Cover story

The Rise of Supply Chain Compliance

As global supply chains become increasingly complex, businesses face significant challenges in ensuring compliance with laws, regulations, and industry standards. Non-compliance can lead to legal penalties, financial losses, and reputational damage, making supply chain compliance risk mitigation crucial.

Welcome to your new Export Practitioner

The Export Practitioner introduces a web-based format for easier review, research and sharing.

In addition to your monthly print or e-edition, we can furnish mid-month updates for our readers.

We seek your input as we make this transition. Please send your suggestions to fruffing@traderegs.com or call 301-460-3060.

– Frank Ruffing, Editor

May 2023 Export Practioner

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Latest news

OFAC / Iran Missile Actors Sanctioned

Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on a network encompassing seven individuals and six entities across Iran, China, and Hong Kong, citing links to Iran's ballistic missile program. The June 6 action accused the network of facilitating procurement and financial transactions for critical components and technology required for Iran's ballistic missile development.

House, Senate Study Export Controls

Export practitioners and regulators were called to the hill in recent weeks to explain to lawmakers what was being done and what could be improved. BIS and Treasury Officials fielded queries in the Senate, while an oversight committee in the House invited former Commerce officials to discuss what could be done better.

FinCEN and BIS Publish Updated Russia Alert

The Financial Crimes Enforcement Network (FinCEN) and the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce have issued a supplemental joint alert urging financial institutions …

Justice, Commerce Maintain Self-Disclosure Drumbeat

Assistant Attorney General Kenneth Polite Jr. , head of the Department of Justice's (DOJ) criminal division, reports an increase in corporate disclosures following the implementation of new …

Havana Update

It isn’t front and center in the news, but it seems everybody thinks Cuba is the next big thing, and it's been the next big thing for a long time. Our readers would like to hear what you suggest, to Industry and the academic community, about how to engage and how to stay out of trouble in the process

Sanctions

More Syria Sanctions

Treasury's Office of Foreign Assets Control (OFAC) has announced sanctions against two Syrian money service businesses, Al-Fadel Exchange and Al-Adham Exchange Company, for their covert aid to the …

Sudan Sanctions Pressure Combatants

Treasury’s Office of Foreign Assets Control (OFAC) designated four companies generating revenue from, and contributing to, the conflict in Sudan. The entities designated today are affiliated with the two embattled forces that are fueling the ongoing conflict in Sudan: two companies affiliated with the paramilitary Rapid Support Forces (RSF) and two companies affiliated with the Sudanese Armed Forces (SAF). Consistent with OFAC’s policy of supporting the basic needs of vulnerable populations while continuing to deny resources to malign actors, OFAC is issuing three general licenses (GLs) concurrent with today’s action.

California Fashion Brand Ups Russian Investment

American fashion brand Guess has reacquired its 30% stake from its Russian partner Vyacheslav Shikulov, an unusual move for the Russian fashion market. The deal, valued at €8 million (US$8.5 million), has consolidated 100% of Guess's Russian business after receiving approval from the US Treasury Department.

Enforcement

Viet Procurement Office Faces Debarment for ITAR Violations

The Vietnamese government-owned company VTA Telecom Corporation (VTA) has been administratively debarred for violating the International Traffic in Arms Regulations (ITAR), according to a public notice issued by the Department of State. VTA Telecom Corporation was found to have exported or attempted to export ITAR-controlled defense articles, including hobby rocket motors, video trackers, and a gas turbine engine, without proper authorization.

EV Exec on Lam After Indictment for IP Theft from Apple

Weibao Wang, a former software engineer for Apple Inc. and executive at an electric vehicle startup owned by Chinese firms Baidu and Geely, was indicted and charged by the U.S. Department of Justice for allegedly stealing Apple's proprietary self-driving technology.

Philips Medical System Settles China Charges with SEC

Koninklijke Philips N.V., a leading global manufacturer of health technology products, has agreed to pay over $62 million in settlement charges brought by the US Securities and Exchange Commission (SEC). The Dutch company has been accused of engaging in improper conduct and bidding practices in China between 2014 and 2019, which involved influencing foreign officials to increase the likelihood of their products being chosen in public tenders.

Policy Briefs

TTC on Export Controls & Investment

In their Joint Statment, members of the US - EU Trade and Technology Council expressed support for the ongoing sanctions activities, export and investment controls:

ITC Annual Services Report Published

The United States was the world's largest services market and was the top exporter and importer of services in 2021, according to a new report released by the U.S. International Trade Commission (USITC). Preliminary data for 2022 indicate an increase of 15.9 percent in total services exports compared to the previous year.

Non Proliferation Envoy to Korea Talks

Under Secretary of State for Arms Control and International Security, Bonnie D. Jenkins, is set to travel to the Republic of Korea (ROK) from May 29 to June 2, to continue the United States' …

Licensing

Can Cuba Deliver?

A year ago, a breakthrough was expected in the U.S.-Cuba economic relationship when the Biden administration approved the first OFAC license allowing direct investment in and direct financing to a privately-owned Cuban company. However, no funds have been delivered, due to a lack of regulatory framework by the Cuban government, and conviction in Washington is lacking.

DDTC Updates Open General License Pilot Program FAQs and Factsheet

Directorate of Defense Trade Controls (DDTC) has released new frequently asked questions (FAQs) regarding the Open General License (OGL) Pilot Program. In addition, DDTC has released updated versions of previously published OGL FAQs and related factsheet

Where There's an Export, There's an Import: Compliance Data Science and Six Sigma

The intersection of information technology (IT) and trade control brings to light the critical role of importing and exporting technical data in today's globalized world. The maxim "Where there is an …