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Brooklyn Dual-Use Scheme Guilty Pleas

Brighton Beach, Brooklyn
Two men pleaded guilty July 9 to conspiracy to commit export control violations for their roles in a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies.   Some of the electronic components shipped by the defendants were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. Salimdzhon Nasriddinov, 53, a Brooklyn resident and dual citizen of Russia and Tajikistan, was arrested on Oct. 31 in Brooklyn.    Nikolay Goltsev, 38, of Montreal and an associate who pleaded guilty  in February were arrested at a hotel in Manhattan on Oct. 31 during a trip to New York to visit Nasriddinov.
Hiroshima Peace Memorial Park, a UNESCO World Heritage Site.
Nuclear Weapons Stockpiles Grow
The nine nuclear-armed states—the United States, Russia, the United Kingdom, France, China, India, Pakistan, the Democratic People’s Republic of Korea (North Korea) and Israel—continued to modernize their nuclear arsenals and several deployed new nuclear-armed or nuclear-capable weapon systems in 2023, according to the most recent SIPRI Yearbook.
Drug trafficking organizations, such as the Sinaloa Cartel, have increasingly partnered with CMLOs to launder funds.
OFAC Targets Chinese Money Launderers
Following on the June 18 Indictments of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a Mexico-based money launderer and China-based members of a money laundering organization with criminal links to the Sinaloa Cartel Monday.. The United States is working with Chinese authorities to target illicit financing networks, including those linked to the fentanyl trade. Chinese Money Laundering Organizations are now one of the key actors laundering money professionally in the United States and worldwide, and are rapidly becoming one of the most prominent money laundering threat actors facing the U.S. financial system.
In addition to Major restrictions on LNG Trade, the new sanctions include further restrictions on the import of helium from Russia,
EU 14th Sanctions Package Issued
The European Council adopted Monday a 14th package of economic and individual restrictive measures on Russia. The package includes restrictive measures on additional 116 individuals and entities , as well as sectoral measures on Energy, Third-Country Subsidiaries and other Anti-Circumvention measures, Financial Communications Systems and Defense Industrial Base, Political Activities, Port Access for specific vessels, dual-use and commodity trade controls, as well as legal protections for sanctions compliance and intellectual property.

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Our latest news

GOP Platform on Trade

Stating "We will be a nation of Truth, Justice, and Common Sense," the Republican party platform adopted by the Milwaukee Convention goes beyond calls to "deport the millions of illegal Migrants who Joe Biden has deliberately encouraged to invade our Country," and "DRILL, BABY, DRILL," with specific policy recommendations for industry and trade.

Emerging Technology Technical Advisory Committee (ETTAC) 30 July

The Emerging Technology Technical Advisory Committee (ETTAC) will meet on July 30, 2024. Open Session: 3:30 p.m. – 4:30 p.m. The open session will be accessible via teleconference. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@bis.doc.gov .

Congo Mineral Concern

The State Department issued a Statement of Concern Tuesday focused on certain minerals supply chains from Rwanda and eastern Democratic Republic of the Congo. The statement clarifies the specific risks associated with manufacturing products using minerals extracted, transported or exported from eastern DRC, through Rwanda and Uganda, according to State.

US Drug Ingredients Supply Chain Study

The Commerce Department’s Bureau of Industry and Security and the Department of Health and Human Services’ Administration for Strategic Preparedness and Response announced Tuesday that they are conducting a comprehensive assessment of the US Active Pharmaceutical Ingredient industrial base to gain an understanding of the supply chain network. The resulting information will allow the federal government to more accurately plan and develop funding strategies to help ensure the availability and security of the API supply chain and to raise awareness of current limited domestic manufacturing capabilities, among other potential issues, according to BIS.

OFAC Basics Video Series

Treasury's Office of Foreign Assets Control (OFAC) is releasing the second video in its “OFAC Basics” video series, "My Funds Are Blocked, Now What?" This video provides viewers with guidance on what it means when funds are blocked in connection with OFAC sanctions, as well as recommended steps for what to do if your funds have been blocked. 

Practitioner Profile: Jason Prince

Former Chief Counsel for the Treasury’s Office of Foreign Assets Control (OFAC), Jason Prince joined Akin’s Washington office in April 2024.   The Export Practitioner caught up with him to see how he’s settling in.
Enforcement
Two people were arrested Tuesday morning for shipping controlled avionics from New Jersey to the United Arab Emirates without having obtained the required license and authorization. The defendants obtained an ADIRU, a component that supplies air data and inertial reference information to pilots’ electronic flight instrument system displays and attempted to ship it to another company in the UAE.
A Florida man has been indicted for attempting to export scientific equipment from the United States into Russia without a license. Kirill Gordei, 34, a citizen of Belarus and permanent resident of the U,S, allegedly falsely claimed that he was shipping a Thermo Fisher Scientific Orbitrap Exploris GC 240 Mass Spectrometer  to Uzbekistan when it was, in fact, destined for Russia.
The Department of Commerce’s Bureau of Industry and Security (BIS) Export Enforcement published an updated version of Don’t Let This Happen to You!, a compendium of case examples highlighting BIS criminal and administrative enforcement efforts. The publication was last updated in March 2024.
Sanctions

EU Expands Belarus Sanctions

The European Council today adopted restrictive measures targeting the Belarusian economy, extending the export ban on dual-use/advanced goods and technologies, the measures include maritime navigation goods and technologies, and luxury goods.  Also controlled are services exports, transport, and select imports from the Russian vassal state. The regulation requires that EU exporters insert in their future contract the so-called 'no-Belarus clause', through which they contractually prohibit the re-exportation to Belarus or re-exportation for use in Belarus of sensitive goods and technology, battlefield goods, firearms and ammunition.

