World ECR | UK releases guidance on anti-Russia sanctions
Home > information > UK publishes guidance against Russia evading sanctions through third countries The British government has issued detailed guidance for companies to combat Russia's efforts to circumvent sanctions through a network of third-country procurement, warning that Moscow continues to purchase Western military and dual-use goods despite trade restrictions. The U.S. Department of Commerce and Trade stated in guidance issued on January 7 that "Russia will go to great lengths to circumvent sanctions and continue to procure Western military, dual-use and other critical goods, including off-battlefield technology, through third countries." The document states that 14 countries, including China, India, Turkey and several Central Asian countries, require "enhanced due diligence" on certain export products, while noting that these jurisdictions are "taking steps to reduce" the flow of sensitive goods. Russia. Major high-risk projects include integrated circuits, electronic components, manufacturing equipment, industrial machinery, aerospace instruments and automotive parts. The guidance warns that Russian procurement networks often use "deceptive tactics" such as…
Hong Kong: The Stock Exchange issued a new guidance letter emphasizing its
in short On November 26, 2024, the Stock Exchange of Hong Kong Limited (SEHK) issued a new guidance letter (GL120-24)1) (“Guidance letter") to inform the market of expectations regarding investigations into suspended issuers and the role of directors and the Independent Investigation Committee (IIC). According to the latest monthly long-term suspension status report published by the Exchange, as of November 29, 2024, there were 57 Main Board and eight GEM issuers have been suspended from trading for three months or more. About six years ago, the Exchange established a delisting framework that stipulates that issuers that fail to resume trading within a specified period (18 months for Main Board issuers and 12 months for GEM issuers) must be delisted. Therefore, issuers should act quickly to address all resumption conditions. Conditions for resumption typically include an independent investigation into irregularities identified in an audit of the issuer's financial performance. We have been regularly advising issuers and IICs on how best to…
Canada-US Border – Guidance on Transfer Pricing and Customs
Transfer pricing refers to the pricing of transactions between related parties within multinational companies and ensures that these prices reflect market conditions and are not affected by the relationship between the parties. Incorrect transfer pricing and customs valuations, including when importing goods across the Canadian and U.S. borders, can have significant financial consequences, so it is critical that organizations understand and apply the arm's length principle.in this episode focusBaker McKenzie's Julia Webster, Chris Raybould and Patrick de Laperouse look at the key steps organizations can take to achieve compliance, including reviewing policies, updating stated values and consulting experts. This conversation provides important insights for finance, tax and legal professionals, as well as supply chain executives. Click on the image below to watch the video chat.
United States: Updated Guidance from the Department of Justice’s Antitrust Division
in short On November 12, 2024, the U.S. Department of Justice’s Antitrust Division updated its Evaluation of Corporate Compliance Programs (ECCP) in criminal antitrust investigations.1 New additions include guidance such as using "managers at all levels" to "set the tone from the middle" by "demonstrating to employees the importance of compliance" and establishing policies that consider using "ad hoc messaging or non-company approaches". Communication, "applied" data analysis tools. . . Compliance and Monitoring" and engaging compliance staff in the "deployment of artificial intelligence and other technologies to assess the risks they may pose." Additionally, ECCP will now apply it to civil investigations. The department's update reiterates that enactment The need for strong compliance policies, if properly designed, should prevent and detect potential misconduct under antitrust laws. Companies should work with counsel to review their current compliance policies and make necessary updates. content go deep Artificial Intelligence and Technology communication channels management and culture Monitoring and reporting Applicable to civil antitrust…
World ECR | BIS updates key export control enforcement guidance
Home > information > BIS updates key export control enforcement guidance based on new case The U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced on November 12 that it has released an updated version of its enforcement guidance, "Don't Let This Happen to You!", which covers recent export control violations. The revised publication, last updated in July 2024, includes several important new enforcement cases, including: ● The first punishment case of the Disruptive Technology Strike Force ● Criminal case involving Russian procurement network ● A smuggling case involving the use of export-controlled items to stage assassinations ● Administrative action against a semiconductor company for unauthorized shipments to Entity List parties ● Violation of anti-boycott regulations The BIS advises that “exporters are encouraged to read this publication, which provides useful illustrations of the types of conduct that can put companies and universities in trouble.” The guide is designed to help industry and academia understand export control compliance requirements…
CBP issues guidance on steel melting and pouring requirements
