WTO - Steps officially agreed for mediating food safety, animal-plant health friction

On 10 September 2014, the WTO announced that a new mediation procedure to help members settle their differences on food safety and animal and plant health measures has officially been agreed since no objections were raised by the 5 September 2014 deadline. The announcement states:

The voluntary procedure (document G/SPS/61) was agreed subject to confirmation (“ad referendum”) in the 9–10 July 2014 meeting of the Sanitary and Phytosanitary Measures (SPS) Committee, with members given until 5 September to raise any final objections. No delegation did and so the decision has now been officially adopted.

The mediation decision, sometimes called “ad hoc consultations”, is the committee’s latest contribution to helping trade flow more smoothly as it deals with one of the pre-occupations of importers and exporters facing non-tariff barriers — the standards countries set on a range of issues, from maximum pesticide residues in food to preventing the spread of pests such as fruit fly and diseases such as bird flu in agricultural products.

It adds a new tool for resolving differences on specific trade concerns, while avoiding expensive and complicated legal challenge under the WTO’s dispute settlement procedure.

Concerns of this nature are usually first raised in the committee, when members seek a resolution through consultations, discussion in the committee, and peer pressure. Here, the two sides are left to resolve their differences on their own.

The new system bridges a gap between raising concerns in the committee and full-scale litigation. It is voluntary and is not legally binding but it does provide an opportunity for the two sides to hear the opinion of a third party: a mediator, usually the SPS Committee’s chairperson. This could be confidential or reported publicly.

The SPS Agreement already allows members to seek the chair’s services as a mediator (Art.12.2). The new decision spells out steps that the members concerned and the chair should follow, provided those members agree to use the system.

UK amends Ukraine sanctions
On 15 September 2014, the Legislation.gov.uk website posted SI 2014/2445 - The Ukraine (European Union Financial Sanctions) (No.3) (Amendment) Regulations 2014 which amend the Ukraine (European Union Financial Sanctions) (No.3) Regulations 2014 (S.I. 2014/2054) (“the 2014 Regulations”). The 2014 Regulations make provision relating to the enforcement of Council Regulation (EU) No. 833/2014 dated 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (“the first Council Regulation”).

The first Council Regulation has been amended by Council Regulation (EU) No. 960/2014 dated 8 September 2014 (“the amending Regulation”). The amending Regulation includes a revised definition of transferable securities, and refers to investment services instead of brokering. The amending Regulation also includes measures prohibiting a person from dealing with transferable securities and money-market instruments with a maturity exceeding 30 days for, or on behalf of, persons, entities or bodies in the Russian financial, defence and energy sectors. This extends the prohibition in the first Council Regulation in respect of the same activities in relation to transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 1st August 2014. The amending Regulation also prohibits a person from making or being part of any arrangement to make loans or credits with those persons, entities or bodies.

Regulation 4 amends regulation 3 in the 2014 Regulations. The prohibitions in regulation 3 are now limited to dealing with transferable securities and money-market instruments issued during the period 2nd August 2014 to 15th September 2014 inclusive. Brokering is amended to investment services.

Regulation 5 inserts new regulations 3A and 3B in the 2014 Regulations.

Regulation 3A provides for prohibitions against dealing with transferable securities and money-market instruments for, or on behalf of, legal persons, entities or bodies listed in Annex III, V and VI to the first Council Regulation with a maturity exceeding 30 days, issued after 15th September 2014. The prohibitions include buying, selling, providing investment services relating to or assistance in the issuance of, or otherwise dealing in, transferable securities and money-market instruments.

Regulation 3B provides for a prohibition against making or being part of any arrangement to make loans or credits, after 15th September 2014, to any legal person, entity or body coming within regulation 3(2) or 3A(2) in the 2014 Regulations, other than in specified circumstances.

Regulation 6 makes it an offence to breach any of the prohibitions in regulations 3A or 3B in the 2014 Regulations, or to seek to circumvent those provisions.

A list of major credit institutions or other major institutions and legal persons, entities or bodies listed in Annex III, V and VI to the Council Regulation is available on the internet.
US - CBP seeks volunteers for intellectual property rights authentication data

On September 11, 2014, CBP issued CSMS# 14-000500 addressed to manifest filers seeking 9 volunteers to provide advance transmission of intellectual property rights (IPR) authentication data via e-mail to the Document Image System (DIS) for all shipment modalities.

Approved IPR authentication data may be submitted as documents via a readable PDF attachment to an email. IPR Authenticating data may be sent by shipment and is open in all shipping modalities. Participants will be chosen on a first come first serve basis and will be selected to ensure a range of non-partnership program industry participants and participation across industry segments, to include those who have previously experienced negative IPR violating exams.

Qualifying Documents for Approved IPR Authentication:

• Licensee Agreements
• Service Agreements
• Maintenance Agreements
• Packing Lists
• Non-commercial invoices
• Serial Numbers
• Bar Codes
• Photos of product, packaging, container seals,

Participants will submit a readable PDF or JPEG via email to CBP which must contain key Bill of Lading (BOL) data elements in the subject line of the email (the key data elements are needed for the system to save, search and process the document).

Those interested in participating in the voluntary submission of non-required IPR authenticating data should email Julia Peterson at IPRPOLICYPROGRAMS cbp.dhs.gov with “IPR Advance Information test” in the subject line. CBP will begin accepting IPR Authenticating documents no earlier than Thursday, September 11, 2014.

CBP anticipates that this process may improve IPR targeting efficiencies, reduce the rate of negative IPR exams, facilitate authorized trade and increase CBP port productivity. Within one year’s time, CBP will conduct an evaluation of Advance Information on negative exam rate.

Ukraine - Ukraine introduces sanctions legislation

On 12 September 2014, the Law of Ukraine “On Sanctions” dated 14 August 2014 (the “Sanctions Law”) became effective. The Sanctions Law establishes the grounds and procedure for Ukraine imposing special economic and trade sanctions against foreign states, foreign legal entities and individuals involved in activities threatening the national security, sovereignty and territorial integrity of Ukraine or the constitutional rights and freedoms of its citizens.

Who and What is Sanctioned?

Sanctions may be introduced against foreign states, foreign legal entities, legal entities controlled by foreign entities or individuals, foreign individuals or any other persons involved in terrorist activities based on the following grounds:

• the actions of the persons indicated above create a real or potential threat to the national interest, security, sovereignty and territorial integrity of Ukraine, contribute to terrorist activity, violate human rights, public and state interests or result in occupation of territory, expropriation, limitation of ownership rights and damage;
• the actions indicated in item 1 above in relation to a foreign state or citizens and legal entities of a foreign state;
• resolutions of the United Nations General Assembly and Security Council;
• resolutions and regulations of the EU Council; or
• violations of the Universal Declaration of Human Rights and of the United Nations Charter.

Which Sanctions can be Applied?

The Sanctions Law provides a very extensive list of possible sanctions including the following:

• blocking of assets;
• restriction of trade operations;
• restriction, full or partial termination of flights and transit of resources and goods via the territory of Ukraine;
• restriction on exit of capital from Ukraine;
• suspension of performance of economic and financial obligations;
• annulment of licenses and permits issued by state authorities of Ukraine;
• prohibition on lease and privatization of state assets;
• prohibition on state procurement of goods, works and services;
• full or partial prohibition on executing agreements with respect to securities issued by entities subject to sanctions;
• restrictions on withdrawal of cash using payment cards issued by residents of the foreign state subject to sanctions;
• termination of trade agreements, joint projects and industrial programs; and
• termination of international agreements.

The list of sanctions is not exhaustive and allows the introduction of other measures not directly provided by the Sanctions Law but corresponding to the objectives and principles of the Sanctions Law.

How are the Sanctions Applied?

The sanctions must be approved by the National Security and Defence Council of Ukraine (the "Security Council") at the suggestion of the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the National Bank of Ukraine or the Security Service of Ukraine.

The Decision of the Security Council must be approved:

• in case of sectorial sanctions, both by the President and the Verkhovna Rada;
• in case of personal sanctions, by the President.

The decision on sanctions should contain the term of their application unless the nature of the sanctions imposed does not allow temporary application.

The above material was originally prepared by Serhiy Chorny of our Kyiv office and was posted on www.bakermckenzie.com/sanctionsnews where future updates may be found.


EU - New EU Sanctions have now been published [follow our sanctions updates at www.bakermckenzie.com/sanctionsnews]

On 12 September 2014, the Official Journal published Council Regulation (EU) No 959/2014 of 8 September 2014 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine; Council Regulation (EU) No 960/2014 of 8 September 2014 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine; and Council Implementing Regulation (EU) No 961/2014 of 8 September 2014 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

The new measures include further restrictions on: (i) dual-use goods and technology to specified entities, (ii) the provision of services in relation to projects regarding deep water oil exploration and production, arctic oil exploration and production, or shale oil projects in Russia, (iii) services related to goods and technology listed in the Common Military List, and (iv) access to capital markets. They also introduce a new prohibition on certain types of loans and credit to specific Russian entities. The list of designated parties has also been expanded.

The main changes, as introduced by Council Regulation (EU) No 960/2014 (the New Regulation), which amend Council Regulation (EU) No 833/2014 (Reg. 833/2014), are as follows:

1. Product controls: dual-use goods and technology for specific targeted companies

The previous controls regarding dual-use goods and technology only applied insofar as they were sold, supplied, transferred or exported (directly or indirectly) to, or for use, in Russia if those items were intended for military use or to a military end-user.

