On May 8, 2018, President Donald Trump announced that the U.S. will withdraw from the Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), and reimpose the strict economic sanctions program that was in place prior to the landmark 2015 agreement. Based on the guidance issued by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), the reimposed sanctions will impact businesses outside of the U.S. that engage in business with or in Iran, particularly those who do so while also seeking to maintain or establish a U.S. presence or dealings with U.S. companies. The “secondary sanctions” control who those foreign entities can do business with and restrict how foreign entities can utilize the U.S. financial system. Foreign persons and businesses can also be held liable for causing U.S. persons to violate sanctions regulations. (more…)
On May 14, the Department of Commerce’s Bureau of Industry and Security (BIS) in conjunction with the Department of State’s Directorate of Defense Trade Controls (DDTC) issued newly proposed rules regarding export classifications of firearms, guns, ammunition and related articles. BIS and DDTC determined that certain articles previously controlled by the U.S. Munitions List (USML) and regulated under the International Traffic in Arms Regulations (ITAR) should be transferred to the Commerce Control List (CCL) and regulated by the Export Administration Regulations (EAR). The stated goals of the proposed rules are to reduce procedural burdens and costs of export compliance on the U.S. firearms industry, while allowing the Commerce and State Departments to more efficiently enforce their relevant export controls. (more…)
The Deputy Assistant Secretary of State for Defense Trade Controls made clear last week that the State Department’s Directorate for Defense Trade Controls (DDTC), which is responsible for the International Traffic in Arms Regulations (ITAR), is exempt from President Trump’s Executive Order limiting new regulations. (more…)
In the final weeks of December, President Obama amended sanctions to both the Iran and Russia programs. These changes further relaxed sanctions on Iran while they tightened sanctions on Russia (see our client advisory). Yet, just three days from the inauguration of President-elect Donald Trump, exporters are no doubt wondering what the new president will do with regard to these changes and other sanctions relief that has come to pass under the Obama administration. (more…)
The U.S. government, and we mean the pre-Trump administration at that, has blocked an acquisition of a foreign company by another foreign company. The concern is that the target company has a U.S. presence and has access to high-end technology that is controlled by the International Trafficking in Arms Regulations (ITAR). If you are not aware of the Committee on Foreign Investment in the United States (CFIUS) now is a good time to ensure you at least know when to look it up. (more…)
The Department of State and the Department of Commerce have revised several provisions of the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Many of the changes are part of an ongoing effort to increase consistency between the terms used in the ITAR and the EAR.
The State and Commerce Departments have revised the standardized language for the destination control statement (DCS) that exporters are required to put on their shipping documents. Further, now exporters are only required to put the language on the commercial invoice. Gone is the requirement that exporters and freight forwarders take steps to include the statements on bills of lading, air waybills, and other shipping documents. The hope is to ease the burden on exporters and make the standard the same under both the State Department’s International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). (more…)