State Sanctions UAE Shippers for Iran Trade

In response to continued development of Tehran's nuclear capabilities, Secretary of State Anthony Blinken announced additional measures against Iranian petrochemical transport and trade. "Over the past month, Iran has announced steps to further expand its nuclear program in ways that have no credible peaceful purpose," said Mr. Blinken.  "We remain committed to never letting Iran obtain a nuclear weapon, and we are prepared to use all elements of national power to ensure that outcome."

Treasury Targets Iran Defense Trade Finance

Treasury’s Office of Foreign Assets Control (OFAC) Tuesday sanctioned nearly 50 entities and individuals that constitute multiple branches of a sprawling “shadow banking” network used by Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) and Islamic Revolutionary Guard Corps (IRGC) The entities, including cover companies based in Hong Kong, the United Arab Emirates (UAE), and the Marshall Islands have been used to gain illicit access to the international financial system and process the equivalent of billions of dollars since 2020.
Policy Briefs
Speaker of the House Mike Johnson announced his intention to renew the House Select Committee on the CCP for the 119th Congress, according to a Committee announcement.   The 119th Congress will convene in January 2025.
The Department of the Treasury, as Chair of the Committee on Foreign Investment in the United States (CFIUS), issued a Notice of Proposed Rulemaking that would expand CFIUS’s jurisdiction over certain transactions by foreign persons involving real estate in the United States. This proposed rule would add over 50 military installations, across 30 states, to the existing list of installations around which CFIUS has jurisdiction, including over land purchases.
Under Secretary for Terrorism and Financial Intelligence Brian Nelson repeaded the Treasury's call for bankers to maintain correspondent relationships abroad, and reverse the wholesale cessation of such arrangements for administrative compliance expediency which has been taking place.   "We share the concerns that Pacific Island countries are experiencing among the most serious declines in correspondent banking relationships in the world," he noted. "These terminations of correspondent banking relationships can be calamitous, given that many Pacific Island countries receive approximately 10 percent of their collective GDP in the form of personal remittances.
Supply Chain
The Department of Homeland Security, Chair of the Forced Labor Enforcement Task Force (FLETF) released a summary of enforcement efforts since enactment of the Uyghur Forced Labor Protection Act. Highlighted in the fact sheet are the impacts the FLETF has made on Solar, PVC and Cotton supply chains, as well as a summary of the recent designation of New High Priority Sectors for Enforcement
The Forced Labor Enforcement Task Force (FLETF), released an updated Uyghur Forced Labor Prevention Act (UFLPA) Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China (PRC). Notably in this year’s strategy, the FLETF has identified new high priority sectors for enforcement – aluminum, polyvinyl chloride (PVC), and seafood – for the first time since 2022.
The USTR's office Monday released the second Report on the Operation of the United States-Mexico-Canada Agreement (USMCA) with Respect to Trade in Automotive Goods . The  conclusion of the report is that there is no conclusion.   The automotive industry continues preparing for full implementation of the USMCA rules of origin (ROOs) when special flexibilities afforded under alternative staging regimes begin to expire in 2025. 
Licensing
Commerce’s Bureau of Industry and Security (BIS) published guidance outlining the different actions that BIS takes to inform industry and academia about parties – beyond those identified on public screening lists like the Entity List – that present risks of diversion of items subject to BIS export controls to countries or entities of concern. Thew guidance also contains a new recommended best practice asking that exporters, reexporters, and transferors of Common High Priority List (CHPL) items screen transaction parties using online resources made newly available by the Trade Integrity Project (TIP).
The Commerce Department’s Bureau of Industry and Security (BIS)  added six companies to the Entity list Tuesday, four for their involvement in training Chinese military pilots in NATO tactics. BIS also added two UAE- based entities to the Entity List because they repeatedly engaged in “dilatory or evasive conduct, including the provision of false, misleading, or incomplete information, during end-use checks.”   
The Treasury Department Friday issued a Notice of Proposed Rulemaking to implement Executive Order 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern”. The NPRM builds on the Advance Notice of Proposed Rulemaking issued by Treasury last August and provides the full draft regulations and explanatory discussion regarding the intent of the proposal, and solicits comment from the public
The Commerce Department’s Bureau of Industry and Security (BIS) expects to issue a final rule this Summer revising the Export Administration Regulations (EAR) to authorize the release of certain technology and software in the context of standards setting and development in standards organizations. Much of the rulemaking activity was initiated in response to the Huawei sanctions and US firms' continued participation in 5G telecoms standards negotiations.  The Bureau published the interim rule in June of 2020, incorporating comments in a follow on interim rule two years later.
BIS Published the final rule announced last week as part of the Administration's participation in the G7 summit. The bulk of the rule is as displayed last week, though the published version adds additional EAR 99 software to coordinate with allies,