Lise S. Test

US Government Warns About North Korea Links in Supply Chains and Related Sanctions Risks

July 31, 2018 by Lloyd Grove, John Foote, Alexandre (Alex) Lamy and Lise S. Test

The US Departments of State, Treasury, and Homeland Security warned companies in a new advisory that deceptive practices by North Korea to evade US, UN, and other sanctions could put them at risk of prohibited or sanctionable dealings with the North Korean regime. The advisory published on July 24, 2018 follows February 2018 guidance from the US Treasury Department’s Office of Foreign Assets Control regarding certain deceptive shipping practices of North Korea to avoid US sanctions (see our prior blog post here). The new advisory encourages companies to undertake enhanced due diligence within their supply chains to avoid prohibited or sanctionable: (i) sourcing of goods, services, or technology from North Korea and (ii) use of the labor of North Korean citizens or nationals, which is presumed to be forced labor, regardless of where such labor occurs.Read more…

Lloyd Grove

Lloyd advises clients on compliance with the International Traffic in Arms Regulations administered by the US Department of State, and the Export Administration Regulations administered by the Department of Commerce. He has assisted in conducting internal investigations and compliance audits, drafting export licenses and Technical Assistance Agreements, developing comprehensive compliance programs and drafting voluntary disclosures. Lloyd also advises on trade sanctions administered by the Treasury Department’s Office of Foreign Assets Control. He has experience drafting license applications for sanctioned countries and parties, conducting internal investigations into potential sanction violations, drafting voluntary disclosures, and conducting due diligence ahead of mergers and acquisitions. A Certified Fraud Examiner and former police detective, Lloyd also conducts complex internal investigations on behalf of clients into potential violations of various regulations. He has interviewed witnesses and subjects, reviewed large volumes of data for relevant evidence, analyzed complex regulatory requirements and prepared investigative reports provided to government agencies.

http://www.bakermckenzie.com/en/people/g/grove-lloyd

John Foote

Mr. Foote’s U.S. customs practice involves advising clients on how to achieve and maintain duty savings, including through valuation- and classification-based strategies, and how to take advantage of preferential rates of duty under free trade agreements and related programs. He also counsels clients on matters related to customs and trade compliance, including country of origin marking requirements, reducing exposure to antidumping and countervailing duties, and import-related regulatory requirements imposed by various government agencies, such as the Food and Drug Administration (FDA), Federal Trade Commission (FTC), and National Highway Transportation Safety Administration (NHTSA). He regularly represents clients before U.S. Customs and Border Protection, including by filing prior disclosures, submitting comments on proposed agency rulemaking, responding to requests for information and dealing with adverse actions, such as seizure and penalty notices. Mr. Foote also advises companies on matters relating to agreements negotiated at the WTO, such as the Environmental Goods Agreement, and the General Agreement on Trade in Services. His advice is oriented around assisting companies in understanding the opportunities emerging from ongoing trade negotiations, and analyzing the implications of foreign government activity under existing WTO law.

https://www.bakermckenzie.com/en/people/f/foote-john-m

Alexandre (Alex) Lamy

Alex advises clients on compliance with US export controls, trade and economic sanctions, and antiboycott controls. He counsels on and prepares filings to submit to the US Government’s Committee on Foreign Investment in the United States (CFIUS) with respect to the acquisition of US enterprises by non-US interests. Moreover, he advises US and non-US companies in the context of licensing, enforcement actions, internal investigations, compliance audits, mergers and acquisitions and other cross-border transactions, and the design, implementation, and administration of compliance programs.

http://www.bakermckenzie.com/en/people/l/lamy-alexandre

Lise S. Test

Ms. Test advices clients on issues relating to licensing, regulatory interpretations, enforcement actions, internal investigations and compliance audits, as well as the design, implementation and administration of compliance programs. She also advises clients on the extra-territorial application of trade compliance-related regulations in cross-border transactions.

http://www.bakermckenzie.com/LiseTest

US Government Prohibits Certain Dealings in Venezuelan Government Debt and Equity