There is now also an outright prohibition of dual-use goods and technology as listed in the EU Dual-Use Regulation (Regulation (EC) No 428/2009) where the sale, supply, transfer or export is to one of the listed Russian businesses. Under this new control, it does not matter if the targeted entity is a military end-user or whether the item will have a military end-use. At the moment, however, the targeted companies (as listed in Annex I of the New Regulation) are a mixture of defence companies and mixed defence companies, although this leaves it open to the EU to expand the list at a later date. The list currently includes: JSC Sirius, OJSC Stankoinstrument, OAO JSC Chemcomposite, JSC Kalashnikov, JSC Tula Arms Plant, NPK Technologii Maschinostrojenija, OAO Wysokototschnye Kompleksi, OAO Almaz Antey and OAO NPO Bazalt.

The New Regulation includes a prohibition on the provision of related services (technical assistance, brokering services, financial assistance etc.) in connection with dual-use items to the same listed entities.

This ban applies to any dual-use goods or technology to these entities, whether or not the items originate from the EU (provided, of course, that the jurisdictional threshold set out in Reg. 833/2014 is met). The restriction is subject to, inter alia, (i) a grand-fathering provision, which applies to contracts concluded before 12 September 2014; and (ii) the provision of assistance that is necessary to the maintenance and safety of existing capabilities within the EU.

2. Controls regarding the provision of services

a. Services in relation to projects regarding deep water oil exploration and production, arctic oil exploration and production, or shale oil projects in Russia

Whilst the previous services restrictions regarding the projects listed in the heading covered only the provision of technical assistance or brokering services related to certain oil-related equipment and technology as listed in Annex II of Reg. 833/2014, the New Regulation provides for a much wider prohibition on the direct or indirect provision of services associated to such projects. The New Regulation lists these type of services: drilling, well testing, logging and completion services and the supply of floating vessels. These services are now prohibited, irrespective of whether Annex II items are involved.

Again, grand-fathering provisions would apply in this context with respect to contracts entered into before 12 September 2014. The prohibition also does not apply where the services are necessary to prevent a serious impact on human health and safety or the environment.

b. Services related to goods and technology listed in the Common Military List

The New Regulation expands the prohibition included in Reg. 833/2014 to prohibit the provision of insurance and reinsurance services for the sale, supply, transfer or export of goods and technology listed in the Common Military List.

c. Access to capital markets

Under Reg. 833/2014 there were strict restrictions on access to capital markets in respect of transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 1 August 2014 by certain listed banks (currently: Sberbank, VTB bank, Gazprombank, Vnesheconombank (VEB), Rosselkhozbank).

The New Regulation expands these restrictions to cover transferable securities and money-market instruments with a maturity exceeding 30 days where these are issued after 12 September 2014 by the same banks.

In addition, the New Regulation prohibits the direct or indirect purchase, sale (and related services) or provision of investment services for, or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 30 days and issued after 12 September 2014 by, specific entities:

(i) Providing military equipment or services (i.e., the New Regulation lists the following entities: OPK OBORONPROM, United Aircraft Corporation and Uralvagonzavod), or

(ii) Publicly controlled or with over 50% public ownership, with estimated total assets of over 1 trillion Roubles and its estimated revenues originating for at least 50% from the sale or transportation of crude oil or petroleum products (i.e., the New Regulation lists the following entities: Rosneft, Transneft and Gazprom Neft).

All of these restrictions also apply to entities that (i) are directly or indirectly more than 50% owned by the listed entities, or (ii) act on behalf of or at the direction of any listed entity.

d. Provision of loans

In addition, no new (syndicated) loans or credit with a maturity exceeding 30 days can be made directly or indirectly to the persons targeted by the access to capital markets restrictions (see above). This prohibition is subject to some limited exceptions.

3. Changes to the List of Designated Persons

24 new individuals (but no new entities) have been added to designated party list under Council Implementing Regulation (EU) No 961/2014. This brings the total of individuals subject to sanctions under this specific regime to 119. The number of designated entities remains 23.

By way of a reminder, it is prohibited to make available, directly or indirectly, funds and economic resources to or for the benefit of a designated person. This prohibition is interpreted widely and would capture dealings with designated suppliers, banks, agents, distributors, other intermediaries etc., or those entities that are owned or controlled by a designated person.

A full list of EU/UK designated parties is available here.

Council Regulation (EU) No 969/2014 amended Regulation (EU) No 269/2014 by adding “natural or legal persons, entities or bodies conducting transactions with the separatist groups in the Donbass region of Ukraine” to Art 3(1).

The EU has publicly stated that it is closely monitoring the implementation of the current cease-fire. Thus the EU Council has invited the Commission to put forward proposals to amend, suspend or repeal the set of sanctions in force, in whole or in part. Whether or not formal steps will be taken in this direction will depend on the success of the cease-fire and other developments on the ground.

Most of the above material was originally posted by Sunny Mann and Ross Denton of our London office on www.bakermckenzie.com/sanctionsnews where future updates may be found.


Client Alert: EU adopts new sanctions against Russia

By way of update, the new EU Sanctions package has been published and will enter into force today. The new measures include further restrictions on: (i) dual-use goods and technology to specified entities, (ii) the provision of services in relation to projects regarding deep water oil exploration and production, arctic oil exploration and production, or shale oil projects in Russia, (iii) services related to goods and technology listed in the Common Military List, and (iv) access to capital markets. They also introduce a new prohibition on certain types of loans and credit to specific Russian entities. The list of designated parties has also been expanded.

Click here to read the full client alert.

EU and China Customs join forces to target undervaluation of goods

On 12 September 2014, the European Commission announced that the EU and national authorities prevented losses of over €80 million in customs duties, during a major joint customs operation (JCO) coordinated by the European Anti-Fraud Office (OLAF). This joint customs operation had particular significance as, for the first time ever, it also involved Chinese customs authorities. The announcement said:

Operation "SNAKE" specifically targeted the undervaluation of imported goods, which causes huge losses to public budgets every year. Over a one month period, OLAF and the participating customs authorities detected more than 1,500 containers where the declared customs value was heavily undervalued. This included false descriptions of goods, false weights and quantities, and counterfeit goods. In addition, customs authorities succeeded in identifying several so-called missing traders and non-existent importers, triggering a number of criminal and administrative investigations in several countries.
***
The operational phase of Operation SNAKE took place from February to March 2014. Coordinated by OLAF and the Anti-smuggling Bureau of the General Administration of China Customs, it involved the customs administrations of all EU Member States, as well as those of the People's Republic of China. The participants cooperated using a secure communication channel developed by OLAF for this type of operation. On 4 and 5 September, all participating officials met at OLAF’s headquarters in Brussels to present the final results of the Operation. The Commission and the General Administration of China Customs intend to continue this successful cooperation with further initiatives.

US - Census reinstates FTR exemptions related to temporary exports, carnets and TIB shipments

On September 12, 2014, the Bureau of Census (Census), Commerce Department, published in the Federal Register an interim final rule [Docket Number: 140821699–4699–01] to amend the Foreign Trade Regulations (FTR) to eliminate the reporting requirement for temporary exports, which includes carnets, and goods previously imported on a Temporary Importation Under Bond (TIB).

Census is responsible for collecting, compiling, and publishing export trade statistics for the United States. The Automated Export System (AES) is the primary instrument used for collecting export trade data, which are used by Census for statistical purposes. Through the AES, the Census Bureau collects Electronic Export Information (EEI), the electronic equivalent of the export data formerly collected on the Shipper’s Export Declaration, pursuant to the FTR, (15 C.F.R. part 30). Filing in the AES is not required for shipments excluded in Section 30.2(d) and shipments exempted in Subpart D that are not subject to Section 30.2(a)(1)(iv). In the final rule published in the Federal Register on March 14, 2013 (78 Fed. Reg. 16366), Census removed the exemptions for temporary exports, which includes carnets and goods imported under a TIB.

In other words, the March 14 rule created an AES filing requirement for previously exempted items, such as carnets. With respect to eliminating these exemptions, the Department of the Treasury and members of the trade community submitted letters to Census centered on the concern that mandatory AES filing for carnets may be contrary to the Customs Convention on the ATA Carnet for the Temporary Admission of Goods (ATA Convention), to which the U.S. is a contracting party. In addition, the trade community stated that, unless the exemptions were reinstated, it would be extremely difficult to comply with the FTR, particularly for goods moving on a foreign carnet. Since receiving this feedback, Census and U.S. Customs and Border Protection (CBP) have reviewed this issue and determined that it is necessary to reinstate the exemptions from filing for temporary exports, including carnets, and goods that were previously imported under a TIB for return in the same condition as when exported. However, Census and CBP will review these exemptions in partnership with the trade and may publish a Notice of Proposed Rulemaking to address temporary exports, carnets, and TIBs in the future.

The interim final rule amends 15 C.F.R. 30.37(q) and (r) to reinstate the exemptions for temporary exports/carnets and for goods that were imported under a TIB for return in the same condition as when imported. As a result, these types of shipments are exempt from filing, except as noted in the FTR.
The interim final rule is effective September 12, 2014. To be assured consideration, written comments must be received on our before October 14, 2014.

US - OFAC updates Ukraine-related sanctions

On September 12, 2014, the Office of Foreign Assets Control (OFAC) updated its Ukraine-related sanctions to add entities and make changes to its Sectoral Sanctions Identifications (SSI) List pursuant to the directives that can be found here. In addition, additions have been made to OFAC’s Specially Designated Nationals List.

