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Trade Sanctions

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Effective May 20, 2019, the US Commerce Department’s Bureau of Industry and Security (BIS) issued a final rule creating a 90-day Temporary General License (TGL) authorizing certain transactions involving the export, reexport, and transfer of items subject to the Export Administration Regulations (EAR) to Chinese-headquartered Huawei Technologies Co. Ltd. (“Huawei”) and its sixty-eight non-US affiliates, which were added to the BIS Entity List effective May 16, 2019 (the “Entity List designation”). The TGL will be effective through August 19,…

On May 8, 2019, President Trump issued Executive Order 13871 (the “Iran Metals EO”) imposing sanctions on the iron, steel, aluminum, and cooper sectors of Iran subject to a 90-day wind-down period that will expire on August 6, 2019. Although the sale, supply or transfer to/from Iran of steel and aluminum is already targeted by Section 1245 of the Iran Freedom and Counter-Proliferation Act of 2012, the Iran Metals EO expands upon those sanctions and further targets…

The High Representative of the European Union and the Foreign Ministers of France, Germany and the United Kingdom released a joint statement today (see here for the full statement) following Iran’s announcement yesterday that it would withdraw from certain commitments as agreed as part of the 2015 nuclear agreement (see our post here on this). The statement urged Iran to continue to implement its commitments under the nuclear agreement, stating that Iran’s compliance would be…

President Hassan Rouhani has announced that Iran will withdraw from certain commitments agreed in the 2015 nuclear agreement; this announcement comes a year after the agreement was abandoned by the US, leading to the re-imposition of US sanctions against Iran. In his 8 May 2019 announcement, Hassan Rouhani declared that Iran will stop exporting its surplus enriched uranium. This decision is contrary to the agreement, under which Iran is required to sell its surplus enriched…

On May 14, 2019, the Bureau of Industry and Security (BIS) published in the Federal Register a final rule [Docket No. 181219999-8999-01] that amends the Export Administration Regulations (EAR) by adding twelve entities, under a total of sixteen entries, to the Entity List. These twelve entities have been determined by the US Government to be acting contrary to the national security or foreign policy interests of the United States and will be listed on the…

On May 2, 2019, the US Office of Foreign Assets Control (OFAC) published A Framework for OFAC Compliance Commitments (the “Framework”). This long-awaited document sets out OFAC’s expectations for effective sanctions compliance programs (SCPs). While the broad elements of the Framework should be familiar to seasoned compliance practitioners, the details highlight the specific significance that OFAC attaches to SCPs in resolving enforcement actions. Indeed, we are already seeing OFAC settlements conditioned on compliance enhancements reflected in the…

On April 30, 2019, the Department of Defense, Defense Acquisition Regulations System, published in the Federal Register an interim rule [Docket DARS-2019-0016] amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2019 that prohibits acquisition of certain magnets and tungsten from North Korea, China, Russia, and Iran.

On April 29, 2019, the Office of Foreign Assets Control (OFAC) published in the Federal Register a final rule adding regulations to implement Executive Order 13848 of September 12, 2018. OFAC is issuing the Foreign Interference in U.S. Elections Sanctions Regulations, 31 C.F.R. part 579 (the “Regulations”), to implement E.O. 13848, pursuant to authorities delegated to the Secretary of the Treasury in E.O. 13848.