The International Chamber of Commerce recently issued an addendum to its guidance on the use of sanctions clauses, urging banks to refrain from using or accepting sanctions clauses that impose extra restrictions on a deal. Broad sanctions clauses “defeat the independence principle in letters of credit and demand guarantees, the exclusively documentary nature of the instrument, and create uncertainty,” the ICC said in the May addendum.
The State Department may introduce more measures to help industry mitigate the impacts of the COVID-19 pandemic, including more license extensions or fee reductions, an agency official said. The agency is considering more measures after lowering certain fees and extending licensing deadlines in April (see 2004240017), which was received positively by companies, said Mike Miller, the State Department’s deputy assistant secretary for defense trade.
The United Kingdom’s Export Control Joint Unit updated the list of companies approved to use the country’s open general trade control license for certain controlled goods, a June 9 notice said. The updated list includes more than 40 registered companies.
The U.S. officially designated the Islamic Republic of Iran Shipping Lines and its Shanghai-based subsidiary, E-Sail Shipping Company Ltd., a June 8 State Department news release said. State in December announced its intention to sanction both IRISL and E-Sail (see 1912120024), but the agency said it postponed those designations for six months to allow exporters of humanitarian goods to find alternative shipping methods when exporting to Iran. “Now that this generous delay has come to an end, those in the commercial and maritime industries doing business with Iran must use carriers or shipping methods other than IRISL or E-Sail,” State said.
Export Compliance Daily is providing readers with some of the top stories for June 1-5 in case you missed them.
A U.S. official again argued that the U.S. has the authority to invoke snapback sanctions under the Iran nuclear deal and threatened to impose them unless an international arms embargo against Iran is extended. Brian Hook, the U.S. special representative for Iran, said the U.S. will trigger a United Nations provision to reimpose a host of international sanctions against Iran if the arms embargo, set to expire in October, is not extended. Without the embargo, Iran could import a range of advanced military weapons from China and Russia, Hook said. “One way or another, we're going to accomplish this,” he said, speaking during a June 9 virtual talk hosted by the Heritage Foundation.
The U.S. technology industry is worried that upcoming trade restrictions could damage technological innovation and competitiveness, the Information Technology Industry Council said June 8. The U.S. should avoid imposing overboard restrictions in the name of national security, the group said, warning that export controls and other measures could harm the U.S. industrial base and lead to isolation.
The State Department is seeking comments on recent measures that allowed for temporary suspensions and exceptions to provisions in the International Traffic in Arms Regulations (see 2004240017), it said in a notice. The agency seeks feedback on the “efficacy” and impact of the measures on industry and whether it should extend the measures' expiration dates. The agency is also accepting comments on additional ITAR measures it can take to mitigate burdens caused by the COVID-19 pandemic. A State Department official recently said the agency is considering extending some measures, including allowing employees involved in ITAR-related activities to work remotely (see 2005080038). Comments are due June 25.
The U.S. is seeking to withdraw a case against a man convicted of violating U.S. sanctions on Iran (see 2003180019), according to court records filed June 5. U.S. prosecutors said the case should be dropped due to “disclosure-related issues” during the March trial, which would likely lead to “continued litigation about” suppression of evidence. “The Government has determined that it would not be in the interests of justice to further prosecute this case,” prosecutors said in a letter to the court.
The United Nations Security Council granted a one-year sanctions exemption to UNICEF for humanitarian shipments to North Korea, a June 3 Security Council letter said. The exemption will allow shipments “essential” for UNICEF’s programs in North Korea, including sanitation products, water and shipments related to “health” and “nutrition.” The exemption also authorizes shipments related to “the effective treatment of individuals admitted to hospitals.” The UNSC said it approved an extended one-year time frame for the exemption because of “challenges related to the manufacturing and shipment of goods” due to the COVID-19 pandemic.