; special tools and test equipment; technical data and publications; site survey; U.S. Government and contractor technical and logistics personnel services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/united-arab-emirates-antpq-50-radar

 

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DSCA Notifies Congress Of Potential FMS Sale To The Kingdom Of Saudi Arabia

 

December 4, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Kingdom of Saudi Arabia of RE-3A Tactical Airborne Surveillance System Aircraft Modernization and related equipment for an estimated cost of $582 million. The Kingdom of Saudi Arabia has requested to buy aircraft hardware and software modifications and support to replenish and modernize its RE-3A Tactical Airborne Surveillance System (TASS) aircraft, including: seven (7) Embedded Global Positioning System/Inertial Navigation System (GPS/INS) (EGI) security devices, Airborne, with Selective Availability Anti-Spoofing Module (SAASM) or M-Code capability, and five (5) L3Harris BlackRock Communications Intelligence Sensor Suites. Also included are KY-100M narrowband/wideband secure communications terminals; KIV-77 MODE 4/5 Identification Friend or Foe (IFF) cryptographic appliques; AN/PYQ-10 Simple Key Loaders; integrated electronic intelligence (ELINT)/signals intelligence (SIGINT) systems; L-3 Communication Systems-West (CSW) multiband receivers/transmitters; ARC-210 radios; high frequency (HF) radios; secure communications equipment; precision navigation and cryptographic devices; aircraft support and support equipment; test and integration support; equipment; spare and repair parts; consumables and accessories; repair and return support; U.S. Government and contractor engineering, technical, and logistics support services; studies and surveys; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/saudi-arabia-re-3a-tactical-airborne-surveillance-system-aircraft

 

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DSCA Notifies Congress Of Potential FMS Sale To Germany

 

December 7, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Germany of MK 54 Lightweight Torpedoes and related equipment for an estimated cost of $300 million. The Government of Germany has requested to buy up to eighty (80) MK 54 All Up Round Lightweight Torpedoes (LWT). Also included are MK 54 Mod 0 LWT spare parts; Recoverable Exercise Torpedoes (REXTORPs) with containers; handling shapes and containers; torpedo spare parts; tools for mounting and dismounting of Air Launch Accessories (ALAs); equipment for analysis of REXTORP exercise shots; REXTORP maintenance equipment; training; publications; support and test equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/germany-mk-54-lightweight-torpedoes

 

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DSCA Notifies Congress Of Potential FMS Sale To Israel

 

December 9, 2023: The Secretary of State has approved the possible Foreign Military Sale to the Government of Israel of 120mm M830A1 High Explosive Anti-Tank Multi-Purpose with Tracer (MPAT) tank cartridges and related equipment for an estimated cost of $106.5 million. The Government of Israel has requested to buy thirteen thousand nine hundred eighty-one (13,981) 120mm M830A1 High Explosive Anti-Tank Multi-Purpose with Tracer (MPAT) tank cartridges. Also included are publications and technical documentation; U.S. Government and contractor engineering, technical, and logistics support services; studies and surveys; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/israel-m830a1-120mm-tank-cartridges

 

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DSCA Notifies Congress Of Potential FMS Sale To Romania

 

December 12, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Romania of Javelin Missiles and related equipment for an estimated cost of $80 million. The Government of Romania has requested to buy two hundred sixty-three (263) Javelin FGM-148F Missiles; and twenty-six (26) Javelin Light Weight Command Launch Units (LWCLU). Also included are enhanced producibility basic skills trainers; missile simulation rounds; Security Assistance Management Directorate (SAMD) technical assistance; Tactical Air Ground Missiles (TAGM) Project Office technical assistance; other associated equipment and services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/romania-javelin-missiles

 

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DSCA Notifies Congress Of Potential FMS Sale To Poland

 

December 13, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Poland of Communications Equipment and related elements of logistics and program support for an estimated cost of $255 million. The Government of Poland has requested to buy communications equipment, including AN/PRC-117G, AN/PRC-152A, AN/PRC-158, AN/PRC-160, AN/PRC-163, and AN/PRC-167 radios; Global Positioning System (GPS) receivers enabled by Selective Availability Anti-Spoofing Module (SAASM) or M-Code; support equipment; spare parts; technical manuals and publications; new equipment training; U.S. Government and contractor technical engineering, logistics, and personnel services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/poland-communications-equipment

 

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DSCA Notifies Congress Of Potential FMS Sale To The Taipei Economic And Cultural Representative Office In The United States Of Command, Control, Communications, And Computers (C4) Life Cycle Support

 

December 15, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Taipei Economic and Cultural Representative Office in the United States of Command, Control, Communications, and Computers (C4) Life Cycle Support and related equipment for an estimated cost of $300 million. The Taipei Economic and Cultural Representative Office in the United States (TECRO) has requested to buy follow-on life cycle support to maintain Command, Control, Communications, and Computers (C4) capabilities managed under its Syun An program. The C4 capabilities consist of previously procured Multifunctional Information Distribution Systems-Low Volume Terminals (MIDS-LVT) and Joint Tactical Information Distribution System (JTIDS) equipment, as well as procurement of spare and repair parts; repair and return of equipment; technical documentation; personnel training; software and hardware; software development; maintenance of Continental United States (CONUS) technical laboratories; U.S. Government and contract engineering and technical support; logistics; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-31

 

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DSCA Notifies Congress Of Potential FMS Sale To Japan

 

December 15, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Japan of AIM-120C-8 Advanced Medium-Range Air-to-Air Missiles (AMRAAM) and related equipment for an estimated cost of $224 million. The Government of Japan has requested to buy one hundred twenty (120) AIM-120C-8 Advanced Medium-Range Air-to-Air Missiles (AMRAAM); and three (3) AIM-120C-8 guidance sections. Also included are AIM-120 Captive Air Training Missiles (CATM), missile containers, and control section spares; Common Munitions Built-in-Test Reprogramming Equipment (CMBRE); ADU-891 Adapter Group Test Sets; munitions support and support equipment; spare and repair parts, consumables, and accessories, and repair and return support; contract logistics support (CLS); classified software delivery and support; classified/unclassified publications and technical documentation; studies and surveys; U.S. Government and contractor engineering, technical and logistical support services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/japan-aim-120c-8-advanced-medium-range-air-air-missiles-amraam

 

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DSCA Notifies Congress Of Potential FMS Sale To Greece

 

December 15, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Greece of UH-60M Black Hawk Helicopters and related equipment for an estimated cost of $1.95 billion. The Government of Greece has requested to buy thirty-five (35) UH-60M Black Hawk helicopters; eighty (80) T700-GE 701D engines (70 installed, 10 spares); forty-four (44) AN/AAR-57 Common Missile Warning Systems (CMWS) (35 installed, 9 spares); eighty-five (85) H-764U Embedded Global Position Systems with Inertial Navigation (EGI) and country unique selective availability anti-spoofing module (SAASM) (or future replacement) (70 installed, 15 spares); and eighty-five (85) AN/ARC-231A VHF/UHF/LOS SATCOM radio systems. Also included are AN/ARC-231 Receivers/Transmitters RT-1808A (or future replacement); VHF/UHF/LOS SATCOM radios; APR-39C(V)1/4 Radar Warning Receivers; AVR-2B Laser Detecting Sets; APX-123A Identification Friend or Foe (IFF) Transponders; ARC-220 High Frequency (HF) radios with KY-100M; VRC-100 Ground Stations; AN/PYQ-10 Simple Key Loaders (SKLs); KIV-77 Common IFF Applique Crypto Computers; COMSEC Encryption devices; AN/ARN-147(V) Very High Frequency Omni-Directional Range (VOR)/Instrument Landing System (ILS) Receiver Radios; AN/ARN-149(V) Low Frequency (LF)/Automatic Direction Finder (ADF) Radio Receivers; AN/ARN-153 Tactical Air Navigation System (TACAN) Receiver Transmitters; AN/APN-209 Radar Altimeters; AN/ARC-210 radios; EBC-406HM Emergency Locator Transmitters (ELTs); Encrypted Aircraft Wireless Intercommunications Systems (EAWIS); Improved Heads Up Displays (IHUD); Signal Data Converters for IHUD; Color Weather Radars; MX-0D EO/IR with Laser Designators; EO/IR Cabin Monitoring Systems; EO/IR Digital Video Recorders; AN/ARC-201D RT-1478D radios; Engine Inlet Barrier Filters (EIBF); Ballistic Armor Protection Systems (BAPS); Internal Auxiliary Fuel Tank Systems (IAFTS); Fast Rope Insertion Extraction Systems (FRIES); External Rescue Hoists (ERH); Rescue Hoist Equipment Sets; Dual Patient Litter System (DPLS) Sets; Martin Baker Palletized Crew Chief/Gunner Seats with crashworthy floor structural modifications; External Stores Support System (ESSS); Integrated Tow Plates Production Assets; Universal Software Loading Kits; 60kVA Generator Kits; Instrument Panels; DF-500 Personal Location Systems; Trakkabeam Searchlights; External Gun Mount Systems; M-134 Mini Gun Systems; M-240 machine guns; 7.62mm Cartridges; 2.75” Rockets; Flare IR Countermeasure M206; Decoy Flare CM M211; CTG Impulse BBU-35/B; CTG, 25.4mm, Decoy, Chaff, M839/RR170/ Series; M255A2 MK-66 Night Reliability Indicator (NRI); Cartridge, Aircraft Fire Extinguisher; Cartridge, Impulse; Thruster Control Unit (TCU) -3/A; Cartridge, Aircraft; Black Hawk Aircrew Trainer (BAT); Black Hawk Maintenance Trainer (BHMT-M); Black Hawk Avionics Trainer; Maintenance Blended Reconfigurable Avionics Trainer (MBRAT); CAPT-E-Visual & Control System (CAPT-E VCS); training devices; helmets; transportation; organizational equipment; spare and repair parts; support equipment; tools and test equipment; technical data and publications; personnel training and training equipment; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/greece-uh-60m-black-hawk-helicopters

 

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DSCA Notifies Congress Of Potential FMS Sale To Japan

 

December 15, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Japan of AIM-9X Block II Sidewinder Missiles and related equipment for an estimated cost of $59.03 million. The Government of Japan has requested to buy forty-four (44) AIM-9X Sidewinder Block II Tactical Missiles; and twenty-nine (29) AIM-9X Sidewinder Captive Air Training Missiles (CATM). Also included are missile containers; spare and repair parts; repair of repairables; support and test equipment; publications and technical documentation; personnel training and training equipment; technical assistance, engineering, and logistics support services; transportation and program support; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/japan-aim-9x-block-ii-sidewinder-missiles

 

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DSCA Notifies Congress Of Potential FMS Sale To Italy

 

December 15, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Government of Italy of M142 High Mobility Artillery Rocket Systems (HIMARS) and related equipment for an estimated cost of $400 million. The Government of Italy has requested to buy twenty-one (21) M142 High Mobility Artillery Rocket Systems (HIMARS); and one (1) M31A2 Guided Multiple Launch Rocket System Unitary (GMLRS-U) High Explosive (HE) Pods with Insensitive Munitions Propulsion System (IMPS). Also included are Universal Fielding Modules; towbar toolkits and sets; crypto-fill cable; AN/PRC-158 Multi-Channel Tactical Radio installation kits; Multi-Channel AN/PRC-158 radios; RF-7800i CU100 radio router; HARRIS installation kits for 160W high frequency (HF) radio system; HF AN/PRC-160W-HF radios; Simple Key Loader (SKL) AN/PYQ-10 (C); RF-7800i Tactical Intercom System installation kit; RF7800i Tactical Intercom System; Fire Control Panel Trainer (FCPT) hardware and software; Missile Common Test Device Trainer (MCTD-T), slim; Panasonic Toughbook ruggedized laptop with 30ft cables and power adapters and internal CD ROM drive; RF-7800i Tactical Intercom System training hardware; RF-7800i and CU100 training rigs, test equipment, and Golden System for operator and maintenance training; Launcher Adapter Group (LAG) and Sling; Launcher Control Unit (LCU); Weapons Control Unit (WCU); MCTD V.4 hardware and spares; MCTD V.4 software and publications; spare parts; Maintenance Support Device (MSD) V.4; Wireless AT-Platform Test Set (WATS); guided missile organizational tool kit; Hydraulic Servicing Unit (HSU); Interactive Electronic Technical Manual (IETM) development; Direct Support (DS)/General Support (GS) tool kits; Gas Particulate Filter Unit (GPFU); Forward Repair System (FRS); Positioning Navigation Assembly (PNA) with Selective Availability Anti-Spoofing Module (SAASM) Global Positioning System/Precise Positioning Service (GPS/PPS); Common MLRS SPORT Test Program Set (CMST) hardware and software development; mobile Standard Automotive Tool Set (SATS); RF7800i Tactical Intercom System spare package; Technical Manual Unit organizational Repair Parts and Special Tools List (RPSTL); Technical Manual operator’s manual; Launch POD/container (LP/C) trainer M68A2; GMLRS-U flight surveillance kit; and other related elements of program and logistic support.

 

https://www.dsca.mil/press-media/major-arms-sales/italy-m142-high-mobility-artillery-rocket-systems-himars

 

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DSCA Notifies Congress Of Potential FMS Sale To The Kingdom Of Saudi Arabia

 

December 22, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the Kingdom of Saudi Arabia of Blanket Order Training and related equipment for an estimated cost of $1 billion. The Kingdom of Saudi Arabia has requested a continuation of a blanket order training program inside and outside of the Kingdom of Saudi Arabia that includes, but is not limited to, flight training; technical training; professional military education; specialized training; Mobile Training Teams (MTTs); Technical Assistance Field Team (TAFT); Extended Training Service Specialists (ETSS); and English language training. These blanket order training cases will cover all relevant types of training offered by or contracted through the U.S. Air Force or Department of Defense Agencies (DOD). This training for the Royal Saudi Air Force (RSAF) and other Saudi forces will include such subjects as civilian casualty avoidance; the laws of armed conflicts; human rights; command and control; and targeting via MTTs and/or broader Programs of Instruction (POIs). Program management; trainers, simulators; travel; billeting; and medical support may also be included.

 

https://www.dsca.mil/press-media/major-arms-sales/saudi-arabia-blanket-order-training-0

 

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DSCA Notifies Congress Of Potential FMS Sale To NATO

 

December 22, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the NATO Support and Procurement Agency of Stinger missiles and related equipment for an estimated cost of $780 million. The NATO Support and Procurement Agency (NSPA), as Lead Nation on behalf of Germany, Italy, and the Netherlands, has requested to buy nine hundred forty (940) FIM-92K Stinger Block I Missiles. Also included are Battery Coolant Units (BCU); metal containers; U.S. Government and contractor production, technical, and engineering assistance; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/nato-support-and-procurement-agency-nspa-stinger-missiles

 

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DSCA Notifies Congress Of Potential FMS Sale To NATO

 

December 22, 2023: The State Department has made a determination to approve the possible Foreign Military Sale to the NATO Support and Procurement Agency of C-17 Maintenance and related equipment for an estimated cost of $150 million. NATO Support and Procurement Agency as Lead Nation has requested to buy contractor logistics support for the C-17 Strategic Airlift Capability program; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.

 

https://www.dsca.mil/press-media/major-arms-sales/nato-support-and-procurement-agency-nspa-c-17-maintenance

 

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DSCA Notifies Congress Of Potential FMS Sale To Israel

 

December 29, 2023: The Secretary of State has approved the possible Foreign Military Sale to the Government of Israel of M107 155mm projectiles and related equipment for an estimated cost of $147.5 million. The Government of Israel has requested 155mm ancillaries (fuzes, primers, and charges) that will be added to previously implemented cases. This amendment will increase the total case value above notification thresholds and thus requires notification of the entire case. The original FMS cases, valued at $96.51 million, included four thousand seven hundred ninety-two (4,792) rounds of M107 155mm artillery ammunition (MDE); fifty-two thousand two hundred twenty-nine (52,229) rounds of M795 155mm artillery ammunition (non-MDE); and thirty thousand (30,000) M4 propelling charges (non-MDE), along with publications; associated technical documentation; and logistics support services, which have subsequently been delivered.

 

https://www.dsca.mil/press-media/major-arms-sales/israel-155mm-artillery-ammunition

 

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Office of the Department of Defense Chief Information Officer (CIO), Department of Defense (DoD)

 

The DOD Proposed To Establish Requirements For A Comprehensive And Scalable Assessment Mechanism To Ensure Defense Contractors And Subcontractors Have, As Part Of The Cybersecurity Maturity Model Certification (CMMC) Program

 

December 26, 2023: 88 Fed. Reg. 89058: The DoD proposed the establishment of requirements for a comprehensive and scalable assessment mechanism to ensure defense contractors and subcontractors have, as part of the Cybersecurity Maturity Model Certification (CMMC) Program, implemented required security measures to expand the application of existing security requirements for Federal Contract Information (FCI) and add new Controlled Unclassified Information (CUI) security requirements for certain priority programs. DoD currently requires covered defense contractors and subcontractors to implement the security protections set forth in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800–171 Rev 2 to provide adequate security for sensitive unclassified DoD information that is processed, stored, or transmitted on contractor information systems and to document their implementation status, including any plans of action for any NIST SP 800–171 Rev 2 requirement not yet implemented, in a System Security Plan (SSP). The CMMC Program provides the Department the mechanism needed to verify that a defense contractor or subcontractor has implemented the security requirements at each CMMC Level and is maintaining that status across the contract period of performance, as required.

