A new interim final rule released by the Bureau of Industry and Security this week introduces a 50% ownership threshold rule for the Entity List and Military End-User List, a change that’s expected to drastically increase the number of companies subject to stringent export licensing restrictions. BIS also is adopting the rule, which it calls the “Affiliates rule,” for export transactions involving certain parties sanctioned by the Office of Foreign Assets Control, which BIS said will “align more closely” OFAC’s 50% rule with the new restrictions under the Export Administration Regulations.
The U.K.'s Office of Financial Sanctions Implementation issued a new general license last week that allows the government's revenue and customs agency to make certain payments to the frozen bank account of a person sanctioned under U.K. authorities. The revenue agency also may "set-off" the "amount of any Permitted Payment (as a credit) against any liability of the same UK [sanctioned person] to pay an amount to that Revenue Authority (as a debit)." The license took effect Sept. 26.
The Bureau of Industry and Security officially released a new regulation to introduce a 50% ownership threshold rule for parties on the Entity List and Military End-User List. The interim final rule, released and effective Sept. 29, will impose the same export license requirements as the parent company for any affiliate owned 50% or more by a party on the Entity List or Military End User List, similar to how sanctions are applied under the Office of Foreign Asset Control's 50% rule. The rule includes a 60-day temporary general license that “permits certain export, reexport, and transfer (in-country) transactions involving non-listed 50-percent or more owned foreign affiliates of parties on the Entity List or Military End-User List.” BIS is accepting public comments on the changes by Oct. 30.
The Bureau of Industry and Security has drafted and is preparing to soon publish an interim final rule that will introduce a 50% rule for parties on the Entity List and Military End-User List, according to a copy of the rule seen by Export Compliance Daily. The rule would impose the same export license requirements as the parent company for any affiliate owned 50% or more by an entity on those two lists, and it includes a 60-day temporary general license to authorize certain transactions with some non-listed entities before the new restrictions apply.
The Bureau of Industry and Security has removed certain export restrictions from aircraft belonging to Belavia, the state-owned flagship carrier of Belarus, as part of sanctions relief that the Trump administration has offered to the country in recent days.
The Office of Foreign Assets Control's new general license for Belavia Belarusian Airlines (see 2509110029), the state-owned flagship carrier of Belarus, was issued last week because Belarusian authorities recently released dozens of political prisoners, "demonstrating their desire to re-engage with the West," a State Department spokesperson said in an email Sept. 12.
The Office of Foreign Assets Control issued a new general license this week to authorize certain transactions with Belavia Belarusian Airlines, the state-owned flagship carrier of Belarus, which was sanctioned by the U.S. in 2023 (see 2308090025). General License No. 11 authorizes certain transactions with the airline -- and any entity it owns by 50% or more -- that would normally be prohibited by the Belarus Sanctions Regulations.
The U.S. this week sanctioned Al Haq, Al Mezan Center for Human Rights and the Palestinian Centre for Human Rights for aiding efforts by the International Criminal Court to investigate, arrest, detain or prosecute Israeli nationals for alleged human rights violations in Gaza.
The Bureau of Industry and Security will ease export controls on Syria Sept. 2 by creating a new license exception for the country, making it eligible for a broader set of existing exceptions and revising current BIS license review policies for Syria to “be more favorable.”
The Office of Foreign Assets Control is renewing a general license that authorizes certain imports of Russian non-industrial, unsorted diamonds that were substantially transformed outside of Russia. General License 104A, which replaces 104, authorizes those imports as long as the diamonds were located outside of Russia on March 1, 2024, for diamonds weighing 1 carat or more, and Sept. 1, 2024, if they weigh more than 0.5 carats but less than 1 carat. The license was set to expire Sept. 1 (see 2408230043), but it now expires on that date in 2026.