by eric9to5

OFAC’s FAQ on South Sudan

142. Is the new Bank of South Sudan still considered to be part of or linked to the Central Bank of Sudan or the Government of Sudan?

No. Since the independence of the new Republic of South Sudan on July 9, 2011, the former Bank of Southern Sudan, sometimes referred to as the Bank of South Sudan, has been established as the new central bank of the Republic of South Sudan. It is no longer a subsidiary of or linked to the Bank of Sudan, and no longer considered to be the Government of Sudan under the Sudanese Sanctions Regulations, 31 C.F.R. Part 538. U.S. persons may deal in property and interests in property of the Bank of South Sudan so long as those dealings do not otherwise violate the Sudanese Sanctions Regulations or other U.S. laws. [07-09-11]

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143. Can I export equipment for use in South Sudan’s oil sector?

Yes. Such exports, if prohibited by the SSR, are authorized by the new GL for activities relating to the Republic of South Sudan’s petroleum or petrochemical industries. That GL authorizes exports to the oil sector in the Republic of South Sudan that otherwise would be prohibited, whether because they relate to the petroleum or petrochemical industries in Sudan or involve dealing in Government of Sudan (GOS) property or are transshipped through Sudan. Certain types of equipment, such as dual use items, are also subject to Commerce Department licensing requirements. For more information about those requirements, contact the Foreign Policy Division of the Bureau of Industry and Security (BIS) at 202-482-4252, or visit http://www.bis.doc.gov. [12-08-11]

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144. Can I transship equipment through Sudan to use in South Sudan?

Yes. The transshipment of equipment, whether oil-related or not, through Sudan to or from South Sudan is now authorized. [12-08-11]

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145. Do I need any additional authorization from OFAC to engage in particular activities related to South Sudan’s oil sector, such as paying pipeline or port fees?

No. To the extent that they are prohibited by the Sudanese Sanctions Regulations, all activities and transactions relating to the petroleum and petrochemical industries in the Republic of South Sudan are authorized, including but not limited to the transshipment of goods, technology, and services to or from the Republic of South Sudan through Sudan; exploration; development; production; field auditing services; oilfield services; activities related to oil and gas pipelines; investment; payment to the Government of Sudan or to entities owned or controlled by the Government of Sudan of pipeline, port, and other fees; and downstream activities such as refining, sale, and transport of petroleum from the Republic of South Sudan, except for the refining in Sudan of petroleum from the Republic of South Sudan. [12-08-11]

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146. Can I participate in the refining of Southern Sudanese crude oil in refineries located in Sudan?

No. Refining in Sudan of petroleum from the Republic of South Sudan continues to be prohibited. [12-08-11]

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147. Does this mean I can do business in Sudan’s oil sector now?

No. All activities and transactions relating to the petroleum and petrochemical industries in Sudan continue to be prohibited, unless otherwise authorized. [12-08-11]

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148. Can I use a bank that is owned by the Government of Sudan to facilitate a payment for oil-related activities in South Sudan?

All financial transactions ordinarily incident to the activities authorized by both the oil and the transshipment general licenses also are authorized, including but not limited to financial transactions with a depository institution owned or controlled by the Government of Sudan (GOS) or located in Sudan, provided that any transaction between a U.S. depository institution and a depository institution owned or controlled by the GOS must first transit through a depository institution that is not owned or controlled by the GOS. [12-08-11]

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03.28.14

by eric9to5

March 27, 2014 SECO Belarus Sanctions changes

On Thursday, SECO removed the following person and 3 entities from its Belarus sanctions:

SSID: 20-5757 Name: Ternavsky Anatoly Andreevich Spelling variant: a) Ternavski Anatoli
Andreevich (Russian) b) Ternavskiy Anatoliy Andreyevich (Russian) c) ТЕРНАВСКИЙ
Анатолий Андрэевiч (Belarusian) d) ТЕРНАВСКИЙ Анатолий Андреевич (Russian) DOB: 1950 POB: Donetsk, Ukraine Justification: Person close to family members of President Lukashenka; sponsor of the
President’s Sports Club. His dealing with oil and oil products testifies his close relations with
the regime, taking into account a state monopoly on the oil refining sector and the fact that
only several individuals are entitled to operate in oil sector. His company Univest-M is one of
the two major private oil exporters in Belarus. Modifications: Amended on 14 Dec 2012, de-
listed on 27 Mar 2014