 

If adopted, the CMMC program will require most contractors handling Controlled Unclassified Information (CUI) to obtain a third-party certification that they have successfully implemented the 110 cybersecurity controls in the National Institute of Standards and Technology Special Publication (NIST SP) 800-171. It should be noted that contractors handling CUI are already required to comply with NIST SP 800-171 through Defense Acquisition Regulatory Supplement (DFARS) 252.204-7012, but only a self-attestation is currently required. Failure to obtain a CMMC certification will mean a contractor is prohibited from performing an awarded contract.

 

Contractors not handling CUI – but instead, FCI – will also be required to obtain a Level 1 assessment, which is a self-certification consistent with the requirements in FAR 52.204-21.

 

Highlights of the Proposed Regulations

While the proposed regulations are comprehensive, the following are some highlights:

  • The DoD proposes an aggressive rollout, with self-assessments required on all new contracts immediately after the final rule is effective and third-party assessments on all contracts at the start of Phase 2, which is six months after the final rule implementation.
  • While Level 2 is a split level (with some assessments being self-assessments and some being third-party assessments), the DoD assumes the vast majority of Level 2 assessments will be conducted by a Certified Third-Party Assessment Organization (C3PAO) (4,000 entities conducting a self-assessment versus 76,598 entities receiving a third-party assessment).
  • Third-party assessments are to last for three years, although the time may be shortened if the contractor makes modifications to an assessed system. Companies waiting on a third-party assessment may be competing with companies that are getting a second assessment when trying to schedule an assessment with a C3PAO.
  • The proposed rule contains enormous False Claims Act (FCA) risk: Level 1 assessments must be certified by a company executive to the DoD, and third-party Level 2 assessments require a company executive to file an affirmation with the DoD upon the close of the third-party assessment and annually thereafter. There is no doubt that the DoD will argue that these certifications are material.
  • Managed service providers (MSPs) play a crucial role in the CMMC ecosystem, particularly for small and medium-sized businesses. It is not clear what MSPs will be required to do (i.e., a Level 2 assessment) to be able to continue in that role for their clients.
  • Small businesses, subcontractors and non-U.S. companies will be required to comply with the same set of requirements consistent with the type of information they are creating or handling. There are no blanket exemptions except for contracts for the purchase of commercial off-the-shelf products or contracts under the micro-purchase threshold.
  • It remains to be seen how this rule will be implemented through the federal supply schedule and other agency-agnostic contracts such as NASA’s Solutions for Enterprise-Wide Procurement (SEWP).

 

Comments regarding the proposed requirements must be received by February 26, 2024.

 

https://www.federalregister.gov/documents/2023/12/26/2023-27280/cybersecurity-maturity-model-certification-cmmc-program and https://www.hklaw.com/en/insights/publications/2023/12/department-of-defense-releases-long-awaited-cmmc-proposed-rule (Source: H&K Insights, 27 Dec 2023) [Excerpts] and Principal Author: Eric S. Crusius, Holland & Knight LLP

 

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The Department of State Temporarily Modified The Note To Paragraph (h)(1) Of USML Category VIII With Regard To Certain Commodities Used In The KF-21 Aircraft Or Variants Thereof

 

December 4, 2023: 88 Fed. Reg. 84072: The Assistant Secretary of State for Political-Military Affairs temporarily modified the Note to paragraph (h)(1) of USML Category VIII with regard to certain commodities used in the KF-21 aircraft or variants thereof. The Department assessed that it is in the security and foreign policy interests of the United States to allow manufacturers to apply for export authorizations to participate in the development of the KF–21 aircraft by reusing certain defense articles described in paragraph (h)(1), which are specially designed for the U.S. aircraft listed therein, without removing those defense articles from the USML simply because they are re-used in the KF–21. Accordingly, pursuant to ITAR § 126.2, the Assistant Secretary of State for Political-Military Affairs temporarily modified the Note to paragraph (h)(1) of USML Category VIII such that parts, components, accessories, and attachments specially designed for aircraft identified in paragraph (h)(1) are not released from that paragraph due to their reuse in the KF–21 aircraft or variants thereof. The Department assessed that this temporary modification does not change the export jurisdiction or classification of any existing commodities, as it only prevents the possibility of future release from paragraph (h)(1) due to use in the KF–21, which has not yet entered into production. Therefore, when the KF–21 enters production, any paragraph (h)(1) commodities authorized for export for this purpose will retain their current export classification described in paragraph (h)(1). This temporary modification is effective until December 1, 2024, or when terminated by the Department, whichever occurs first.

 

https://www.pmddtc.state.gov/sys_attachment.do?sys_id=57881adf1b3275d0c6c3866ae54bcb01

 

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Department of Commerce – Bureau of Industry and Security (BIS)

 

December 7, 2023: The Commerce Department’s Bureau of Industry and Security (BIS) released three rules as part of a broad effort to ease several categories of export licensing requirements and expand the availability of export license exceptions for key allied and partner countries, as well as for members of certain multilateral export control regimes.

 

The first rule changes licensing requirements for certain Australia Group (AG)-controlled pathogens and toxins (and their related technologies) so that no license is required to AG countries, unless the item is also subject to Chemical Weapons Convention controls. It also removes crime control licensing requirements for Austria, Finland, Ireland, Liechtenstein, South Korea, Sweden, and Switzerland. These countries are in the Global Export Controls Coalition (GECC) (countries listed in Supplement 3 to part 746 of the Export Administration Regulations (EAR)) and maintain a commitment to protecting human rights. 88 Fed. Reg. 85479.

 

https://www.federalregister.gov/documents/2023/12/08/2023-26532/allied-governments-favorable-treatment-revisions-to-certain-australia-group-controls-revisions-to

 

The second rule expands license exception eligibility to additional countries for certain missile technology items, excluding any countries of concern for missile technology reasons or that are subject to a U.S. arms embargo (i.e., countries specified in Country Groups D:4 or D:5). For example, certain components used in or for the “production” of civil manned aircraft will now be eligible for an EAR license exception to countries that are in both Country Group A:2 and the GECC.  The second rule also updates list-based controls to align with recent Missile Technology Control Regime (MTCR) control list changes.  88 Fed. Reg. 85487.

 

https://www.federalregister.gov/documents/2023/12/08/2023-26682/export-administration-regulations-for-missile-technology-items-2018-2019-and-2021-missile-technology

 

The third rule seeks public comment on ways to facilitate the use of License Exception Strategic Trade Authorization (STA), including by clarifying which items are eligible for STA to certain destinations, and proposing a number of changes intended to increase the usage of STA and reduce the burden on exporters, reexporters, and transferors, while at the same time still ensuring that U.S. national security and foreign policy interests are protected for items authored under STA. For example, the rule proposes to allow National Security (NS)-only reason for control items received under STA to be reexported between or among countries that are in both A:5 and the GECC with authorization from the competent authorities of those countries under license exception Additional Permissive Reexports (APR). 88 Fed. Reg. 85734.

 

https://www.federalregister.gov/documents/2023/12/08/2023-26681/proposed-enhancements-and-simplification-of-license-exception-strategic-trade-authorization-sta

 

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Departments of Justice, Commerce, Homeland Security, State and Treasury

 

Departments of Justice, Commerce, Homeland Security, State, and Treasury Jointly Advise Maritime and Transportation Industry on Know-Your-Cargo Policy

 

The Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), Department of Homeland Security’s Homeland Security Investigations (HSI), Department of State’s Directorate of Defense Trade Controls (DDTC), and Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a joint compliance note highlighting common tactics deployed by malign actors in the maritime and other transportation industries as well as recent enforcement actions taken in response to alleged violations. This note marks the first collective effort by the five agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. The Departments of Justice, Commerce, and the Treasury have previously issued two tri-seal compliance notes.

 

The compliance note describes various deceptive shipping and transportation tactics deployed by malign actors to facilitate the illicit transfer of cargo. In addition, the note advises companies doing business in these industries to implement and strengthen their compliance controls as necessary, especially when operating in high-risk areas or with counterparties who exhibit odd behavior. The note further identifies several compliance practices that may assist companies in identifying potential efforts to evade U.S. laws.

The compliance note also highlights criminal and civil enforcement authorities that the relevant agencies have taken to combat the illicit shipment of cargo, as well as recent enforcement actions. These cases include the first-ever criminal resolution by the Department of Justice against a bareboat charter of a crude oil tanker carrying contraband Iranian oil and civil enforcement actions taken by BIS and OFAC imposing civil monetary penalties.

 

https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_news_and_events and https://www.justice.gov/media/1327981/dl?inline

 

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U.S. Census Bureau

 

Tips on How to Resolve AES Response Messages

December 21, 2023: To help you take the appropriate action for the different AES Response Messages, here are some tips on how to address the most frequent messages that were generated in AES for this month.

 

Response Code: 126

Narrative: Conveyance Name Not Allowed for MOT

Severity: Fatal

Reason: The Mode of Transportation selected does not allow a Conveyance Name to be reported.

 

Resolution: A Conveyance Name/Carrier Name is only allowed to be reported for vessel, air, rail, or truck modes of transportation.

Verify the Mode of Transportation Code and the Conveyance Name/Carrier Name, correct the shipment, and resubmit.

 

Response Code: 651

Narrative: Vehicle Information Required for Export Information Code

Severity: Fatal

Reason: The Export Information Code is reported as HV for personally owned vehicles being exported as household effects, but the Used Vehicle Information is not included.

 

Resolution: Used Vehicle Information must be reported if the Export Information Code is HV. See ‘Appendix E, Commodity Filing Export Information’ of the AESTIR for a complete listing of all the Export Information Codes and their reporting guidelines.

Verify the Export Information Code, correct the shipment and resubmit.

LATEST FINES, PENALTIES AND SANCTIONS

 

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

 

Fines and Penalties

 

December 6, 2023: A federal indictment was unsealed in the District of Oregon charging a Belgian national in connection with the export of sensitive, military-grade technology from the United States to end users in the People’s Republic of China. Hans Maria De Geetere, 61, of Knokke-Heist, Belgium, has been charged with one count of obtaining goods intended for China in violation of the Export Control Reform Act (ECRA) and four counts of making false statements.

 

According to court documents, between April 2021 and August 2023, De Geetere, who owned and operated a Belgium-based supply chain management and procurement services company called Knokke Heist Support Corporation Management (KHSCM), attempted to illegally procure for export to China controlled accelerometers valued at more than $930,000.

 

https://www.justice.gov/usao-or/pr/belgian-national-faces-federal-charges-illegally-procuring-critical-us-technology-end

 

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December 8, 2023: The U.S. Attorney’s Office for the Eastern District of Virginia announced the seizure of three domains used by Specially Designated Nationals (SDNs), Specially Designated Global Terrorists (SDGTs), and their members associated with Lebanese Hizballah. According to court records, the United States obtained court authorization to seize three domains registered to Verisign, Inc. – ctexlb.com, imarwaiktissad.com, and russia-now.com.  These three domains are subject to seizure as assets of entities and organizations engaged in planning or perpetrating acts of terrorism against the United States, its citizens and residents, and their property. These domains also afford a source of influence over those entities and organizations. The seizure of these domains will cut off that source of support and influence.

 

https://www.justice.gov/usao-edva/pr/edva-seizes-three-domains-used-lebanese-hizballah-and-its-affiliates

 

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December 8, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a settlement with Nasdaq, Inc.  Nasdaq agreed to remit $4,040,923 to settle its potential civil liability for a former wholly owned foreign subsidiary’s apparent violations of sanctions on Iran.  This former subsidiary engaged in the exportation of services to Iran and the Government of Iran, thereby committing 151 apparent violations of OFAC sanctions on Iran.  The settlement amount reflects OFAC’s determination that Nasdaq’s conduct was non-egregious and voluntarily self-disclosed.

 

https://ofac.treasury.gov/recent-actions/20231208_33 and https://ofac.treasury.gov/media/932386/download?inline

 

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December 13, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $1,207,830 settlement with CoinList Markets LLC.  CoinList agreed to settle its potential civil liability arising from processing 989 transactions on behalf of users ordinarily resident in Crimea between April 2020 and May 2022, in apparent violation of OFAC’s Russia/Ukraine sanctions.  The settlement amount reflects OFAC’s determination that CoinList’s conduct was non-egregious and not voluntarily self-disclosed.

 

https://ofac.treasury.gov/recent-actions/20231213_33 and https://ofac.treasury.gov/media/932406/download?inline and

 

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December 19, 2023: The Justice Department unsealed an indictment charging Iranian national Hossein Hatefi Ardakani and co-defendant Gary Lam, who worked for a Chinese company, with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for the Islamic Revolutionary Guard Corps (IRGC) Aerospace Force Self Sufficiency Jihad Organization’s (ASF SSJO) one-way attack unmanned aerial vehicle (UAV) program.

 

According to the indictment, between at least in or around September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components are subject to U.S. export controls for anti-terrorism, national security and regional stability reasons.

 

The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasion

 

https://www.justice.gov/opa/pr/iranian-national-charged-unlawfully-procuring-microelectronics-used-unmanned-aerial-vehicles

 

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December 21, 2023: Robert Alcantara was sentenced to 68 months in prison for trafficking firearms.  According to the charging documents and other filings and statements made in court:

From approximately 2017 until January 2022, Alcantara operated a “ghost gun” factory out of his home in Rhode Island.  Alcantara purchased ghost gun kits at gun shows and other places and then machined the kits into working firearms.  Once he had completed the untraceable firearms, he exported and sold them to the Dominican Republic.  Most of those guns were handguns, but a number were rifles.  Alcantara and others then laundered the proceeds of his gun sales.

 

On November 20, 2021, Alcantara was stopped in his vehicle in possession of kits to build approximately 45 ghost guns. Alcantara was interviewed by law enforcement agents and stated that he was planning to turn the 45 kits into working firearms, and he had 50 additional similar ghost guns at his home.

 

https://www.justice.gov/usao-sdny/pr/rhode-island-man-sentenced-68-months-prison-trafficking-over-one-hundred-ghost-guns

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December 21, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $466,200 settlement with Privilege Underwriters Reciprocal Exchange (PURE). PURE agreed to settle its potential civil liability for 39 apparent violations of OFAC’s Ukraine-/Russia-Related sanctions.  Between May 2018 and July 2020, PURE engaged in transactions related to four insurance policies involving a blocked Panama-based company owned by Specially Designated National Viktor Vekselberg (Vekselberg). The settlement amount reflects OFAC’s determination that PURE’s apparent violations were not voluntarily self-disclosed and were non-egregious.

 

https://ofac.treasury.gov/recent-actions/20231221_33 and https://ofac.treasury.gov/media/932486/download?inline

 

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December 22, 2023: 88 Fed. Reg. 88567: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Stephanie Joahna Gloria (“Gloria”) for seven years until May 23, 2029. On May 23, 2022, Gloria was convicted of violating 18 U.S.C. 554(a). Specifically, Gloria was convicted of smuggling from the United States to Mexico 3,200 rounds of Winchester 5.56-millimeter ammunition. As a result of her conviction, the Court sentenced Gloria to 70 months of imprisonment, three years of supervised release, and a $100 assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28273/in-the-matter-of-stephanie-joahna-gloria-inmate-number-74313-509-fci-aliceville-federal-correctional

 

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December 22, 2023: 88 Fed. Reg. 88569: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Donald Robert Witherow (“Witherow”) for three years until October 13, 2025. On October 13, 2022, Witherow was convicted of smuggling firearms ammunition and firearms magazines from the United States to the Netherlands. As a result of his conviction, the Court sentenced Witherow to 12 months and one day of imprisonment, one year of supervised release and a $200 assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28275/in-the-matter-of-donald-robert-witherow-6651-buffalo-road-cresson-pa-16421-order-denying-export

 

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December 22, 2023: 88 Fed. Reg. 88571: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Edson Daniel Montelongo (“Montelongo”) for ten years until June 22, 2032. On June 22, 2022 Montelongo was convicted of smuggling various firearms from the United States to Mexico. As a result of his conviction, the Court sentenced him to 70 months in prison, three years of supervised release, and a $500 special assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28271/in-the-matter-of-edson-daniel-montelongo-inmate-number-75304-509-fci-bastrop-po-box-1010-bastrop-tx

 

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December 22, 2023: 88 Fed. Reg. 88564: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Rolondo Alexei Pupo-Abrahantes (“Pupo-Abrahantes”) for ten years until November 16, 2032. On November 16, 2022 Pupo-Abrahantes was convicted of conspiring to smuggle various firearms from the United States to Ecuador. As a result of his conviction, the Court sentenced him to 30 months in prison, two years of supervised release and a $300 special assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28277/in-the-matter-of-rolondo-alexei-pupo-abrahantes-inmate-number-76860-509-fci-pollock-po-box-4050

 

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December 22, 2023: 88 Fed. Reg. 88565: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Jonathan Yet Wing Soong (“Soong”) for ten years until April 28, 2033. On April 28, 2023 Soong was convicted of knowingly and willfully exporting from the United States to Beihang University, an entity on the Department of Commerce’s Entity List, EAR99 CIFER (Comprehensive Identification from Frequency Responses) software, a tool that allows a user to develop a dynamic model of an aircraft using system identification techniques, without having first obtained the required authorization from the Department of Commerce. As a result of his conviction, the Court sentenced Soong to 20 months of imprisonment, three years of supervised release, $100 assessment and $168,885 in restitution.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28268/in-the-matter-of-jonathan-yet-wing-soong-inmate-number-03089-510-usp-lompoc-us-penitentiary-3901

 

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December 22, 2023: 88 Fed. Reg. 88566: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Javier Alonso Galvan-Hernandez (“Galvan-Hernandez”) for ten years until May 11, 2032. On May 11, 2022 Galvan-Hernandez was convicted of smuggling various firearms from the United States to Mexico. As a result of his conviction, the Court sentenced him to 84 months in prison, three years of supervised release, and a $200 special assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28274/in-the-matter-of-javier-alonso-galvan-hernandez-inmate-number-79786-509-fci-bastrop-po-box-1010

 

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December 22, 2023: 88 Fed. Reg. 88568: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Angel Huerta-Garay (“Huerta-Garay”) for tens years until April 26, 2032. On April 26, 2022 Huerta-Garay was convicted of exporting and sending, and attempting to export and send, various firearms from the United States to Mexico. As a result of his conviction, the Court sentenced him to 52 months in prison, three years of supervised release, and a $100 special assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28276/in-the-matter-of-angel-huerta-garay-inmate-number-67193-509-fci-beaumont-po-box-26020-beaumont-tx

 

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December 22, 2023: 88 Fed. Reg. 88570: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Jose Luis Garcia (“Garcia”) for ten years until December 14, 2031. On December 14, 2021 Garcia was convicted of conspiring to smuggle firearms from the United States to Mexico without first having obtained the required export license and authorization from the U.S. Department of State or U.S. Department of Commerce. As a result of his conviction, the Court sentenced Garcia to 57 months of imprisonment, three years of supervised release, $20,000 criminal fine and a $100 assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28270/in-the-matter-of-jose-luis-garcia-inmate-number-21856-509-fci-bastrop-federal-correctional

 

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December 22, 2023: 88 Fed. Reg. 88572: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Order denying the export privileges of Tina Chen, a/k/a Ya When Chen, a/k/a Wen Tina Chen, a/k/a Tina Dunbar, a/k/a Tina Dubner (“Chen”) for ten years until February 23, 2033. On February 23, 2023 Chen was convicted of exporting goods from the United States to Iran without the required licenses from the Office of Foreign Assets Control. As a result of her conviction, the Court sentenced Chen to 13 months of confinement, three years of supervised release, and a $100 assessment.

