Your Customs Manager’s Post

On June 13, 2024, #Canada announced further amendments to the Special Economic Measures (Russia) Regulations (the “Regulations”). These amendments list an additional 12 individuals and 16 entities under Schedule 1 of the Regulations and place export prohibitions on an additional 5 categories of goods under Schedule 7 of the Regulations. #russiasanctions #tradecontrols #exportcontrols

Export permit and permit codes The customs administration has updated the manual on export permits, permit codes and electronic depreciation. The aim of the manual is to provide information on online declaration and online depreciation of exports that require a permit. It also provides an overview of the permit codes relevant to foreign trade law in the export sector. It also explains how to code goods for which no export permit is required (negative foreign trade coding). It also describes the legal effect of specifying codes in an export declaration. Due to the current geopolitical situation, the manual has been supplemented with Appendix 2 “Foreign trade law coding for imports from or originating in Belarus, Russia and Ukraine (specified areas)”. The new ATLAS participant information 0628/24 also provides information on new permit codes in connection with the expansion of sanctions against Russia. This also includes coding for the declaration that an old contract regulation is being used or that prohibitions do not apply.

DEFENSE INDUSTRY EXPORT LICENSE PROCEDURES TENATRADE LTD.STI. Gonca ŞENDİLLİ Murat Bastem All processes regarding the export or import permits required to be obtained both in our country and in all countries, especially the United States, are carried out and managed. We provide services regarding the permit procedures required to be obtained from Turkey for companies located outside Turkey. In this context; Your tradable products, - Managing the acquisition of export control license permits, - To protect your security, - To be protected from criminal sanctions by international organizations and countries of origin, - We manage the compliance process with the laws of the countries where trade will be carried out and/or permission will be obtained.

📰 🌐 You shall not re-export my products to Russia or a story about a “no re-export to Russia” clause You - a law-abiding citizen who does not trade with Russia and does not violate sanction policies. Also you - someone who deals with sensitive goods, such as drone parts. Your partners - someone from a third country (but not from the US, UK, New Zealand, South Korea, Australia, Canada, Norway or Switzerland). Your business is going well. And suddenly - your microchip is used in a drone made by Russia. You know that you did not sell it to them. But who did? Sadly, it might be your partner or someone down the line. What do you do? Report it, and make sure you do your due diligence about your partners and supply chains, but from March 20th 2024, you also make sure to update your existing contracts. But how? Read down below! Effective March 20, 2024, a significant amendment mandates that exporters incorporate a clause in their contracts, prohibiting the re-export of specified goods to Russia or for utilization within its borders by recipients or importers from third countries. These amendments aim to curb the evasion of EU sectoral sanctions, particularly concerning goods originating from the EU and subsequently rerouted to Russia via third countries, notably those neighbouring Russia. While many EU exporters have already adopted a practice of including re-export bans in their contracts, these amendments now elevate this practice to a legal obligation. The scope of these new rules encompasses all exporters dealing with sensitive goods. Contracts executed from March 20, 2024, onward must expressly forbid the re-export of goods to Russia. However, there's a transitional period for contracts signed before December 19, 2023, extending until December 19, 2024, or until the contract's expiration date, whichever comes first. Contracts finalized post-December 19, 2023, must incorporate this prohibition by March 20, 2024. Exporters bear the responsibility of ensuring that contracts outline adequate remedies for violations of this prohibition. Typically, this involves granting the exporter the right to unilaterally terminate the contract or impose penalties. However, parties may opt for alternative remedies. Any contractual penalty must be commensurate with the violation's severity, ensuring it serves as a deterrent rather than a mere symbolic gesture. Additionally, exporters must promptly report any violations of this prohibition by third-country business partners to the relevant authority within the Member State. This reporting obligation underscores the need for exporters to remain vigilant and proactive in upholding regulatory compliance. #ExportRegulations #EURegulations #SanctionsCompliance #SupplyChainManagement #RiskManagement

