Since our last update, more U.S. Government actions have taken place that may affect your business’s export compliance efforts. Ranging from a five-agency “know your cargo” advisory to revisions of the Commerce Control List (CCL) and inflation adjustments for export-related penalties, we have the highlights below.
Multi-Agency Actions
Know Your Cargo Advisory
- Departments of Justice, Commerce, Homeland Security, State and Treasury issue an advisory highlighting common tactics deployed by malign actors in the maritime and other transportation industries as well as recent enforcement actions taken in response to alleged violations.
- Summarizes recent compliance actions, including criminal prosecutions and civil enforcement actions.
- Relevant items range from shipping red flags to compliance best practices.
- The Department of Commerce indicated it anticipates updating freight forwarder guidance in the near future.
- Department of Justice, December 11, 2023.
Department of State: DDTC / ITAR
Russia Business Advisory
- Bureau of European and Eurasian Affairs publishes “Risks and Considerations for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine”
- Details legal, financial, and reputational risks of doing business in the Russian Federation and in Russian-occupied territories of Ukraine.
- Highlights existing sanctions, export controls, import prohibitions, money laundering and corruption concerns, human rights, etc.
- Russia remains an ITAR prohibited destination under § 126.1(l).
- Public Release, February 23, 2024.
Department of Commerce: BIS / EAR & CCL
BIS Proposes Updates to License Exception Strategic Trade Authorization (STA)
- Proposed changes intended to encourage additional use of License Exception STA.
- 88 FR 85734, December 8, 2023.
Commerce to Reestablish President’s Export Council Subcommittee on Export Administration (PECSEA)
- The PECSEA will advise the Secretary of Commerce or the Secretary’s designee on matters pertinent to the Export Control Reform Act of 2018 (ECRA), the International Emergency Economic Powers Act (IEEPA), and other relevant laws and regulations administered by the Bureau of Industry and Security (BIS).
- 89 FR 1064, January 9, 2024.
Commerce Control List: Revisions to Australia Group and Crime Control and Detection Controls
- Removes Proliferation of Chemical and Biological Weapons (CB) controls on specified pathogens and toxins destined for Australia Group member countries.
- Affects ECCNs 1C351, 1C353, 1C354, 1E001, and 1E351.
- Removes Crime Control and Detection (CC) controls on such items destined for Austria, Finland, Ireland, Liechtenstein, South Korea, Sweden, and Switzerland.
- 88 FR 85479, December 8, 2023.
Commerce Control List: MTCR Amendments
- EAR amended to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the Technical Experts Meetings in 2018, 2019, and 2021.
- Expands eligibility for the use of license exceptions for MT-controlled items.
- Affects ECCNs 1C111, 2A101, 2B119, 6A107, 9A101, 9E515
- 88 FR 85487, December 8, 2023.
Commerce Control List: License Requirements for Certain Cameras, Systems, or Related Components
- New ECCN 6A293 controls certain cameras not already controlled under ECCNs 6A003 or 6A203.
- Revises related control and review policies.
- 89 FR 13590, February 23, 2024
BIS Publishes “Export Enforcement: 2023 Year in Review”
- Summarizes export enforcement efforts in 2023, including the “Disruptive Technology Strike Force,” related penalties and charges, voluntary self-disclosure (VSD) policy, end-use checks, guidance, and more.
- Click here for the BIS release.
2024 Inflation Adjustments for Commerce, State, and OFAC Penalties
Department of State
- § 127.10(a)(1)(i) change from $1,200,000 to $1,238,892 (or the amount that is twice the value of the transaction that is the basis of the violation, whichever is greater)
- § 127.10(a)(1)(ii) increase from $996,685 to $1,028,998 (or five times the amount of the prohibited payment, whichever is greater)
- § 127.10(a)(1)(iii) increase from $1,186,338 to $1,224,787.
- 89 FR 700, January 5, 2024
Department of Commerce
- International Emergency Economic Powers Act (2007) increase from $356,579 to $368,136
- Export Controls Act of 2018 (2018) increase from $353,534 to $364,992
- 88 FR 89300, December 27, 2023
Office of Foreign Assets Control (OFAC)
- Trading With the Enemy Act increase from $105,083 to $108,489
- International Emergency Economic Powers Act (2007) increase from $356,579 to $368,136
- 89 FR 2139, January 12, 2024
As always, if you need more information or assistance in any of these areas, ECS is here to help!