It has been a very hectic March based on several significant changes in U.S. sanctions and export control regulations taking effect in very short order – with an expectation of additional changes ahead.
The most significant regulatory changes have been in connection with the invasion of Ukraine, and include restrictions on dealings with governments, businesses and individuals in Russia, Belarus, Luhansk People’s Republic (LNR), Donetsk People’s Republic (DNR), or Crimea (“Covered Region”).
It is recommended that if you or your business is engaged in international trade, that you carefully screen and determined if any of your current customers, financial institutions, agents, or representatives meet any of the following criteria:
- Is a citizen of a Covered Region,
- Is a corporate or governmental entity located or operating in a Covered Region, or
- Is a corporate entity owned, controlled, or under the influence of an entity or individual located or operating in a Covered Region.
In addition to the foregoing criteria, there are more specific restrictions related to specific goods and services that are now export restricted, or will require a license or exception for export to the Covered Region.
Anyone engaged in international trade must be vigilant with regard to the Covered Region, covered parties, and/or restrictions on goods and services to the same – particularly with regard to oversight of non-U.S. agents, affiliates or other representatives acting on their behalf. They must not only be diligent in any future changes to U.S. sanctions or export restrictions, but for business that have facilities or a “permanent establishment” in other jurisdiction, such as the Canada or the EU, they will need to be mindful of sanctions and restrictions in those jurisdictions as well – which in many cases have either preceded or exceeded U.S. Russia related sanctions thus far.
David and Andrew are both located in Bradley’s Huntsville, Alabama office and work closely together on national security and controlled technology related matters, including U.S. sanctions and export controls.
