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Building a Strong Export Compliance Plan

posted by Jennifer Diaz February 23, 2021 0 comments

Co-Authored by Sharath Patil

Exporting is a Privilege, Not a Right

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”), the International Traffic in Arms Regulations (“ITAR”) the Office of Foreign Assets Control (“OFAC”) sanctions laws, and the Foreign Corrupt Practices Act (“FCPA”). Violations of export control laws carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned for violations of U.S. export control laws.

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Commerce Department Issues Rule Securing Digital Supply Chains Against Foreign Adversaries

posted by Jennifer Diaz February 16, 2021 0 comments

NIST Releases Draft Guidance on Internet of Things Device Cybersecurity | NIST

Co-Authored by Sharath Patil

Background on Securing Information Technology & Communications Supply Chains

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BIS Publishes First Military End User List

posted by Jennifer Diaz January 28, 2021 0 comments

In a Final Rule, published on December 23, 2020, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) amended the Export Administration Regulations (“EAR”) by creating a “Military End User (MEU) List”. The list includes the first tranche of 103 entities consisting of 58 military end-users in China and 45 in Russia. BIS determined that these companies are ‘military end users’ for purposes of the ‘military end user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to China, Russia, and Venezuela when such items are destined for a prohibited ‘military end user.’

Prior to this final rule, exporters, reexporters, or transferors were responsible for identifying these entities as ‘military end users’ themselves, assuming they were not otherwise individually informed. The MEU List (which is now searchable on the consolidated screening list) allows the public to be informed of BIS’s determination so all potential exporters are informed simultaneously.

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Trump Administration Designates Cuba State Sponsor of Terrorism

posted by Jennifer Diaz January 12, 2021 0 comments

Co-Authored by Sharath Patil

Cuba Designated a State Sponsor of Terror

The U.S. State Department designated Cuba a State Sponsor of Terrorism (“SST”) on January 11, 2021. Countries are designated on the SST list when they are determined by the U.S. Secretary of State to have repeatedly provided support for acts of international terrorism.

The four main categories of sanctions resulting from designation can include restrictions on U.S. foreign assistance; a ban on defense exports and sales; certain controls over exports of dual use items; and miscellaneous financial and other restrictions. Here, the January 11 re-designation of Cuba on the SST subjects Cuba to:

  • Sanctions that penalize persons and countries engaging in certain trade with Cuba
  • Restricts U.S. foreign assistance to Cuba
  • Bans defense exports and sales to Cuba
  • Imposes certain controls on exports of dual use items.

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U.S.-Cuba Trade under Trump vs. Biden

posted by Jennifer Diaz December 21, 2020 0 comments

Co-Authored by Sharath Patil

U.S.-Cuba Trade under Trump

Since the early 1960s, the U.S. maintained a policy of economic sanctions towards Cuba. The U.S. policy sought to isolate the Cuban government. In 2014, the Obama administration significantly changed U.S. trade and economic policies towards Cuba by restoring diplomatic relations, rescinding Cuba’s designation as a state sponsor of terror, and permitting increased trade between the two countries. This period was known as the Cuban Thaw.

However, under President Trump’s administration, the Obama administration’s efforts to normalize relations have been rolled back. In November 2017, the Trump administration restricted financial transactions with entities controlled by the Cuban government. Furthermore, many new entities have been added to the Cuba restricted list under the Trump administration. As of 2019, the Trump administration has more or less abandoned engagement with the Cuban government, and has opted instead to increase sanctions based on Cuba’s human rights violations and its support of the Venezuelan government under Nicolas Maduro.

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The Importance of Regular Export Compliance Training for your Business

posted by Jennifer Diaz November 19, 2020 0 comments

Co-Authored by Sharath Patil

What’s Export Compliance?

Boundless opportunities exist for U.S. businesses when they export their products and services to foreign markets. In fact, over 95% of the world’s consumers are located outside of the United States. However, the vast export opportunities must be tempered by your duty to diligently and effectively comply with U.S. export control laws under the U.S. Department of Commerce’s Export Administration Regulations (“EAR”) and the U.S. State Department’s International Traffic in Arms Regulations (“ITAR”).

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President Trump Strengthens U.S. Policy Toward Cuba

posted by Jennifer Diaz October 17, 2019 1 Comment

President Trump Strengthens U.S. Policy Toward CubaDid you know that the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced additional changes to U.S. policy toward Cuba implemented on October 9? On September 6th, the Trump Administration announced measures to increase economic pressure on the Cuban military regime. This follows past policy changes President Trump has taken to sanction the Cuban government for its daily human rights abuses against the Cuban people and abroad. Earlier this year, the President restricted non-family travel to Cuba by removing the travel exemption category of “people-to-people” travel to the island. 

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CATCH UP ON DTL’S TOP BLOGS FROM 2018!

posted by Jennifer Diaz January 15, 2019 0 comments

Picture Blogs

 

We want to make sure you stay up to date with the hottest trade topics from 2018. below is a summary of what you missed by category. Enjoy!

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Chinese Telecom Giant, ZTE, Faced with Largest Penalty Ever Levied

posted by Jennifer Diaz June 8, 2018 0 comments

zte_logo_reuters_1486215309260In our previous post, we discussed ZTE’s record penalty for selling technology with US-origin chips to North Korea and Iran, in violation of US trade laws. The company initially received a $1.19 billion in penalties and was ordered to reprimand the executives responsible for the malfeasance’s as a condition to re-enter the United States (US) market after a three-year suspension. Despite telling the US government that the guilty executives had been properly punished, it became clear that they were instead rewarded with bonuses. This violation triggered an automatic ban of ZTE from the US market for seven (7) years. As the 4th largest seller of cell phones to the US, the ban on ZTE serves as a means of protecting American production.

After the announcement, the ensuing backlash from Beijing, as well as trade talks in China, President Trump stated that he and Chinese president Xi Jiping are working together to bring ZTE “back into business”.

Now, the Trump administration threw a metaphorical lifeline to this tech giant, seemingly easing tensions with Beijing. Secretary Ross announced a $1.4 Billion dollar settlement with ZTE. Continue Reading

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ZTE Barred by U.S. Government & ZTE Fights Back!

posted by Jennifer Diaz May 1, 2018 0 comments

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China-based Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd (collectively “ZTE”) entered a guilty plea and agreed to pay a combined penalty up to $1.19 billion to settle criminal and civil allegations that ZTE violated U.S. export control laws and U.S. sanctions by illegally shipping U.S.-origin items to Iran.

The record-breaking settlement agreement was with the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the U.S. Department of Justice (“DOJ”), and the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”). The penalty assessed against ZTE included a $100,871,266 civil monetary penalty imposed by OFAC; a $430,488,798 in combined criminal fines and forfeitures; and a $661,000,000 penalty payable to BIS, of which $300,000,000 were suspended for a seven-year probationary period. Continue Reading