Category: The PT Law Blog

Based on Poblete Tamargo’s research and background discussions with contacts in the U.S. Government, we expect an increase in these type of events. The U.S. Government continues to press U.S. and foreign companies, as well as their subsidiaries, on making choices that boil down to choosing between doing business in the United States and having access to U.S. financial systems, or doing business in Iran.

Follow this link to read The Miami Herald article.

According to the Federal Register notice, the rule amends the Commerce Control List (CCL) entry in the EAR that controls human and zoonotic pathogens and ”toxins,” consistent with the intersessional changes to the AG’s ”List of Biological Agents for Export Control.”

To assist exporters to more easily identify the bacteria and ”toxins” that are controlled under this CCL entry, this rule, among other things, alphabetizes and renumbers the lists of bacteria and ”toxins” in the entry.

We will be sending additional comments to our clients. Follow this link to download the Federal Register Notice.

The primary objective of these sanctions is to deny listed persons and entities access to the U.S. financial system and the benefits of trade and transactions involving U.S. companies and individuals.

U.S. individuals and companies are probihited from engaging in transactions with persons and entities designated by the Act. Read the Federal Register notice here.

Some of the revisions are intended to reduce uncertainties for industry users concerning which foreign nuclear-related activities conducted by U.S. persons are ‘‘generally authorized’’ (i.e., not requiring additional approvals from the agency) under the regulation and which activities require a ‘‘specific authorization’’ (i.e., requiring additional approvals from the agency). The proposed rule provides that persons subject to the jurisdiction of the United States who engage directly or indirectly in the production of special nuclear material outside the United States must be authorized to do so by the Secretary of Energy.

Other proposed revisions include: (1) making clear what types of technology transfers, which can include either technical data or technical assistance, fall within the scope of the regulations; (2) providing for added technical clarity of certain terms and technology; (3) revising, deleting, and adding definitions for certain terms including “basic scientific research”; (4) identifying the information required to be provided by applicants for a Part 810 authorization, including requests for authorization of ‘‘deemed exports’’; and (5) updating points of contact to reflect the current Department of Energy organizational structure.

If you would like additional information on the proposed rules, or would like assistance in preparing comments for submission, please contact us.

Best Practice No. 3 – Companies should “Know” their foreign customers by obtaining detailed information on the bona fides (credentials) of their customer to measure the risk of diversion. Specifically, companies should obtain information about their customers that enables them to protect dual-use items from diversion, especially when the foreign customer is a broker, trading company or distribution center.

Best Practice No. 4 – Companies should avoid routed export transactions when exporting and facilitating the movement of dual-use items unless a long standing and trustworthy relationship has been built among the exporter, the foreign principal party in interest (FPPI), and the FPPI’s U.S. agent.

Best Practice No. 5 – When the Destination Control Statement (DCS) is required, the Exporter should provide the appropriate Export Control Classification Number (ECCN) and the final destination where the item(s) are intended to be used, for each export to the end-user and, where relevant, to the ultimate consignee. For exports that do not require the DCS, other classification information (EAR99) and the final destination should be communicated on bills of lading, air waybills, buyer/seller contracts and other commercial documentation. For re-exports of controlled and uncontrolled items, the same classification and destination specific information should be communicated on export documentation as well.

Best Practice No. 6 – An Exporter/Re-exporter should provide the ECCN or the EAR99 classification to freight forwarders, and should report in AES the ECCN or the EAR99 classifications for all export transactions, including “No License Required” designation certifying that no license is required.

Best Practice No. 7 – Companies should use information technology to the maximum extent feasible to augment “know your customer” and other due-diligence measures in combating the threats of diversion and increase confidence that shipments will reach authorized end-users for authorized end-uses.

We will be sending customized reports and recommendations to our clients based on their needs. In the meantime, please follow this link for a summary and background on the best practices provided by BIS.