Recommended
More Related Content
Viewers also liked
Similar to Nov10_2016_presentationV3
Similar to Nov10_2016_presentationV3 (20)
Nov10_2016_presentationV3
- 3. Audio 33 If you cannot hear us: - Adjust your speakers, or - Switch from “Use Mic & Speakers” to “Use Telephone” - To access Gotomeeting Support, click: http://support.citrixonline.com/en_US/Me eting/all_files/G2M030004, or - Call +1 805-617-7000, or - Email : helpdesk@SanctionsAlert.com Saskia Rietbroek 3
- 10. Peter Jeydel § Associate, Steptoe&Johnson LLP § Vice Chair of the American Bar Association’s Export Controls and Economic Sanctions Committee of the International Law Section § (202) 429-6291 10
- 16. Export Administration Regulations 13 C.F.R. 730 to 774 Items Subject to the EAR • Items – Goods – Software – Technology • Subject to the EAR – Made in U.S. wherever located – Located n the U.S. wherever made – Made abroad but above deminims U.S. content Exports and Reexports • Physical Movement • Deemed Exports 16
- 17. Decision Tree • Determining if a license is required. – List Based – End use/End user based 17
- 18. List Based Controls On the CCL & EAR99 1A202 Composite structures, other than those controlled by 1A002, in the form of tubes and having both of the following characteristics (see List of Items Controlled). License Requirements Reason for Control: NP, AT Control(s) Country Chart (See Supp. No. 1 to part 738). NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 List Based License Exceptions (See Part 740 for a description of all license exceptions) LVS: N/A GBS: N/A CIV: N/A List Based License Exceptions (See Part 740 for a description of all license exceptions) LVS: N/A GBS: N/A CIV: N/A List of Items Controlled Related Controls: (1) See ECCNs 1E201 (“use”) and 1E202 (“development” and “production”) for technology for items controlled by this entry. (2) Also see ECCNs 1A002, 1C010, 1C210, 9A010, and 9A110. (3) “Composite” structures “specially designed” or prepared for use in separating uranium isotopes are subject to the export licensing authority of the Nuclear Regulatory Commission (see 10 CFR part 110). Related Definitions: N/A Items: a. An inside diameter of between 75 mm and 400 mm; and b. Made with any of the “fibrous or filamentary materials” specified in 1C010.a or .b or 1C210.a or with arbon prepreg materials specified in 1C210.c. 18
- 20. End Use/User and Other Controls End Use and End User Controls (EAR Part 744) • Entity List • Unverified List • WMD and Missile uses • Military end uses (China, Russia, Venezuela) • Denied Parties List Embargoes and Other Special Controls (EAR Part 746) Cuba §746.2 Iran §746.7 N. Korea §746.4 Sudan §742.10 Syria §746.9 Iraq §746.3 Occupied Crimea §746.6 Russia §746.5 & §746.6 Russia & Venezuela §744.21 20
- 21. License Exceptions (EAR Part 740) • Read carefully – must meet all the criteria described in Part 740. • Not all license exceptions apply to all destinations, or ECCNs, or transactions • Restrictions apply 21
- 27. Mission / Approach § BIS falls under the Commerce Dept. § Mission to promote foreign trade within confines of US law § Primarily impacts manufacturing/tech industries § Licensing often relatively quick and simple § Relatively well staffed § OFAC falls under the Treasury Dept. § OFAC’s historical mission to cut off trade with enemy states, primarily through the US financial sector § Staffing shortages § Licensing process often time consuming § These OFAC stereotypes are improving but still exist 27 Peter Jeydel
- 31. BIS Enforcement § Civil, administrative and criminal authorities § BIS can arrest you; OFAC cannot (FBI or other agencies do that for them) § Tips from industry, US customs, other law enforcement agencies, intelligence community, independent sources § Administrative penalties (licensing restrictions) § Entity List § Denied Persons List § Unverified List 31 Peter Jeydel
- 33. OFAC Enforcement § No criminal investigative authority - refer criminal cases to Dept. of Justice; § Large proportion (but not all) cases are financial sector; § Cases stem from mandatory financial sector reporting, intelligence community and even press reports . Peter Jeydel 33
- 34. Similarities in Enforcement – BIS/OFAC § Strict liability (no knowledge or intent required) for most civil/administrative enforcement § Broad/discretionary application of rules § Courts defer to agency interpretations of regulations § Most cases settled, not litigated § Little “case law” or “precedent” § Potential (but not guaranteed) leniency/credit for timely voluntary disclosure, cooperation and remediation § Both agencies decline formal enforcement action for vast majority of voluntary disclosures § Large proportion of cases involve interagency/foreign cooperation Peter Jeydel 34
- 42. Key Take Aways § BIS administers "export controls" ; OFAC administers "sanctions programs" § BIS primarily regulates the manufacturing and tech sectors, but BIS/EAR risks are present in the financial sector as well § BIS focuses on "items" -- goods, software and technology; OFAC focuses on persons, property, transactions § Both regulate through licensing requirements § Both work together to regulate commerce according to US national security and foreign policy priorities 42