The Office of Foreign Assets Control extended a general license that authorizes U.S. academic institutions to exports certain “online educational services” and software to Iran, the agency said Aug. 24. General License M-1, which replaces General License M (see 2010290043), was extended through 12:01 a.m. EDT Sept. 1, 2022. The original license was scheduled to expire Sept. 1, 2021.
Iran Export Controls
Certain items on the Commerce Control List require a license from BIS to export them to Iran. The Iranian Transactions Sanctions Regulations (ITSR) (31 CFR Part 560) also prohibit the export and reexport of goods to Iran subject to EAR.
Several U.S. and multinational companies recently disclosed potential U.S. sanctions violations or updated previous disclosures. The cases involve a destruction of evidence in a sanctions investigation, potentially illegal transactions with Iran, a gaming software company and others.
The Biden administration will maintain a Trump-era policy that loosened export restrictions on certain unmanned drones, a decision that drew applause from the aerospace defense industry last year but sparked concern from some lawmakers.
The U.S. may need to create new, stronger tools other than its current sanctions and export controls to penalize foreign countries that violate international laws, said Nazak Nikakhtar, former acting undersecretary of the Bureau of Industry and Security. While Nikakhtar cautioned the U.S. against overusing trade restrictions, she also said they need to be bolstered because some foreign governments and companies are “easily” circumventing them.
Export Compliance Daily is providing readers with the top stories for July 19-23 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Commerce and Treasury departments fined a Dubai energy equipment supplier and its U.S. affiliate more than $430,000 for illegally exporting goods to Iran, the agencies said July 19. The U.S. fined Dubai-based Alfa Laval Middle East (AL Middle East) $415,695 for exporting Gamajet brand storage tank cleaning units from the U.S. to Iran and fined Virginia-based Alfa Laval (AL U.S.) $16,875 because its subsidiary referred an Iranian “business opportunity” to AL Middle East, according to enforcement orders issued this week.
A shift toward list-based sanctions and a rise in federal government compliance expectations are causing increasing challenges for the compliance community, compliance professionals said. At the center of those challenges are the designations imposed by the Treasury Department’s Office of Foreign Assets Control, which is setting a high bar for due diligence by more clearly describing its compliance expectations in settlement agreements.
The multilateral Nuclear Suppliers Group met last week for the first time in more than a year to discuss export controls over nuclear weapons, the Iran nuclear deal, nonproliferation trade restrictions and more. The 48 member countries proposed updates to NSG export control lists and tapped a U.S. official to be a new group chair. Last year’s plenary was canceled due to the COVID-19 pandemic.
The Office of Foreign Assets Control issued guidance and three new general licenses to expand humanitarian-related exemptions for shipments and activities in sanctioned countries. The licenses apply to Iran, Syria and Venezuela and are accompanied by six new frequently asked questions to “further support the critical work” of humanitarian and COVID-19 aid to people in sanctioned regions. The guidance comes amid criticism from humanitarian groups that U.S. sanctions continue to inadvertently block aid shipments (see 2105260047 and 2105280004).
The Commerce Department is working with a police agency in rural Texas to help investigate illegally exported goods, an unorthodox relationship that has sparked concern among industry lawyers and led to disputed seizures.