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.
The Census Bureau this week proposed that exporters submit a new data element in the Automated Export System when shipping items classified under U.S. Munitions List Category XXI. Census said the proposed change, previewed by an agency official last month (see 2304260047), could help the Commerce Department “collect additional data” on Category XXI exports, which includes articles, technical data and defense services “not otherwise enumerated” under other USML categories.
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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.
National Security Adviser Jake Sullivan said the length of time the White House has been considering a set of outbound investment regulations without releasing a plan isn't "because we're lazy, or we're not doing the work," but because it's difficult to find a solution "that is sustainable and effective."
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 -- The time may be coming soon to incorporate exporter priorities in upcoming customs modernization legislation, including provisions addressing clerical errors, as CBP and the Census Bureau also work to include language on clerical errors in penalty mitigation guidelines, CBP officials said during a panel discussion April 26.
NEW ORLEANS -- The National Customs Brokers & Forwarders Association of America is preparing to ask Congress to allow the Federal Maritime Commission to exercise jurisdiction over certain rail storage fees. NCBFAA is drafting a letter to Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D. -- the two House authors of the Ocean Shipping Reform Act -- that could ask the lawmakers to require the FMC to more forcefully regulate rail-assessed demurrage fees charged on ocean containers traveling inland.