SSID: 20-5922 Name: Univest-M Spelling variant: Юнивест (Belarusian) Justification: Entity controlled by Anatoly Ternavsky. Relation: Controlled by Ternavsky
Anatoly Andreevich (SSID 20-5757) Modifications: Amended on 20 Dec 2013, de-listed on
27 Mar 2014

SSID: 20-5926 Name: FLLC Unis Oil Spelling variant: ИООО Юнис Ойл (Belarusian)
Justification: Subsidiary of Univest-M. Modifications: De-listed on 27 Mar 2014

SSID: 20-5930 Name: JLLC UnivestStroyInvest Spelling variant: СООО Юнивест–
СтройИнвест (Belarusian) Justification: Subsidiary of Univest-M. Modifications: De-listed on 27 Mar 2014

The Watchlists page has been updated.

Links:

SECO Notice

Data files of changes – PDF, XML

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03.27.14

by eric9to5

March 26, 2014: Notice to Exporters 2014/08

Wednesday's Notice to Exporters consists of two parts. First, the Consolidated EU and National Arms Export Licensing Criteria (aka “Consolidated Criteria”) have been revised:

2. The Consolidated Criteria sets out the Government’s core policy against which the Export Control Organisation (ECO) assesses, on a case-by-case basis, all licence applications for export, transfer, trade (brokering) and transhipment of military, dual-use and other items subject to control for strategic reasons. A licence will not be granted if doing so would breach of any of the Criteria.

3. This statement of the Criteria replaces the original version which was announced to Parliament in October 2000. There have been many developments within export controls since then, most notably:

entry into force of the Export Control Act 2002
extension of the controls to electronic transfers of software and technology and to trade (brokering) in military goods between overseas destinations
adoption by the EU of Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment
further development of EU export control law
adoption by the UN General Assembly on 2 April 2013 of an international Arms Trade Treaty, which the UK signed on 3 June 2013.

4. The updated version reflects these developments and brings the Consolidated Criteria fully into line with the EU Common Position and the UN Arms Trade Treaty. The principal changes are:

the list of international obligations and commitments in Criterion 1 has been updated
there is explicit reference to international humanitarian law in Criterion 2
the risk of reverse engineering or unintended technology transfer is now addressed under Criterion 7 rather than Criterion 5
minor changes to improve the clarity and consistency of the language used throughout the text.

Secondly, two Open General Export Licenses (OGELs) were updated to add Russia to the list of non-permitted destinations: one for repair or replacement of military goods under warranty, and one for military goods for demonstration.

Links:

Notice to Exporters 2014/08

OGEL for military goods replacement or repair under warranty

OGEL for military goods for demonstration

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03.27.14

by eric9to5

March 26,2014: HKMA blows the whistle on Fleet National Bank, Hong Kong

The Hong Kong Monetary Authority has identified two websites associated with “Fleet National Bank, Hong Kong” that appear to be fraudulent: fleetnationalbk.com and fleethknational.com. From the notice:

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public in Hong Kong to suspected fraudulent websites with the domain names “www.fleetnationalbk.com” and “www.fleethknational.com”. The websites are operated by an alleged “Fleet National Bank, Hong Kong”, which claims that it offers various banking services to members of the public in Hong Kong.

The public should be aware that the alleged “Fleet National Bank, Hong Kong” is not authorized under the Banking Ordinance to carry on banking business or the business of taking deposits in Hong Kong, nor does it have the approval to establish a local representative office.

The HKMA has referred the case to the Hong Kong Police Force for further investigation. Anyone who has provided his or her personal information to the websites or has conducted any financial transactions through the websites should contact any local Police Station or the Commercial Crime Bureau of the Hong Kong Police Force at 2860 5012.

