On 3 June 2016, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) published a Final Rule (the “BIS Final Rule”) revising a number of definitions in the Export Administration Regulations (“EAR”). BIS also posted new Frequently Asked Questions related to this rule. Concurrently, the U.S. Department of State published an Interim Final Rule (the “State Interim Rule” and, collectively with the BIS Final Rule, the “June 2016 Rules”) revising several definitions in the International Traffic in Arms Regulations (“ITAR”). The June 2016 Rules will go into effect on 1 September 2016. The State Department will accept comments on the State Interim Rule until 5 July 2016.
On 16 March 2016, President Barack Obama issued a new Executive Order (the “Order”) imposing additional sanctions on the Democratic People’s Republic of Korea (“North Korea”). As a result of these new sanctions, US Persons (defined below) are prohibited from engaging in virtually all transactions with North Korea. Additionally, pursuant to the Order, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) announced that it had designated 2 individuals, 15 entities, and 20 vessels as Specially Designated Nationals (“SDNs”). OFAC also issued nine general licenses for certain activities involving North Korea and published frequently asked questions (“FAQs”) pertaining to the Order and general licenses.
Introduction
Following the Democratic People’s Republic of Korea’s (“DPRK” or “North Korea“) latest nuclear test and rocket launch on 6 January 2016 and 7 February 2016 respectively, the UN Security Council (“UNSC“) unanimously adopted Resolution 2270 (2016) (the “UN Resolution“) on 2 March 2016.
The UN Resolution contains far-reaching sanctions aimed at cutting off funds for DPRK’s nuclear and other banned weapons programmes, whilst avoiding “adverse humanitarian consequences” for civilians. The UN Resolution adds sectoral sanctions, broadens the scope of the existing financial sanctions and arms embargo, imposes new measures targeting proliferation networks, and expands the list of designated individuals and entities.
On 7 August 2015, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) published a final rule adding a Russian oil and gas field, the Yuzhno-Kirinskoye Field located in the Sea of Okhotsk, to the Entity List maintained in the Export Administration Regulations, 15 C.F.R. Parts 730-774 (“EAR”). As a result of this designation, the exportation, reexportation, or in-country transfer to this field of any item subject to the EAR requires a BIS…