CBP recently issued guidance on melting and pouring requirements for certain imported steel products to implement President Biden’s announcement in July to adjust U.S. steel and aluminum imports.steel aluminum announcement backgroundOn July 10, 2024, President Biden issued two announcements regarding adjustments to U.S. steel and aluminum imports. The announcement increases the Section 232 tariff rates for these two products and adjusts the requirements to avoid Section 232 duties.The Steel Bulletin imposes melting and pouring requirements on steel products imported into Mexico. It also increases the Section 232 import tariff rate on steel products and derivative steel products produced in Mexico that are melted and poured in countries other than Mexico, Canada or the United States. If the melting and pouring country is any country other than the United States, Mexico or Canada, the steel products are subject to an additional 25% tariff.Beginning November 21, 2024, importers must report to CBP the melting and pouring countries for certain imported steel products…
Singapore: Health Sciences Authority updated guidance
in short In October 2024, the Health Sciences Authority (HSA) updated its guidance on evidence of implementation of good manufacturing practice (GMP) by manufacturers of drug substances (DS) (“guide"). This is a timely revision to the guidance, as the requirement for chemical DS manufacturers to provide evidence of GMP compliance becomes mandatory from 1 October 2024, after a one-year grace period. Effective October 1, 2024, all new or generic drug applications (NDA or GDA) and minor change applications ("IV-1") Adding a new DS manufacturer must be supported by evidence of GMP compliance by the DS manufacturer. Applications that do not meet these requirements will not be accepted. The guidance clarifies that this mandatory requirement does not apply to existing registered products unless a MIV-1 application is submitted to add or change drug substance manufacturers/sites. Only GMP certificates issued by Drug Inspection Cooperation Program agencies are accepted; HSA does not accept certificates issued by third-party certification agencies. The GMP compliance evidence…
G7 releases new industry avoidance guidance
Leading professional publication providing news and insights on global export controls and sanctions.First published in 2011, WorldECR is a platform for understanding developments in international sanctions and export controls and their impact on global trade. WorldECR is your indispensable resource when it comes to solving problems around the world.
EU’s new export due diligence guidance: keep an eye on it
In 2021, the EU passed an updated version of the EU Dual-Use Regulation, setting common standards for export control of dual-use items by EU member states. Among its new provisions, Regulation (EU) 2021/821 introduces “comprehensive controls” on network monitoring projects in its Article 5. This catch-all provision requires exporters to obtain approval if they know or suspect that their cyber surveillance programs may be used to commit human rights violations, even if the programs are not specifically subject to existing export controls. Telecom interception systems (5A001.f.), Internet surveillance systems (5A001.j.), intrusion software (4A005, 4D004), and forensic tools (5A004.b., 5D002.a.3.b., 5D002.b.) etc. items. c.3.b.) are examples of technologies subject to these controls. Despite growing concerns about the misuse of spyware and other surveillance tools, such comprehensive controls have so far been rarely applied, and many exporters remain unclear about how to apply it. To address this issue, the EU published new guidance on October 15, 2024 to help exporters meet these…
UK: EHRC updates technical guidance on sexual behavior
in short The new obligation on employers to take reasonable steps to prevent sexual harassment by employees will come into effect on 26 October 2024. Following a summer consultation, the Equality and Human Rights Commission (EHRC) has published eight-step guidance on preventing sexual harassment. Workplace Harassment Issues and Further Updates to Technical Guidance on Sexual Harassment and Workplace Harassment In the words of the EHRC, the new duty "aims to change workplace culture by requiring employers to take proactive and reasonable steps to prevent workers from sexual harassment". It will sit alongside existing safeguards but require employers to take a more proactive approach to identifying and addressing risks. The guidance makes clear that an employer's duty to prevent sexual harassment covers harassment by third parties and their employees. Strictly speaking, an employee cannot bring an independent claim to an employment tribunal for third party harassment unless the employer's failure to act is itself discriminatory. However, the guidance indicates that the…
Banks export too: New BIS guidance tags financial firms
Pull offer: “Every export – every item – has an associated financial transaction” You are a banker. You do banking. You read the ledgers, compile the numbers, and manage the accounts. Maybe you take out a loan, maybe you invest, but in general, you move your money to where it should be (and from where it shouldn't be). (1) Something you do no All you have to do is pack up a box of widgets and ship them to a customer in another country. However, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) has warned that bankers should maintain "ongoing" export due diligence. This news may liven up your daily life. You are now a banker and (sort of) exporter. We know that modern banks have robust and advanced due diligence infrastructure to detect and prevent fraud, money laundering, terrorist financing, sanctions violations and many other potential financial crimes. Now, those of you who don't have it…
Bank for International Settlements releases best practices guidance for financial institutions