 

https://www.federalregister.gov/documents/2023/12/22/2023-28278/in-the-matter-of-tina-chen-aka-ya-when-chen-aka-wen-tina-chen-aka-tina-dunbar-aka-tina-dubner-inmate

 

Sanctions

 

U.S. Department of Commerce, Bureau of Industry and Security (BIS)

 

December 5, 2023: The U.S. Department of Commerce, Bureau of Industry and Security (BIS) added forty-two entities under forty-four entries to the Entity List. These entities are listed under the destinations of Armenia (3), Belarus (1), Belgium (3), China, People’s Republic of (China) (1), Cyprus (4), Germany (1), Kazakhstan (1), Netherlands (1), Russia (28), and the United Arab Emirates (1). Two entities are added to the Entity List under two destinations, accounting for the difference in the totals. These entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States.

 

Specifically, eleven entities are directly tied to or associated with the joint Iranian-Russian efforts to develop and construct a UAV production facility in the “Alabuga Special Economic Zone,” which is intended to produce thousands of Shahed-136 drones in support of Russia’s war effort against Ukraine.  Two entities were added for engaging in illicit efforts to acquire and divert the highest priority U.S.-origin electronic components with military applications, including in connection with avionics, missiles, unmanned aerial vehicles (drones, or UAVs), electronic warfare receivers, and military radar. Thirteen entities were added for engaging in dealings with entities on the Entity List, including entities designated as Russian military end users, or entities subject to sanctions administered by the Department of the Treasury’s Office of Foreign Assets Control (OFAC).  Sixteen other entities were added pursuant to two BIS enforcement actions involving the acquisition and diversion of U.S.-origin electronic and avionic components on behalf of parties in Russia.

 

Armenia:

  • Aram Kocharyan;
  • ARM-BEKAR LLC; and
  • Hermine Kocharyan.

 

Belarus:

  • Nanotech Ltd.

 

Belgium:

  • European Technical Trading BV;
  • Hans Maria De Geetere; and
  • Knokke-Heist Support Management Corporation.

 

China:

  • Planet Technology.

 

Cyprus:

  • Alexander Nikolayevich Vadyunin;
  • Eriner Limited;
  • OOO Aviation Service Int’l; and
  • The Mother Ark.

 

Germany:

  • FTL GmBH.

 

Kazakhstan:

  • Elem Group, LLC.

 

The Netherlands:

  • Hasa Nederland B.V.

 

Russia:

  • Aircompany North-West LLC;
  • Alexander Nikolayevich Vadyunin;
  • AO Geomir;
  • AO SET-1;
  • Argussoft Company LLC;
  • AST Components;
  • ATB Electronica LLC;
  • Digicom, LTD.;
  • Dolphin Alabuga LLC;
  • Elektrokom VPK;
  • Inelso LLC;
  • Intekh LLC;
  • JSC Yue Complex Service Solutions;
  • North-West Technics LLC;
  • OOO Alabuga-Volokno;
  • OOO Albatross;
  • OOO Alb.Aero;
  • OOO Assistagro;
  • OOO Aviation Service Int’l;
  • OOO Druzhba;
  • OOO Geomiragro;
  • OOO SMU5;
  • OOO Ural-Trast;
  • PF RIELTA LLC;
  • Prius Electronics LLC;
  • PT Air;
  • RosAero JSC; and
  • YE-International AO.

 

United Arab Emirates:

  • RosAero FZC.

 

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3390-press-release-12-5-entity-list-package-hans-de-geetere/file and https://public-inspection.federalregister.gov/2023-26935.pdf

 

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December 7, 2023: 88 Fed. Reg. 85209:  The Bureau of Industry and Security (BIS) renewed the temporary denial order for Belavia Belarusian Airlines of Belarus for one year until December 7, 2024 for its continued use of ECCN 9A991 aircraft.

 

https://www.federalregister.gov/documents/2023/12/07/2023-26896/belavia-belarusian-airlines-4a-nemiga-str-minsk-belarus-220004-order-renewing-temporary-denial-of

 

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December 14, 2023: 88 Fed. Reg. 86623: The Bureau of Industry and Security (BIS) renewed the temporary denial order for Nordwind Airlines of Russia for one year until December 14, 2024 for its continued use of ECCN 9A991 aircraft.

https://www.federalregister.gov/documents/2023/12/14/2023-27475/nordwind-airlines-leningradskaya-str-building-25-office-27-28-moscow-region-khimki-city141402-russia

*******

 

December 14, 2023: 88 Fed. Reg. 86626:  The Bureau of Industry and Security (BIS) renewed the temporary denial order for Siberian Airlines d/b/a S7 Airlines of Russia for one year until December 14, 2024 for its continued use of ECCN 9A991 aircraft.

 

https://www.federalregister.gov/documents/2023/12/14/2023-27476/siberian-airlines-dba-s7-airlines-633104-novosibirskaya-obl-g-ob-prospekt-mozzherina-d-10-ofis-201

 

*******

 

December 14, 2023: 88 Fed. Reg. 86628:  The Bureau of Industry and Security (BIS) renewed the temporary denial order for Pobeda Airlines of Russia for one year until December 14, 2024 for its continued use of ECCN 9A991 aircraft.

 

https://www.federalregister.gov/documents/2023/12/14/2023-27474/pobeda-airlines-108811-russian-federation-moscow-p-moskovskiy-kievskoe-shosse-22nd-km-41-moscow

 

*******

 

December 20, 2023: 88 Fed. Reg. 87897: The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding 13 persons to the Unverified List (UVL). The 13 persons are added to the UVL on the basis that BIS was unable to verify their bona fides. All 13 persons are being added under the destination of the People’s Republic of China (China). The 13 persons added to the UVL are:

 

  • Beijing Jin Sheng Bo Yue Technology Co., Ltd.;
  • Beijing Shengbo Xietong Technology Co., Ltd.;
  • Fulian Precision Electronics (Tianjin) Co., Ltd.;
  • Guangzhou Xinwei Transportation Co., Ltd.;
  • Guangzhou Xinyun Intelligent Technology Co., Ltd.;
  • Nanning Fulian Fu Gui Precision Industrial Co., Ltd.;
  • Ningbo MOOF Trading Co., Ltd.;
  • Plexus (Xiamen) Co., Ltd.;
  • PNC Systems (Jiangsu) Co., Ltd.;
  • Shenzhen Bozhitongda Technologic Co., Ltd.;
  • Shenzhen Jia Li Chuang Tech Development Co., Ltd.;
  • Shenzhen Jingelang Co., Ltd.; and
  • Xi’An Yierda Co., Ltd.

 

https://www.federalregister.gov/documents/2023/12/20/2023-27928/additions-to-the-unverified-list

 

*******

 

Department of the Treasury, Office of Foreign Assets Control (OFAC)

 

December 1, 2023: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Luis Miguel Martinez Morales (Martinez) for his role in corruption in Guatemala wherein he engaged in widespread bribery schemes, including schemes related to government contracts. Martinez is being designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. Martinez was added to OFAC’s SDN List.

 

https://home.treasury.gov/news/press-releases/jy1941 and https://ofac.treasury.gov/recent-actions/20231201_33

 

*******

 

December 1, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on three entities and identified as blocked property three vessels that used Price Cap Coalition services while carrying Russian crude oil above the Coalition-agreed price cap. These sanctions build on Treasury’s previous actions in October and November of this year and represent once again Treasury’s commitment, alongside its Coalition partners, to responsibly reduce oil revenues that the Russian government uses to fund its war against Ukraine.

 

The following entities have been added to OFAC’s SDN List:

 

  • HS Atlantica Limited of Liberia; [RUSSIA-EO14024].
  • Sterling Shipping Incorporated of the United Arab Emirates; and
  • Streymoy Shipping Limited of the United Arab Emirates.

 

The following vessels have been added to OFAC’s SDN List:

 

  • HS Atlantica (5LIP5) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9322839;
  • NS Champion (A8FD9) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9299719; and
  • Viktor Bakaev (D5BN6) Crude Oil Tanker Liberia flag; Vessel Registration Identification IMO 9610810.

 

Russia Related General License 78:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons or vessels described below are authorized through 12:01 a.m. eastern standard time, February 29, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations (RuHSR):

(1) The safe docking and anchoring of any of the blocked vessels listed in paragraph (b) of this general license (“blocked vessels”) in port;

(2) The preservation of the health or safety of the crew of any of the blocked vessels; or

(3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

 

The authorization of this general license applies to the following blocked persons and vessels listed on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List and any entity in which any of the following persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest:

(1) Sterling Shipping Incorporated (registered owner of NS Champion; IMO 9299719);

(2) Streymoy Shipping Limited (registered owner of Viktor Bakaev, IMO 9610810); and

(3) HS Atlantica Limited (registered owner of HS Atlantica, IMO 9322839).

 

This general license does not authorize:

(1) The entry into any new commercial contracts involving the property or interests in property of any blocked persons, including the blocked entities and vessels described above;

(2) The offloading of any cargo onboard any of the blocked vessels, including the offloading of crude oil or petroleum products of Russian Federation origin, except for the offloading of cargo that is ordinarily incident and necessary to address vessel emergencies authorized pursuant to this general license;

(3) Any transactions related to the sale of crude oil or petroleum products of Russian Federation origin;

(4) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions;

(5) Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or

(6) Any transactions otherwise prohibited by the RuHSR, including transactions involving the property or interests in property of any person blocked pursuant to the RuHSR, other than transactions involving the blocked persons or vessels above in this general license, unless separately authorized.

 

https://home.treasury.gov/news/press-releases/jy1940 and https://ofac.treasury.gov/recent-actions/20231201 and https://ofac.treasury.gov/media/932361/download?inline

 

*******

 

December 4, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) targeted several individuals for their role in undermining the peace, security, and stability of Sudan. These designations support diplomatic efforts by the international community to end the conflict and demonstrate the U.S. commitment to achieve a civilian government and a transition to democracy.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Abbas, Mohamed Atta Emoula of Sudan;
  • Al-Hussein, Taha Osman Ahmed of the United Arab Emirates, Sudan and the Democratic Republic of the Congo; and
  • Salah, Salah Abdallah Mohamed of Egypt and the Sudan.

 

 

https://home.treasury.gov/news/press-releases/jy1947 and https://ofac.treasury.gov/recent-actions/20231204

 

*******

 

December 5, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 11 entities and seven individuals pursuant to Executive Order (E.O.) 14038 and one individual pursuant to E.O. 14024. This action increases the pressure on Alyaksandr Lukashenka’s (Lukashenka) authoritarian regime for its brutal suppression of Belarus’s democratic civil society, corrupt financial enrichment of the Lukashenka family, and complicity in Russia’s unjustified war against Ukraine.

 

OFAC also targeted a network led by Belgium-based Hans De Geetere that is involved in procuring electronics with military applications for Russian end-users. The network consists of nine entities and five individuals based in Russia, Belgium, Cyprus, Sweden, Hong Kong, and the Netherlands.

 

Concurrent with OFAC’s action, the U.S. Department of Justice (DOJ) unsealed two separate indictments against Hans De Geetere related to his years-long scheme to unlawfully export sensitive, military-grade technology from the United States to end users located in the People’s Republic of China (PRC) and the Russian Federation. The U.S. Department of Commerce is also concurrently adding Hans De Geetere and five entities to the Bureau of Industry and Security (BIS) Entity List. Additionally, Belgian authorities took action against De Geetere on charges related to his global illicit procurement scheme.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Babarikin, Vadim Aleksandrovich of Belarus;
  • Beun Kimberley Catriona Lucinda, Eeklo of Belgium and The Netherlands;
  • De Geetere, Hans of Belgium;
  • De Geetere, Tom of Belgium;
  • Gaichuk, Nikolai Nikolaevich of Belarus;
  • Kulemekov, Vladimir of Russia;
  • Moroz, Alexander Ivanovich of Belarus;
  • Petrovich, Viktor Evgenievich of Belarus;
  • Shakutsin, Aliaksandr Vasilevich of Belarus;
  • Shautsou, Dzmitry Yauhenievich of Belarus;
  • Shkadarevich, Alexei Petrovich of Belarus;
  • Skvortsov, Sergey of Sweden and Russia; and
  • Topuzidis, Pavel Georgievich of Belarus.

 

The following entities have been added to OFAC’s SDN List:

 

  • Ahetei Limited of Cyprus;
  • Belarusian Production And Trade Concern Of Timber Woodworking And Pulp And Paper Industry of Belarus;
  • Eriner Limited of Cyprus;
  • European Technical Trading of Belgium;
  • European Trading Technology B.V. of The Netherlands;
  • Hasa Nederland B.V., Of The Netherlands and Belgium;
  • JSC Minsk Mechanical Plant Named After S.I. Vavilov Management Company Of Belomo Holding of Belarus;
  • JSC Zenit Belomo of Belarus;
  • Knokke Heist Support Corporation Management of Belgium;
  • Lar Vorto Services Limited of Cyprus;
  • M And S Trading of China;
  • OJSC Horizont Holding Management Company of Belarus;
  • Open Joint Stock Company Alevkurp of Belarus;
  • Open Joint Stock Company Amkodor Management Holding Company of Belarus;
  • Planar Research And Production Holdings For Precision Engineering of Belarus;
  • Republican Production And Trade Unitary Enterprise Management Company Of The Holding Belarusian Cement Company of Belarus;
  • Republican Unitary Enterprise Beltamozhservice of Belarus;
  • Scientific Technical Center Lemt Belomo of Belarus;
  • Tabak Invest LLC of Belarus; and
  • The Mother Ark LTD of Cyprus.

 

Belarus General License 10:

 

All transactions prohibited by the Belarus Sanctions Regulations, 31 CFR part 548 (BSR), that are ordinarily incident and necessary to the wind down of any transaction involving Tabak Invest LLC (“Tabak Invest”), or any entity in which Tabak Invest owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern standard time, February 2, 2024, provided that any payment to a blocked person is made into a blocked account at a U.S. financial institution in accordance with the BSR.

 

This general license does not authorize any transactions otherwise prohibited by the BSR, including transactions involving any person blocked pursuant to the BSR other than the blocked persons described above in this general license, unless separately authorized.

 

https://home.treasury.gov/news/press-releases/jy1949 and https://home.treasury.gov/news/press-releases/jy1948 and https://ofac.treasury.gov/media/932376/download?inline

 

*******

 

December 6, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned 15 Mexican individuals— several of whom are U.S. fugitives—and two Mexico-based companies linked, directly or indirectly, to the Beltrán Leyva Organization (BLO). The BLO continues to be one of the most powerful drug trafficking organizations in the world and is heavily involved in the transportation and distribution of deadly drugs, including fentanyl, to the United States. It has been one of the largest suppliers of cocaine to the U.S. market for over two decades.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Aleman Meza, Oscar of Mexico;
  • Bastidas Erenas, Juan Pablo of Mexico;
  • Beltran Araujo, Amberto of Mexico;
  • Beltran Araujo, Mario German of Mexico;
  • Caro Monge, Jesus Jose Gil of Mexico;
  • Caro Quintero, Jose Gil of Mexico;
  • Estevez Colmenares, Ricardo of Mexico;
  • Estrada Gutierrez, Jose de Jesus of Mexico;
  • Flores Ortiz, Francisco Abraham of Mexico;
  • Franco Figueroa, Ulises of Mexico;
  • Gastelum Iribe, Oscar Manuel of Mexico;
  • Inzunza Noriega, Pedro of Mexico;
  • Leon Rodriguez, Juvenal of Mexico;
  • Lopez Lopez, Servando of Mexico; and
  • Pulido Diaz, Oscar of Mexico.