Link:

HKMA Notice

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03.27.14

by eric9to5

March 26 2014: Pahlawan Rozi designated as SDNTK by OFAC

Wednesday, OFAC added the following Afghani person as a Specially-Designated Narcotics Trafficking Kingpin (SDNTK):

ROZI, Pahlawan (a.k.a. ROEZI, Pahlawan; a.k.a. ROSI, Pahlawan; a.k.a. ROSY, Pahlawan; a.k.a. ROZI, Palawan; a.k.a. ROZIUDIN, Pahlawan; a.k.a. ROZY, Palawan; a.k.a. RUZI, Pahlawan), 42S VF 88722 63166, Kunduz City, Kunduz Province, Afghanistan; 42S VF 88651 63126, Kunduz City, Kunduz District, Afghanistan; 42S VF 88648 63088, Kunduz City, Kunduz District, Afghanistan; DOB 1965; POB Kunduz City, Kunduz District, Afghanistan; nationality Afghanistan (individual) [SDNTK].

Link:

OFAC Notice

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03.26.14

by eric9to5

OFAC FAQ on TSRA Licenses

97. What format options are permitted for submitting license applications pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA)?

OFAC permits two format options for submitting TSRA license applications: hard-copy and CD-ROM. Applications submitted using a CD-ROM, however, must be accompanied by a cover letter that includes some essential information: the purpose of the application and the applicant’s full contact information. If either the cover letter or the pertinent information is missing, the application is considered incomplete and risks delay or rejection.

In addition, the CD-ROM should contain an electronic copy of the application. OFAC prefers that the application be saved as a pdf file on the CD-ROM; however, this is not required. [06-14-2007]

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98. How should I present my TSRA license application?

Applicants should clearly enumerate in a table format all pertinent information related to their proposed transactions, including: a) Full names and addresses of all parties involved in the transactions and their roles, including financial institutions and any Iranian or Sudanese broker (identify company principals), purchasing agent (identify company principals), end-user(s) (full contact name), or other participants involved in the purchase of the proposed export items; and b) If applicable, the commodity classification numbers that are associated with the proposed export items. [06-14-2007]

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99. What is the procedure for submitting multiple copies of the same TSRA license application?

OFAC requires applicants to submit each individual application in a separate envelope, accompanied by a separate cover letter. Applicants should not submit multiple applications in a single envelope with a single cover letter. If you submit applications in that manner, you may encounter some delay in the processing of your applications. Therefore, in order to prevent such delay, submit one application with one cover letter per envelope. [06-14-2007]

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100. If I am submitting multiple TSRA license applications at the same time, should I send them under a single cover letter?

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101. Should I send a sample of the proposed export product as an attachment to my TSRA license application?

No. OFAC does not require samples of proposed export products to be sent as attachments to any application. OFAC does not need to examine samples of the actual product in making its final determination. Therefore, please do not include any samples with your application.

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119. The US exporter has a valid, one-year specific license issued pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC), to enter into contracts during the one-year period of the license for the export/reexport of medical devices and to ship these medical devices within the 12-month period beginning on the date of signing of the contract (the “validity period”). Out of the box, the medical device has a defective component, or a component breaks within the validity period of the license. Can the US exporter send a replacement part pursuant to its valid OFAC license as a transaction that is ordinarily incident and necessary to the sale of the medical device as a whole?

The export or reexport of the replacement part would be considered ordinarily incident and necessary to the sale of the medical device and would be covered by the original valid OFAC license, provided that the replacement part has been classified separately as EAR99 by the Department of Commerce (DOC) under the Export Administration Regulations, 15 CFR parts 730 et seq., and provided further that the replacement part is shipped within the validity period of the original license. A commodity classification issued for the medical device as a whole would not necessarily cover the replacement part; however, if the commodity classification issued by DOC does specifically reference replacement parts, only those replacements parts that are covered by this classification would be eligible for export under this scenario. A one-for-one policy would be applied to the replacement of a defective or unusable component of a medical device. The US exporter would remain subject to the recordkeeping and reporting requirements of §§ 501.601 and 501.602 of the Reporting, Procedures and Penalties Regulations, 31 CFR Part 501, including the requirement that all records of transactions conducted pursuant to the license must be made available to OFAC upon request.