The U.S. Department of Commerce's Bureau of Industry and Security (BIS) recently issued guidance for financial institutions that contains recommendations regarding compliance with the Export Administration Regulations (EAR).The guidance provides recommendations on steps financial institutions can take to minimize the likelihood of a violation of the EAR. The recommendations focus on three key areas: due diligence best practices, reviewing red flag transactions, and real-time screening.Due Diligence Best PracticesThe guidance recommends that financial institutions incorporate EAR-related due diligence into their compliance and risk management and compliance processes. Due diligence should be conducted prior to onboarding a new client and as part of regular due diligence thereafter.Specifically, the BIS recommends that financial institutions:Review customers against the list of persons subject to BIS end user restrictionsScreen customers (and, where appropriate, customers of customers) against a list of entities shipping Common High Priority List (CHPL) items to Russia since 2023If a customer engages in the export, re-export, or transfer of items subject to the…
ICYMI: G7 releases guidance on preventing tax evasion
The United States, Canada, France, Germany, Italy, Japan, the United Kingdom and the European Union (G7) have issued joint industry guidance on preventing the evasion of export controls and sanctions to Russia.The goal of this guidance is to protect common high-priority checklist items from misappropriation, prevent reputational damage, and reduce liability risk. The guidance is designed to assist industry in complying with multilateral export controls and sanctions and identifying evolving tax evasion practices in Russia.The guidance outlines three priority areas: higher-risk items being diverted to Russia, red flag indicators of potential tax evasion, and best practices for addressing red flags.1. Common High Priority List (CHPL)The European Union, Japan, the United Kingdom and the United States have developed CHPL to identify higher-risk items illegally transferred to Russia. Projects include:integrated circuitnavigation instrumentdigital cameratransistorsignal generatormilling machinePlease view the full CHPL here.2. Red Flag IndicatorsThe G7 identified the following red flags for potential export controls and sanctions evasion:Sudden changes in business activities after February…
World ECR | G7 releases first joint guidance on Russia
The U.S. State Department announced on September 24 that the Group of Seven (G7) countries had issued the first-ever joint industry guidance aimed at "preventing the evasion of export controls and sanctions imposed on Russia." The updated guidance outlines the following priority areas: Items with a higher risk of being transferred to Russia; Red flag indicators of potential export controls and/or sanctions evasion; and Industry best practices for addressing these red flags and enhancing due diligence. The goal of the guidance is to protect common high-priority list items from misappropriation, prevent reputational damage and mitigate liability risks, while supporting the continued success of coordinated export controls and sanctions, the BIS said in a press release. The guidance provides industry with strategies for identifying and mitigating risks associated with export control violations. It emphasizes the importance of due diligence and a strong compliance program to detect and prevent illegal activity. BIS said it "encourages industries to implement enhanced screening processes and…
OFAC Issues Guidance Extending Statute of Limitations to 10 Years
On April 24, 2024, President Biden signed the Peace Through Strength in the 21st Century Act (Pub. L. No. 118-50, div. D). Part of the bill includes a provision that extends the statute of limitations for civil and criminal violations of the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) from five years to ten years. The new statute of limitations takes effect on the date the President signs it. Recently, the U.S. Office of Foreign Assets Control (OFAC) issued a guidance document outlining the impact of the 10-year statute of limitations. According to the guidance, OFAC can now bring a civil enforcement action under IEEPA or TWEA within 10 years from the date of the violation if the violation occurred after April 24, 2019. To align with the established 10-year statute of limitations, OFAC issued an interim final rule on September 13, 2024, extending the statute of limitations for the recordkeeping requirements set…
U.S. Department of Commerce’s Bureau of Industry and Security Issues New Guidance for Preparing Export Licenses
The U.S. Bureau of Industry and Security (BIS) released New Guidelines Assist deemed export applicants in obtaining licenses. The guidelines apply primarily to employment situations; however, they also address other situations, such as the release of controlled technology to foreign students involved in research. The guide covers the basic requirements for application and renewal and includes an application checklist. Deemed Export/Re-Export License Background Prior to the release of controlled technology to a foreign person, an export license must be obtained from BIS, an obligation often referred to as a “deemed” export. The release is deemed to be an export to the person’s country of citizenship or nationality. this Export Administration Regulations (ear), Section 734.13Defines deemed export as the release or other transfer of “technology” or “source code” to a foreign person in the United States. Typical organizations that use deemed export licenses include universities, research institutions, biochemical companies, medical institutions, and computer companies. New Guidelines Basic guidelines for completing a…