 

The following entities have been added to OFAC’s SDN List:

 

  • Difaculsa, S.A. DE C.V., of Mexico; and
  • Editorial Mercado Ecuestre, S.A. DE C.V., of Mexico.

 

https://home.treasury.gov/news/press-releases/jy1952 and https://ofac.treasury.gov/recent-actions/20231206

 

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December 7, 2023:  the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 13 individuals and entities responsible for providing tens of millions of dollars’ worth of foreign currency generated from the sale and shipment of Iranian commodities, backed by the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), to the Houthis in Yemen. Through a complex network of exchange houses and companies in multiple jurisdictions, these persons, under the auspices of U.S.-sanctioned Houthi and IRGC-QF financial facilitator Sa’id al-Jamal, serve as an important conduit through which Iranian money reaches the country’s militant partners in Yemen.

 

OFAC in coordination with the United Kingdom also designated two individuals associated with an advanced persistent threat (APT) group that is sponsored by the Russian Federal Security Service (FSB) and has targeted individuals and entities in the United States, United Kingdom, and other allied and partner countries.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Alodhari, Khaled Yahya Rageh of Yemen;
  • Deniz, Fadi of Lebanon, Turkey, United Kingdom, Russia, Saint Kitts and Nevis;
  • Duri, Ahmet of Turkey;
  • Hudroj, Bilal of Lebanon;
  • Korinets, Andrey Stanislavovich of Russia; and
  • Peretyatko, Ruslan Aleksandrovich of Russia.

 

The following entities have been added to OFAC’s SDN List:

 

  • Abu Sumbol General Trading L.L.C of the United Arab Emirates;
  • Davos Exchange And Remittances Company Khaled Al Athari And Partner General Partnership of Yemen;
  • Deniz Capital LLP, of the United Kingdom;
  • Deniz Capital Maritime Inc, of Saint Kitts and Nevis;
  • Hodroj Exchange S.A.R.L of Lebanon;
  • OOO Russtroi-SK of Russia;
  • Pirlant Istanbul Kuyumculuk Ticaret Limited Sirketi of Turkey;
  • Vanessa Group Limited of the United Kingdom; and
  • Vanessa Imex Group Ithalat Ihracat Ve Dis Ticaret Limited Sirketi of Turkey and Lebanon.

 

https://home.treasury.gov/news/press-releases/jy1961 and https://home.treasury.gov/news/press-releases/jy1962 and https://ofac.treasury.gov/recent-actions/20231207

 

*******

 

December 8, 2023: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 20 individuals for their connection to human rights abuse in nine countries. An additional two individuals were sanctioned under the Department of State’s counterterrorism authority. Furthermore, the Department of State likewise designated individuals in Russia, Indonesia, and the People’s Republic of China (PRC) for visa restrictions pursuant to Section 7031(c) of the Annual Appropriations Act. These actions are taken in concert with measures imposed by partners in the United Kingdom and Canada, which have similarly utilized economic measures to deter human rights abuse globally.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Andre, Johnson of Haiti;
  • Ardestani, Mohammad Mahdi Khanpour of Iran;
  • Biel, Gordon Koang of South Sudan;
  • Bozize, Jean-Francis of the Central African Republic;
  • Byabashaija, Johnson of Uganda;
  • Destina, Renel of Haiti;
  • Farahani, Majid Dastjani of Iran and Venezuela;
  • Gao, Qi of China;
  • Hanafi, Khalid of Afghanistan;
  • Hassan Aliyani, Ahmed Mahamud of the Democratic Republic of the Congo and Tanzania;
  • Hoth, Gatluak Nyang of South Sudan;
  • Hu, Lianhe of China;
  • Innocent, Vitel’homme of Haiti;
  • Joseph, Wilson of Haiti;
  • Koijee, Jefferson of Liberia;
  • Mahmood, Fariduddin of Afghanistan;
  • Ngoma, Willy of the Democratic Republic of the Congo;
  • Nkalubo, Mohamed Ali of the Democratic Republic of the Congo and Uganda;
  • Rukunda, Michel of the Democratic Republic of the Congo;
  • Salleh Adoum Kette, Mahamat of the Central African Republic;
  • Wajang, Joseph Mantiel of Sudan and South Sudan; and
  • Yakutumba, William Amuri of the Democratic Republic of the Congo.

 

Global Magnitsky-related Frequently Asked Question 1145:

 

Question 1145: What if a governing institution in Afghanistan is led by an individual who has been blocked pursuant to the Global Magnitsky Sanctions Regulations?

 

Answer: Generally, the designation of an individual with a leadership role in a governing institution does not itself block the governing institution.  Accordingly, engaging in a routine interaction with a governing institution in which a blocked individual is an official, but that does not directly or indirectly involve the blocked individual in question, is not prohibited.  This applies to any designated individual in Afghanistan who has a leadership role in a governing institution in Afghanistan, including any individual blocked pursuant to the Global Magnitsky Sanctions Regulations (GMSR).  For example, making a customs payment to a governing institution in Afghanistan led by a blocked individual would not be prohibited by the GMSR.  However, engaging directly or indirectly with that blocked individual, such as receiving an invoice bearing the blocked individual’s signature for a commercial transaction, would be prohibited by the GMSR unless authorized by OFAC or exempt.

 

In addition, certain humanitarian-related transactions involving individuals blocked pursuant to the GMSR may be authorized by general licenses (GL) in the GMSR related to certain international organizations (IOs), nongovernmental organizations (NGOs), official business of the United States government (USG), or agricultural commodities, medicine, medical devices, replacement parts and components, or software updates for personal, non-commercial use (Ag-Med).  For more information on these GLs, please consult OFAC ‘s Supplemental Guidance for the Provision of Humanitarian Assistance and FAQs 1105, 1106, 1107, and 1108.

 

For information on transactions involving governing institutions in Afghanistan led by an individual or entity designated under the Global Terrorism Sanctions Regulations, the Foreign Terrorist Organizations Sanctions Regulations, or Executive Order 13224, please consult Afghanistan-related GL 20 and FAQ 993.

 

If individuals or entities, including IOs, NGOs, or financial institutions, have questions about engaging in or processing transactions related to these authorizations, they can contact the OFAC Compliance Hotline via email at OFAC_Feedback@treasury.gov.

 

https://home.treasury.gov/news/press-releases/jy1972 and https://ofac.treasury.gov/recent-actions/20231208 and https://ofac.treasury.gov/faqs/1145

 

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December 11, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two former Afghan government officials — Mir Rahman Rahmani (M. Rahmani) and his son, Ajmal Rahmani (A. Rahmani), collectively known as “the Rahmanis” — for their extensive roles in transnational corruption, as well as 44 associated entities. These individuals and entities are designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. Through their Afghan companies, the Rahmanis perpetrated a complex procurement corruption scheme resulting in the misappropriation of millions of dollars from U.S. Government-funded contracts that supported Afghan security forces.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Rahmani, Ajmal Of Greece, United Arab Emirates, Afghanistan, Hungary, Belgium, Cyprus Saint Kitts and Nevis; and
  • Rahmani, Mir Rahman of Afghanistan, Cyprus, and Saint Kitts and Nevis.

 

The following entities have been added to OFAC’s SDN List:

 

  • Alphaone Pharmaceutical B.V., of The Netherlands;
  • Ascent Holdings Limited of the United Arab Emirates;
  • Buoyant Holdings Limited of Cyprus;
  • C.H. Dream Creators Holdings LTD of Cyprus;
  • Fidelis Logistic And Supply Services of Afghanistan;
  • Lego Investments Eood of Bulgaria;
  • NAI Energy Europe GMBH & CO. KG of Germany;
  • NAI Energy Europe Verwaltungs GMBH of Germany;
  • NAI Europe Energy GMBH & CO. KG of Germany;
  • NAI Logistics B.V. of the United Arab Emirates and The Netherlands;
  • NAI Logistics Limited of Cyprus;
  • NAI Management GMBH of Germany;
  • Ocean Estate Company Limited of the United Arab Emirates;
  • Ocean Estate GMBH, of Austria;
  • Ocean Europe Cy Limited of Cyprus;
  • Ocean Properties GMBH of Austria;
  • Orbit International FZE of the United Arab Emirates;
  • Ozean Baustoffe GMBH & CO. KG of Germany;
  • Ozean Development Real Estate GMBH & CO. KG of Germany;
  • Ozean Group GMBH of Germany;
  • Ozean Horizont Baumaschinen & Bauequipment GMBH & CO. KG of Germany;
  • Ozean Horizont Bauwerke GMBH of Germany;
  • Ozean Horizont Erdarbeiten GMBH & CO. KG of Germany;
  • Ozean Horizont Objektplanung GMBH & CO. KG of Germany;
  • Ozean Horizont Projektentwicklungs GMBH & CO. KG of Germany;
  • Ozean Horizont Spezialtiefbau GMBH & CO. KG of Germany;
  • Ozean Immobilien Management GMBH & CO. KG of Germany;
  • Ozean Immobilien Projektentwicklung GMBH & CO. KG of Germany;
  • Ozean Immobilien Projektentwicklung Verwaltungs – GMBH of Germany;
  • Ozean Real Estate GMBH & CO. KG of Germany;
  • Pyramaxia Immoprojekt GMBH & CO. KG of Germany;
  • Pyramaxia Limited of Cyprus;
  • Pyramaxia Real Estate Development GMBH & CO. KG of Germany;
  • Pyramaxia Real Estate GMBH & CO. KG of Germany;
  • Rahmani Group International JLT of the United Arab Emirates;
  • RG Group FZE of the United Arab Emirates;
  • RG Holdings LTD of Cyprus;
  • RG Immoprojekt GMBH & CO. KG of Germany;
  • RG Real Estate Development GMBH & CO. KG of Germany;
  • RG Real Estate GMBH & CO. KG of Germany;
  • Riseonic Holdings LTD of Cyprus; Secure Movement Logistics Services of Afghanistan;
  • The Fern Limited of the United Arab Emirates; and
  • ZEM Holdings LTD of Cyprus.

 

https://home.treasury.gov/news/press-releases/jy1973 and https://ofac.treasury.gov/recent-actions/20231211

 

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December 12, 2023: G7 Leaders reaffirmed their support for an independent, democratic Ukraine within its internationally recognized borders. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is implementing the commitments made by G7 Leaders by taking action against third-country actors who materially support Russia’s war, targeting Russian military procurement networks and those who help Russia acquire machine tools, equipment, and key inputs; and further curtailing Russia’s use of the international financial system to further its war in Ukraine. OFAC sanctioned over 150 individuals and entities supplying Russia’s Military Industrial base. Please see the list of sanctioned individuals and entities via the link below.

 

Concurrently, the Department of State is imposing sanctions on over 100 entities and individuals, including those engaged in sanctions evasion in numerous third countries, complicit in furthering Russia’s ability to wage its war against Ukraine and responsible for bolstering Russia’s future energy production and export capacity.

 

Russia Related General License 79:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind-down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. Eastern daylight time, March 11, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR):

(1) Limited Liability Company Kyiv Square;

(2) Highland Gold Mining Limited;

(3) Limited Liability Company Kismet Capital Group; or

(4) Any entity in which one or more of the above persons own, directly or indirectly,  individually or in the aggregate, a 50 percent or greater interest.

 

Russia Related General License 80:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the divestment or transfer, or the facilitation of the divestment or transfer, of debt or equity of Highland Gold Mining Limited (Highland Gold), or any entity in which Highland Gold owns, directly or indirectly, a 50 percent or greater interest, purchased prior to December 12, 2023 (“Covered Debt or Equity”), to a non-U.S. person are authorized through 12:01 a.m. eastern daylight time, March 11, 2024.

 

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to facilitating, clearing, and settling trades of Covered Debt or Equity that were placed prior to 4:00 p.m. Eastern Standard Time, December 12, 2023, are authorized through 12:01 a.m. Eastern Daylight Time, March 11, 2024.

 

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the wind-down of derivative contracts entered into prior to 4:00 p.m. Eastern Standard Time, December 12, 2023, that

  • include a blocked person described in this general license as a counterparty or
  • are linked to Covered Debt or Equity are authorized through 12:01 a.m. Eastern daylight time, March 11, 2024, provided that any payments to a blocked person are made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

 

 

https://home.treasury.gov/news/press-releases/jy1978 and https://ofac.treasury.gov/recent-actions/20231212 and https://ofac.treasury.gov/media/932396/download?inline and https://ofac.treasury.gov/media/932401/download?inline

 

*******

 

December 13, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed a fourth round of sanctions on Hamas since the October 7 terrorist attack on Israel. This action targets key officials who perpetuate Hamas’s violent agenda by representing the group’s interests abroad and managing its finances. OFAC closely coordinated with the United Kingdom to concurrently designate several key Hamas officials.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Al-Din, Haroun Mansour Yaqoub Nasser of Turkey and Palestine;
  • Al-Wardian, Hassan of Palestine;
  • Awadallah, Nizar Mohammed of Palestine;
  • Baraka, Ali Abed Al Rahman of Lebanon;
  • Barhum, Ismail Musa Ahmad of Palestine;
  • Kaya, Mehmet of Turkey;
  • Obeid, Maher Rebhi of Lebanon and Jordan; and
  • Yaghmour, Jihad Muhammad Shaker of Turkey and Israel.

 

https://home.treasury.gov/news/press-releases/jy1981 and https://ofac.treasury.gov/recent-actions/20231213

 

*******

 

December 14, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the United Kingdom are jointly taking action against Iran’s Islamic Revolutionary Guard Corps – Qods Force (IRGC-QF), Hamas, and Palestinian Islamic Jihad (PIJ). The U.K. is taking its first action pursuant to new Iran-related authorities, targeting eight actors, including the head of the IRGC-QF and individuals linked to Iran’s support for Hamas and PIJ. The U.K.’s new sanctions authority has been developed to respond to unprecedented threats from the Iranian regime, including efforts to undermine peace and security across the Middle East and plots to kill individuals on U.K. soil. OFAC is designating an IRGC-QF official involved in support of Hamas.

 

Additionally, OFAC sanctioned the Malas Mañas transnational criminal organization (TCO), a human smuggling and narcotics trafficking organization based in Sonora, Mexico, along with two individuals in its support network.

 

Human smuggling organizations like Malas Mañas value profit over human life, endanger the lives of migrants, and undermine the U.S. asylum system.  In addition to human smuggling, Malas Mañas traffics deadly drugs, including illicit fentanyl and methamphetamine, thereby threatening the national security of the United States and Mexico.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Roman Flores, Luis Eduardo of Mexico;
  • Salazar Ballesteros, Joel Alexandro of Mexico; and
  • Zaree, Majid of Iran.

 

The following entity has been added to OFAC’s SDN List:

 

  • Malas Manas of Mexico.

 

https://home.treasury.gov/news/press-releases/jy1987 and https://ofac.treasury.gov/recent-actions/20231214

 

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December 19, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on 10 entities and four individuals based in Iran, Malaysia, Hong Kong, and Indonesia supporting Iran’s unmanned aerial vehicle (UAV) production. This network, led by Iran-based Hossein Hatefi Ardakani, has facilitated the procurement of U.S.- and foreign-origin components worth hundreds of thousands of dollars for the Islamic Revolutionary Guard Corps Aerospace Force Self Sufficiency Jihad Organization (IRGC ASF SSJO) and its UAV program.

 

The following individuals have been added to OFAC’s SDN List:

 

  • Ardakani, Gholamreza Ebrahimzadeh of Iran;
  • Ardakani, Hossein Hatefi of Iran;
  • Dewanto, Agung Surya of Indonesia; and
  • Mohammadabadi, Mehdi Dehghani of Iran.

 

The following entities have been added to OFAC’s SDN List:

 

  • Arta Wave SDN BHD of Malaysia;
  • Basamad Electronic Pouya Engineering Limited Liability Company of Iran;
  • Dirac Technology HK Limited of China;
  • Integrated Scientific Microwave Technology SDN BHD of Malaysia;
  • Kavan Electronics Behrad Limited Liability Company of Iran;
  • Nava Hobbies SDN BHD of Malaysia;
  • Saman Industrial Group of Iran;
  • Skyline Advanced Tecnologies SDN BHD of Malaysia;
  • Surabaya Hobby CV of Indonesia; and
  • Teyf Tadbir Arya Engineering Company of Iran.

 

https://home.treasury.gov/news/press-releases/jy2004 and https://ofac.treasury.gov/recent-actions/20231219

 

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December 20, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) continued to tighten enforcement of the price cap on Russian oil by building on previous actions targeting shipowners and vessels implicated in transporting Russian crude oil above the cap. In line with actions previously taken by partners in the Price Cap Coalition, OFAC designated a Government of Russia-owned ship manager as well as several obscure oil traders who have emerged as frequent participants in the seaborne transportation of Russian-origin oil following the imposition of the price cap.

 

OFAC has also, in coordination with the Price Cap Coalition, updated the Guidance on Implementation of the Price Cap Policy for Crude Oil and Petroleum Products of Russian Federation Origin. These actions are in line with commitments made by Leaders of the Group of Seven (G7) on December 6, 2023 to tighten compliance and enforcement of the price cap policy on Russian oil, including by imposing sanctions on those engaged in deceptive practices and by updating compliance rules and regulations as necessary.

 

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has published Updated Guidance on the Implementation of the Price Cap Policy for Crude Oil and Petroleum Products of Russian Federation Origin. Additionally, OFAC is issuing Russia-related General License 81, “Authorizing Limited Safety and Environmental Transactions Involving Certain Persons or Vessels Blocked on December 20, 2023,” and Russia-related General License 82, “Authorizing the Wind Down of Transactions Involving SUN Ship Management D Ltd.”

