Lise S. Test

OFAC Extends Authorization for Transactions w/ PDVH and CITGO and Extends Wind Down of Contracts and Trades Involving Certain Bonds and Securities Until May 2019

March 20, 2019 by Bart M. McMillan, Lise S. Test and Daniel Andreeff

On March 14, 2019, OFAC reissued General License 7 (“GL 7”) as General License 7A (“GL 7A”) to extend the general license’s authorization for certain activities involving PDV Holding, Inc. (“PDVH”) and CITGO Holding, Inc. (“CITGO”). While the original GL 7(a) was set to expire on July 27, 2019, GL 7A(a) automatically renews on the first day of each month, and is valid for a period of 18 months from the last renewal date. GL 7A(a) authorizes certain transactions with PDVH, CITGO, and their subsidiaries that would otherwise be prohibited as a result of the designation of their parent, Petroleos de Venezuela, S.A. (“PdVSA”), on January 28, 2019 under Executive Order 13850. We note that the separate petroleum-related provision that appears in GL 7(b) has not changed, and still expires on April 28, 2019. GL 7A(b) continues to authorize PDVH, CITGO, and their subsidiaries to engage in transactions ordinarily incident and necessary to the purchase and importation of petroleum and petroleum products from PdVSA (and any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest). Our prior blog posts on the scope of GL 7 are here and here.Read more…

Bart M. McMillan

Mr. McMillan's practice involves compliance counseling; compliance programs; licensing; compliance reviews; internal investigations; voluntary disclosures; administrative enforcement actions; criminal investigations; customs inquiries, audits, detentions, and seizures; and trade-compliance due diligence and post-acquisition integration in mergers and acquisitions. His practice includes matters that implicate the US International Traffic in Arms Regulations (ITAR), US Export Administration Regulations (EAR), US National Industrial Security Program (NISP), the US Committee on Foreign Investment in the United States (CFIUS), and equivalent non-US laws. Mr. McMillan regularly advises on and represents clients in matters involving technology, including its control, protection, accidental disclosure, diversion, or unauthorized collection. Mr. McMillan has extensive experience working with companies in the aerospace and defense industry, as well as companies in the Middle East and other parts of Asia.

http://www.bakermckenzie.com/BartMcMillan

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

Daniel Andreeff

Daniel Andreeff’s practice focuses on US economic and trade sanctions, including those targeting Iran, Russia, Cuba, Syria, and North Korea, export controls, and anti-boycott laws. He represents clients in national security reviews before the Committee on Foreign Investment in the United States (CFIUS), and has experience in federal court litigation and congressional investigations. His pro bono practice includes providing sanctions and export control advice to a global humanitarian NGO.

https://www.bakermckenzie.com/en/people/a/andreeff-daniel

US Imposes Additional Economic Sanctions on Venezuela Targeting PdVSA; OFAC Issues New General Licenses

January 30, 2019 by Lise S. Test, Meghan Hamilton and Paul E. Amberg

On January 28, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) designated Petróleos de Venezuela, S.A. (“PdVSA”) as a Specially Designated National (“SDN”) under Executive Order 13850 of November 1, 2018 because it operates in the Venezuelan oil sector. As a result, US Persons (i.e., entities organized under US laws and their non-US branches; individuals and entities physically located in the United States; and US citizens and permanent resident aliens (“Green Card” holders) wherever located or employed) are prohibited, in the absence of an OFAC license, from transacting, directly or indirectly, with PdVSA and any entities owned 50% or more by PdVSA (“PdVSA Subs”). In addition, except as permitted under OFAC licenses, US Persons are required to block property or property interests of PdVSA/PdVSA Subs that are currently in the United States, come within the United States or the possession or control of any US Person.Read more…

Lise S. Test

http://www.bakermckenzie.com/LiseTest

Meghan Hamilton

Meg's practice involves assisting multinational companies with export compliance related matters, specifically trade sanctions and export control classifications. Additionally, she assists companies with respect to customs laws, anti-boycott laws and other trade regulation issues in the US and abroad. She also helps obtain authorizations from the US government for activities subject to sanctions regulations and US export control regulations, including the Export Administration Regulations and the International Traffic in Arms Regulations. Meg's practice extends to assistance in internal compliance reviews as well as enforcement actions and disclosures necessitated by US government action.

http://www.bakermckenzie.com/en/people/h/hamilton-meghan

Paul E. Amberg

Paul Amberg is a partner in Baker McKenzie’s Amsterdam office, where he handles international trade and compliance issues. He advises multinational companies on export controls, trade sanctions, antiboycott rules, customs laws, anticorruption laws, and commercial law matters. Paul helps clients assess and address compliance risks presented by export controls, trade sanctions, antiboycott rules, customs laws, and anticorruption laws. His practice especially focuses on internal reviews, voluntary disclosure filings, and enforcement actions brought by, the US Government in relation to the Export Administration Regulations (EAR), International Traffic in Arms Regulations (ITAR), trade and economic sanctions programs, and US customs laws.

http://www.bakermckenzie.com/PaulAmberg

Second Iran Sanctions Wind-Down Period Ends and United States Completes Full Re-Imposition of Sanctions on Iran

November 6, 2018 by Lise S. Test, Eunkyung Kim Shin and Lloyd Grove

On November 5, 2018, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) took several actions to finalize the re-imposition of sanctions against Iran in response to President Trump’s May 8, 2018 decision to cease the United States’ participation in the Joint Comprehensive Plan of Action (“JCPOA”). See our previous blog posts here regarding the President’s May 8, 2018 decision to cease the United States’ participation in the JCPOA and here regarding Executive Order (“EO”) 13846, issued on August 6, 2018, which consolidated and reissued several sanctions provisions that had been suspended or revoked while the JCPOA was in effect.Read more…

Lise S. Test

http://www.bakermckenzie.com/LiseTest

Eunkyung Kim Shin

Eunkyung advices clients on various regulatory compliance and trade issues, concentrating on the US export controls such as the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), economic and trade sanctions, US customs and import laws, the US Foreign Corrupt Practices Act (FCPA), and foreign anti-bribery laws.

http://www.bakermckenzie.com/EunkyungKimShin

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

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

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

http://www.bakermckenzie.com/LiseTest

Sanctions & Export Controls Update