The Commerce Department released its final rule for transferring export controls of firearms, ammunition and other defense items from the State Department to Commerce. The rule revises the Export Administration Regulations to transfer items that no longer “warrant control” on the U.S. Munitions List to the Commerce Control List. The rule will be published alongside a final rule from the State Department, which details the changes made to Categories I, II and II of the USML and describes “more precisely” the items that warrant “export or temporary import control” on the USML. The rules, which have been highly anticipated by the firearms industry (see 1908130066), will be published Jan. 23 and take effect March 9.
The Treasury’s Office of Foreign Assets Control clarified that people and companies involved in recently sanctioned Iranian sectors have a 90-day wind-down period, according to a frequently asked question issued Jan. 16. The wind-down period pertains to the sanctions and executive order recently announced by the Trump administration that authorizes new measures against the country’s construction, mining, manufacturing, and textiles sectors (see 2001100050). Entering into new business that would be considered sanctionable under the executive order after Jan. 10 will not be considered wind-down activity, the FAQ says. That activity may be subject to sanctions “even during the wind-down period.” The wind-down period expires April 9.
The Treasury’s Office of Foreign Assets Control sanctioned two North Korean entities involved in illegal exploitation of North Korea labor to generate money overseas, Treasury said in a Jan. 14 press release. Treasury said the two North Korean companies -- North Korea-based Namgang Trading Corporation (NTC) and China-based Beijing Sukbakso -- evade United Nations Security Council resolutions by sending North Korean laborers abroad. All UN member states were required to expel North Korean laborers in December, the press release said. NTC “maintained” laborers in “multiple” countries, including Russia, Nigeria and throughout the Middle East. Sukbakso, a lodging facility, handles portions of the travel and logistics for NTC personnel working overseas, Treasury said.
The Treasury’s Office of Foreign Assets Control sanctioned seven Venezuelan government officials who attempted to seize control of the country’s National Assembly and block an election, Treasury said in a Jan. 13 press release. The officials include Luis Eduardo Parra Rivero, Jose Gregorio Noriega Figueroa, Franklyn Leonardo Duarte, Jose Dionisio Brito Rodriguez, Conrado Antonio Perez Linares, Adolfo Ramon Superlano and Negal Manuel Morales Llovera. The sanctions came less than a week after the European Union announced intentions to soon impose sanctions on Venezuelan officials who tried to block the election process (see 2001100014).
President Donald Trump issued an executive order expanding U.S. sanctions authority against Iran and the Treasury Department announced a series of new Iran sanctions, including measures against senior Iranian officials, metal companies and a vessel. The executive order grants the U.S. the authority to impose a series of new primary and secondary sanctions against people and companies involved with Iran’s construction, mining, manufacturing and textiles sectors, Treasury Secretary Steven Mnuchin said during a Jan. 10 press conference. While the executive order only mentioned those four sectors, additional Iranian sectors may be sanctioned, Mnuchin said.
The Treasury’s Office of Foreign Assets Control sanctioned Taban Deng Gai, the first vice president of South Sudan, for human rights violations, Treasury said Jan. 8. Gai was involved in silencing human rights lawyers and advocates to solidify his position within the government, Treasury said.
The Treasury’s Office of Foreign Assets Control amended a Venezuela-related general license to extend the authorization period for certain activities with Globovision Tele C.A. or Globovision Tele CA, Corp., OFAC said in a Jan. 7 notice. The two entities are controlled by Gustavo Adolfo Perdomo Rosales and Raul Antonio Gorrin Belisario, who were sanctioned by OFAC in January 2019. General License No. 6A, which replaces General License No. 6, authorizes certain activities with the two entities or any entities they own by 50 percent or more until Jan. 21. The general license was previously scheduled to expire Jan. 8.
Export Compliance Daily is providing readers with some of the top stories for Dec. 30 - Jan. 3 in case you missed them.
The U.S. designated Aas’ib Ahl al-Haq (AAH) a foreign terrorist organization and sanctioned two of its leaders, Qays (also known as Qais) al-Khazali and Laith al-Khazali, both Iraqi nationals, the State Department said in a Jan. 3 press release. The sanctions are aimed at denying AAH and its leadership the “resources to plan and carry out terrorist attacks,” the State Department said. The agency said the group and its leaders are backed by Iran, and their efforts are aimed at undermining “Iraqi sovereignty.” Qays and Laith were previously sanctioned by the Treasury’s Office of Foreign Assets Control in December (see 1912060022). OFAC updated identifying information for both individuals, according to a Jan. 3 notice.
A Texas federal court vacated a $2 million penalty imposed on ExxonMobil by the Treasury's Office of Foreign Assets Control for sanctions violations, in a decision issued Dec. 31. The Northern Texas U.S. District Court ruled that OFAC did not provide ExxonMobil “fair notice that their conduct was prohibited.” The decision stems from a lawsuit filed in August (see 1908280031) against OFAC, in which ExxonMobil alleged its business dealings with Rosneft, the Russian oil company owned by sanctioned oligarch Igor Sechin, did not warrant a sanctions penalty.