In addition, OFAC has also issued Ukraine-related General License 1a - Authorizing Certain Transactions Related to Derivatives Prohibited by Directives 1, 2, and 3 under Executive Order 13662 and Ukraine-related General License 2 - Authorizing Certain Activities Prohibited by Directive 4 under Executive Order 13662 Necessary to Wind Down Operations.

US - BIS expands export restrictions aimed at Russia’s defense sector

On September 12, 2014, the Bureau of Industry and Security (BIS) announced additional steps that will further restrict trade with Russia in response to Russia’s continued efforts to destabilize eastern Ukraine. The actions are being announced in conjunction with an announcement by the U.S. Department of the Treasury that it is also imposing a new set of targeted prohibitions and designations against a range of Russian entities.

BIS will add five entities operating in the Russian Federation’s defense sector to the BIS Entity List. Designation on the Entity List imposes a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations (EAR) to the designated entities, with a presumption of denial. BIS will also require licenses for an additional group of items destined to military end uses or end users in Russia.

The entities added to the BIS Entity List are:
• Almaz-Antey Air Defense Concern Main System Design Bureau, JSC
• is one of the world’s largest defense industry complexes, specializing in development of anti-air, anti-missile and space defense systems.
• Tikhomirov Scientific Research Institute of Instrument Design
• specializes in the development of weaponry control systems for fighter planes and mobile medium range anti-aircraft surface to air missile (SAM) defense vehicles.
• Mytishchinski Mashinostroitelny Zavod, OAO
• manufactures and supplies ordnance and accessories, including naval, aircraft, anti-aircraft and field artillery products.
• Kalinin Machine Plant, JSC
• designs and manufactures machines for military and civil applications.
• Dolgoprudny Research Production Enterprise
• develops and manufactures high-technology defense products.

In addition, BIS also added five Russian energy companies to the Entity List to impose a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations (EAR) to those companies when the exporter, reexporter or transferor knows those items will be used directly or indirectly in exploration for, or production from, deepwater, Arctic offshore, or shale projects in Russia. License applications for such transactions will be reviewed with a presumption of denial when for use directly or indirectly for exploration or production from deepwater, Arctic offshore, or shale projects in Russia that have the potential to produce oil.

US - State determination relating to Iran sanctions
On September 11, 2014, the Department of State published in the Federal Register a notice [Public Notice 8865] informing the public that the Secretary of State determined on August 29, 2014, pursuant to section 1245(d)(4)(D) of the National Defense Authorization Act for Fiscal Year 2012 (NDAA), that each of the following EU countries: Belgium, Czech Republic, France, Germany, Greece, Italy, Netherlands, Poland, Spain, and the United Kingdom (hereinafter “EU10”) have maintained their crude oil purchases from Iran at zero over the preceding 180-day period. The Secretary of State last made exception determinations under 1245(d)(4)(D) of the NDAA regarding these purchasers on March 4th, 2014.
EU - European Council adopts further restrictive measures against Russia
On 8 September 2014, the President of the European Council Herman Van Rompuy announced that a package of further restrictive measures against Russia has been adopted by the Council today (through written procedure), deepening the targeted measures of 31 July. The sanctions aim at promoting a change of course in Russia's actions destabilising eastern Ukraine and come in the wake of the European Council of 30 August, which condemned the increasing inflows of fighters and weapons from the territory of the Russian Federation into Eastern Ukraine and the aggression by Russian armed forces on Ukrainian soil.

The entry into force through the publication in the Official Journal will take place in the next few days. This will leave time for an assessment of the implementation of the cease-fire agreement and the peace plan. Depending on the situation on the ground, the EU stands ready to review the agreed sanctions in whole or in part.
US - USTR allocates 2015 WTO TRQ for raw sugar and sugar products

On September 9, 2014, the Office of the U.S. Trade Representative (USTR) published in the Federal Register a notice providing country-by-country allocations of the Fiscal Year (FY) 2015 (Oct. 1, 2014, through Sept. 30, 2015) in-quota quantity of the tariff-rate quotas (TRQs) for imported raw cane sugar, refined sugar (syrups and molasses), specialty sugar, and sugar-containing products (see below). The effective date is October 1, 2014.

Country

FY 2015 Raw Cane Sugar Allocations MTRV)

Country

FY 2015 Raw
Sugar Allocations
(MTRV)

Argentina

45,281

Jamaica

11,584

Australia

87,402

Madagascar

7,258

Barbados

7,371

Malawi

10,530

Belize

11,584

Mauritius

12,636

Bolivia

8,424

Mexico

7,258

Brazil

152,691

Mozambique

13,690

Colombia

25,273

Nicaragua

22,114

Congo

7,258

Panama

30,538

Costa Rica

15,796

Papua New Guinea

7,258

Cote d’Ivoire

7,258

Paraguay

7,258

Dominican Rep.

185,335

Peru

43,175

Ecuador

11.584

Philippines

142,160

El Salvador

27,379

South Africa

24,220

Fiji

9,477

St. Kitts & Nevis

7,258

Gabon

7,258

Swaziland

16,849

Guatemala

50,546

Taiwan

12,636

Guyana

12,636

Thailand

14,743

Haiti

7,258

Trinidad & Tobago

7,371

Honduras

10,538

Uruguay

7,258

India

8,424

Zimbabwe

12,636

US - Restrictive measures and additions to OFAC, State BIS blocking orders, designations, sanctions and entity lists

On September 9, 2014, the following notice adding, removing or continuing persons (including entities) to/from restrictive measures lists was published in the Federal Register by the Office of Foreign Assets Control (OFAC:

F.R. Date

Applicable orders

09-09-14

OFAC: Designation of Twelve Individuals Pursuant to the Sergei Magnitsky Rule of Law Accountability Act of 2012

US President continues Cuban sanctions under TWEA
On September 5, 2014, the White House posted Presidential Determination – Trading with the Enemy Act Continuation of the Exercise of Certain Authorities Under the Trading With the Enemy Act. The Determination continues for 1 year, until September 14, 2015, the exercise of certain authorities under the Trading With the Enemy Act (TWEA) with respect to Cuba, as implemented by the Cuban Assets Control Regulations, 31 C.F.R. Part 515. The Presidential Determination has not yet been published in the Federal Register.
US - Restrictive measures and additions to OFAC, State BIS blocking orders, designations, sanctions and entity lists
On September 8, 2014, the following notices adding, removing or continuing persons (including entities) to/from restrictive measures lists were published in the Federal Register by the Office of Foreign Assets Control (OFAC) or by the State Department (State):

F.R. Date

Applicable orders

09-08-14

OFAC: Actions Taken Pursuant to Executive Orders 13608 and 13645 [EO 13608, “Prohibiting Certain Transactions With and Suspending Entry Into the United States of Foreign Sanctions Evaders With Respect to Iran and Syria; EO 13645 -“Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect to Ira”’) (N)

State: In the Matter of the Designation of Abu Mohammed al-Adnani aka Taha Sobhi Falaha aka Abu Mohammad Al-Adnani aka Yasser Khalaf Hussein Nazal al-Rawi aka Jaber Taha Falah aka Abu Baker al-Khatab aka Abu Sadek al-Rawi aka Taha al-Banshi aka Abu Mohamed al-Adnani aka Abu-Muhammad al-Adnani al-Shami as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice 8861] (N)

UK provides for the enforcement of certain trade restrictions against Russia

On 5 September 2014, Legislation.gov posted SI 2014/2357 - The Export Control (Russia, Crimea and Sevastopol Sanctions) Order 2014 which makes provision for the enforcement of certain trade restrictions against Russia specified in Council Regulation (EU) No 833/2014 (the Russian Sanctions Regulation). According to the Explanatory Note which accompanies (but is not a part of) the Order, it also provides for the enforcement of trade and investment restrictions in response of the illegal annexation of Crimea and Sevastopol specified in Council Regulation (EU) No 692/2014 as amended by Council Regulation (EU) No 825/2014 (the Crimea and Sevastopol Regulation).

The Order sets out offences in relation to these prohibitions and those offences can be committed by any person in the United Kingdom and, around the world, by any United Kingdom person, as defined in section 11 of the Export Control Act 2002(c. 28).

The trade measures against Russia include restrictions on the export or supply of certain dual-use goods as well as on certain services related to the supply of arms and military equipment. There are also restrictions on the export or supply of certain technologies for the oil industry in Russia as listed in Annex II to the Russian Sanctions Regulation.

The trade sanctions against Crimea and Sevastopol include a ban on new investments related to infrastructure in the sectors of transport, telecommunications and energy and the exploitation of natural resources in Crimea and Sevastopol and an export ban on key equipment and technology related to those sectors.

Articles 3 to 5 create offences for contravention of the trade restrictions in Articles 2 to 4 of the Russia Sanctions Regulation. Articles 6 to 8 create offences for contravention of the restrictions in Articles 2(b) and 2a to 2c of the Crimea and Sevastopol Regulation. There are already offences relating to prohibited importation and exportation of goods in sections 50, 68 and 170 of the Customs and Excise Management Act 1979 (“the 1979 Act”)(1979 c.2).

Article 4(1) clarifies the scope of the control on exportation of technologies in Article 3 of the Russia Sanctions Regulation (which requires authorisation for the export of technologies listed in Annex II) so as to ensure that breaches of the export control created by that Article are amenable to action under the 1979 Act.

