Hena Schommer

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Today, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) is publishing a new set of regulations tightening export controls on China, Russia and Venezuela (the new “Rule”).  The new Rule will take effect on June 29, 2020, and will apply to goods, software and technology subject to U.S. export controls jurisdiction – it will not be limited to U.S. persons.

The most significant parts of this new Rule will increase the licensing requirements and due diligence expectations that apply to trade with China, Russia and Venezuela under the U.S. Export Administration Regulations (“EAR”) when “military end users” or “military end uses” are involved.  However, in light of the way these terms are defined, industry should note that the impact of this new Rule will extend into many areas of commercial technology and trade with these countries, beyond the defense sector.

In two additional rulemakings published today, BIS is removing one license exception under the EAR (CIV) and proposing to modify another EAR license exception (APR).…

Continue Reading Commerce Issues Long-Awaited Export Control Rules for China, Russia and Venezuela

Exporters, non-governmental organizations, financial institutions, and individuals that are subject to US jurisdiction may require a license from the US Treasury Department’s Office of Foreign Assets Control (OFAC) to support COVID-19 relief efforts in territories subject to comprehensive US sanctions (e.g., Crimea, Cuba, Iran, North Korea, Syria) and territories whose governments are subject to stringent…

Click here to read the full Client Advisory by Steptoe.

What can we learn from recent SDN designations by the US Office of Foreign Assets Control (OFAC) on multinationals such as subsidiaries of COSCO and Rosneft Trading S.A.?

OFAC has shown a willingness to impose, then lift, sanctions on major companies that play an…

Click here to read the full Client Advisory by Steptoe.

On January 23, 2020, Transparency International published its 2019 Corruption Perceptions Index (CPI),  which measures perceptions of public sector corruption in 180 countries. Viewed together with the 2019 TRACE Bribery Risk Matrix,  which also includes private sector corruption, the Asia Pacific (APAC)…

Click here to read the full Client Advisory by Steptoe.

Of the record-breaking USD 2.9 billion in fines imposed by US authorities in 2019 for violations of the Foreign Corrupt Practices Act (FCPA), almost 95% involved Asia Pacific, primarily China and India, but also Indonesia, Vietnam, Thailand, and South Korea.

This year, the US…

Click here to read the full Client Advisory by Steptoe.

In December 2019, the US Department of Justice (DOJ) announced a revised policy regarding voluntary disclosure of export control and sanctions violations by business organizations (VSD Policy). The VSD Policy encourages business organizations – which now include financial institutions – to self-disclose “all…

On December 26 the State Department will publish a long-awaited rule amending the International Traffic in Arms Regulations (ITAR) by providing a definition of activities that are not exports, reexports, retransfers, or temporary imports at 22 CFR section 120.54. Notably, this definition provides much-needed guidance on whether and under what circumstances end-to-end encrypted technical data is controlled under the ITAR. Published as an interim final rule, the State Department will accept comments through January 25, 2020, which could result in additional changes. However, the effective date of the interim final rule is set to be March 25, 2020, ninety days after publication in the Federal Register.

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Continue Reading State Department publishes long-awaited ITAR rule on encryption and other excluded activities