 

Russia Related General License 81:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons described below are authorized through 12:01 a.m. eastern daylight time, March 19, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations (RuHSR):

(1) The safe docking and anchoring in the port of any vessels in which any person or entity listed below in this general license has a property interest (“blocked vessels”);

(2) The preservation of the health or safety of the crew of any of the blocked vessels; or

(3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

 

The authorization above applies to the following blocked persons listed on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List and any entity in which any of the following persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest:  (1) SUN Ship Management D Ltd;

(2) Covart Energy Limited;

(3) Voliton DMCC; and

(4) Bellatrix Energy Limited.

 

Russia Related General License 82:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind-down of any transaction involving SUN Ship Management D Ltd (SUN Ship), or any entity in which SUN Ship owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, March 19, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

 

Additionally, OFAC has updated its Specially Designated Nationals and Blocked Persons List. The following entities have been added to OFAC’s SDN List:

 

  • Bellatrix Energy Limited of China;
  • Covart Energy Limited of China and Russia;
  • Sun Ship Management D LTD of the United Arab Emirates; and
  • Voliton Dmcc of the United Arab Emirates.

 

The following vessel has been added to OFAC’s SDN List:

 

  • SANAR 15, Vessel Registration Identification IMO 9777670.

 

https://home.treasury.gov/news/press-releases/jy2008 and https://ofac.treasury.gov/media/931036/download?inline and https://ofac.treasury.gov/media/932461/download?inline and https://ofac.treasury.gov/media/932466/download?inline and https://ofac.treasury.gov/recent-actions/20231220

 

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December 22, 2023: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a Determination Pursuant to Section 11(a)(ii) of E.O. 14024, as amended by the E.O. of December 22, 2023, and a Determination Pursuant to Section 1(a)(i)(B) of E.O. 14068, as amended by the E.O of December 22, 2023. Additionally, OFAC amended the Determination issued on June 28, 2022, “Prohibitions Related to Imports of Gold of Russian Federation Origin.”

OFAC is also issued Russia-related General License 83, “Authorizing Certain Transactions Related to Imports of Certain Categories of Fish, Seafood, and Preparations Thereof Prohibited by Executive Order 14068,” General License 84, “Authorizing Transactions Related to Closing a Correspondent or Payable-Through Account,” and General License 85, “Authorizing the Wind Down of Transactions and the Closure of Accounts Involving Expobank Joint Stock Company.”

 

Russia Related General License 83:

 

All transactions prohibited by the determination of December 22, 2023 made pursuant to section 1(a)(i)(B) of Executive Order (E.O.) 14068, as amended by E.O. of December 22, 2023 (“Prohibitions Related to Imports of Certain Categories of Fish, Seafood, and Preparations Thereof”), that are ordinarily incident and necessary to the importation into the United States of seafood derivative products, pursuant to written contracts or written agreements entered into prior to December 22, 2023 are authorized through 12:01 a.m. eastern standard time, February 21, 2024.

 

This general license does not authorize any transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), including transactions involving any person blocked pursuant to the RuHSR, unless separately authorized.

 

Russia Related General License 84:

 

U.S. financial institutions that maintain correspondent accounts or payable-through accounts for any foreign financial institution subject to the correspondent account or payable-through account (CAPTA) prohibition of section 11(b)(i) of Executive Order (E.O.) 14024, as amended, are authorized, during the 10-day period beginning on the effective date of the imposition of the prohibition, to engage in the following transactions:

(1) Processing only those transactions through the account, or permitting the foreign financial institution to execute only those transactions through the account for the purpose of, and necessary for, closing the account; and

(2) Transferring the funds remaining in the correspondent account or the payable-through account to an account of the foreign financial institution located outside of the United States and closing the correspondent account or the payable-through account.

 

This general license does not authorize any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR, unless separately authorized.

 

Russia Related General License 85:

 

All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind-down of any transaction involving Expobank Joint Stock Company (Expobank), or any entity in which Expobank owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, March 21, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

 

All transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to

(i) the closing of an account of a person, wherever located, who is not a blocked person (“the account holder”), held at Expobank, or any financial institution in which Expobank owns, directly or indirectly, a 50 percent or greater interest, and

(ii) the unblocking and lump sum transfer of all remaining funds and other assets in the account to the account holder, including to an account of the account holder held at a non-blocked financial institution, are authorized through 12:01 a.m. Eastern daylight time, March 21, 2024.

 

In addition, OFAC has issued 12 new, Russia-related Frequently Asked Questions (FAQs 1146-1157) and amending several Russia-related Frequently Asked Questions (FAQs 973, 1070, and 1126). See the links below for the new and revised FAQs.

 

Furthermore, OFAC published a Compliance Advisory to provide guidance to foreign financial institutions on the amendments to E.O. 14024, including practical guidance on how to identify sanctions risks and implement corresponding controls.

 

https://ofac.treasury.gov/media/932446/download?inline and https://ofac.treasury.gov/media/932451/download?inline and https://ofac.treasury.gov/media/923986/download?inline and https://ofac.treasury.gov/media/932471/download?inline and https://ofac.treasury.gov/media/932476/download?inline and

https://ofac.treasury.gov/faqs/added/2023-12-22 and

https://ofac.treasury.gov/faqs/updated/2023-12-22 and https://ofac.treasury.gov/media/932436/download?inline

 

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December 28, 2023: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated one individual and three entities responsible for facilitating the flow of Iranian financial assistance to Houthi forces and their destabilizing activities. Among those designated is the head of the Currency Exchangers Association in Sana’a, and three exchange houses in Yemen and Türkiye. These persons have facilitated the transfer of millions of dollars to the Houthis at the direction of U.S.-designated Sa’id al-Jamal, who is affiliated with Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).

 

The following individual have been added to OFAC’s SDN List:

 

  • Al-Hadha, Nabil Ali Ahmed of Yemen.

 

The following entities have been added to OFAC’s SDN List:

 

  • Al Aman Kargo Ithalat Ihracat Ve Nakliyat Limited Sirketi of Turkey;
  • Al Rawda Exchange And Money Transfers Company of Yemen; and
  • Nabco Money Exchange And Remittance Co. of Yemen.

 

https://home.treasury.gov/news/press-releases/jy2014 and https://ofac.treasury.gov/recent-actions/20231228

 

 

DECEMBER 2023 EXPORT CONTROL REGULATIONS UPDATES Read More »

NOVEMBER 2023 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through November 30, 2023.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and persons denied export privileges by the United States Government.

REGULATORY UPDATES

The President

President Biden Signs Executive Order Establishing Artificial Intelligence Policy for the Federal Government 

November 1, 2023: 88 FR 75191: On October 30, 2023, the Biden Administration issued Executive Order (E.O.) 14110 on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. It establishes a government-wide effort to guide responsible artificial intelligence (AI) development and deployment through federal agency leadership, regulation of industry, and engagement with international partners.

The E.O. directs over 50 federal entities to engage in more than 100 specific actions to implement the guidance set forth across eight overarching policy areas.

  • Safety and security. The E.O. promotes the development and implementation of repeatable processes and mechanisms to understand and mitigate risks related to AI adoption, including with respect to biosecurity, cybersecurity, national security, and critical infrastructure.
  • Innovation and competition. The E.O. compels actions to attract AI talent to the United States, understand novel intellectual property (IP) questions, protect inventors and creators, and promote AI innovation, including at startups and small businesses.
  • Worker support. The E.O. states that AI adoption may be disruptive to the workforce and directs agencies to research and develop potential mitigations against such disruptions.
  • Consideration of AI bias and civil rights. The E.O. states that AI models may perpetuate biases and their implementation may lead to civil rights violations. The E.O. includes a section on equity and civil rights considerations for use of AI in the criminal justice system and the administration of federal government programs and benefits.
  • Consumer protection. The E.O. instructs agencies to enforce existing, technology-agnostic authorities in an effort to minimize harm to consumers, and to identify needed authorities related to AI.
  • The E.O. calls for the evaluation and mitigation of privacy risks—potentially exacerbated by AI— associated with the collection, use, and retention of user data.
  • Federal use of AI. The E.O. requires the Office of Management and Budget (OMB) to establish an interagency council to coordinate AI use by federal agencies and develop guidance on AI governance and risk management activities for agencies. It acknowledges the ubiquity of generative AI (GenAI) tools, and directs agencies to move toward adoption with safeguards in place. The E.O. also calls for additional agency hiring and training activities to increase the AI workforce capacity across the federal government.
  • International leadership. The E.O. declares that the United States should be a global leader in AI development and adoption by engaging with international allies and partners, leading efforts to develop common AI regulatory and accountability principles and advancing responsible global technical standards for AI.

https://www.federalregister.gov/d/2023-24283

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White House Announces Continuation of National Emergency with Respect to Iran

November 7, 2023: On November 14, 1979, by Executive Order 12170, the President declared a national emergency with respect to Iran pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and took related steps to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the situation in Iran.

U.S. relations with Iran have not yet normalized, and the process of implementing the agreements with Iran, dated January 19, 1981, is ongoing.  For this reason, the national emergency declared on November 14, 1979, and the measures adopted on that date to deal with that emergency, must continue in effect beyond November 14, 2023.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), President Biden authorized the continuation for 1 year the national emergency with respect to Iran declared in Executive Order 12170.

The emergency declared by Executive Order 12170 is distinct from the emergency declared in Executive Order 12957 on March 15, 1995.  This renewal, therefore, is distinct from the emergency renewal of March 10, 2023.

https://www.whitehouse.gov/briefing-room/presidential-actions/2023/11/07/notice-on-the-continuation-of-the-national-emergency-with-respect-to-iran-6/

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Department of State, Directorate of Defense Trade Controls (DDTC)

DDTC Name and Address Changes Posted To Website

November 13 through 29, 2023: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at:

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

  • Change in name from Callenberg Technology AB to Trident BMC AB due to acquisition.
  • Change in name and address from General Electric International, Inc. (Israel), 40 Tuval Street, 13th Floor, Ramat Gan 5252247, Israel to GE Aviation Systems North America LLC, 21 Leonardo Da Vinci St., Tel Aviv 6473319, Israel, and all locations in Israel.
  • Change in name from L-3 Communications India Private Ltd. to L3Harris Maritime & Aero Private Ltd. due to corporate reorganization.
  • Change in address for Airbus Military, S.L. from Avenida Aragón 404, 28022 Madrid, Spain to Calle Aviocar 2, 28906 Getafe, Madrid, Spain.
  • Change in name from Teledyne FLIR Detection, Inc. to Teledyne FLIR Defense, Inc. due to corporate reorganization.
  • Change in name from Babcock Defence and Security Holdings LLP to Babcock Land Defence Limited due to corporate restructuring.
  • Change in address from Warwick House, Farnborough Aerospace Centre, Farnborough, Hampshire, GU14 6YU, United Kingdom to Victory Point, Lyon Way, Frimley, Camberley, Surrey, GU16 7EX, United Kingdom for the following entities due to corporate restructuring:
    • BAE Systems (Defence Systems) Limited
    • BAE Systems (Global Combat Munitions) Limited
    • BAE Systems (International) Limited
    • BAE Systems (Military Air) Overseas Limited
    • BAE Systems (Oman) Limited
    • BAE Systems (Operations) Limited
    • BAE Systems Display Technologies Limited
    • BAE Systems Electronic Systems (Overseas) Limited
    • BAE Systems Global Combat Systems Limited
    • BAE Systems (Global Combat Munitions) Limited
    • BAE Systems Hawk (Synthetic Training) Limited
    • BAE Systems Integrated System Technologies
    • BAE Systems (Marine) Limited
    • BAE Systems Surface Ships Limited
    • BAE Systems Integrated System Technologies (Overseas) Limited
    • BAE Systems Project Services Limited
    • BAE Systems Surface Ships International Limited
    • BAE Systems Global Combat Systems Munitions Limited
    • BAE Systems (Defence Systems) Limited
    • BAE Systems Services Limited

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Department of Defense

DSCA Notifies Congress of Potential FMS Sale To Iraq

November 2, 2023: The State Department made a determination approving a possible Foreign Military Sale to the Government of Iraq of Bell Helicopter Contracted Logistics Support (CLS) and related equipment for an estimated cost of $300 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of the possible sale, which will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner. Further, the proposed sale will improve the Republic of Iraq’s capability to meet current and future threats by enhancing the strength of its homeland defense. The Republic of Iraq will have no difficulty absorbing these services into its armed forces.

https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%2023-63%20Iraq%20CN.pdf

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DSCA Notifies Congress of Potential FMS Sale To Romania

November 9, 2023: The State Department made a determination approving a possible Foreign Military Sale to the Government of Romania of M1A2 Abrams Main Battle Tanks and related equipment for an estimated cost of $2.53 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale, which will support the foreign policy and national security objectives of the United States by helping to improve the security of a NATO Ally which is an important force for political and economic stability in Europe. Further, the proposed sale will improve Romania’s capability to meet current and future threats by providing a credible force that is capable of deterring adversaries and participating in NATO operations. Romania will have no difficulty absorbing this equipment into its armed forces.

https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%20Romania%2023-71%20CN.pdf

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DSCA Notifies Congress of Potential FMS Sale To South Korea

November 14, 2023: The State Department made a determination approving a possible Foreign Military Sale to the Republic of Korea of Standard Missile 6 Block I (SM-6 Blk I) and related equipment for an estimated cost of $650 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale, which will support the foreign policy goals and national security objectives of the United States by improving the security of a major ally that is a force for political stability and economic progress in the Indo-Pacific region. Further, the proposed sale will improve the Republic of Korea’s capability to meet current and future threats while further enhancing interoperability with the United States and other allies. The Republic of Korea will have no difficulty absorbing these articles into its armed forces.

https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%20Korea%2023-78%20CN.pdf

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DSCA Notifies Congress of Potential FMS Sale To South Korea

November 15, 2023: The State Department made a determination approving a possible Foreign Military Sale to the Republic of Korea of AIM-9X Block II and Block II+ (Plus) Sidewinder Missiles and related equipment for an estimated cost of $52.1 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale, which will support the foreign policy goals and national security objectives of the United States by improving the security of a major ally that is a force for political stability and economic progress in the Indo-Pacific region. Further, the proposed sale will improve the Republic of Korea’s capability to meet current and future threats while further enhancing interoperability with the United States and other allies. Korea will have no difficulty absorbing these articles into its armed forces.

https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%20Korea%2023-76%20CN.pdf

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DSCA Notifies Congress of Potential FMS Sale To Japan

November 17, 2023:  The State Department made a determination approving a possible Foreign Military Sale to the Government of Japan of Tomahawk Weapon System and related equipment for an estimated cost of $2.35 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale, which will support the foreign policy goals and national security objectives of the United States by improving the security of a major ally that is a force for political stability and economic progress in the Indo-Pacific region. Further, the proposed sale will improve Japan’s capability to meet current and future threats by providing a long range, conventional surface-to-surface missile with significant standoff range that can neutralize growing threats. Japan will have no difficulty absorbing these articles into its armed forces.

https://www.dsca.mil/sites/default/files/mas/Press%20Release%20-%20Japan%2023-69%20CN.pdf

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Department of Commerce – Bureau of Industry and Security (BIS)

FinCEN and the U.S. Department of Commerce’s Bureau of Industry and Security Announce New Reporting Key Term and Highlight Red Flags Relating to Global Evasion of U.S. Export Controls

November 6, 2023: the Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (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.

The joint notice emphasizes the importance of financial institutions applying a risk-based approach to trade transactions and remaining vigilant against efforts by individuals or entities seeking to evade export controls, globally. This joint notice highlights global red flag indicators of export control evasion, with a focus on advanced and critical technologies, that also can be applicable to due diligence efforts of exporters in addition to financial institutions.

BIS leverages SARs to investigate violations of U.S. export control regulations. Investigations involving advanced technologies (e.g., advanced semiconductors, quantum, hypersonics) sought by nation state adversaries to support military modernization efforts designed to overcome U.S. military superiority, or mass surveillance programs that enable human rights abuses are being prioritized and worked through the interagency Disruptive Technology Strike Force, co-led by BIS and the Department of Justice.

The joint notice is part of the ongoing efforts by BIS and the U.S. Department of the Treasury to strengthen export controls and prevent global evasion of U.S. export controls. By working together and leveraging their respective expertise, BIS and FinCEN aim to disrupt illicit acquisition activities and enhance the overall security and integrity of the international trade and financial systems.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3380-2023-11-06-bis-release-export-enforcement-and-fincen-joint-alert-3/file

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LATEST FINES, PENALTIES AND SANCTIONS

This section of our newsletter provides information on the latest sanctions, fines and penalties for export violations or matters of non-compliance with the ITAR or EAR issued by the US government enforcement agencies. It is provided as a service to exporters and associates of FD Associates to remind them of the importance of extreme due diligence in all international trade and export compliance matters, particularly those involving exports subject to the ITAR or the EAR. Don’t let this happen to you or your company! Call us with questions or concerns at 703-847-5801 or email info@fdassociates.net.

Fines and Penalties

November 1, 2023: Four individuals were arrested, and an indictment and criminal complaint were unsealed in the Eastern District of New York regarding two separate conspiracies to unlawfully export controlled, dual-use technologies to Russia following Russia’s full-scale invasion of Ukraine.

A Brooklyn, New York, resident and two Canadian nationals were also arrested in connection with a sophisticated global procurement scheme in which the defendants used two corporate entities registered in Brooklyn to unlawfully source and purchase millions of dollars’ worth of dual-use electronics on behalf of end-users in Russia, including companies affiliated with the Russian military. Some of the electronic components and integrated circuits shipped by the defendants are the same make, model, and part number that have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.