Article 9 creates offences for the circumvention of the prohibitions in the Russia Sanctions Regulation or the Crimea and Sevastopol Regulation.

Article 10 supplements the provisions of the Russia Sanctions Regulation that allow a competent authority to authorise activities that are otherwise prohibited. Article 10(1) makes it an offence knowingly and recklessly to provide false information for the purpose of obtaining an authorisation and Article 10(3) makes it an offence to fail to comply with authorisation requirements or conditions.

Article 11 sets out the penalties relating to the offences in the Order and makes some consequential modifications to the 1979 Act to ensure that the offences covered by that Act are subject to the same penalties as those in the Order.

Article 12 provides for the ancillary provisions which apply to the enforcement of customs and excise legislation to also apply to the enforcement of this Order.

Article 13 amends Part 2 of Schedule 4 to the Export Control Order 2008 (S.I. 2008/3231) to designate Russia as an “embargoed destination” for the purposes of application of stricter trade controls under that Order.

Article 14 requires the Secretary of State to review the operation and effect of the Order and publish a report within five years after the Order comes into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Order should remain as it is, or be revoked or amended. A further instrument would be needed to revoke the Order or to amend it.

The Order comes into force on 26th September 2014.

US - BIS initiates, and seeks comments on, a foreign availability assessment for anisotropic plasma dry etching equipment in China
On September 8, 2014, the Bureau of Industry and Security (BIS) published in the Federal Register a notice [Docket No. 140814669–4669–01] to announce that BIS is initiating a foreign availability assessment pursuant to section 5(f) of the Export Administration Act of 1979, as amended (EAA). BIS’s Office of Technology Evaluation will oversee the assessment of the foreign availability in China of anisotropic plasma dry etching equipment. BIS is also seeking public comments on the foreign availability of this equipment in China.

Comments must be received by September 23, 2014.
USTR seeks nominations for TAC on Africa under revised criteria
On September 5, 2014, the Office of the U.S. Trade Representative (USTR) published in the Federal Register a document that amends the Trade Advisory Committee on Africa (TACA)—Charter Renewal and Nominations for Membership Notice of March 18, 2014 (79 Fed. Reg. 15201) to revise the membership eligibility criteria pursuant to the Revised Guidance on the Appointment of Lobbyists to Federal Advisory Committees, Boards and Commissions, published by the Office of Management and Budget (OMB) on August 13, 2014. Federally-registered lobbyists are no longer prohibited from serving on the TACA in a representative capacity in light of OMB’s recent policy clarification that the eligibility restriction does not apply to advisory committee members who are specifically appointed to represent the interests of a nongovernmental entity, a recognizable group of persons or nongovernmental entities (an industry sector, labor unions, environmental groups, etc.), or state or local governments. The lobbyist prohibition continues to apply to persons serving on advisory committees in their individual capacity. The United States Trade Representative now will consider nominations of federally-registered lobbyists for appointment to the TACA as members who serve in a representative capacity. All other eligibility criteria continue to apply.

These revised membership criteria are effective immediately. Nominations for membership to the TACA (including self-nominations) will be accepted on a rolling basis.
US - USTR seeks nominations for IGPAC under revised criteria
On September 5, 2014, the Office of the U.S. Trade Representative (USTR) published in the Federal Register a document that amends the Intergovernmental Policy Advisory Committee on Trade (IGPAC)—Charter Reestablishment and Request for Nominations Notice of April 1, 2014 (79 Fed. Reg. 18382) to revise the membership eligibility criteria pursuant to the Revised Guidance on the Appointment of Lobbyists to Federal Advisory Committees, Boards and Commissions, published by the Office of Management and Budget (OMB) on August 13, 2014. Federally-registered lobbyists are no longer prohibited from serving on the IGPAC in a representative capacity in light of OMB’s recent policy clarification that the eligibility restriction does not apply to advisory committee members who are specifically appointed to represent the interests of a nongovernmental entity, a recognizable group of persons or nongovernmental entities (an industry sector, labor unions, environmental groups, etc.), or state or local governments. The lobbyist prohibition continues to apply to persons serving on advisory committees in their individual capacity. The United States Trade Representative now will consider nominations of federally-registered lobbyists for appointment to the IGPAC as members who serve in a representative capacity. All other eligibility criteria continue to apply.

These revised membership criteria are effective immediately. Nominations for membership to the IGPAC (including self-nominations) will be accepted on a rolling basis.
US - USTR updates membership criteria for T&EAC
On September 5, 2014, the Office of the U.S. Trade Representative (USTR) published in the Federal Register a document that amends the membership eligibility criteria for the Trade and Environment Policy Advisory Committee (TEPAC) pursuant to the Revised Guidance on the Appointment of Lobbyists to Federal Advisory Committees, Boards and Commissions, published by the Office of Management and Budget (OMB) on August 13, 2014. Federally-registered lobbyists no longer are prohibited from serving on the TEPAC in a representative capacity in light of OMB’s recent policy clarification that the eligibility restriction does not apply to advisory committee members who are specifically appointed to represent the interests of a nongovernmental entity, a recognizable group of persons or nongovernmental entities (an industry sector, labor unions, environmental groups, etc.), or state or local governments. The lobbyist prohibition continues to apply to persons serving on advisory committees in their individual capacity. All other eligibility criteria continue to apply.

These updated membership criteria are effective immediately.
Restrictive measures and additions to OFAC blocking orders, designations, and sanctions
During the period from September 2-5, 2014, the following notices adding, removing or continuing persons (including entities) to/from restrictive measures lists were published in the Federal Register by the Office of Foreign Assets Control (OFAC):

F.R. Date

Applicable orders

09-02-14

Designation of 2 Individuals Pursuant to Executive Order 13224 of September 23, 2001, ‘‘Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism’’

Designation of 2 Individuals and 1 Entity Pursuant to Executive Order 13224 of September 23, 2001, ‘‘Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism’’

09-03-14

Additional Designations, Foreign Narcotics Kingpin Designation Act

09-05-14

Imposition of Sanctions on Three Individuals and Eight Entities Pursuant to Executive Order 13608 [Prohibiting Certain Transactions With and Suspending Entry Into the United States of Foreign Sanctions Evaders With Respect to Iran and Syria’’]

OFAC Implementation of Certain Sanctions Imposed on KISH PROTECTION & INDEMNITY and CENTRAL INSURANCE OF IRAN by the Secretary of State Pursuant to the Iran Threat Reduction and Syria Human Rights Act of 2012

Update of Vessels Identified Pursuant to the Iranian Transactions and Sanctions Regulations and Executive Order 13599

OFAC Implementation of Certain Sanctions Imposed on Ferland Company Limited by the Secretary of State Pursuant to the Iran Sanctions Act of 1996, as Amended; Actions Taken With Respect to Ferland Company Limited Pursuant to Executive Order 13608 and Executive Order 13645

OFAC Implementation of Certain Sanctions Imposed on JAM PETROCHEMICAL COMPANY and NIKSIMA FOOD AND BEVERAGE JLT Pursuant to Executive Order 13622 of July 30, 2012

OFAC Implementation of Certain Sanctions Imposed on Two Persons by the Secretary of State Pursuant to the Iran Sanctions Act of 1996, as Amended

Actions Taken Pursuant to Executive Order 13645 [“Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect to Iran”] (three entities and three vessels)

US - OFAC updates vessels identified pursuant to ITSR/EO 13599
On September 5, 2014, the Treasury Department’s Office of Foreign Assets Control (OFAC) published in the Federal Register a notice that updates names and flagging information of thirty three (33) vessels previously identified as property of the Government of Iran under the Iranian Transactions and Sanctions Regulations (ITSR), 31 C.F.R. Part 560, and Executive Order (EO) 13599. OFAC has revised the entries on OFAC’s list of Specially Designated Nationals and Blocked Persons to reflect the new information.

The updates made by the Director of OFAC of the vessels identified in this notice, pursuant to the ITSR and Executive Order 13599, was effective on December 12, 2013.
US - BIS amends implementation of SNG understandings
On September 5, 2014, the Bureau of Industry and Security (BIS) published in the Federal Register a technical correction to a final rule [FR Doc. 2014–18064] published in the Federal Register on August 7, 2014 (79 Fed. Reg. 46316), that amended the Export Administration Regulations (EAR) to implement the understandings reached at the 2005, 2012, and 2013 Nuclear Suppliers Group (NSG) Plenary meetings. That final rule also amended the EAR to implement a decision adopted under the NSG intersessional silent approval procedures, in December 2009, and to reflect the status of Croatia, Estonia, Iceland, Lithuania, Malta, Mexico, and Serbia as participating countries in the NSG. In that final rule, the amendatory instruction for the EAR supplement that lists “Country Groups” contained an error with respect to Mexico. The amendatory instruction stated that the country, Mexico, was being added to Country Group A when, in fact, it should have indicated that the existing Country Group A entry for Mexico was being revised to include Mexico in Country Group A:4 (Nuclear Suppliers Group). At the time that BIS’s August 7, 2014, final rule was published, Mexico was already listed in Country Group A (specifically, under Country Group A:3—Australia Group), as a result of an amendment contained in a final rule that BIS published on March 26, 2014 (79 Fed. Reg. 16664).

