The Office of Foreign Assets Control on April 12 issued revised guidance for submitting certain license applications and for the agency’s Sudan sanctions program. In frequently asked questions 97 and 98, OFAC provided guidance for how exporters can submit license applications under the Trade Sanctions Reform and Export Enhancement Act of 2000 and what information should be included in those applications. In FAQ 500, OFAC clarified that exporters of humanitarian goods, including agricultural commodities and medicine, don’t need an OFAC license to ship to Sudan. In FAQ 836, the agency detailed which Sudanese sanctions were lifted as a result of the December 2020 U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015 and 2101140018). OFAC stressed that the revocation of the sanctions doesn’t affect agency enforcement investigations into violations that took place before the sanctions were revoked.
The Office of Foreign Assets Control issued guidance April 5 clarifying that it generally won’t pursue sanctions against humanitarian-related transactions or exports to Syria as long as the items wouldn’t normally require an OFAC license. The guidance was issued about a week after the U.S. committed to providing more humanitarian aid to respond to the Syria crisis.
The State Department will urge the Treasury Department to not renew a Belarus-related general license following the country’s disputed presidential elections last year and its violent crackdown on peaceful protester (see 2012230030), an agency spokesperson said. The general license, which has been renewed by the Office of Foreign Assets Control every year since 2015, authorizes certain transactions with nine Belarusian entities and is scheduled to expire April 26.
The Office of Foreign Assets Control sanctioned two more Myanmar entities, issued four new general licenses and published two new frequently asked questions to provide guidance on certain exempted transactions with Myanmar. The sanctions and guidance, issued March 25, came days after OFAC designated entities and officials associated with the country’s military-led coup last month (see 2103220036) and about three weeks after the Commerce Department increased export restrictions for shipments to Myanmar (see 2103040075).
The recent U.S. decision to increase sanctions and export controls on Russia, although largely narrow, could have significant implications for exporters doing business in Russia, law firms said. U.S. companies should pay close attention to new restrictions on certain controlled services and the potential impacts of the restrictions on disclosure and reporting requirements, the firms said.
Germany announced the extension of general permits for exports in a March 17 notice, according to an unofficial translation. General Licenses No. 12 to No. 14 and General Licenses No. 16 to No. 28 are extended to March 31, 2022. General License No. 15 was already deemed valid until the same date. The update also detailed information on General License No. 28 -- Franco-German cooperation on export controls in the arms sector derived from the Franco-German Treaty of Aachen of 2019. The agreement gives privileges to de minimis arms exports. Also, in relation to arms exports from Germany to France, registration for the General Approval must be completed before use of the permit, a preliminary procedure must be made in certain cases and the General License user must request a “declaration of integration” from a French regulator. The general license provision entered into force April 1, 2020.
The Bureau of Industry and Security denied export privileges for a German aircraft maintenance company and fined it more than $50,000 for procuring U.S. parts and components for a sanctioned Iranian airline. MSI Aircraft Maintenance Services International GmbH & Co. worked with Iran’s Mahan Airways (see 2011270001) to illegally export U.S.-origin reservoir and valve assemblies, which were controlled under the Export Administration Regulations, BIS said in a March 5 order. The agency said it will waive MSI’s three-year export denial if the company pays the fine, cooperates with BIS during a three-year probationary period and doesn’t commit any more EAR violations.
The U.S. sanctioned a host of Russian officials and agencies, will add 14 entities to the Entity List and will increase restrictions on exports of military-related goods to Russia in response to the poisoning and imprisonment of Russian opposition leader Alexei Navalny. The increased export controls will also remove certain license exceptions for shipments to Russia and will impose stricter license review policies for certain sensitive goods, the State Department said March 2.
Apple last week introduced a new ethics and compliance webpage, featuring a detailed outline of its trade compliance policies surrounding export controls and sanctions. A table of all Apple products provides their respective Export Control Classification Numbers and which destinations are blocked from receiving Apple products. The company said all its products qualify as mass market products and are subject to the Export Administration Regulations but are not controlled as dual-use goods by the Wassenaar Arrangement. Apple said some of its goods may be eligible for the Office of Foreign Assets Control’s Iranian General License No. D1 and Bureau of Industry and Security license exceptions related to Cuba. OFAC fined Apple about $465,000 in November 2019 after the company hosted, sold and helped transfer software applications and content belonging to a sanctioned company (see 1911250064).
An American animal pharmaceutical company may have violated U.S. sanctions after acquiring a company that illegally sold goods to Iran, Zoetis disclosed in a Feb. 16 Securities and Exchange Commission filing. Zoetis said it acquired Platinum Performance in August 2019 and soon discovered that Platinum had sold food, medicine or “devices” to people or entities with ties to Iran, adding that the sales were not approved by a Treasury Department general license. Zoetis submitted an initial voluntary disclosure to the Office of Foreign Assets Control in February 2020 while it conducted an internal investigation, and in December 2020 submitted a final disclosure to both OFAC and the Justice Department. The agencies have said they don't comment on ongoing investigations.