📌Navigating the Complexities of Transshipment and Re-export: Essential Monitoring Strategies for 2024 ➡As we step into 2024, the landscape of international trade continues to evolve, presenting unique challenges and opportunities. One significant aspect demanding attention is the monitoring of transshipment and re-export activities. In this article, I'll delve into how businesses can effectively navigate these challenges to ensure compliance and safeguard their interests. 📌1. End-User/End-Use Due Diligence: The first line of defense involves identifying front and shell companies. These entities often mask illicit activities, posing a threat to legitimate business operations. By proactively identifying these organizations, businesses can protect their interests and prevent becoming unwittingly entangled in illegal importation schemes. 📌2. Identification of Parties Associated with Sanctioned Entities: With sanctions playing a critical role in international relations, it's crucial to use advanced techniques to identify entities majority-owned or controlled by sanctioned organizations. This step is essential to avoid risky associations and maintain compliance with global trade regulations. 📌3. Transshipment/Re-export Monitoring: This is particularly pertinent for trade flows to Russia, involving countries like Turkey, UAE, Kazakhstan, and China. Vigilant monitoring is key to prevent unauthorized diversions and ensure businesses don't unintentionally violate sanctions. 📌4. Import Customs Base Monitoring: This involves scrutinizing import customs data for US brands in Russia, Kazakhstan, and neighboring countries. Such monitoring ensures compliance and prevents unauthorized trade, safeguarding the reputation and legality of business operations. ➡Furthermore, by monitoring the import customs database in Russia, Kazakhstan, and other CIS countries using the trademark of your products, you can conduct reverse investigations. These investigations help identify re-exporters in Cyprus, Turkey, the Emirates, and China, enabling inquiries with your distributors about their sales to these entities. ➡This proactive approach is vital for American exporters. By conducting thorough self-audits and assessing their global distribution chains, they can demonstrate to regulators their commitment to compliance. In cases of self-disclosure, this may even lead to the avoidance of fines, with the responsibility shifting to distributors engaged in deceptive practices. ➡ Import databases for Russia, Kazakhstan, Uzbekistan and Ukraine will help you to conduct 📌Reverse Investigations. The relevance of these databases is current, ensuring up-to-date information for effective monitoring. #sanctions #sanctionscompliance #sanctionsscreening #exportcontrols #russiansanctions #ExportControl #InternationalTrade #GlobalTradeMonitoring #ComplianceManagement #TradeSanctions #RiskManagement #SupplyChainSecurity #TransshipmentControl

➡ The guidance from the European Commission is a significant step in strengthening unified standards for sanction compliance within the European Union. https://lnkd.in/gwe-kJdt 📝 Let's delve into the main points that were highlighted in your summary: The European Commission publishes guidance on handling sanction circumvention risks. In this context, operators refer to manufacturers, authorized representatives, importers, and distributors in EU member states. Thus, operators are required to conduct due diligence when trading with third countries to ensure that their business partners do not circumvent sanctions. The guide also includes a list of "red flags" in the context of sanction circumvention. Let's look at the main ones: 🚩 Complex transactions involving a large number of intermediaries that do not make economic sense 🚩 Transactions with companies registered in so-called "circumvention hubs", as well as the transit of goods through such countries 🚩 There was a change in the beneficial owner shortly before or immediately after the publication of legal acts on sanctions 🚩 The company's director does not participate in communication; business activity is essentially carried out by trusted persons Opinion and Practical Tips for American Exporters: Ensuring Due Diligence for End-User/End-Use The document provides clear instructions and practical guidance on how exporters can implement due diligence. All the phrasings reflect the steps that were previously suggested in prior posts as recommended checks against unauthorized re-export through third countries. 📌 Practical Tips Based on Experience: ➡ Monitor Import Customs Databases: Regularly check import customs databases in Russia, Kazakhstan, and other CIS countries using your product's trademark name. This action helps in spotting any unauthorized or suspicious activities associated with your products. ➡ Conduct Reverse Investigations: Focus on renowned re-export hubs like Cyprus, Turkey, the Emirates, and China. These locations are common transit points for goods eventually heading to other destinations. By conducting reverse investigations, you can identify potential intermediaries or entities involved in unauthorized re-exports. ➡ Engage with Distributors: After spotting potential re-exporters, directly communicate with your authorized distributors in locations like Cyprus, Turkey, the Emirates, and China. Question them about their sales to the identified entities to confirm the legitimacy of the transactions. ✔ By adhering to these comprehensive and specific measures, American exporters can ensure their products are not misrouted or misapplied, thus preserving the trustworthiness and stature of their brands. Your approach certainly emphasizes vigilance, transparency, and active engagement, which are pivotal in today's globalized trade environment. #compliancepractice #sanction 