As a result of the amendment made by this final rule, Supplement No. 1 to part 740 of the EAR now lists Mexico under both Country Group A:3 (Australia Group) and Country Group A:4 (Nuclear Suppliers Group). With the addition of Croatia, Estonia, Iceland, Lithuania, Malta and Serbia to Country Group A:4 (by the August 7, 2014, final rule) and Mexico (by this final rule), all of the countries whose governments participate in the NSG, except the People’s Republic of China, are now listed in Country Group A:4.

In addition, the amendments to Export Control Classification Number (ECCN) 6A203 in the August 7, 2014, final rule inadvertently omitted the controls that apply to certain radiation-hardened TV cameras and lenses therefor. This document corrects these errors by amending ECCN 6A203 to add these items under a new paragraph .d. In addition, this rule adds a related Technical Note immediately following ECCN 6A203.d. As a result of this amendment, ECCN 6A203.d controls “radiation-hardened TV cameras, or lenses therefor, ‘specially designed’ or rated as radiation hardened to withstand a total radiation dose greater than 50 × 104 Gy (silicon) without operational degradation.”

Finally, the contact information in the preamble of the August 7, 2014, NSG Plenary rule contained an incorrect telephone number and the saving clause in the preamble omitted specific instructions concerning certain items newly controlled under ECCN 3A225. This document amends the preamble of the August 7, 2014, NSG Plenary rule to correct these errors.

This rule is effective September 5, 2014, and the corrections herein are applicable beginning August 7, 2014.
BIS requests comments on effectiveness of Licensing Procedures for Agricultural Commodities to Cuba
On September 4, 2014, the Bureau of Industry and Security (BIS) published in the Federal Register a request for comments on the effectiveness of its licensing procedures as defined in the Export Administration Regulations for the export of agricultural commodities to Cuba. BIS will include a description of these comments in its biennial report to Congress, as required by the Trade Sanctions Reform and Export Enhancement Act of 2000, as amended. Comments must be received by October 6, 2014.
US - BIS requests comments on foreign policy-based export controls
On September 4, 2014, the Bureau of Industry and Security (BIS) published in the Federal Register a request for comments on the effect of existing foreign policy-based export controls in the Export Administration Regulations. BIS is requesting public comments to conduct consultations with U.S. industries. Section 6 of the Export Administration Act (EAA) requires BIS to consult with industry on the effect of such controls and to report the results of the consultations to Congress. Comments from all interested persons are welcome. All comments will be made available for public inspection and copying and included in a report to be submitted to Congress. Comments must be received by October 6, 2014.
US - FY 2015 WTO TRQs for sugar announced
On September 4, 2014, the Office of the Secretary, U.S. Department of Agriculture, published in the Federal Register a notice announcing the establishment of the Fiscal Year (FY) 2015 (October 1, 2014–September 30, 2015) in-quota aggregate quantity of raw cane sugar at 1,117,195 metric tons raw value (MTRV). This is the minimum amount to which the United States is committed under the WTO Uruguay Round Agreements. The Office of the U.S. Trade Representative (USTR) is responsible for the allocation of these quantities among supplying countries and areas.

The notice also announces the establishment of the FY 2015 in-quota aggregate quantity of certain sugars, syrups, and molasses (also referred to as refined sugar) at 127,000 MTRV. This quantity includes the minimum amount to which the United States is committed under the WTO Uruguay Round Agreements, 22,000 MTRV, of which 1,656 MTRV is reserved for specialty sugar. An additional amount of 105,000 MTRV is added to the specialty sugar Tariff rate quota (TRQ) for a total of 106,656 MTRV.

Because the specialty sugar TRQ is first-come, first-served, tranches are needed to allow for orderly marketing throughout the year. The FY 2015 specialty sugar TRQ will be opened in five tranches. The first tranche, totaling 1,656 MTRV, will open October 10, 2014. All specialty sugars are eligible for entry under this tranche. The second tranche will open on October 24, 2014, and be equal to 38,850 MTRV. The remaining tranches will each be equal to 22,050 MTRV, with the third opening on January 9, 2015; the fourth, on April 10, 2015; and the fifth, on July 10, 2015. The second, third, fourth, and fifth tranches will be reserved for organic sugar and other specialty sugars not currently produced commercially in the United States or reasonably available from domestic sources.
Indonesia accedes to the Revised Kyoto Convention and becomes the 95th Contracting Party
On 29 August 2014, the WCO announced that the Ambassador of the Republic of Indonesia in Brussels has sent the Secretary General of the WCO the instrument of accession of his country to the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention - RKC). This act is the culmination of an extensive process which has allowed Indonesia to carry out a comparative analysis of its legislation with the provisions of the RKC and to attain the level of compliance required to embark on implementing this international instrument. The RKC will enter into force for Indonesia on 22 November 2014.

Having entered into force on 3 February 2006, the RKC now has 95 Contracting Parties.
Mexico - Hacienda publishes amendments and annexes to the General Rules on Foreign Trade 2014
On September 1, 2014, Hacienda published in the Diario Oficial de la Federación (the Official Gazette) First Resolution Amendments to the General Rules on Foreign Trade for 2014 and its Annexes 10 and 21.

On September 2, 2014, Hacienda published in the Diario Oficial de la Federación (the Official Gazette) Annex Glossary of definitions and acronyms, 4, 7, 8, 9, 11, 12, 13, 15, 16, 17, 19, 23, 24, 25, 26, 27, 28, 29 and 30 of the General Rules on Foreign Trade in 2014, published on August 29, 2014 and Annex 1 of the First Resolution of Modifications to the General Rules on Foreign Trade for 2014, published on September 1, 2014.

On September 3, 2014, Hacienda published in the Diario Oficial de la Federación (the Official Gazette) Annex 22 of the General Rules on Foreign Trade for 2014, published on 29 August 2014. The Annex contains the instructions and other necessary information for completing the pedimento – the main Customs declaration for goods imported into, exported from and in transit through, Mexico.
Canada - Economic Action Plan 2014 Act, No. 1

On September 3, 2014, the Canada Gazette published the Economic Action Plan 2014 Act, No. 1 (C-31). Although much of the law implements income tax, GST/HST, excise or related measures, the following Customs or import related provisions are included:

Part 4 amends the Customs Tariff. In particular, it

• reduces the Most-Favoured-Nation rates of duty and, if applicable, rates of duty under the other tariff treatments on tariff items related to mobile offshore drilling units used in oil and gas exploration and development that are imported on or after May 5, 2014;
• removes the exemption provided by tariff item 9809.00.00 and makes consequential amendments to tariff item 9833.00.00 to apply the same tariff rules to the Governor General that are applied to other public office holders; and
• clarifies the tariff classification of certain imported food products, effective November 29, 2013.

Division 3 of Part 6 amends the Hazardous Products Act to better regulate the sale and importation of hazardous products intended for use, handling or storage in a work place in Canada in accordance with the Regulatory Cooperation Council Joint Action Plan initiative for work place chemicals. In particular, the amendments implement the Globally Harmonized System of Classification and Labelling of Chemicals with respect to, among other things, labelling and safety data sheet requirements. It also provides for enhanced powers related to administration and enforcement. Finally, it makes amendments to the Canada Labour Code and the Hazardous Materials Information Review Act.

Division 4 of Part 6 amends the Importation of Intoxicating Liquors Act to authorize individuals to transport beer and spirits from one province to another for their personal consumption.

Division 8 of Part 6 amends the Customs Act to extend to 90 days the time for making a request for a review of a seizure, ascertained forfeiture or penalty assessment and to provide that requests for a review and third-party claims can be made directly to the Minister of Public Safety and Emergency Preparedness.

Division 15 of Part 6 amends the Motor Vehicle Safety Act to support the objectives of the Regulatory Cooperation Council to enhance the alignment of Canadian and U.S. regulations while protecting Canadians. It introduces measures to accelerate and streamline the regulatory process, reduce the administrative burden for manufacturers and importers and improve safety for Canadians through revised oversight procedures and enhanced availability of vehicle safety information.

Division 18 of Part 6 amends the Canadian Food Inspection Agency Act to provide that fees fixed under that Act for the use of a facility provided by the Canadian Food Inspection Agency under the Safe Food for Canadians Act as well as fees fixed for services, products and rights and privileges provided by the Agency under that Act are exempt from the application of the User Fees Act.

Division 19 of Part 6 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, enhance the client identification, record keeping and registration requirements for financial institutions and intermediaries, refer to online casinos, and extend the application of the Act to persons and entities that deal in virtual currencies and foreign money services businesses. Furthermore, it makes modifications in regards to the information that the Financial Transactions and Reports Analysis Centre of Canada may receive, collect or disclose, and expands the circumstances in which the Centre or the Canada Border Services Agency can disclose information received or collected under the Act. It also updates the review and appeal provisions related to cross-border currency reporting and brings Part 1.1 of the Act into force.

Division 22 of Part 6 amends the Softwood Lumber Products Export Charge Act, 2006 to clarify how payments to provinces under section 99 of that Act are to be.

Canada-Honduras Economic Growth and Prosperity Act

On September 3, 2014, the Canada Gazette published the Canada–Honduras Economic Growth and Prosperity Act (C-20) which implements the Free Trade Agreement and the related agreements on environmental and labour cooperation entered into between Canada and the Republic of Honduras and done at Ottawa on November 5, 2013.

The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Free Trade Agreement or the related agreements themselves, without the consent of the Attorney General of Canada.

Part 1 of the enactment approves the Free Trade Agreement and the related agreements and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the agreements and the power of the Governor in Council to make orders for carrying out the provisions of the enactment.

Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement and the related agreement on labour cooperation entered into between Canada and the Republic of Honduras.

Part 3 of the enactment contains coordinating amendments and the coming into force provision.

US - Commerce amends request for ITACs nominations

On August 29, 2014, the International Trade Administration, Department of Commerce published in the Federal Register an amendment to its Request for Nominations for the Industry Trade Advisory Committees (ITACs) of February 24, 2014 (79 Fed. Reg. 10099) to revise the eligibility criteria to permit federally-registered lobbyists to apply for membership on the ITACs. The Department of Commerce and the Office of the U.S. Trade Representative (USTR) no longer maintain an eligibility restriction prohibiting federally-registered lobbyists from applying for appointment on the ITACs in light of a recent policy clarification that the eligibility restriction does not apply to advisory committee members who serve in a representative capacity. The Secretary of Commerce (the Secretary) and USTR will now consider nominations of federally-registered lobbyists for appointment on the 16 ITACs. All other eligibility criteria continue to apply.

The Industry Trade Advisory Committees are:

• (ITAC 1) Aerospace Equipment
• (ITAC 2) Automotive Equipment and Capital Goods
• (ITAC 3) Chemicals, Pharmaceuticals, Health/Science Products and Services
• (ITAC 4) Consumer Goods
• (ITAC 5) Distribution Services
• (ITAC 6) Energy and Energy Services
• (ITAC 7) Forest Products
• (ITAC 8) Information and Communications Technologies, Services, and Electronic Commerce
• (ITAC 9) Building Materials, Construction, and Nonferrous Metals
• (ITAC 10) Services and Finance Industries
• (ITAC 11) Small and Minority Business
• (ITAC 12) Steel
• (ITAC 13) Textiles and Clothing
• (ITAC 14) Customs Matters and Trade Facilitation
• (ITAC 15) Intellectual Property Rights
• (ITAC 16) Standards and Technical Trade Barriers

Nominations will be accepted for current vacancies and those that occur throughout the remainder of the charter term, which expires on February 14, 2018. Appointments will be made on a rolling basis. For that reason, nominations will be accepted through February 14, 2018.

US - BIS seeks comments on potential market impact of the proposed FY2016 Annual Materials Plan
On August 29, 2014, the Bureau of Industry and Security, Commerce (BIS) published in the Federal Register a notice of inquiry [Docket No. 140818678–4678–01] advising the public that the National Defense Stockpile Market Impact Committee, co-chaired by the Departments of Commerce and State, is seeking public comments on the potential market impact of the proposed Fiscal Year 2016 National Defense Stockpile Annual Materials Plan. The role of the Market Impact Committee is to advise the National Defense Stockpile Manager on the projected domestic and foreign economic effects of all acquisitions and disposals involving the stockpile and related material research and development projects. Public comments are an important element of the Committee’s market impact review process. To be considered, written comments must be received by September 29, 2014.
US - BIS updates legal authorities
On August 29, 2014, the Bureau of Industry and Security, Commerce (BIS) published in the Federal Register a final rule [Docket No. 140812660–4660–01] that updates the Code of Federal Regulations (C.F.R.) legal authority paragraphs in the Export Administration Regulations (EAR) to cite the most recent Presidential notice (Notice of August 7, 2014, 79 Fed. Reg. 46959 (August 11, 2014)) extending an emergency declared pursuant to the International Emergency Economic Powers Act. This is a procedural rule that only updates authority paragraphs of the EAR. It does not alter any right, obligation or prohibition that applies to any person under the EAR.
New Zealand - Voluntary arms broker register
The Ministry of Foreign Affairs and Trade (MFAT) is currently working to implement the requirement in the UN Arms Trade Treaty that New Zealand regulates arms brokering taking place under its jurisdiction.

The intention is for legislative controls to be introduced and passed by Parliament in 2015. As a first step, MFAT is calling for any person or entity based in New Zealand that is, has or intends to undertake, arms brokering to voluntarily register with them.

You can find out more details about what constitutes arms brokering and of the new registration process on the MFAT website.

Those that register will be kept informed of the development of legislative brokering controls in New Zealand.
ASEAN members sign Protocol to AANZFTA
The New Zealand Customs Service E-Newsletter (Issue 271, 29 August 2014) announced that AANZFTA member countries have signed a Protocol which will amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).

The amendments are designed to make AANZFTA more business-friendly, transparent, and improve administrative efficiency. The protocol does not change any of the preferences under the Agreement.

AANZFTA parties are working through the implementation requirements, which are likely to include minor changes to the Certificate of Origin and/or overleaf notes. Information on any proposed changes will be provided at a later date.
US - State provides certain temporary sanctions relief

On August 28, 2014, the Department of State published in the Federal Register a notice [Public Notice 8855] renewing temporary waivers of certain sanctions to allow for a discrete range of transactions related to the provision of satellite connectivity services to the Islamic Republic of Iran Broadcasting (IRIB). The U.S. Government (USG) is renewing these waivers based on Iran’s commitment to ensure that harmful uplink satellite interference does not emanate from its territory, and verification by the USG that harmful uplink satellite interference is not currently emanating from the territory of Iran. The following are waived:

1. Section 1244(c)(1) of the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) 1 to the extent required for:

a. Transactions involving the provision of ground connectivity services using earth stations and fiber optic connections outside of Iran and the provision and management of satellite capacity for sale or resale to the IRIB, where such ground connectivity services and satellite capacity are to be used for the provision to Iran of public international telecommunications services, and

b. transactions involving the provision of the following related administrative services to, or for the benefit of, the IRIB, to the extent such services are necessary to establish and maintain ground and satellite connectivity with IRIB: Standard operational support, including coordinating with in-country personnel on matters such as configuring ground and earth station equipment to access space segment capacity; marketing services; billing services; and legal services, and excluding any transactions involving persons other than the IRIB on the SDN List.

2. Section 1246(a) of IFCA 2 to the extent required for the provision of underwriting services or insurance or reinsurance for:

a. Transactions involving the provision of ground connectivity services using earth stations and fiber optic connections outside of Iran and the provision and management of satellite capacity for sale or resale to the IRIB, where such ground connectivity services and satellite capacity are to be used for the provision to Iran of public international telecommunications services, and excluding any transactions involving persons other than the IRIB on the SDN List; and

b. transactions involving the provision of the following related administrative services to, or for the benefit of, Iran, to the extent such services are necessary to establish and maintain ground and satellite connectivity with IRIB: Standard operational support, including coordinating with in-country personnel on matters such as configuring ground and earth station equipment to access space segment capacity; marketing services; billing services; and legal services, and excluding any transactions involving persons other than the IRIB on the SDN List.

3. Section 1247(a) of IFCA 3 to the extent required for transactions by foreign financial institutions on behalf of IRIB involving:

a. The provision of ground connectivity services using earth stations and fiber optic connections outside of Iran and the provision and management of satellite capacity for sale or resale to the IRIB, where such ground connectivity services and satellite capacity are to be used for the provision to Iran of public international telecommunications services, and for associated services, and

b. transactions involving the provision of the following related administrative services to, or for the benefit of, Iran, to the extent such services are necessary to establish and maintain ground and satellite connectivity with IRIB: Standard operational support, including coordinating with in-country personnel on matters such as configuring ground and earth station equipment to access space segment capacity; marketing services; billing services; and legal services.

Switzerland - Federal Council decides on further measures to prevent the circumvention of international sanctions

On 27 August 2014, the Swiss Government announced that in view of the situation in Ukraine, the Federal Council has decided to take further measures to prevent the circumvention of international sanctions. It has amended the Ordinance of 2 April 2014 on measures to prevent the circumvention of international sanctions in relation to the situation in Ukraine to include the sanctions imposed by the EU in July. The revised ordinance enters into force at 6 pm on 27 August 2014. The announcement states:

During its discussions on the situation in Ukraine of 13 August 2014, the Federal Council decided to widen its current policy and to take all the measures required to ensure that the most recent sanctions imposed by the European Union cannot be circumvented via Swiss territory. Today [27 August] the Federal Council decided on the necessary measures.

In the field of finance, issues of long term financial instruments by five Russian banks will be made subject to authorisation. In future, authorisation for new issues will only be granted if they are within the average financial engagement of the past three years. The subsidiaries of these Russian banks in Switzerland are exempt from the authorisation requirement as long as they are not acting on behalf of, or on the instructions of their parent companies. The EU's restrictive measures also allow a similar exemption for subsidiaries of the Russian banks in question on its territory. Secondary trading in financial instruments newly issued outside Switzerland and the EU will be subject to a duty to notify. Eleven names have been added to the existing list of natural persons and businesses with whom financial intermediaries are prohibited from entering into new business relationships and whose existing business relations are subject to a duty to notify.

With regard to specific military goods and dual-use goods subject to licence, the Federal Council decided to add a further criterion for rejecting the application for an export licence to the existing list of criteria in goods control legislation. An application may now be refused if goods are intended to be used exclusively or partially for military purposes, or if they are intended for a military end user. With regard to war material, the Federal Council decided that a ban on imports of such goods from Russia and Ukraine should apply. The Federal Council also decided to introduce a duty to notify for exports of certain goods used in the extraction of oil in deep sea, Arctic or shale gas projects in Russia.

As a result of Switzerland's decision not to recognise the annexation of Crimea by Russia constituing a breach of international law, the Federal Council has imposed a ban on imports and a ban on exports of certain key goods used in the extraction of oil and gas, as well as restrictions on investments for Crimea and Sevastopol.