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120. The US exporter exports a medical device pursuant to a valid OFAC TSRA license. After a few years, some components break. The US exporter wants to send replacement parts. What is the US exporter required to do?

The US exporter would have to submit a new application to OFAC for a specific license to export the replacement parts. In addition to providing all of the information outlined in the License Application Guidelines for Exports to Iran and Sudan of Agricultural Commodities, Medicine, and Medical Devices posted on OFAC’s website, applications should also include a copy of the original license application submitted to OFAC and the license under which the original medical device was exported.

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121. The US exporter has a valid OFAC TSRA license to export/reexport a medical device. The US exporter has exported a medical device pursuant to this license. The medical device breaks during the validity period of the license. Can the US exporter import the item back into the US pursuant to the original license?

The US exporter would have to submit a new application to OFAC for a specific license to import the medical device into the United States. Such a license may be issued, depending on the facts and circumstances. The license application should include 1) a copy of the original license application submitted to OFAC; 2) a copy of the original license under which the medical device was exported; 3) a statement regarding the circumstances under which the medical device broke; and 4) an explanation of what will be done to the medical device in the United States.

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03.25.14

by eric9to5

Notice to Exporters 2014/07: Amendment to Category B goods list

On Monday, the Export Control Organization (ECO) issued Notice to Exporters 2014/07, which announces the amendment of the Export Control Order 2008 by replacing the list of Category B goods subject to export control. The amendments are issued as the separate Export Control (Amendment) Order 2014.

The amendments satisfy elements of the Trade Control Treaty, which was a United Nations General Assembly treaty adopted in April 2013, and signed by the UK in June of that year. These changes are required for final ratification of the treaty.

Here are the additions to Category B:

Battle tanks and armoured combat vehicles within ML6

18. Vehicles specified in entry ML6.a in Schedule 2 as follows:

(a) Tracked or wheeled self-propelled armoured fighting vehicles with an unladen weight of 16.5 metric tonnes or more and with a main gun with a calibre of 75mm or more;

(b) Tracked, semi-tracked or wheeled self-propelled vehicles, with armoured protection, as follows:

(i) designed and equipped to transport a squad of four or more infantrymen; or

(ii) armed with an integral weapon with a calibre of 12.5mm or more or a missile launcher.

Large-calibre artillery systems within ML2 and ML4

19. To the extent that they do not fall within paragraph 9 or 11, the following goods:

(a) Guns or howitzers specified in entry ML2.a of Schedule 2 with a calibre of 75mm or more;

(b) Mortars specified in entry ML2.a of Schedule 2 with a calibre of 100mm or more; and

(c) Multiple-launch rocket systems specified in entry ML4.b of Schedule 2 with a calibre of 75 mm or more.

Combat aircraft and attack helicopters within ML10

20. “Combat aircraft” and “attack helicopters” specified in entry ML10.a or ML10.c of Schedule 2.

Warships within ML9

21. Vessels and submarines specified in entry ML9.a of Schedule 2 as follows:

(a) Having a standard displacement of 500 metric tons or above; or

(b) Having a standard displacement of less than 500 metric tons and equipped for launching missiles or torpedoes with a range of 25km or more.

Other missiles and missile launchers

22. To the extent they are not covered elsewhere in this Part, the following goods specified in entry ML4 of Schedule 2:

(a) Rockets or missiles capable of a range of 25km or more other than ‘ground-to-air missiles’;

(b) Equipment designed or modified for launching missiles or rockets in sub-paragraph (a).

Note: Paragraph 22 includes remotely piloted vehicles with the characteristics for missiles as defined above.

Technical note

‘Ground-to-air missiles’ means those surface-to-air missiles which are mounted on fixed land sites or on wheeled or tracked mobile launchers.