An influx of delisting requests spurred by the rapid pace of sanctions against Russia could strain already limited resources at the Treasury Department, former officials and lawyers said, increasing fears that removal efforts will be overlooked even as law firms see an uptick in business.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
Cryptocurrency trading platform Poloniex reached a $7.5 million settlement with the Office of Foreign Assets Control this week to resolve allegations that it violated U.S. sanctions. The Delaware-based company allowed customers in sanctioned jurisdictions to trade, deposit and withdraw digital assets worth a combined $15 million, OFAC said, adding that Poloniex didn’t voluntarily disclose the alleged violations.
Canada recently proposed “significant changes” to its sanctions laws -- featuring a new 50% rule similar to the U.S. Treasury Department's -- that could change how companies conduct sanctions due diligence, including on Russia, law firms said this month. The firms said companies may need to review and update their due diligence processes to better identify beneficial owners but warned the proposed laws could make that process exponentially more challenging.
NEW ORLEANS -- CBP is considering “several plans” to modernize its export penalty process, including one that could allow the agency to issue penalty notices electronically instead of through physical mail, said Brian Semeraro, chief of CBP’s outbound enforcement policy branch. Semeraro, speaking during the National Customs Brokers & Forwarders Association of America’s annual conference this week, said CBP is looking at “different ways to utilize the electronic petition processes,” which could reduce “the constant mail back and forth.”
NEW ORLEANS -- Charge complaints before the Federal Maritime Commission are increasingly trending toward significant settlements or awards, industry officials said, urging shippers to file complaints if they believe they’re facing unfair carrier practices. Carriers are choosing to settle rather than draw the FMC’s attention, they said, especially for complaints involving demurrage or detention fees.
NEW ORLEANS -- Although CBP launched a pilot program in January to accept certain electronic filings for used self-propelled vehicles exports (see 2212160021), some ports aren’t recognizing the pilot, said Donna Kavanaugh, compliance manager for A.N. Deringer. Speaking during the National Customs Brokers & Forwarders Association of America’s annual conference this week, Kavanaugh said exporters are encountering ports that either aren’t familiar with the pilot or “don't have a desire to participate.” She urged exporters to ask their ports to participate in the pilot and “share with them the links” to the pilot announcement.
NEW OREANS -- The Census Bureau and the State Department are working on a change that would require exporters to submit additional information in the Automated Export System when shipping items controlled under U.S. Munitions List Category XXI, said Omari Wooden, Census’ assistant division chief for trade outreach and regulations. Wooden said the change will be outlined in a proposed rule and could eventually lead to a fatal error in AES if not followed.
The State Department’s Directorate of Defense Trade Controls initiated more end-use checks in FY 2022 compared with FY 2021 and saw an increase in in-person site visits due to loosened COVID-19 pandemic-related travel restrictions. In its annual Blue Lantern report released this week -- which details the agency’s end-use monitoring efforts on export-controlled defense articles and services -- the agency said it began checks on 305 export authorizations or authorization requests, an uptick from the 281 checks it began in 2021 (see 2204180030).
NEW ORLEANS -- The Bureau of Industry and Security is working with CBP to try to speed up reviews of exports that may be subject to the October China chip controls (see 2210070049), said Teresa Telesco, a BIS official. Telesco, speaking April 25 during the National Customs Brokers & Forwarders Association of America’s annual conference, urged freight forwarders and other parties handling exports to take steps to make sure their semiconductor-related shipments aren’t being delayed, including by having technical information “on hand” to show CBP agents.
The State Department’s Directorate of Defense Trade Controls plans to remove export controls from certain high-energy storage capacitors with a voltage rating of 125 volts or less, saying the capacitors are widely commercially available and no longer provide military or intelligence advantages. The change, outlined in an interim final rule released April 26 and effective May 21, builds on the agency’s decision last year to temporarily suspend export license requirements for the capacitors (see 2211230030 and 2212060007). Comments on the rule are due May 30.