The Biden administration on Sept. 6 released an updated version (see 2107160030) of a business advisory that highlights the sanctions and export controls risks for companies doing business in Hong Kong, including the “reputational, regulatory, financial, and, in certain instances, legal” consequences they could face. The 16-page advisory covers risks associated with trade secrets theft, the punishments they could face for violating Hong Kong’s national security law and the challenges posed by “conflicting jurisdictional requirements and liability in connection with sanctions compliance efforts,” the State Department said. “Failure to adhere to U.S. sanctions can result in civil and criminal penalties under U.S. law.”
DOJ on Sept. 5 unsealed two indictments against dual Russian-U.S. citizens Dimitri Simes and Anastasia Simes, residents of Huntly, Virginia, for their role in a scheme to violate U.S. sanctions.
A new exemption for certain defense trade between the U.S., Australia and the U.K. under the AUKUS partnership is now active in the Automated Export System, CBP said in a Sept. 6 CSMS message. The State Department published the exemption in a final rule, effective Sept. 1, that it said will remove export control barriers for a range of items that had previously faced strict license requirements under the International Traffic in Arms Regulations.
The Census Bureau is updating the Automated Export System with Export Control Classification Numbers and a license code to reflect new export controls over advanced technologies announced last week by the Bureau of Industry and Security (see 2409050028). The update adds multiple new ECCNs to the ECCN reference table in AES, Census said in a Sept. 6 email to industry, and introduces new License Code C70 for License Exception Implemented Export Control (IEC), which authorizes certain technology exports to other countries that have put in place similar restrictions.
The EU Court of Justice on Sept. 5 said that a notary doesn't violate sanctions on Russia by authenticating the sale of a property owned by a non-sanctioned Russian company. The court said that authentication services don't amount to the provision of "legal advisory services," which are barred under EU sanctions if provided to "legal persons established in Russia."
The EU General Court on Sept. 4 upheld the sanctions listing for Samer al-Assad, a cousin of Syrian President Bashar al-Assad, after rejecting Samer al-Assad's claim that the EU's listing criteria, which permit sanctions on the president's family members, violates "general principles of EU law."
The U.S. sanctioned two shipping companies and two vessels last week for their involvement in exports of liquefied natural gas from Russia’s Arctic LNG 2 project, an energy project sanctioned by the U.S. The designations target Gotik Shipping Co and Plio Energy Cargo Shipping OPC PVT LTD, which are the registered owner and commercial manager, respectively, of LNG carrier New Energy. The U.S. also sanctioned the Mulan, an LNG carrier managed and operated by Pilo Energy.
Russia has “secretly” been using India as an alternative market to acquire export-controlled dual-use technologies and has explored building facilities in the country to obtain components for its war against Ukraine, the Financial Times reported Sept. 4. Plans drawn up by the Russian government show the country aimed to use “significant reserves” of rupees collected by Russian banks from oil sales to India to help with the effort, and considered “pumping investment into Russo-Indian electronics development and production facilities,” the report said.
The State Department completed a round of interagency review for a final rule that would amend restrictions against Cyprus under the International Traffic in Arms Regulations. The rule, sent to the Office of Information and Regulatory Affairs Aug. 29 (see 2409030006) and completed Sept. 5, could build on past measures to relax export restrictions for certain defense goods and services involving the country (see 2309130028).
Export controls, sanctions and investment screenings remain among the top challenges faced by U.S. companies doing business in China, according to an annual member survey released by the U.S.-China Business Council on Sept. 6.