The Treasury’s Office of Foreign Assets Control sanctioned three people involved in money laundering in Lebanon and the Democratic Republic of the Congo as well as 17 entities and one vessel, Treasury said in a Dec. 13 press release. OFAC also issued three new counterterrorism-related frequently asked questions.
A Texas aviation consultant violated U.S. terrorism sanctions when it entered into a contract with Mahan Air, Iran’s sanctioned airline, the Treasury’s Office of Foreign Assets Control said in a Dec. 12 notice. The company, Aero Sky Aircraft Maintenance, was issued a finding of violation by OFAC after it violated U.S. Global Terrorism Sanctions Regulations in 2016 for “dealing in the property and interests in property” of Mahan Air, the notice said. Aero Sky eventually filed for bankruptcy and dissolved, Treasury said. OFAC released details of the violations because they would have “justified a strong civil monetary penalty.”
BOSTON -- If the Commerce Department follows through on plans to expand the limits of the Export Administration Regulations to further control foreign shipments to Huawei, it will have a “dramatic” impact on international supply chains, said Kevin Wolf, a trade lawyer with Akin Gump and Commerce’s former assistant secretary for export administration. The measures, which Commerce confirmed it was considering earlier this month (see 1912100033), include expanding the Direct Product Rule and broadening the de minimis rule to make more foreign-made goods subject to the EAR.
With the last round of consumer goods imported from China spared, and a reduction in Section 301 tariffs on about $120 billion in goods that were first subject to additional tariffs Sept. 1, some business interests welcomed the de-escalation, but warned that the U.S. should stay focused on more significant economic reforms in China. The tariffs on List 4a, which are at 15 percent and apply to about 3,800 8-digit tariff lines, will go to 7.5 percent.
BOSTON -- The Commerce Department is preparing six initial proposed rules to control exports of emerging technologies and hopes to release at least one before the end of the year, said Karen Nies-Vogel, the director of the Bureau of Industry and Security’s Office of Exporter Services, speaking during a Dec. 13 event hosted by the Massachusetts Export Center. A Commerce official said during a technical advisory committee meeting earlier this month that the agency is working on at least three rules (see 1912100019). While Commerce officials have said the technologies would be published this year (see 1910290062), delays have caused the publication to be pushed back.
Sidley Austin promoted Barbara Broussard to partner in the firm's Washington office, it said in a news release. Broussard works on “international trade compliance, specifically customs and economic sanctions, and has particular experience in reviewing international trade transactions,” according to her bio.
The State Department announced sanctions on three Iranian entities linked to weapons proliferation and eight entities involved in weapons smuggling from Iran to Yemen, the agency said Dec. 11. The announcement targets the Islamic Republic of Iran Shipping Lines (IRISL), its China-based subsidiary, E-Sail Shipping Company, and the Iranian airline Mahan Air. The Treasury’s Office of Foreign Assets Control previously sanctioned E-Sail in 2018, Mahan Air in 2011 and IRISL in 2008.
The Treasury’s Office of Foreign Assets Control sanctioned the son of Nicaraguan President Daniel Ortega and three Nicaraguan companies owned by the Ortega family, Treasury said in a Dec 12 press release. The action targets Rafael Antonio Ortega Murillo and two companies he operates -- Inversiones Zanzibar, S.A. and Servicio De Proteccion Y Vigilancia, S.A. -- as well as Distribuidor Nicaraguense de Petroleo, S.A., a chain of gas stations controlled by the Ortega family. Inversiones Zanzibar is used to transfer and hide profits from Distribuidor Nicaraguense, Treasury said. Servicio De Proteccion Y Vigilancia is a security firm that has received “millions” in government contracts, the press release said.
The Treasury’s Office of Foreign Assets Control issued two Iran-related frequently asked questions to address its Dec. 11 designations of the Islamic Republic of Iran Shipping Lines (IRISL) and E-Sail Shipping Limited (see 1912110024). In FAQ 810, OFAC said the two entities are also subject to prohibitions under the Weapons of Mass Destruction Proliferators Sanctions Regulations due to their designation by the State Department. In FAQ 811, OFAC specified that license exceptions for exports of food, medicine and other humanitarian items generally do not apply to parties sanctioned for weapons proliferation activities. U.S. exporters will not be able to ship “agricultural commodities, food, medicine, or medical devices” to IRISL and E-Sail, OFAC said. Exporters who ship those items “risk exposure to sanctions under additional authorities.” To avoid risks, U.S. exporters should make sure sales of those goods are completed no later than June 8, 2020, when the designations take effect, OFAC said.
A Hong Kong-based appliance maker said its subsidiary may have violated U.S. sanctions, according to its global offering released Dec. 9. JS Global Lifestyle Company said its subsidiary, U.S.-based SharkNinja Operating LLC, “engaged in a wire transfer” for a shipment on an Iran-flagged ship operated by the Islamic Republic of Iran Shipping Line, the company said. The transfer may be deemed a violation of the Iranian Transactions and Sanctions regulations and the company may be subject to a civil monetary penalty. The company said it is “committed to ensuring our compliances with relevant economic sanctions laws” and preventing a future violation, but said it will not “always be able to do so, for factors beyond our control or otherwise.”