Separately, a Brooklyn resident was arrested, and a four-count indictment was unsealed alleging an illegal exports scheme to procure dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.

According to court documents, Nikolay Goltsev, 37, of Montreal, Canada; Salimdzhon Nasriddinov, 52, of Brooklyn; and Kristina Puzyreva, 32, of Montreal, Canada have been charged in a sanctions evasion and export control scheme, in which millions of dollars’ worth of semiconductors, integrated circuits and other dual-use electronic components were unlawfully exported to Russia through two Brooklyn front companies.

In a four-count indictment unsealed in the Eastern District of New York, Nikita Arkhipov, 39, and Artem Oloviannikov, 37, both of St. Petersburg, Russia; and Nikolay Grigorev, 36, of Brooklyn; are charged with conspiracy and other offenses related to an export control scheme to benefit companies affiliated with the Russian military, including SMT-iLogic, a sanctioned Russian entity that has been identified as part of the supply chain for producing Russian military drones used in Russia’s war against Ukraine.

These actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.

https://www.justice.gov/opa/pr/four-arrested-and-multiple-russian-nationals-charged-connection-two-schemes-evade-sanctions

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November 3, 2023: The Department of Commerce’s Bureau of Industry and Security (BIS) announced the imposition of a civil penalty of $44,750 against Forta LLC (Forta), a manufacturer of synthetic reinforcement fibers, located in Grove City, Pennsylvania, to resolve three violations of the antiboycott provisions of the Export Administration Regulations (EAR, 15 C.F.R. parts 730-774) (antiboycott regulations), as alleged in BIS’s Proposed Charging Letter (PCL). Forta voluntarily disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took remedial measures after discovering the conduct at issue, all of which resulted in a significant reduction in penalty.

As part of the settlement with BIS, Forta admitted to the conduct set forth in the PCL, which alleged violations involving the furnishing of information about business relationships with boycotted countries or blacklisted persons and the failure to report the receipt of a request to engage in a restrictive trade practice or foreign boycott against a country friendly to the United States. Specifically, Forta participated in a trade show in Abu Dhabi in 2019. In connection with the shipment of products and items for display at the trade show, the company furnished to its freight forwarder a commercial invoice/packing list certifying that the goods were not of Israeli origin and not manufactured by a company on the “Israeli Boycott Blacklist.” Furnishing such information is prohibited by Section 760.2(d) of the EAR. In addition, the company failed to report to BIS the receipt of the request to furnish this information as required by Section 760.5 of the EAR.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3377-2023-11-03-forta-antiboycott-settlement/file

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November 3, 2023: Pursuant to Section 766.24 of the Export Administration Regulations, 15 CFR Parts 730–774 (2021) (“EAR” or “the Regulations”), the Commerce Department’s Industry and Security Bureau  granted the request of the Office of Export Enforcement (“OEE”) to renew the temporary denial order issued in this matter on May 5, 2023. The Bureau has found that renewal of this order, as modified, is necessary in the public interest to prevent an imminent violation of the Regulations and that renewal for an extended period is appropriate because Mahan Airways has engaged in a pattern of repeated, ongoing and/or continuous apparent violations of the EAR.

  • Mahan Airways of Iran
  • Pejman Mahmood Kosarayanifard, a/k/a Kosarian Fard of the United Arab Emirates
  • Mahmoud Amini of the United Arab Emirates
  • Kerman Aviation, a/k/a GIE Kerman Aviation of France
  • Sirjanco Trading LLC of the United Arab Emirates
  • Mahan Air General Trading LLC of the United Arab Emirates
  • Mehdi Bahrami of Turkey
  • Al Naser Airlines, a/k/a al-Naser Airlines, a/k/a Al Naser Wings Airline, a/k/a Alnaser Airlines and, Air Freight Ltd of the United Arab Emirates
  • Ali Abdullah Alhay, a/k/a Ali Alhay, a/k/a Ali Abdullah Ahmed Alhay of Saudi Arabia
  • Bahar Safwa General Trading of the United Arab Emirates
  • Sky Blue Bird Group, a/k/a Sky Blue Bird Aviation, a/k/a Sky Blue Bird Ltd., a/k/a Sky Blue Bird FZC of the United Arab Emirates
  • Issam Shammout, a/k/a Muhammad Isam Muhammad, Anwar Nur Shammout, a/k/a Issam Anwar of Turkey

https://www.federalregister.gov/d/2023-24310

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November 6, 2023: Swift Prepaid Solutions, Inc. d/b/a daVinci Payments (daVinci), a financial services and payments firm based in Buffalo Grove, Illinois, has agreed to remit $206,213 to settle its potential civil liability for 12,391 apparent violations of OFAC sanctions on Crimea, Iran, Syria, and Cuba.

Between November 15, 2017 and July 27, 2022, daVinci, which manages prepaid reward card programs, enabled reward cards to be redeemed from persons apparently resident in sanctioned jurisdictions. The settlement amount reflects OFAC’s determination that daVinci’s conduct was non-egregious and was voluntarily self-disclosed.

Between March 2020 and February 2022, in the course of a compliance review and subsequent investigation, daVinci discovered that on 12,378 occasions it had redeemed prepaid cards for users with Internet Protocol (IP) addresses associated with Iran, Syria, Cuba, and Crimea. After daVinci began preventing access to its platform from IP addresses associated with these sanctioned jurisdictions, the company further discovered it had redeemed prepaid cards for 13 card recipients who had used email addresses with suffixes (sometimes called top-level domains) associated with sanctioned jurisdictions (e.g., Syria is .sy, Iran is .ir) during the redemption process and who were apparently resident therein. Over the course of the relevant time period, this absence of comprehensive geolocation controls led daVinci to process 12,391 redemptions totaling $549,134.89 for cardholders apparently located in sanctioned jurisdictions, resulting in apparent violations of the Cuban Assets Control Regulations, 31 C.F.R. § 515.201; the Iranian Transactions and Sanctions Regulations, 31 C.F.R. 2 § 560.204; the Ukraine-/Russia-Related Sanctions Regulations, 31 C.F.R. § 589.287; and the Syrian Sanctions Regulations, 31 C.F.R. § 542.207 (the “Apparent Violations”).

This enforcement action underscores the importance of obtaining and using all available information to verify a customer’s identity or residency, including by using location-related data, such as IP address and top-level domains, for sanctions compliance purposes. As appropriate, firms providing services through online platforms should integrate such information into a risk-based sanctions compliance program to prevent the provision of services to persons in sanctioned jurisdictions. This case further demonstrates the potential shortcomings of controls that rely on customer-provided information, rather than a holistic information-gathering system that can mitigate evasion or misrepresentation. The action further highlights the value of conducting proactive, self-initiated reviews to identify compliance gaps, disclose any potential violations to OFAC, and taking steps to remediate deficiencies, including by instituting periodic independent testing to ensure adequate controls.

https://ofac.treasury.gov/media/932276/download?inline

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November 7, 2023: Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the U.S. Commerce Department’s Bureau of Industry and Security (BIS), issued a Temporary Denial Order (TDO) suspending the export privileges of seven persons 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. (SN Electronics), and Suntronic F.Z.E. (Suntronic). These ten parties are alleged to be part of a sophisticated global procurement scheme that unlawfully sourced and purchased millions of dollars in dual-use electronics for end-users in Russia, including companies affiliated with the Russian military.

These actions are related to an indictment in the Eastern District of New York and are the result of coordination by the Disruptive Technology Strike Force co-led by the Departments of Justice and Commerce and Task Force KleptoCapture. Goltsev, Nasriddinov, Puzyreva, Zenchenko, Vetoshkina, Chernikov, and Bochkarev were indicted in the Eastern District of New York on multiple charges, including conspiracy to violate the Export Control Reform Act. Goltsev, Nasriddinov and Puzyreva were previously arrested on October 31, 2023, pursuant to a criminal complaint. The actions by the Department of Commerce build on the indictment by blocking SH Brothers, SN Electronics, and Suntronic, along with the other parties to the TDO, from access to U.S. origin items and technologies.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3382-2023-11-07-bis-press-release-sh-brothers-tdo/file

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November 14, 2023: Pursuant to section 766.24 of the Export Administration Regulations (the “Regulations” or “EAR”), the Bureau of Industry and Security (“BIS”), U.S. Department of Commerce, through its Office of Export Enforcement (“OEE”), has requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of:

  • Nikolay Goltsev, a/k/a Nick Stevens, a/k/a Gio Ross of Quebec, Canada.
  • Salimdzhon Nasriddinov of New York, USA
  • Kristina Puzyreva of Quebec, Canada
  • Vladimir Bochkarev of Russia
  • Pavel Chernikov of Russia
  • Yekaterina Vetoshkina of Russia
  • Oleg Zenchenko of Russia
  • SH Brothers Group, Inc. of New York, USA
  • SN Electronics, Inc. of New York, USA
  • Suntronic FZE of the United Arab Emirates

https://www.federalregister.gov/d/2023-25005

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November 21, 2023: The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and IRS Criminal Investigation (CI), has taken unprecedented action to hold Binance Holdings Ltd. and its affiliates (collectively, Binance) accountable for violations of the U.S. anti-money laundering (AML) and sanctions laws that protect American national security and the integrity of the international financial system. Binance is the world’s largest virtual currency exchange, responsible for an estimated 60% of centralized virtual currency spot trading.

Binance settled with FinCEN and OFAC for violations of the Bank Secrecy Act (BSA) and apparent violations of multiple sanctions programs. The violations include failure to implement programs to prevent and report suspicious transactions with terrorists — including Hamas’ Al-Qassam Brigades, Palestinian Islamic Jihad (PIJ), Al Qaeda, and the Islamic State of Iraq and Syria (ISIS) — ransomware attackers, money launderers, and other criminals, as well as matching trades between U.S. users and those in sanctioned jurisdictions like Iran, North Korea, Syria, and the Crimea region of Ukraine. By failing to comply with AML and sanctions obligations, Binance enabled a range of illicit actors to transact freely on the platform. This settlements are part of a global agreement simultaneous with Binance’s resolution of related matters with the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC).

FinCEN’s settlement agreement assesses a civil money penalty of $3.4 billion, imposes a five-year monitorship, and requires significant compliance undertakings, including to ensure Binance’s complete exit from the United States. OFAC’s settlement agreement assesses a penalty of $968 million and requires Binance to abide by a series of robust sanctions compliance obligations, including full cooperation with the monitorship overseen by FinCEN. To ensure that Binance fulfils the terms of its settlement — including that it does not offer services to U.S. persons — and to ensure that illicit activity is addressed, Treasury will retain access to books, records, and systems of Binance for a period of five years through a monitor. Failure to live up to these obligations could expose Binance to substantial additional penalties, including a $150 million suspended penalty, which would be collected by FinCEN if Binance fails to comply with the terms of the required compliance undertakings and monitorship.

The monitor will oversee remedial undertakings necessary to address Binance’s failure to comply with its anti-money laundering and sanctions obligations. The monitor will also conduct periodic reviews and report to FinCEN, OFAC, and the CFTC on its findings and recommendations to ensure Binance’s ongoing compliance with the terms of the settlement agreements.

These actions underscore Treasury’s commitment to promoting compliance within the virtual currency industry, including by actively enforcing AML and sanctions laws. Treasury’s authorities to enforce those laws are broad, reaching a wide range of misconduct, and can apply to both U.S. and foreign persons. Wherever located, virtual currency exchanges and financial technology firms should, like any other financial institution, ensure they adopt a managerial commitment to compliance at the very top, and that risk-based programs and controls are integrated effectively into their platforms and technology from “Day One.”

https://home.treasury.gov/news/press-releases/jy1925

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November 22, 2023: On June 23, 2022, in the U.S. District Court for the Southern District of Texas, Samantha Coronado (“Coronado”) was convicted of violating 18 U.S.C. 554(a). Specifically, Coronado was convicted of smuggling 730 rounds of CBC .50 caliber ammunition from the United States to Mexico. As a result of her conviction, the Court sentenced Coronado to 46 months of confinement, three years of supervised release and a $100 assessment.

The Bureau of Industry and Security has decided to deny Coronado’s export privileges under the Regulations for a period of seven years from the date of Coronado’s conviction. The Office of Exporter Services has also decided to revoke any BIS-issued licenses in which Coronado had an interest at the time of her conviction.

From the date of this Order until June 23, 2029, Samantha Coronado, with a last known address of Inmate Number: 83982–509, FMC Carswell, Federal Medical Center, P.O. Box 27137, Fort Worth, TX 76127, and when acting for or on her behalf, her successors, assigns, employees, agents or representatives (“the Denied Person”), may not directly or indirectly participate in any way in any transaction involving any commodity, software or technology (hereinafter collectively referred to as “item”) exported or to be exported from the United States that is subject to the Regulations.

https://www.federalregister.gov/d/2023-25838

Sanctions

U.S. Department of State

November 2, 2023: The Department of State imposed sanctions to further target individuals and entities associated with Russia’s war effort and other malign activities. All targets are being designated pursuant to Executive Order (E.O.) 14024, which authorizes sanctions with respect to specified harmful foreign activities of the Government of the Russian Federation. The Department of State designated a major entity involved in the development, operation, and ownership of Russia’s key Arctic LNG 2 liquified natural gas (LNG) project, as well as the metals and mining sector of the Russian Federation economy, and a network procuring items in support of the production of the KUB-BLA and Lancet suicide drones being used by the Russian military in Ukraine.

  • Limited Liability Company Arctic LNG 2 (LLC Arctic LNG 2)
  • Joint Stock Company Russian Titanium Resources (Rustitan)
  • Anatoliy Nikolaevich Tkachuk
  • Alexey Alexeyevich Novikov
  • Russian Titanium Resources Limited
  • Limited Liability Company Zala Aero
  • A Level Aerosystems Cst
  • Aleksandr Vyacheslavovich Zakharov
  • Svetlana Nikolaevna Zakharova
  • Limited Liability Company Invest Group
  • Maria Aleksandrovna Osetrova
  • Limited Liability Company Scientific And Technical Center Orion
  • Limited Liability Company Doris
  • Lavrentii Aleksandrovich Zakharov
  • Nikita Aleksandrovich Zakharov
  • Limited Liability Company Aeroscan
  • Limited Liability Company Emergency Digital Solutions
  • Limited Liability Company RTK
  • Limited Liability Company Omp
  • Maksim Alekseyevich Kotelnikov
  • Limited Liability Company Hartis DV
  • Dmitriy Alekseyevich Dmitriev
  • Limited Liability Company Id Solution
  • Igor Nikolaevich Ievlev
  • Ooo Mvizion
  • Limited Liability Company Sputnik Electronics
  • Limited Liability Company Technical Center Windeq
  • Limited Liability Company Alfakomponent
  • Limited Liability Company Fotopark
  • Limited Liability Company Bik Inform
  • Limited Liability Company Nanochip
  • Limited Liability Company N Chip Msk
  • Limited Liability Company Sputnik Spetspostavka
  • Limited Liability Company Entep
  • Limited Liability Company Spetstechnotrade
  • Limited Liability Company Orelmetallpolymer
  • Bestop Globle Mfg Limited
  • Limited Liability Company Legion Komplekt (Legion Komplekt)
  • Baltelektron Limited Liability Company
  • Makro Tim Limited Liability Company
  • Dafeng Asia Co LLC
  • Limited Liability Company Advanta Electro
  • Limited Liability Company Comfort Max
  • Neway Technologies Limited
  • LLC Laser Components
  • Limited Liability Company Scientific Production Company Electronic, Optical, And Mechanical Systems
  • Limited Liability Company Stilsoft
  • Limited Liability Company New Technologies
  • Joint Stock Company Npc Spetsneftprodukt
  • Moscow State Technical University Named After N. E. Bauman
  • Limited Liability Company Machine Building Association Pressmash
  • Limited Liability Company Lanmax (Lanmax)
  • Dream Lite Trading LLC
  • Limited Liability Company Mdikam Ek
  • Bliksem Computers & Requisites Trading Company LLC
  • Joint Stock Company Plastmass Plant
  • Gleb Romanovich Trotsenko
  • Limited Liability Company Lex Prime
  • Limited Liability Company Start Aero
  • Limited Liability Company Gleniks Teknolodzhis
  • LLC A Invest
  • Limited Liability Company Infrastructure Corporation Aeon
  • Limited Liability Company Tsrti
  • LLC Bp Inzhiniring
  • LLC Aeon Development
  • Limited Liability Company Ri2
  • Limited Liability Company Yacht Club River Park Nagatino
  • Limited Liability Company Rechnikov Invest
  • Limited Liability Company River Park
  • Limited Liability Company Yup 2
  • Limited Liability Company Ksk Ltd
  • Limited Liability Company Torgrechtrans
  • Limited Liability Company Ahd South Port
  • Limited Liability Company Rassvet
  • Limited Liability Company Flemsted
  • LLC Tsentrtekhkhimmash
  • Qualified Developer Kutuzovskiy 16 Limited Liability Company
  • Limited Liability Company Ahd Kutuzovskiy Towers
  • Elena Igorevna Milskaia
  • Limited Liability Company Kaliningrad Balttrans
  • Limited Liability Company Pozitivinfo
  • Limited Liability Company Prospekt
  • Interregional Public Organization For The Promotion Of Domestic Traditions And Cultural Heritage Veche
  • Salman Soipovich Zakriev
  • Yakub Salmanovich Zakriev
  • Public Legal Company Military Construction Company
  • LLC Abz Belyi Rast
  • Federal Autonomous Institution Roskapstroy
  • Limited Liability Company Roskapstroy Infrastructural Projects
  • Limited Liability Company Roskapstroy Clean Water
  • Limited Liability Company Roskapstroy Novorossiya
  • Aleksey Sergeevich Besprozvannykh
  • Anastasiya Borisovna Bondarenko
  • Viktor Leonidovich Evtukhov
  • Oleg Yurevich Kachanov
  • Dmitriy Aleksandrovich Oguryaev
  • Lev Valentinovich Gershanok
  • Aleksey Mikhaylovich Serko

https://www.state.gov/taking-additional-sweeping-measures-against-russia/

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U.S. Department of Commerce, Bureau of Industry and Security (BIS)

November 6, 2023: 88 FR 76128: The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding 13 entities to the Entity List under the destinations of Russia (12), and Uzbekistan (1). These entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States.

