The State Department’s Directorate of Defense Trade Controls released guidance to help exporters comply with a proposal that could introduce new filing requirements for certain U.S. Munitions List items. The guidance -- which deals with a proposed rule by the Census Bureau that could require exporters to submit a new data element in the Automated Export System when shipping USML Category XXI items (see 2305020007) -- features a range of frequently asked questions, including about how exporters can determine whether their items are controlled under Category XXI, when exporters should use the data element and more.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The Treasury Department is proposing to add eight military bases that would fall under the jurisdiction of the Committee on Foreign Investment in the U.S., including an Air Force base in North Dakota that was the subject of a controversial CFIUS decision last year. The proposed rule, released May 4 by Treasury’s Office of Investment Security, also would amend the definition for “military installation” to include six additional U.S. states. Comments on the changes are due June 5.
A potential Chinese military invasion of Taiwan could lead to an unprecedented level of new sanctions and export controls against Beijing, including U.S. financial sanctions against major Chinese companies and export prohibitions on anything related to the country’s military, trade lawyer David Wolber said. Banks in particular are concerned about the possibility of sweeping financial restrictions, Chloe Cina of Deutsche Bank said, adding that some are beginning to prepare for a worst-case sanctions scenario.
An influx of delisting requests spurred by the rapid pace of sanctions against Russia could strain already limited resources at the Treasury Department, former officials and lawyers said, increasing fears that removal efforts will be overlooked even as law firms see an uptick in business.
The Census Bureau this week proposed that exporters submit a new data element in the Automated Export System when shipping items classified under U.S. Munitions List Category XXI. Census said the proposed change, previewed by an agency official last month (see 2304260047), could help the Commerce Department “collect additional data” on Category XXI exports, which includes articles, technical data and defense services “not otherwise enumerated” under other USML categories.
Cryptocurrency trading platform Poloniex reached a $7.5 million settlement with the Office of Foreign Assets Control this week to resolve allegations that it violated U.S. sanctions. The Delaware-based company allowed customers in sanctioned jurisdictions to trade, deposit and withdraw digital assets worth a combined $15 million, OFAC said, adding that Poloniex didn’t voluntarily disclose the alleged violations.
Canada recently proposed “significant changes” to its sanctions laws -- featuring a new 50% rule similar to the U.S. Treasury Department's -- that could change how companies conduct sanctions due diligence, including on Russia, law firms said this month. The firms said companies may need to review and update their due diligence processes to better identify beneficial owners but warned the proposed laws could make that process exponentially more challenging.
NEW ORLEANS -- Charge complaints before the Federal Maritime Commission are increasingly trending toward significant settlements or awards, industry officials said, urging shippers to file complaints if they believe they’re facing unfair carrier practices. Carriers are choosing to settle rather than draw the FMC’s attention, they said, especially for complaints involving demurrage or detention fees.
NEW ORLEANS -- CBP is considering “several plans” to modernize its export penalty process, including one that could allow the agency to issue penalty notices electronically instead of through physical mail, said Brian Semeraro, chief of CBP’s outbound enforcement policy branch. Semeraro, speaking during the National Customs Brokers & Forwarders Association of America’s annual conference this week, said CBP is looking at “different ways to utilize the electronic petition processes,” which could reduce “the constant mail back and forth.”
NEW ORLEANS -- Although CBP launched a pilot program in January to accept certain electronic filings for used self-propelled vehicles exports (see 2212160021), some ports aren’t recognizing the pilot, said Donna Kavanaugh, compliance manager for A.N. Deringer. Speaking during the National Customs Brokers & Forwarders Association of America’s annual conference this week, Kavanaugh said exporters are encountering ports that either aren’t familiar with the pilot or “don't have a desire to participate.” She urged exporters to ask their ports to participate in the pilot and “share with them the links” to the pilot announcement.