The U.S. Department of Commerce’s Bureau of Industry and Security issued new guidance to combat Russian money transfer risks and
Recently, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) released New guidance Provide further assistance to exporters and the U.S. Department of Commerce’s Bureau of Industry and Security to combat third-party transfers to Russia. Specifically, BIS’s recent guidance outlines the various mechanisms it uses—in addition to its usual public screening lists (IE, The Unverified List, Entity List, Military End-User List, and Denied Persons List) — notify companies and universities of parties that present a risk of transfer to Russia. According to BIS, it has obtained information supporting the notifications described below from a variety of sources, including information from the export community, government data, news reports, and other open-source resources. Specific mechanisms BIS uses to prevent exporters from unknowingly exporting items to relevant parties include: 1. "Supplier List" Letter Identify parties that present diversion risks and are not on the public screening lists but have been determined by BIS to be exporting or facilitating transactions to destinations…
‘New’ best practice guidance for addressing transfer risk
By Shawna Karajic, Export Solutions Inc. In July of this year, the U.S. Bureau of Industry and Security (BIS) recently issued guidance on addressing export diversion risk. (Diversion risk refers to the possibility that items, technology, or services could be redirected or transferred to unauthorized end users or end uses, which could violate export control laws and regulations). The guidance outlines various actions BIS takes to notify industry of entities that present a diversion risk, beyond those identified on public screening lists such as the Entity List. It includes mechanisms such as “supplier list” letters, program guardian requests, red flag letters, and “as-made-known” letters. These tools help industry more effectively screen their customers and transactions to protect U.S. national security by identifying entities that may be diverting export-controlled items to restricted end-uses/users and countries of concern such as Russia. Additionally, BIS recommends that exporters of Common High Priority List (CHPL) items use the Trade Integrity Program (TIP) online resource for…
The U.S. Department of Commerce’s Bureau of Industry and Security issued new guidance to combat Russian money transfer risks and
The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) recently issued new guidance to exporters designed to further assist BIS in combating third-party transfers to Russia. Specifically, BIS’s recent guidance outlines the various mechanisms it uses—in addition to its usual public screening lists (IE, The Unverified List, Entity List, Military End-User List, and Denied Persons List) — notify companies and universities of parties that present a risk of transfer to Russia. According to BIS, it has obtained information supporting the notifications described below from a variety of sources, including information from the export community, government data, news reports, and other open-source resources. Specific mechanisms BIS uses to prevent exporters from unknowingly exporting items to relevant parties include: "Supplier List" Letter Identify parties that present diversion risks and are not on the public screening lists but have been determined by BIS to be exporting or facilitating transactions to destinations or end-users of concern. BIS may send “suppliers list” letters…
Providing export control guidance to foreign companies and
On Wednesday, March 6, 2024, the U.S. Departments of Commerce, Treasury, and Justice released another three-in-one compliance note, this time focusing on the obligations of foreign entities to comply with U.S. sanctions and export control laws and recent enforcement actions. This may foreshadow a greater scrutiny of the compliance of foreign companies that we have discussed here. While it’s simple (or not!) to understand how sanctions and export control laws affect U.S. companies, how these laws affect non-U.S. individuals and entities is often more confusing. The note summarizes the various ways in which non-U.S. persons and entities may violate these complex regulations. Office of Foreign Assets Control (OFAC) Sanctions While US persons and all persons within the US are subject to US law, including OFAC regulations, non-US persons are also subject to certain OFAC prohibitions. Importantly, the sanctions prohibit non-U.S. persons from causing or conspiring to cause U.S. persons to intentionally or unintentionally violate U.S. sanctions and from engaging in…
WorldECR | Updated UK guidance: Export license required
Home > information > UK updates guidance: regulated research needs export licence to submit for peer review The UK has updated its export control guidance for academia to clarify that controlled research that is not in the public domain requires an export licence when it is sent abroad for peer review. On August 2, the Export Control Joint Unit (ECJU) and the Department for International Trade (DIT) updated the new guidance, which explains: "Research only enters the public domain once it has been published and made available to the public, which means that when controlled research is sent abroad for peer review or publication, it is not yet in the public domain and therefore requires an export licence. Once published, the licence requirement will cease as the research is now in the public domain." Looking for expert advice on export controls or sanctions issues? Subscribe now to receive Regular updates on the latest developments in global trade controls and sanctions…
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