Russia

  • Aeroscan Limited Liability Company;
  • Alfakomponent;
  • BIC-Inform LLC;
  • Hartis DV LLC;
  • ID Solution LLC;
  • OOO OMP;
  • Orelmetallpolimer LLC;
  • Spel LLC;
  • Spetstehnotreyd LLC;
  • STC Orion LLC;
  • Technical Center Windeq LLC
  • ZALA Aero Group.

Uzbekistan

  • Mvizion LLC.

https://www.federalregister.gov/d/2023-24508

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November 14, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an OFAC Compliance Communiqué: Guidance for the Provision of Humanitarian Assistance to the Palestinian People in response to questions from the NGO community and the general public on how to provide humanitarian assistance while complying with OFAC sanctions.

OFAC issued this guidance to clarify that U.S. sanctions do not stand in the way of legitimate humanitarian assistance to the Palestinian people. Donors seeking to support the Palestinian people are encouraged to donate to trusted organizations.

https://ofac.treasury.gov/media/932311/download?inline

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November 17, 2023: 88 FR 80955: The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding four entities under nine entries to the Entity List. These entities are listed under the destinations of Costa Rica (1), Ecuador (1), India (1) Panama (2), Spain (1), Russia (1), and Venezuela (2). These entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States.

The End-User Review Committee (ERC) determined to add Aerofalcon S.L., under the destination of Spain; Novax Group S.A., under the destinations of Costa Rica, Ecuador, Panama, Venezuela, and Russia; and Zero Waste Global SA, under the destinations of Panama and Venezuela, to the Entity List. These entities are added to the Entity List pursuant to § 744.11 of the EAR for engaging in activities contrary to U.S. national security and foreign policy interests. Specifically, these entities were used by their principals to circumvent U.S. sanctions, supplying the representatives of Nicolás Maduro in Venezuela with U.S. origin aircraft parts. This circumvention was conducted by, among other efforts, concealing the true end user and end destination of the exports using misrepresentations and fraudulent documents, including the filing of false Electronic Export Information. These entities will be added with a license requirement for all items subject to the EAR and a license review policy of presumption of denial.

The ERC also determined to add Si2 Microsystems Private Limited, under the destination of India, to the Entity List. This entity is added to the Entity List for providing support to Russia’s military and/or defense industrial base. Specifically, this entity supplied Russian consignees connected to the Russian defense sector with U.S.-origin integrated circuits after March 1, 2023. These integrated circuits are classified under Harmonized Tariff System (HTS)-6 codes 854231, 854232, 854233, and/or 854239. These HTS–6 codes are identified under supplement no. 4 to part 746 (Russian and Belarusian Industry Sector Sanctions Pursuant to § 746.5(a)(1)(ii)). All U.S.-origin items classified under these HTS–6 codes have been controlled for export and reexport and transfer within Russia since September 15, 2022. Such U.S.-origin items require a license under § 746.5(a)(1)(ii) of the EAR when destined to Russia or Belarus. Therefore, the documented shipments by this entity to Russia of such U.S.-origin items are contrary to U.S. national security and foreign policy interests under § 744.11(b) of the EAR. This entity will be added with a license requirement for all items subject to the EAR and a license review policy of denial.

Costa Rica

  • Novax Group S.A.

Ecuador

  • Novax Group S.A.

India

  • Si2 Microsystems Private Limited.

Panama

  • Novax Group S.A.;
  • Zero Waste Global SA.

Spain

  • Aerofalcon S.L.

Russia

  • Novax Group S.A.

Venezuela

  • Novax Group S.A.;
  • Zero Waste Global SA.

https://www.federalregister.gov/d/2023-25684

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Department of the Treasury, Office of Foreign Assets Control (OFAC)

November 2, 2023: OFAC Issued General License 13G: “Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024”.

General License 13G: U.S. persons, or entities owned or controlled, directly or indirectly, by a U.S. person, are authorized to pay taxes, fees, or import duties, and purchase or receive permits, licenses, registrations, certifications, or tax refunds to the extent such transactions are prohibited by Directive 4 under Executive Order 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation, provided such transactions are ordinarily incident and necessary to the day-to-day operations in the Russian Federation of such U.S. persons or entities, through 12:01 a.m. eastern standard time, January 31, 2024.

This General License 13G does not authorize: (1) Any debit to an account on the books of a U.S. financial institution of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation; or (2) Any transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), including transactions involving any person blocked pursuant to the RuHSR, unless separately authorized.

Effective November 2, 2023, General License No. 13F, dated August 10, 2023, is replaced and superseded in its entirety by this General License No. 13G

https://ofac.treasury.gov/media/932271/download?inline

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November 2, 2023: OFAC Issued General License 74: “Authorizing the Wind Down and Rejection of Transactions Involving East-West United Bank”.

General License 74: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of transactions involving East-West United Bank, or any entity in which East-West United Bank owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern standard time, January 31, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

Except as provided in this General License 74, U.S. persons are authorized to reject, rather than block, and return to the originator or originating financial institution or their successor-in-interest, all transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the processing of funds involving East-West United Bank, or any entity in which East-West United Bank owns, directly or indirectly, a 50 percent or greater interest, as an originating, intermediary, or beneficiary financial institution, through 12:01 a.m. eastern standard time, January 31, 2024.

This general license does not authorize: (1) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions; (2) Any debit to an account on the books of a U.S. financial institution of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation; or (3) Any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the blocked persons described in this General License 74, unless separately authorized.

https://ofac.treasury.gov/media/932256/download?inline

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November 2, 2023: OFAC Issued General License 75: “Authorizing Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, Certain Entities Blocked on November 2, 2023”.

General License 75: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the divestment or transfer, or the facilitation of the divestment or transfer, of debt or equity of the following blocked entities (“Covered Debt or Equity”) to a non-U.S. person are authorized through 12:01 a.m. eastern standard time, January 31, 2024: (1) Sistema Public Joint Stock Financial Corporation; (2) East-West United Bank; (3) Limited Liability Company Arctic LNG 2; or (4) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

Except as provided in this general license, all transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to facilitating, clearing, and settling trades of Covered Debt or Equity that were placed prior to 4:00 p.m. eastern daylight time, November 2, 2023 are authorized through 12:01 a.m. eastern standard time, January 31, 2024.

Except as provided in this General License 75 , all transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the wind down of derivative contracts entered into prior to 4:00 p.m. eastern standard time, November 2, 2023 that (i) include a blocked person described in this general license as a counterparty or (ii) are linked to Covered Debt or Equity are authorized through 12:01 a.m. eastern standard time, January 31, 2024, provided that any payments to a blocked person are made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR).

This general license does not authorize: (1) U.S. persons to sell, or to facilitate the sale of, Covered Debt or Equity to, directly or indirectly, any person whose property and interests in property are blocked; or (2) U.S. persons to purchase or invest in, or to facilitate the purchase of or investment in, directly or indirectly, Covered Debt or Equity, other than purchases of or investments in Covered Debt or Equity ordinarily incident and necessary to the divestment or transfer of Covered Debt or Equity as described in thisgeneral license.

This general license does not authorize: (1) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions; (2) Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or (3) Any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the blocked persons described in this general license, unless separately authorized.

https://ofac.treasury.gov/media/932261/download?inline

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November 2, 2023: OFAC Issued General License 76: “Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on November 2, 2023”.

General License 76: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities (collectively, the “Blocked Entities”) are authorized through 12:01 a.m. eastern standard time, January 31, 2024, provided that any payment to a Blocked Entity is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) Sistema Public Joint Stock Financial Corporation; (2) Saint Petersburg Stock Exchange; (3) Limited Liability Company Arctic LNG 2; or (4) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

This general license does not authorize: (1) Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions; (2) Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or (3) Any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the Blocked Entities described in this general license, unless separately authorized.

https://ofac.treasury.gov/media/932266/download?inline

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November 3, 2023: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Ekaterina Zhdanova, a Russian national, for her role in laundering and moving funds using virtual currency on behalf of Russian elites. This action is consistent with the G7’s commitment to crack down on sanctions evasion and closing loopholes that allow the Russian state, its elites, proxies, and oligarchs to leverage virtual currency to offset the impact of international sanctions.

In response to Russia’s illegal invasion of Ukraine in February 2022, OFAC has imposed expansive economic sanctions on the Russian financial system. In March 2022, Ekaterina Zhdanova (Zhdanova) assisted a Russian client in obfuscating their source of wealth in order to transfer over $2.3 million into Western Europe through a fraudulently opened investment account and real estate purchases. Zhdanova’s services result in the provision of access to Western financial markets for Russian individuals that may otherwise be blocked due to U.S. and international prohibitions. This type of illicit financial activity can be used to evade the multilateral U.S. and international sanctions that impose costs on Russia for its unprovoked war and deny the access of sanctioned Russian individuals and entities to the international financial system.

Zhdanova has also provided services to individuals connected with the Russian Ryuk ransomware group. In 2021, Zhdanova laundered over $2.3 million of suspected victim payments on behalf of a Ryuk ransomware affiliate. Ryuk has been used to target thousands of victims worldwide, including in the United States, across a variety of sectors. In October 2022, U.S. law enforcement specifically identified Ryuk as an imminent and increasing cybercrime threat to hospitals and healthcare providers in the United States.

https://home.treasury.gov/news/press-releases/jy1874

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November 7, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 13 Sinaloa Cartel members—several of whom are fugitives—and four Sonora, Mexico-based entities. Responsible for a significant portion of the illicit fentanyl and other deadly drugs trafficked into the United States, the Sinaloa Cartel is one of the most powerful and pervasive drug trafficking organizations in the world. This action was coordinated closely with the Government of Mexico, including La Unidad de Inteligencia Financiera (UIF), Mexico’s Financial Intelligence Unit.

  • Juan Carlos Morgan Huerta
  • Jose Arnoldo Morgan Huerta
  • Jose Luis Morgan Huerta
  • Miguel Angel Morgan Huerta
  • Martin Morgan Huerta
  • Oscar Murillo Morgan
  • David Alonso Chavarin Preciado
  • Jesus Francisco Camacho Porchas
  • Oscar Enrique Moreno Orozco
  • Ramiro Martin Romero Wirichaga
  • Cristian Julian Meneses Ospina
  • Sergio Isaias Hernandez Mazon
  • Alvaro Ramos Acosta
  • Conceptos Gastronomicos de Sonora, S. de R.L. de C.V.
  • Morgan Golden Mining, S.A. de C.V.
  • Comercializadora Villba Stone, S.A. de C.V.
  • Exportadora del Campos Ramos Acosta, S. de R.L. de C.V.

https://home.treasury.gov/news/press-releases/jy1887

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OFAC Issued General License 76A: “Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on November 2, 2023”.

November 8, 2023: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities (collectively, the “Blocked Entities”) are authorized through 12:01 a.m. eastern standard time, January 31, 2024, provided that any payment to a Blocked Entity is made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR): (1) Sistema Public Joint Stock Financial Corporation; (2) Public Joint Stock Company Saint Petersburg Exchange; (3) Limited Liability Company Arctic LNG 2; or (4) Any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest.

This general license does not authorize any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions; Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or any transactions otherwise prohibited by the RuHSR, including transactions involving any person blocked pursuant to the RuHSR other than the Blocked Entities described in this General License 76A, unless separately authorized.

Effective November 8, 2023, General License No. 76, dated November 2, 2023, has been replaced and superseded in its entirety by this General License No. 76A.

https://ofac.treasury.gov/media/932286/download?inline

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November 14, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed its third round of sanctions targeting Hamas-affiliated individuals and entities since the October 7 Hamas terrorist attacks on Israel. The action designates key Hamas officials and the mechanisms by which Iran provides support to Hamas and Palestinian Islamic Jihad (PIJ). The designations are coordinated with action by the U.K. and are aimed at protecting the international financial system from abuse by Hamas and their enablers.

  • Nasser Abu Sharif
  • Muhjat AlQuds Foundation
  • Jamil Yusuf Ahmad ‘Aliyan
  • Akram al-Ajouri
  • Nabil Chouman & Co
  • Nabil Khaled Halil Chouman
  • Khaled Chouman
  • Reda Ali Khamis
  • Mahmoud Khaled Zahhar
  • Mu’ad Ibrahim Muhammed Rashid al-Atili

https://ofac.treasury.gov/recent-actions/20231114_33

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November 14, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued the OFAC Compliance Communiqué: Guidance for the Provision of Humanitarian Assistance to the Palestinian People in response to questions from the NGO community and the general public on how to provide humanitarian assistance while complying with OFAC sanctions.

The U.S. Department of the Treasury remains committed to denying Hamas access to funds following its heinous terrorist attacks against the people of Israel, while also ensuring legitimate humanitarian aid can continue to flow to the Palestinian people in Gaza. The Office of Foreign Assets Control (OFAC) has continued to use sanctions to degrade and disrupt Hamas’s fundraising network and is working with partners and allies around the globe to combat terrorist financing. Groups such as Hamas raise funds through entities that present themselves outwardly as legitimate charities but are in fact fronts for Hamas’s illicit fundraising, often abusing the good will of donors. OFAC will continue using the tools and authorities at its disposal to sever Hamas’s illicit fundraising avenues.

OFAC is issuing this guidance to clarify that U.S. sanctions do not stand in the way of legitimate humanitarian assistance to the Palestinian people. Donors seeking to support the Palestinian people are encouraged to donate to trusted organizations.

https://ofac.treasury.gov/media/932311/download?inline

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November 15, 2023: In support of President Biden’s National Drug Control Strategy and in cooperation with the government of Costa Rica, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating a Costa Rican narcotics trafficker, known not only for the volume of drugs he moves but the violence with which he operates, who has played a significant role in Costa Rica’s recent transformation into a major narcotics transit hub.

According to the State Department’s 2023 International Narcotics Control Strategy Report, Costa Rica has a growing domestic drug consumption problem, as drugs warehoused in Costa Rica increasingly enter the local market and domestic criminal organizations gain influence with increased narcotics revenues. The national homicide rate rose from 11.2 per 100,000 inhabitants in 2021 to 12.6 per 100,000 inhabitants in 2022. The homicide rate in the province of Limon is 35.8 per 100,000 inhabitants. Despite these challenges, Costa Rica works closely with the United States to professionalize police, strengthen citizen security, and increase drug interdictions. However, resource limitations strain Costa Rican law enforcement services and pose significant challenges to future success. This action is the result of close collaboration with the U.S. Drug Enforcement Administration’s Costa Rica Country Office.

  • Gilbert Hernan de Los Angeles Bell Fernandez

https://ofac.treasury.gov/recent-actions/20231115

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OFAC Issued General License 77: “Authorizing Limited Safety and Environmental Transactions Involving Certain Persons or Vessels”.

November 16, 2023: All transactions prohibited by Executive Order (E.O.) 14024 that are ordinarily incident and necessary to one of the following activities involving the blocked persons or vessels described in this general license are authorized through 12:01 a.m. eastern standard time, February 14, 2024, provided that any payment to a blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations (RuHSR): (1) The safe docking and anchoring of any of the blocked vessels listed in this General License 77 (“blocked vessels”) in port; (2) The preservation of the health or safety of the crew of any of the blocked vessels; or (3) Emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels.

The authorizations in this General License 77 apply to the following blocked persons and vessels listed on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List and any entity in which any of the following persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest:

  • Kazan Shipping Incorporated (registered owner of KAZAN, IMO 9258002);
  • Progress Shipping Company Limited (registered owner of LIGOVSKY PROSPECT, IMO 9256066); or
  • Gallion Navigation Incorporated (registered owner of NS CENTURY, IMO 9306782).

This General License 77 does not authorize: The entry into any new commercial contracts involving the property or interests in property of any blocked persons, including the blocked entities and vessels described in this General License 77, except as otherwise authorized; The offloading of any cargo onboard any of the blocked vessels, including the offloading of crude oil or petroleum products of Russian Federation origin, except for the offloading of cargo that is ordinarily incident and necessary to address vessel emergencies authorized pursuant to this General License 77; Any transactions related to the sale of crude oil or petroleum products of Russian Federation origin; Any transactions prohibited by Directive 2 under E.O. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions; Any transactions prohibited by Directive 4 under E.O. 14024, Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation; or Any transactions otherwise prohibited by the RuHSR, including transactions involving the property or interests in property of any person blocked pursuant to the RuHSR, other than transactions involving the blocked persons or vessels in this General License 77, unless separately authorized.

https://ofac.treasury.gov/media/932336/download?inline

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OFAC Issued General License 2: “Authorizing the Wind Down of Transactions Involving Orka Holding AD”.

November 16, 2023: All transactions prohibited by the Western Balkans Stabilization Regulations (WBSR), 31 CFR part 588, that are ordinarily incident and necessary to the wind down of any transaction involving Orka Holding AD, or any entity in which Orka Holding AD owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, March 15, 2024, provided that any payment to a blocked person is made into a blocked account in accordance with the WBSR.

