Last month, the US Department of Commerce’s Bureau of Industry and Security (“BIS”) published updated guidance materials for freight forwarders and exporters and updated their “Don’t Let This Happen to You” guidance document.  BIS also published a new resource to help identify boycott-related requests. Updated Guidance BIS issued updated guidance for freight forwarders and exporters who use freight forwarders to help them ensure compliance with US export controls and regulatory requirements.  The guidance outlines compliance responsibilities, best practices, and red flags that freigh ..read more

In January this year, we reported on substantial proposed changes to the Defence Trade Control Act 2012 (“DTC Act”) that would require businesses handling Defence and Strategic Goods List (“DSGL”) subject matter within and from Australia to implement enhanced compliance mechanisms. On 27 March 2024, the Australian federal parliament implemented these proposed changes by passing the Defence Trade Controls Amendment Act 2024 (“Amendment Act”). The bulk of the changes to the DTC Act will commence no later than 8 October 2024, although could commence any time prior to then if d ..read more

A company’s Russia-bound shipment gets stopped by customs authorities in the UK, which claim the products are prohibited for export to Russia.  After confirming that the products are indeed restricted, the company initiates an internal investigation to get to the root cause of the problem and remediate. A whistleblower uses its employer’s compliance hotline to report concerns about possible US, EU, and UK sanctions or export controls violations.  The company initiates an internal investigation to figure out whether there is a basis for the claim and, if so, what happened, what to do ..read more

Our popular Annual Compliance Conference, which attracts over 4,000 in-house senior legal and compliance professionals every year from across the world, will be taking place from 30 April – 6 June (with a vacation break during the week commencing 27 May). We will be delivering our cutting-edge insights and guidance virtually on key global compliance, investigations and ethics trends.  We invite you to join us to gain practical insights and analysis on significant developments across: antitrust and competition export controls, sanctions and foreign investment customs and FTAs anti-b ..read more

On March 14, 2024, the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) and the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced more restrictive export controls on Nicaragua stated to be in response to the Nicaraguan Government’s human rights abuses, attacks on civil society, and increased cooperation with Russia. The DDTC and BIS press releases are available here and here. DDTC: New ITAR Export Controls The State Department announced restrictions on the import and export of U.S. origin defense articles and defense services destined for ..read more

On March 21, 2024, the US Commerce Department’s Bureau of Industry and Security (“BIS”) published a final rule (“Final Rule”) revising and expanding the end-user controls under Part 744 of the Export Administration Regulations (“EAR”). Specifically, the Final Rule expanded end-user controls applicable to certain persons identified on the List of Specially Designated Nationals and Blocked Persons (“SDN List”) maintained by the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) under various sanctions programs. The new EAR restrictions involving the OFAC-administered sanction ..read more

The winds of change continue to swirl in the world of international sanctions enforcement.  Governments around the globe are imposing new sanctions at a rapid pace and ramping up their efforts to crack down on violations. At Baker McKenzie, the Global Sanctions Investigations Group understands that navigating the ever-evolving sanctions landscape can feel like walking a tightrope.  One misstep and your company could be facing material fines, reputational damage, and even criminal charges. That’s why we have launched our new blog series: Navigating the Impending Global Sanctions Enfor ..read more

On March 6, 2024, the US Department of Justice (“DOJ”), Department of Commerce’s Bureau of Industry and Security (“BIS”), and Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) jointly issued a compliance note titled “Tri-Seal Compliance Note: Obligations of foreign-based persons to comply with US sanctions and export control laws” (“Tri-Seal Compliance Note“). This note highlights longstanding US sanctions and export controls that apply to non-US companies and individuals as well as the risks of non-compliance by non-US parties. The Tri-Seal Compliance Note addresses legal ..read more

On Monday 11 March, the UK Export Control Joint Unit (the “ECJU”) announced amendments to its Export Control Order 2008 (the “2008 Order”) and Council Regulation (EC) No 428/2009 (the “Retained Dual-Use Regulation”), pursuant to the Export Control (Amendment) Regulations 2024 (the “Regulations”). The Regulations will come into force on 1 April 2024 and will amend Schedules 2 and 3 of the 2008 Order, as well as Annex I of the Retained Dual-Use Regulation. Amendments to the Schedule 3 of the 2008 Order: These are new unilateral UK export controls with new entries in the list (the “Schedule 3 Con ..read more

On March 7, 2024, the US Department of Justice (“DOJ”) National Security Division (“NSD”) published a revised Enforcement Policy for Business Organizations (“Enforcement Policy”). The Enforcement Policy was first issued by the NSD on December 13, 2019 and subsequently updated March 1, 2023. Our blog post discussing the original policy is here. In these latest updates NSD has not altered the core components of the Enforcement Policy, which provides that when a company (1) voluntary self-discloses (“VSDs”) to NSD potentially criminal violations arising out of or relating to the enforcement of sa ..read more