U.S. Provides $2B Worth Export Control Regulation Exemptions to U.K., Australia https://lnkd.in/dSKvwsz6 #USDepartmentofCommerce #ExportRegulations #Australia #UK #AUKUS #ExportControl #NationalExemption #DualUseGoods #DefenseCooperation #MilitaryEndUse #NationalDefenseAuthorizationAct #DefenceTradeControlsAmendmentAct #TradeBarriers #Collaboration #CustomsRegulations #PublicConsultation #InternationalTrafficinArmsRegulations #OpenGeneralExportLicence #MilitaryTechnology #TradeAgreement

Recently, I was disappointed by a statement from a lawyer regarding the Export Control Procedure, according to which the customs authorities within the Export control process have residual powers limited only to risk analysis. This made me realize the critical importance of expertise in managing Export Control and related procedures within a company's Internal Control Procedure. It's not just about having knowledge; it requires specialized skills. To effectively navigate Export Control, one must be a customs specialist with in-depth international Customs/Excise and Fiscal deregulation knowledge. Working as a Customs Expert demands practical experience, including a background as a Customs Broker with official Certification, going beyond theoretical understanding. Referencing a document highlighting key insights, especially at point 4.5, lessons drawn from EU Sanctions against Russia underscore the necessity for a Customs Reform proposed by the Commission in May 2023. This reform includes the establishment of a new Customs Authority and Data Hub, pivotal in enhancing the EU's risk management framework. Expertise in Export Control and Customs regulations is not just a matter of reading books; it's about practical experience and certification. The evolving landscape of Customs procedures demands specialized skills and a comprehensive understanding of international regulations for seamless compliance and risk management. #ExportControl #CustomsCompliance #EURegulations #RiskManagement https://lnkd.in/e7nD8Rw6

Would you know which U.S. agency governs the export of YOUR product? 🤔 Sounds like a trick question… and to some extent it is! You may assume that the Department of Commerce regulates all goods, services, and technologies. But you’d be wrong. 𝗧𝗵𝗲𝗿𝗲’𝘀 𝗻𝗼𝘁 𝗮 𝘀𝗶𝗻𝗴𝗹𝗲 𝗮𝗴𝗲𝗻𝗰𝘆 𝗼𝗿 𝗱𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝘁𝗵𝗮𝘁 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗲𝘀 𝗨.𝗦. 𝗲𝘅𝗽𝗼𝗿𝘁𝘀. Several U.S. government agencies conduct export controls, depending on the nature of your goods or the country where you’re exporting. Understanding which agency has jurisdiction over your goods and what regulations apply is key to avoiding export compliance issues.   And I’m not going to lie to you, it can get confusing. So, let’s break it down 👇. There are three main agencies you need to be aware of: 1️⃣ 𝗨.𝗦. 𝗗𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝗼𝗳 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗕𝘂𝗿𝗲𝗮𝘂 𝗼𝗳 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗮𝗻𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 (𝗕𝗜𝗦) It oversees exports of most goods, including commercial and some defense-related items. Many items that BIS regulates are “dual-use,” which means they have both civilian and military applications. This category may include goods, cutting-edge tech, and even industry know-how. 2️⃣ 𝗨.𝗦. 𝗗𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝗼𝗳 𝗦𝘁𝗮𝘁𝗲 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝗮𝘁𝗲 𝗼𝗳 𝗗𝗲𝗳𝗲𝗻𝘀𝗲 𝗧𝗿𝗮𝗱𝗲 𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝘀 (𝗗𝗗𝗧𝗖) It works to ensure that exports of defense products and services are aligned with U.S. national security and foreign policy objectives. So, if you supply military goods, your product may fall under the DDTC’s licensing authority. 3️⃣ 𝗨.𝗦. 𝗗𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗢𝗳𝗳𝗶𝗰𝗲 𝗼𝗳 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗔𝘀𝘀𝗲𝘁𝘀 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 (𝗢𝗙𝗔𝗖) The OFAC administers economic and trade sanctions. This includes restrictions on transactions with targeted countries and persons (e.g. sanctions against Russian organizations in response to the Russian invasion of Ukraine). To avoid compliance issues, you should screen your exports against restricted party lists.                           Now, as if this were not enough, there are other agencies and branches involved in export control. I’ve put together a comprehensive list for you in the attached infographic. ------- P.S. I’d love to know whether this information has come in handy. Share your feedback 👇. P.P.S. Still wondering where your product fits in? When in doubt, I’m only one DM away.   #ExportRegulations #exportcontrol #compliancematters #izzilogistics