May 22, 2018 by Lise S. Test, Alexandre (Alex) Lamy and Lloyd Grove

On May 21, 2018, the President signed a new Executive Order (the “Order”) related to Venezuela entitled “Prohibiting Certain Additional Transactions with Respect to Venezuela.” According to a statement from the White House, this action is intended to “prevent the Maduro regime from … liquidating Venezuela’s critical assets.” These new US financial sanctions were imposed after Venezuela held elections this past weekend that were described as “fraudulent” in a press statement from the US State Department. Please see our prior blog posts concerning the previous Venezuela-related Executive Orders: (i) Executive Order 13827 of March 19, 2018 here, (ii) Executive Order 13808 of August 24, 2017 here, and (iii) Executive Order 13692 of March 8, 2015 here.Read more…

Lise S. Test

http://www.bakermckenzie.com/LiseTest

Alexandre (Alex) Lamy

http://www.bakermckenzie.com/en/people/l/lamy-alexandre

Lloyd Grove

http://www.bakermckenzie.com/en/people/g/grove-lloyd

BIS Adds 15 South Sudanese Parties to the Entity List Following Imposition of Arms Embargo Against South Sudan

March 25, 2018 by Lise S. Test, Joseph A Schoorl and Inessa Owens

On March 22, 2018, the US Department of Commerce’s Bureau of Industry and Security (“BIS”) issued a final rule (the “Final Rule”) adding, in relevant part, 15 South Sudanese entities to the Export Administration Regulations’ (“EAR”) Entity List — a step that increases the pressure on that country following the US Government’s imposition of an arms embargo last month. All 15 entities are subject to a license requirement for all exports, reexports, or in-country transfers of items subject to the EAR, and new license applications for these entities are subject to a presumption of denial.Read more…

Lise S. Test

http://www.bakermckenzie.com/LiseTest

Joseph A Schoorl

Joseph Schoorl is an associate in the Washington, DC office. Prior to joining the Firm, he worked as a clerk in the spring of 2012 and as a summer associate in 2011 at Baker McKenzie. In addition, he interned with the Department of Commerce’s Office of Chief Counsel for Industry and Security. He advises US and non-US companies on licensing, enforcement actions, internal investigations and compliance audits, mergers and acquisitions and other cross-border transactions, and on the design, implementation, and administration of compliance programs. Mr. Schoorl's practice focuses on international trade. He advises clients on compliance with US export controls, trade and economic sanctions, and anti-boycott controls.

http://www.bakermckenzie.com/en/people/s/schoorl-joseph-a

Inessa Owens

Inessa Owens is an associate in the Washington, D.C. office and member of the Firm’s International Trade practice group. She focuses on outbound trade compliance issues, including compliance with the Export Administration Regulations, anti-boycott rules, and economic sanctions administered by the US Treasury Department’s Office of Foreign Assets Control, including those targeting Cuba, Iran, North Korea, Syria, and Russia. She has worked with clients in diverse industries that include finance, pharmaceuticals, and energy.

http://www.bakermckenzie.com/en/people/o/owens-inessa

Trump Administration Re-Designates North Korea as a State Sponsor of Terrorism and Designates Additional Parties

December 6, 2017 by Lise S. Test, Alexandre (Alex) Lamy and Nathaniel Douglas

On November 27, 2017, the US State Department published a notice in the Federal Register that North Korea was designated as a State Sponsor of Terrorism (“SST”) on November 17, 2017. North Korea was originally designated as an SST in 1988 in connection with the bombing of a Korean Air flight but was delisted in 2008 by President George W. Bush as part of negotiations over its nuclear program.Read more…

Lise S. Test

http://www.bakermckenzie.com/LiseTest

Alexandre (Alex) Lamy

http://www.bakermckenzie.com/en/people/l/lamy-alexandre

Nathaniel Douglas

Mr. Douglas advises clients on international and domestic securities and transactional matters, including public and private offerings of debt and equity securities, mergers and acquisitions, securities law compliance and disclosure issues, corporate governance matters and the negotiation of commercial contracts. Mr. Douglas also regularly represents clients in the planning and implementation of global reorganization transactions, including post-acquisition integration, tax planning restructuring and spin-off transactions.

Sanctions & Export Controls Update