The U.S. sanctioned 20 people and entities for supporting Syria’s Bashar al-Assad regime and issued a new general license and frequently asked question. The sanctions, announced by the Office of Foreign Assets Control and the State Department Sept. 30, target Assad regime officials, military officials, financiers and their businesses.
The Office of Foreign Assets Control released regulations Sept. 30 to implement a June executive order (see 2006110028) authorizing sanctions against the International Criminal Court. OFAC released the regulations in a final rule effective Oct. 1 in “abbreviated form” to provide “immediate guidance to the public.” The agency said it plans to soon publish a more “comprehensive set of regulations,” which may include guidance on definitions, general licenses and information on licensing policy.
The State Department issued the final version of its guidance on exports of surveillance technology (see 1909040071 and 1911060049), which includes definitions and guidance principles for companies to weigh before exporting sensitive items to potential human rights abusers. The Sept. 30 guidance expands on the agency’s initial definition of human rights due diligence and offers a range of red flags and due diligence considerations, but did not significantly narrow its definition for surveillance items, despite requests from industry.
The United Kingdom’s Office of Financial Sanctions Implementation on Sept. 28 released its quarterly report, covering Jan. 1 to March 31, 2020, on its sanctions regimes. The report contains OFSI’s sanctions statistics, including the number of accounts the agency has frozen, the total value of funds it has blocked, the number of new designations last quarter and other licensing statistics.
Two Iranian men were charged in a conspiracy to illegally export computer servers to Iran, the Justice Department said Sept. 28. Ebrahim Azadegan and Alireza Alvandi were charged with violating the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations when they allegedly tried to ship the servers without licenses. The servers are classified as dual-use goods under the Commerce Control List and are export controlled for anti-terrorism and national security reasons.
Export Compliance Daily is providing readers with the top stories for Sept. 21-25 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Multilateral export regimes need to be modernized to address new export and proliferation controls surrounding emerging technologies, technology proliferation experts said. While groups such as the Wassenaar Arrangement work well to control physical categories of items, they may overlook advancements in exports and other technology areas that could lead to proliferation of dual-use goods, the experts said.
The European Union announced new initiatives to support its Customs Union and tackle a rise in smuggling, fraud and other trade challenges faced by member states. The initiatives, part of the EU’s Sept. 28 Customs Union Action Plan, include measures to combat customs duty fraud, a rollout of modern customs equipment under the next EU budget and an EU-wide single customs portal.
The Commerce Department informed some U.S. chip companies they need export licenses before shipping certain items to Semiconductor Manufacturing International Corporation, China’s largest semiconductor maker, according to two people familiar with the situation. Commerce sent the information in a letter to companies last week, the people said, which effectively placed export controls on shipments to the Chinese company.
Three Democratic senators introduced a bill that would impose more restrictions on arms sales to protect against human rights violations. The bill -- introduced Sept. 24 by New Jersey's Bob Menendez, Vermont's Patrick Leahy and Virginia's Tim Kaine -- would amend the Arms Export Control Act by imposing more conditions before certain arms sales can be completed.