This General License 2 does not authorize any transactions otherwise prohibited by the WBSR, including transactions involving any person blocked pursuant to the WBSR other than the blocked persons described in this general license, unless separately authorized.

https://ofac.treasury.gov/media/932326/download?inline

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OFAC Issued General License 3: “Authorizing Certain Transactions Related to Agricultural Commodities,

Medicine, Medical Devices, Replacement Parts and Components, Software Updates, or Medical Prevention, Diagnosis, or Treatment, or Clinical Trials Involving Orka Holding AD”.

November 16, 2023: All transactions prohibited by the Western Balkans Stabilization Regulations (WBSR), 31 CFR part 588, involving Orka Holding AD, or any entity in which Orka Holding AD owns, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest, related to the following are authorized: (1) the production, manufacturing, sale, transport, or provision of agricultural commodities, agricultural equipment, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices; (2) the prevention, diagnosis, or treatment of any disease or medical condition; or (3) the conducting of clinical trials or other medical research.

For the purposes of this General License 3, agricultural commodities, medicine, and medical devices are defined as follows:

  1. Agricultural commodities. Agricultural commodities are products that fall within the term “agricultural commodity” as defined in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602) and are intended for use as:
    1. Food for humans (including raw, processed, and packaged foods; live animals; vitamins and minerals; food additives or supplements; and bottled drinking water) or animals (including animal feeds);
    2. Seeds for food crops;
    3. Fertilizers or organic fertilizers; or
    4. Reproductive materials (such as live animals, fertilized eggs, embryos, and semen) for the production of food animals.
  2.  Medicine. Medicine is an item that falls within the definition of the term “drug” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
  3. Medical devices. A medical device is an item that falls within the definition of “device” in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

This general license does not authorize any transactions otherwise prohibited by the WBSR, including transactions involving any person blocked pursuant to the WBSR other than the blocked persons described in this General License 3, unless separately authorized.

Note to General License No. 3. Nothing in this general license relieves any person from compliance with any other Federal laws or requirements of other Federal agencies.

https://ofac.treasury.gov/media/932331/download?inline

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November 16, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is imposing sanctions on three entities and identifying as blocked property three vessels that used Price Cap Coalition service providers while carrying Russian crude oil above the Coalition-agreed price cap. This action underscores Treasury’s commitment, alongside its international partners, to responsibly reducing oil revenues that the Russian government can use to bankroll its invasion of Ukraine.

The United States is part of an international coalition of countries (the Price Cap Coalition), including the G7, the European Union, and Australia, that have agreed to prohibit the import of crude oil and petroleum products of Russian Federation origin. These countries, home to many best-in-class financial and professional services, have also agreed to restrict a broad range of services related to the maritime transport of crude oil and petroleum products of Russian Federation origin—unless that oil is bought and sold at or below the specific price caps established by the Coalition or is authorized by a license. This policy is known as the “price cap.” The price cap is intended to maintain a reliable supply of crude oil and petroleum products to the global market while reducing the revenues the Russian Federation earns from oil after its own war of choice against Ukraine inflated global energy prices.

On October 12, 2023, the Price Cap Coalition published a Coalition Advisory for the Maritime Oil Industry and Related Sectors (“the Advisory”). The Advisory, which is directed at both government and private sector actors involved in the maritime trade of crude oil and refined petroleum products, provides recommendations concerning specific best practices and reflects our commitment to promoting responsible practices in the industry, preventing and disrupting sanctioned trade, and enhancing compliance with the price cap.

  • Kazan Shipping Incorporated
  • Progress Shipping Company Limited
  • Gallion Navigation Incorporated

https://home.treasury.gov/news/press-releases/jy1915

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November 16, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated eight individuals and six entities pursuant to Western Balkans-related Executive Order (E.O.) 14033 and Russia-related E.O. 14024.

Bosnia and Herzegovina

  • Savo Cvijetinovic
  • BN Inzinjering
  • Petar Djokic

Montenegro

  • Miodrag “Daka” Davidovic
  • Branislav “Brano” Micunovic

North Macedonia

  • Sergey Samsonenko
  • Irina Samsonenko
  • Ratka Kunoska Kamceva
  • Kamchev Konsalting Skopje DOOEL
  • Orka Fajnans Skopje DOOEL
  • Orka Holding AD
  • Sistina Lajf Kear Sentar Skopje DOOEL
  • Bet City International DOO Skopje

Serbia

  • Nenad Popovic
  • Asset Electro LLC
  • Asset Automation LLC
  • Mosen Esset Menedzhment LLC

Russia

  • Joint Stock Company All-Russian Scientific Research Design and Technological Institute of Relay Engineering with Experimental Production
  • VNIIR Promelektro LLC
  • ABS Electrotekhnika LLC
  • VNIIR Gidroelektroavtomatika JSC
  • JSC VNIIR Progress
  • VNIIR Transstroi LLC
  • JSC ABS ZEiM Automation
  • Dominion Tverskaya Yaroslavskaya LLC
  • Dominion Nikolski LLC

https://home.treasury.gov/news/press-releases/jy1916

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OFAC Issued General License 77: “Authorizing Certain Transactions Related to Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, Software Updates, or Medical Prevention, Diagnosis, or Treatment, or Clinical Trials Involving Orka Holding AD”.

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November 17, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating six individuals affiliated with the Iran-aligned militia group (IAMG) Kata’ib Hizballah (KH) based in Iraq. Trained, funded, and supported by Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), KH is behind a spate of recent attacks against the United States and partners in Iraq and Syria following the horrific attacks by Hamas against Israel. The U.S. Department of State is also designating Kata’ib Sayyid al-Shuhada (KSS) and KSS leader Hashim Finyan Rahim al-Saraji. KSS, another Iraq-based IAMG that receives support from the IRGC, has planned and been involved in attacks against U.S. personnel in Iraq and Syria.

  • Imad Naji al-Bahadli
  • Habib Hasan Mughamis Darraji
  • Ja’afar al-Husayni
  • Khalid Kadhim Jasim al-Skeni
  • Basim Mohammad Hasab al-Majidi
  • Mojtaba Jahandust

https://home.treasury.gov/news/press-releases/jy1921

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November 29, 2023: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned over 20 individuals and entities for their involvement in financial facilitation networks for the benefit of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) and Iranian Armed Forces General Staff (AFGS), and the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Iran generates the equivalent of billions of dollars via commodity sales to fund its destabilizing regional activities and support of multiple regional proxy groups, including Hamas and Hizballah. MODAFL, the AFGS and the IRGC-QF utilize intricate networks of foreign-based front companies and brokers to enable these illicit commercial activities and exploit the international financial system.

Iran

  • Sepehr Energy Jahan Nama Pars Company
  • Majid A’zami
  • Elyas Niroomand Toomaj
  • Pishro Tejarat Sana Company
  • Seyyed Abdoljavad Alavi

Hong Kong

  • Puyuan Trade Co., Limited
  • HK Sihang Haochen Trading Limited

United Arab Emirates

  • Unique Performance General Trading L.L.C
  • OPG Global General Trading Co. L.L.C
  • JEP Petrochemical Trading L.L.C
  • Future Energy Trading L.L.C
  • Tetis Global FZE
  • Royal Shell Goods Wholesalers L.L.C
  • A Three Energy FZE
  • Transmart DMCC
  • Zabi Vahap
  • Adelina Kuliyeva
  • Mehboob Thachankandy Palikandy
  • Solise Energy

Singapore

  • MSE Overseas PTE. Ltd.
  • Sealink Overseas PTE. Ltd.

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November 30, 2023: In coordination with foreign partners, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned eight foreign-based Democratic People’s Republic of Korea’s (DPRK) agents that facilitate sanctions evasion, including revenue generation and missile-related technology procurement that support the DPRK’s weapons of mass destruction (WMD) programs. Additionally, OFAC sanctioned cyber espionage group Kimsuky for gathering intelligence to support the DPRK’s strategic objectives.

These actions are in response to the DPRK’s November 21 claimed military reconnaissance satellite launch and demonstrates the multilateral efforts of the United States and foreign partners to hinder the DPRK’s ability to generate revenue, procure materiel, and gather intelligence that advances the development of its WMD program and the unlawful export of arms and related materiel from the DPRK.

  • Kang Kyong Il
  • Ri Sung Il
  • Kang Phyong Guk
  • So Myong
  • Choe Un Hyok
  • Jang Myong Chol
  • Choe Song Chol
  • Im Song Sun
  • Kimsuky

https://home.treasury.gov/news/press-releases/jy1938

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November 30, 2023: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three Mexican individuals and 13 Mexican companies.  These individuals and companies are linked, directly or indirectly, to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). CJNG, a violent Mexico-based organization, traffics a significant proportion of the illicit fentanyl and other deadly drugs that enter the United States. OFAC coordinated this action with the Government of Mexico, including its Financial Intelligence Unit, as well as U.S. Government partners, including the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration.

  • Teresa De Jesus Alvarado Rubio
  • Manuel Alejandro Foubert Cadena
  • Gabriela Del Villar Contreras
  • Grupo Empresarial Epta, S.A. de C.V.
  • Assis Realty And Vacation Club, S.A. de C.V.
  • Axis Sale & Maintenance Buildings, S.A. de C.V.
  • Comercializadora de Servicios Turisticos de Vallarta, S.A. de C.V.
  • Condos & Vacations Buildings Sale & Maintenance, S.A. de C.V.
  • Grupo Minera Barro Pacifico, S.A.P.I. de C.V.
  • International Realty & Maintenance, S.A. de C.V.
  • Mega Comercial Ferrelectrica, S.A. de C.V.
  • Real Estates & Holiday Cities, S.A. de C.V.
  • Terra Minas e Inversiones del Pacifico, S.A.P.I. de C.V.
  • Banlu Comercializadora, S.A. de C.V.
  • Crowlands, S.A. de C.V.
  • Skairu, S.A. de C.V.

https://home.treasury.gov/news/press-releases/jy1936

NOVEMBER 2023 EXPORT CONTROL REGULATIONS UPDATES Read More »

OCTOBER 2023 EXPORT CONTROL REGULATIONS UPDATES

This newsletter is a listing of the latest changes in export control regulations through October 31, 2023.  The newsletter is provided as a complimentary service to assist exporters with their ITAR and EAR export compliance responsibilities. It provides a summary of recent changes to export control regulations or other regulatory matters of interest that may impact your company’s international trade and export compliance functions. Call us at 703-847-5801 or email info@fdassociates.net with questions or comments.

See also our “Latest Sanctions Fines & Penalties” section below for an update on companies and persons denied export privileges by the United States Government.

REGULATORY UPDATES

The President

President Biden Continues National Emergency With Respect To Syria.

October 12, 2023: 88 FR 71271:  On October 14, 2019, by Executive Order 13894, the President declared a national emergency pursuant to the International Emergency Economic Powers Act to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in and in relation to Syria.

The situation in and in relation to Syria, and in particular the actions by the Government of Turkey to conduct a military offensive into northeast Syria, undermines the campaign to defeat the Islamic State of Iraq and Syria, or ISIS, endangers civilians, and further threatens to undermine the peace, security, and stability in the region, and continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  For this reason, the President determined that the national emergency declared in Executive Order 13894 of October 14, 2019, must continue in effect beyond October 14, 2023.  Therefore, in accordance with section 202(d) of the National Emergencies Act, the President continued for 1 year the national emergency declared in Executive Order 13894 with respect to the situation in and in relation to Syria.

https://www.federalregister.gov/d/2023-22862

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Department of State, Directorate of Defense Trade Controls (DDTC)

DDTC Name and Address Changes Posted To Website

October 2 through 30, 2023: The Directorate of Defense Trade Controls (DDTC) posted the following name and/or address changes on its website at    

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=bd72ca0adbf8d30044f9ff621f961981:

  • Change in name and address from General Electric International Operations Company (Abu Dhabi), 17th Floor, WTC The Office Tower, Hamdan Street, Box No. 34637, Abu Dhabi, United Arab Emirates to GE Aviation Systems North America LLC – Abu Dhabi at Al Hisn, East 6, C5, Building Amna Ahmed Mohamed Onwani, 621, Zayet The First St., Al Hisn, Abu Dhabi 20035, United Arab Emirates, and all locations in the United Arab Emirates due to corporate reorganization.
  • Change in name from NGK Spark Plugs Co., Ltd. to Niterra Co., Ltd. due to corporate reorganization.
  • Change in name and address from General Electric International, Inc. (Argentina), Enrique Butty 275, 6th Floor, Office 103C, Ciudad Autonoma de Buenos Aires, C1001AFA, Argentina to GE Aviation Systems North America LLC, Sucursal Argentina at Maipu 1300, Piso 9, Ciudad Autonoma de Buenos Aires, Argentina, and all locations in Argentina due to corporate reorganization.
  • Change in name and address from General Electric International, Inc. DLF Cyber City, Sector 25A DLF Phase III, Building No 7 A, Gurgaon 122002, India and AIFCS Bldg 1, Rafi Marg, New Delhi, India to GE India Industrial Pvt Ltd. A-18 First Floor, Okhla Industrial Area, Phase II, New Delhi 110020, India, and all locations in India due to corporate reorganization.
  • Change in name and address from General Electric International, Inc. 6F, No. 8, Minsheng E. Rd., Section 3, NanShan Minshen Bldg, Taipei, Taiwan and 7F, No. 8, Minsheng E. Rd., Taipei, Taiwan to GE Aviation Systems North America LLC – Taiwan Branch 15F-2, No. 168 Section 3, Nanjing E. Rd., Taipei City, 10488 Taiwan, and all locations in Taiwan due to corporate reorganization.
  • Change in name from Netherlands Ministry of Defence’s Defence Materiel Organisation to Materiel and IT Command, ‘Commando Materieel en IT.’ due to government reorganization.
  • Change in name from Daewoo Shipbuilding and Marine Engineering Co., Ltd. to Hanwha Ocean Co., Ltd. due to acquisition.
  • Change in name from LR Nederland B.V. to LRQA Nederland B.V. due to corporate rebranding.
  • Change in name from General Electric International, Inc. (Chile) to Industrial C&S Chile SpA. due to corporate reorganization.
  • Change in name from Sogeti Deutschland GmbH to Capgemini Engineering Deutschland S.A.S. & Co. KG. due to corporate reorganization.
  • Change in name and address from General Electric International, Inc., Carrera 7 #166-50, Oficina 02-109 B, Bogota D.C., Colombia to Aviation Systems North America LLC, Sucursal Colombia, Carrera 7 #71-21, Torre B, Oficina 602, Bogota D.C., Colombia due to corporate reorganization.
  • Change in name from Aerojet Rocketdyne Holdings, Inc. to L3Harris Technologies, Inc. due to merger.
  • Change in name from Quantel-USA, Inc. to Lumibird Photonics USA, Inc. due to acquisition by Lumibird.
  • Change in name and address from General Electric International, Inc., 5th Floor, Tatweer Tower, King Fahad Road, Riyadh 11433, Saudi Arabia to Branch of General Electric Aviation Systems North America LLC, Building Number 7546, Qurtubah District, Unit 1110, Riyadh 13244, Saudi Arabia due to corporate reorganization.
  • Change in names from STS Aviation Services International Limited, NAAS Aviation Services International Limited, and Triumph Aviation Services International Limited to STS Aviation Services Ireland Limited due to merger.
  • Change in name from Pinnacles Solutions, Inc. to Pinnacles Solutions, LLC due to acquisition by NANA Regional Corporation, Inc.
  • Change in name and address from General Electric International, Inc., Calle Osiris, Num. 13, Planta 1, Edificio Osiris, Madrid 28037, Spain to GE Aviation Systems North America LLC, Sucursal en Espana, Spaces Rio, Calle de Manzanares, 4, Madrid 28005, Spain due to corporate reorganization.
  • Change in name and address from General Electric International, Inc, C Ring Road, Najma Intersection, Doha, Qatar to GE Aviation Systems North America QSTP-B, Qatar Science & Technology Park-B, Al Gharafa Street, Al Rayyan, Education City, Doha, Qatar due to corporate reorganization.

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DDTC Final Commodity Jurisdiction Determinations Posted to Website

October 11, 2022 through May 25, 2023: On October 12, 2023 the Directorate of Defense Trade Controls (DDTC) posted the following Final CJ Determinations for CJ’s adjudicated between October 11, 2022 and May 25, 2023, on its website at:

https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=6ea6afdcdbc36300529d368d7c96194b

Readers may find these determinations helpful when performing self-classification work.

Model Name Description Final Determination Date

 

Final Determination Manufacturer
Gerber files for a printed circuit board (part number 33244-20 PCB) used for proof-of-concept during the development of a Variable Emissivity Panel for Identification of Friend or Foe (VEPIFF) Gerber files describing a flexible printed circuit board 2023-05-25 USML Category XI(d) Intellisense Systems, Inc
Talyn Platform, Model & Version 1 Unmanned aerial electric vertical takeoff and landing (eVTOL) cargo transportation platform that can operate without airport infrastructure 2023-05-25 Seek CCATS Talyn Air, Inc
Quad Element P I N Photodiode, Part Number OG-QPPP-7000-25 An InGaAs-based PIN photodiode 2023-05-25 USML Category XII(e)(1) Optogration, Inc
SAFEScreen Psychophys-iological Touch Screen Stress Analyzer (PTSSA)TM An investigative tool to determine deceptiveness or inappropriate (unlawful) behavior patterns of individuals being tested 2023-05-25 EAR99 THORAD LLC
2x Extender, See-spot Device for ECOSI, Part Number 14245-3082 Provides magnification and greater daylight operat