The Federal Council has acknowledged the measures taken by Russia in respect of agricultural goods. It stresses that Switzerland is not engaged in any state measures to promote additional Swiss exports to Russia.

The announcement states that the Federal Council continues to monitor the situation in Ukraine closely and reserves the right to take further measures depending on how the situation develops.

Spain publishes regulations on the control of foreign trade in defense materials, and dual-use materials, products and technology
On 26 August 2014, the Boletín Oficial del Estado (the Official Journal) published Royal Decree 679/2014 of 1 August 2014, approving the Regulation on the control of foreign trade in defense materials, and dual-use materials, products and technology. The Regulation implements Law 53/2007 of 28 December 2007.

The Regulation sets the conditions, requirements and procedures for exercising the control function of foreign trade in defense material, and dual-use materials, products and technologies, in order to duly comply with the regulations of the European Union, Spain’s international commitments and contribute to promoting peace, stability and security in the global or regional level protect the general interests of national defense and foreign policy of the state.

In order to provide a single text containing regulations on the control of foreign trade for these products, the Royal Decree consolidates the provisions adopted in the Regulation controlling foreign trade in defense material, dual-use material, products and technologies approved by Royal Decree 2061/2008 of 12 December, with the changes made to it by the Royal Decree 844/2011 of 17 June. In addition, it regulates transfers in foreign trade of defense material, dual-use materials, products and technologies, which have been incorporated and developed as required by European legislation and includes updated commitments made in international forums in which Spain participates, without prejudice to the requirement of administrative authorization, derived from the general regulations on arms transfers that are not controlled by this Royal Decree.

The Regulation extends recordkeeping from four to ten years, simplifies some customs procedures, incorporates the Common Military List of the European Union (adopted by the Council on 17 March 2014), simplifies the licensing process, adds references to the Treaty on Arms Trade, revises the requirements for control documents for civilian firearms use and limits exports to certain uses for certain destinations. In addition, it consolidates processing under the regulation in the General Directorate for International Trade in Defence and Dual-Use.
EU - Commission adopts strategy and action plan for better customs risk management

On 21 August 2014, the European Commission announced that it had adopted a new strategy to improve customs risk management, together with a detailed action plan. The new strategy seeks to ensure that customs is more coherent, efficient and cost effective in identifying and supervising supply chain risks, in a way that reflects today's realities. The action plan sets out specific measures to achieve this, together with the actors responsible and clear deadlines for doing so.

The new strategy identifies the key priorities where action is needed in order to achieve more effective and efficient EU-wide customs risk management. Each of these priorities is then developed, in the accompanying action plan, in terms of actions to be taken and deliverables to be achieved. The Commission, Member States and economic operators all have important and clearly defined roles to play in ensuring the successful implementation of the new strategy.

The main priorities in the strategy to improve customs risk management are:

• Efficient controls and risk-mitigation. Different types of risk require different responses. For example, the risk of a bomb or infectious disease needs to be dealt with before the shipment is even loaded for transportation in a third country, whereas financial misdemeanours can be addressed through post-clearance audits. To maximise the efficient use of resources, controls have to be performed at the right place and time in the supply chain, and information should be shared more effectively between customs authorities. This will help avoid duplication of controls.

• Data quality. In order to ensure that customs have high-quality, timely information on goods entering and leaving the EU, adjustments need to be made to certain legal, procedural and IT systems. These adjustments (e.g. to the IT systems that process entry summary declarations (ENS)) should be implemented in a way which does not create undue costs for businesses or public authorities.

• Information sharing. To ensure customs authorities can effectively analyse and mitigate risks, mechanisms should be put in place to improve the availability of data and the sharing of risk-relevant information amongst customs authorities throughout the entire control process.

• Interagency cooperation. Customs should also work closely with other law enforcement authorities. Common risk criteria and improved information sharing would allow the various authorities tackling supply chain risk to support and complement each other's work.

• Cooperation with traders. The partnership between customs and reliable traders should be further developed, including through the promotion of the EU Authorised Economic Operator (AEO) programme, in particular through broader recognition by non-customs authorities.

• Capacity building. To ensure that all customs authorities implement risk management to a high standard across the EU, divergences between Member States should be identified and addressed. EU level support could be given to help address weaknesses, including possible further capacities at EU and Member State level where needed, and cooperation between national customs authorities should be further enhanced.

• International customs cooperation. The EU should remain active in helping to set global standards in international fora, and should work to implement and promote these common norms amongst international trading partners.

An amendment of the EU Customs Code in 2005 provided for the development of common rules for customs risk management (see IP/05/209). This common framework sets out common criteria to identify risks, common conditions for trusted traders, and pre-arrival/pre-departure security risk analysis based on electronically submitted cargo information. The strategy adopted today follows the identification of gaps in the current implementation of customs risk management and responds to the June 2013 EU Council of Ministers' call for measures to address the situation.

Japan to end Byrd Amendment retaliatory tariffs
On August 20, 2014, the Ministry of Finance announced that the retaliatory tariff measure consisting of an additional customs duty of 17.4% for 13 items of ball bearings or the like, which were imposed against products originating in the United States as a result of the so-called Byrd Amendment (Continued Dumping and Subsidy Offset Act), will end on August 31, 2014. These measures were originally imposed by “Cabinet Order on retaliatory tariffs imposed on ball bearings, etc.” Decree No. 289 August 17, 2005, because the WTO found they violated WTO agreements. The Byrd Amendment was repealed, but small residual payments continue to be made to eligible U.S. domestic producers for entries made prior to 2007.
US - USITC begins process to incorporate changes into HTS

On August 21, 2014, the U.S. International Trade Commission (ITC) announced that it has instituted Investigation No. 1205-11, Recommended Modifications in the Harmonized Tariff Schedule to Conform with Amendments to the Harmonized System Recommended by the World Customs Organization, and to Address Other Matters, pursuant to section 1205 of the Omnibus Trade and Competitiveness Act of 1988 (the 1988 Act) (19 U.S.C. § 3005), in order to recommend to the President modifications in the Harmonized Tariff Schedule of the United States (HTS).

International customs officials at the World Customs Organization (WCO) have agreed on 234 changes to the global system, International Convention on the Harmonized Commodity Description and Coding System (HS Convention), that categorizes products that are imported and exported around the world, and countries are beginning their individual processes to incorporate those changes into their own domestic product category systems.

The ITC is the federal agency charged with maintaining and updating the United States’ product category system, the HTS. The U.S. and other countries have until January 1, 2017, to incorporate the changes, but much work lies ahead, according to Jim Holbein, director of the ITC office that maintains the HTS. “The first step for importers and exporters is to become aware of the changes being made at the international level,” Holbein said. “If they believe they will be affected, they will want to stay on top of the process as it moves forward.”

The recommended modifications concern (1) the World Customs Organization’s (WCO) Recommendation of June 27, 2014 that Contracting Parties to the HS Convention modify their tariff schedules to conform with amendments to the Harmonized System expected to enter into force on January 1, 2017; and (2) whether one of the two HTS subheadings that apply to taro (also known as dasheens) should be deleted, and whether the HTS nomenclature for corned beef should be provided for under a superior subheading for cured meat of bovine animals.
The key dates are:

August 20, 2014: Posting of the WCO's Recommendation of June 27, 2014, on the Commission website.

December 2014 (actual date to be announced later): Posting of the Commission’s proposed recommendations on the Commission’s website.

February 2015 (actual date to be announced later): Deadline for interested Federal agencies and the public to file written views on the Commission’s proposed recommendations.

July 2015 (actual date to be announced later): Transmittal of the Commission’s report to the President.

US - Census clarifies uses for electronic export information
On August 22, 2014, the Bureau of the Census, Commerce Department (Census) published in the Federal Register an interim final rule [Docket Number: 140626542-4542-01] amending its Foreign Trade Regulations to reflect changes related to the implementation of the International Trade Data System (ITDS) and subsequent changes to the access of electronic export information (EEI), the information previously provided on a Shipper’s Export Declaration. The ITDS was established to eliminate redundant information requirements, efficiently regulate the flow of commerce and to effectively enforce laws and regulations relating to international trade by establishing a single portal system for the collection and distribution of standard electronic import and export data required by all participating federal agencies. Therefore, the Automated Export System (AES) will include export information collected under other federal agencies’ authority, which is subject to those agencies’ disclosure mandates. This rule clarifies the confidentiality provisions of the EEI and facilitates the legitimate sharing of export data consistent with the goals for the ITDS. The interim rule entered into effect upon publication, but comments may be submitted on or before October 21, 2014.
Taiwan – Customs Tariff Law amended

On 20 August 2014, the Amendment of Customs Tariff Law adds Articles 20-1, 28-1, 83-1 and 87-1;and revises Articles 7, 10, 13, 20, 23, 59, 81, 83 and 93 (Publication № 7154) was enacted. It went into effect on 22 August 2014. The Legislative Yuan has prepared the following summary:

The amendment of 20 August 2014 applies to the Customs Tariff Law. The essential points are:
1) To add that the untaxed goods carried by transports referred to in the preceding paragraph forwarded individually by registered freight forwarders under Customs' approval in case deficiencies found due to illegal withdrawal, loss, theft or any other reason, the said forwarders shall be responsible to make up any shortfall of the import duty payable (Article 7)
2) To respond accordingly to addition of Article 21-1 hereby to revise related provisions; meanwhile, to deal with technical correction and revise wordings (Articles 10, 13, 20,23 and 93)
3) To specify that the responsible person of any transportation means for passengers or cargo, or the transportation firm which is entrusted by such responsible person, shall fill out cargo manifest, passengers and service crew list in order to report to Customs upon the arrival of the transportation means or prior to its departure abroad (Article 20)
4) To specify that where cargo carried by transportation means referred to in the preceding paragraph and forwarded by registered freight forwarders under Custom' approval, its manifest may be declared by the said forwarders to Customs (Article 20-1)
5) To specify that Customs may seal bonded cargo transportation means as well as shipping containers loaded on discharging and storage wharf; furthermore, to define the term of “seal” referred to under this Law (Article 28-1)
6) To add that self-use machineries or equipment imported by bonded factories shall be exempt from customs duty (Article 59)
7) To add and revise penalties imposed for violating this Law. (Articles 81, 83, 83-1 and 87-1)(13 provisions, p.5-10)

Iceland - Detailed regulations issued for monitoring articles and services with strategic importance
On 20 August 2014, the Official Journal (Stjórnartíðinda) published the 311 page Regulation № 758/2014 (of 18 July 2014) for monitoring services and items that may have strategic significance with schedules. The Regulations are more detailed provisions on the implementation of Act № 58/2010 on the control of services and items that may have strategic significance. The regulation includes provisions for the control of dual applicability, defense-related goods and sharing their compliance with international commitments. Dual-use goods are addressed.

The Regulation provides that no person shall export military equipment or dual usability without the permission of the Minister, except that a police chief, may issue a license for the export of the weapons under the Weapons Act, after consultation with the Foreign Ministry. The Regulation further provides for the implementation by regulation of export licenses by the types of countries.

The Ministry of Foreign Affairs will maintain a register of entities authorized to export military goods. Before an exporter uses a general export license for dual applicability, he shall register with the Ministry of Foreign Affairs.

The Regulation adopts various EU export controls (with adjustments) and prohibits the importation, without the permission of the Minister, of articles that may be used, in whole or in part, in connection with the development, production, handling, operation, maintenance, storage, detection, identification or dissemination of chemical, biological or nuclear weapons or other nuclear explosive devices or the development, production, maintenance or storage of missiles capable of delivering such weapons.
Russia eases ban on some agricultural materials
On 20 August 2014, the Ministry of Agriculture announced the issuance of Постановление (Resolution) № 830, which modifies the list of agricultural raw materials and foodstuffs originating in the United States, European Union, Canada, Australia and Norway that were prohibited (pursuant to Res. № 778 of 7 August 2014 and Decree № 560 of 6 August 2014) from being imported into Russia for a period of one year. The list excludes separate headings for which there are insufficient domestic counterparts to the imported products used in the production of important food products or groups to ensure the priorities of agricultural production. The following are specifically excluded from the prohibition: seed (potatoes, peas, sweet corn hybrid, onion), dietary supplements, vitamins and minerals designed to compensate for the lack of vitamins and minerals in the human body, flavors, concentrates proteins and their mixtures, food fiber supplements and lactose-free dairy products.

The list also excludes certain fish, Atlantic salmon and trout, of which domestic production can cover no more than 5% of the existing requirements from commercial fisheries.
APEC moving forward on trade facilitation

On 18 August 2014, the Asia-Pacific Economic Cooperation (APEC) announced that APEC economies are pressing ahead with efforts to accelerate trade and economic growth through the elimination of costly delays to the flow of goods as they cross international borders, undeterred by the unexpected challenge to implementation of the Agreement on Trade Facilitation now facing members of the World Trade Organization.

Senior customs and trade officials from the APEC region are currently meeting in Beijing for the first time since WTO members failed to enact a protocol on 31 July required to proceed with adoption of the agreement that would ease trade bottlenecks through greater simplification of customs rules and processes.

“The setback to the agreement is disappointing but APEC’s work on trade facilitation goes on,” echoed John Larkin, Chair of the APEC Committee on Trade and Investment, the central working-level body within APEC for advancing these issues. “Many elements of the agreement like single windows, authorized economic operators and the move from paper-based to electronic processes are objectives that APEC economies have long championed. We’re working to ensure that we take full advantage of them.”

Further details on cooperation within APEC on trade facilitation can be viewed here.

US - BIS posts Guidelines for preparing export license applications involving foreign nationals
The Bureau of Industry and Security, Commerce (BIS), has prepared and posted Guidelines for Preparing Export License Applications Involving Foreign Nationals (Guidelines). The Guidelines are for exporters to use in submitting license applications for foreign nationals pursuant to the “deemed export” rule.

Section 734.2(b)(ii) of the Export Administration Regulations (EAR) defines “export” to include a release of technology or software to a foreign national and considers such release to be a “deemed export” to the home country of the foreign national. Licenses are required for release of controlled technology or software to a foreign national only if a license is required for the export of such items to the home country. License applications, when submitted, are reviewed by BIS under the licensing policies that apply to the actual export of the technology or software in question to the country of the foreign national.

The “deemed export” rule is most often encountered in the employment context where a company will release controlled technology or software to a foreign national. The Guidelines are designed for the employment situation, and may not be fully applicable to license applications submitted for releases to foreign nationals in other contexts. It is important to note that the “deemed export” rule does not apply to the release to persons lawfully admitted for permanent residence in the United States, and does not apply to persons who are “protected individuals” under the Immigration and Naturalization Act (8 U.S.C. 1324b(a)(3)).

The basis guidance for filling out license applications is set forth in Part 748 of the EAR. The posted Guidelines supplement the basic guidance and are intended to facilitate processing of applications involving the “deemed export” rule. BIS encourages companies to follow the Guidelines to assist BIS in processing license application more efficiently. Due to regulatory time limits for processing license applications, it is in the interest of each exporter to provide all information needed to analyze the transaction when the application is submitted.

Applications under the “deemed export” rule should include the basic information included in the Form BIS-748P (Guidelines Section II), a letter of explanation (Guidelines Section III A), and a resume (Guidelines Section III B).
US - OFAC publishes Iran General License G
On August 19, 2014, the Office of Foreign Assets Control (OFAC) published in the Federal Register a document publishing Iran General License G. On March 19, 2014, OFAC issued General License G authorizing certain academic exchanges between U.S. academic institutions and Iranian universities and the exportation or importation of certain educational services. On March 20, 2014, OFAC made General License G available on the OFAC website.
Norway adopts restrictive measures against Russia

On 15 August 2014, the Ministry of Foreign Affairs (MFA) announced that the Government adopted new restrictive measures against Russia, in line with the decision announced on 11 August, because of the situation in Ukraine. The new regulations, Regulations concerning restrictive measures regarding actions that undermine or threaten Ukraine's territorial integrity, sovereignty, independence and stability (FOR 2014-08-15-1076), which are in line with those of the EU, were adopted by the King in Council, and entered into force immediately.

The Government said it will maintain a close dialogue with the business community to assess the consequences of the measures for the various sectors affected. The MFA has opened a service telephone line for Norwegian companies affected by the new restrictive measures.

The main points of the regulations are:

• An extension of the list of individuals and entities that are subject to asset-freeze measures and travel restrictions to include a further 8 people and 12 entities, and an expansion of the criteria for inclusion on the list.
• A ban on imports from Crimea and Sevastopol, and for the same area, a ban on the issuing of loans or other forms of credit for the development of infrastructure in the transport, telecommunications and energy sectors, a ban on the issuing of loans or other forms of credit for the exploitation of oil, gas or mineral resources, and a ban on the sale or export of key equipment or technology to these sectors.
• A ban on the import and export of arms and defence-related products (List I) to and from Russia and the export of dual-use items and technology (List II) for military end-use in Russia.
• A ban on the purchase or sale of new bonds, equity or similar financial instruments with a maturity exceeding 90 days issued by five listed Russian financial institutions.
• Prior authorisation from the Ministry of Foreign Affairs will be required for the export of certain categories of goods to the Russian petroleum sector. The export of products to be used for deep-water oil exploration and production, Arctic oil exploration and production, or in shale oil projects in Russia is prohibited. Prior authorisation is also required for the provision of financing or other technical assistance related to these categories of goods. Authorisation can and will normally be given for the export of products if this is to honour obligations under contracts agreed prior to the entry into force of the new regulations.

The MFA is responsible for processing applications for export licences.

The MFA said that the measures implemented by the regulations leave room for discretion. In applying the regulations, the MFA will take into consideration other Norwegian legislation and relevant guidelines and experience relating to the sectors covered by the regulations. This applies in particular to the rules for the export of products etc. relating to the petroleum sector. Once the rules have entered into force, they will be further developed on the basis of their application in practice and any new guidelines.

Connect With Us
Topics
Resources

Newsletter Archives

Webinar Recordings

Alerts and Publications







Chair, NA International
Commercial Practice Group

Miguel Noyola
Partner, Chicago
Email: Miguel Noyola
T + 1 312 861 7589


Members, US International
Trade Compliance Steering Committee


Janet K. Kim
Partner, Washington DC
Email: Janet Kim
T + 1 202 835 1653

John F. McKenzie
Partner, San Francisco
Email: John McKenzie
T + 1 415 576 3033

Ted Murphy
Partner, Washington DC
Email: Ted Murphy
T + 1 202 452 7069


Editor, International Trade
Compliance Update


Stuart P. Seidel
Partner, Washington DC
Email: Stuart Seidel
T + 1 202 452 7088