To increase disclosures of export violations, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a memorandum on April 18, 2023 “clarifying” its enforcement policy related to voluntary self-disclosures of “significant” possible violations of the Export Administration Regulations (EAR). The memo also elaborates upon the policy regarding disclosures of potential EAR violations by
BIS Imposes $300 Million Civil Penalty Related to Exports to Huawei and Violation of FDP Rule
On April 19, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) imposed a $300 million civil penalty against Seagate Technology LLC (California) and Seagate Singapore International Headquarters Pte. Ltd. (Singapore) to resolve alleged violations of U.S. export controls related to selling hard disk drives (HDDs) to Huawei Technologies Co. Ltd. (Huawei) in
OFAC Again Revises Venezuela General License Extending Delay of PdVSA 2020 8.5% Bond-Related Authorizations
On April 19, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License (GL) 5K, “Authorizing Certain Transactions Related to the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond on or After July 20, 2023,” which continues to delay U.S. persons’ ability to enforce bondholder rights to the CITGO
OFAC Publishes Alert Warning of Possible Evasion of the Russian Oil Price Cap
On April 17, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) published an Alert warning U.S. persons about possible evasion of the price cap set on Russian-origin oil (see Update of December 5, 2022) and Russian-origin petroleum products (see Update of February 8, 2023) pursuant to Executive
OFAC and State Department Continue to Target Individuals and Entities Facilitating Russian Financial Transactions and Supporting Russia’s Defense Sector
On April 12, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced further efforts to deny Russia’s access to the international financial system through facilitators and their businesses. For example, OFAC has designated and sanctioned the “facilitation network” of Alisher Burhanovich Usmanov, who had previously been placed on OFAC’s Specially Designated
BIS Adds 28 Entities to the Entity List for Supporting Russia’s Military/Defense Industrial Base
On April 12, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Final Rule in which it added 28 entities to the Entity List. The entities are companies located in Armenia , China, Malta, Russia, Singapore, Spain, Syria, Turkey, the United Arab Emirates (UAE), and Uzbekistan. Each was placed on the
BIS Releases Human Rights FAQs for Export License Applications
On March 30, 2023, the Department of Commerce’s Bureau of Industry and Security released a series of Frequently Asked Questions (FAQs) regarding human rights concerns and export controls. The FAQs address BIS’ authority under the Export Administration Regulations (EAR) to consider human rights concerns when reviewing export license applications, and states that exporters “are expected
Summit for Democracy Subscribing States Issues Voluntary Code of Conduct for Export Controls and Human Rights
In December 2021, the United States, Australia, Denmark and Norway announced the Export Controls and Human Rights Initiative to address export controls and human rights particularly in the area of misuse of certain advanced technologies by authoritarian governments for surveillance and human rights abuses. See Update of December 14, 2021. Since that meeting, the
BIS Amends EAR to Explicitly Include Protection of Human Rights, Adds 11 Entities to Entity List
On March 28, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to confirm that the foreign policy interest of protecting human rights worldwide is a basis for adding entities to the Entity List. Specifically, this Final Rule amends 15 C.F.R. § 744.11 of the EAR regarding
OFAC Sanctions Individuals and Entities for Connections to Burma’s Military, Publishes Burma Jet Fuel Sanctions Alert
On March 24, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated and sanctioned six entities and two individuals connected to Burma’s military “that have enabled the military regime’s continuing atrocities.” The entities have been designated for operating in the defense sector of the Burmese economy, “specifically based on their involvement