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On November 5, the United States reimposed the final tranche of sanctions on Iran, which had been lifted pursuant to the Joint Comprehensive Plan of Action (“JCPOA”) in 2016. The vast majority of these sanctions are “secondary sanctions,” being those which target non-U.S. persons and companies even where there is no U.S. nexus (e.g. the use of USD; U.S.-persons; or U.S. goods). The secondary sanctions cover a variety of goods and services, as well as…
On the heels of United Nations Security Council Resolution 2375 released on September 11, 2017, President Trump issued a new executive order on September 21 (the EO) that greatly expands U.S. sanctions against North Korea, particularly so-called secondary sanctions, which apply to non-U.S. individuals and corporations. The EO establishes the following: Broad new criteria for designating non-U.S. persons for sanctions, including blocking their assets in the United States A “180 Day Rule” under which vessels and aircraft…
President Trump issued a new executive order (the EO) on September 21st that greatly expands the U.S. sanctions against North Korea, particularly secondary sanctions. Secondary sanctions apply to non-U.S. individuals and corporations and are imposed by the U.S. Secretary of the Treasury, in consultation with the U.S. Secretary of State. The EO establishes the following: Broad new criteria for designating non-U.S. persons for sanctions, including blocking their assets in the United States A “180 Day…
On February 2nd the Office of Foreign Assets Control (“OFAC”) imposed new sanctions on 13 individuals and 12 entities that were believed to be “involved in procuring technology and/or materials to support Iran’s ballistic missile program, as well as for acting for or on behalf of, or providing support to, Iran’s Islamic Revolutionary Guard Corps-Qods Force.”  According to White House Press Secretary Sean Spicer, a missile test conducted on January 29, 2017 by Iran was…
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) added five new Frequently Asked Questions (FAQs) on 6 January 2017. The new FAQs were in reference to a general license that OFAC issued on October of 2016.  The license considerably lessened the ‘180-day’ rule – a restriction that makes foreign-flag vessels wait at least 180 days after visiting a Cuban port before they can come to a U.S. port.  The new FAQs discussed here
Today the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the Commerce Department’s Bureau of Industry and Security (BIS) further eased sanctions against Cuba with a host of new amendments to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR). Of special interest to the shipping industry is the issuance of a general licence that rolls back the so-called ‘180-day ban’- a prohibition on vessels calling at U.S. ports within the…
The Department of Veterans Affairs recently announced that it will now require all covered drugs under the Veterans Health Care Act to be offered on Federal Supply Schedule contracts, regardless of whether they meet the “country of origin” standards of the Trade Agreements Act. This decision represents a major reversal in policy for the VA.  The policy is being implemented immediately, requiring action for many companies as soon as April 26, 2016.  For the first…
In a significant policy reversal that will affect many pharmaceutical manufacturers and suppliers – and that will require immediate action by many pharmaceutical manufacturers – the Department of Veterans Affairs is now requiring that all covered drugs under the Veterans Health Care Act be offered on Federal Supply Schedule (FSS) contracts, regardless of whether they meet the “country of origin” standards of the Trade Agreements Act (TAA). Under the TAA, government agencies, including the VA,…
In a recent ruling, U.S. Customs and Border Protection (“CBP”) decided that shippers must employ costly U.S.-flag vessels when shipping processed condensate to and from a foreign country to be blended as a diluent with heavy crude.  The ruling comes as a surprise to many because it assumes processed condensate and heavy crude oil are the same product, contrary to industry standards and previous rulings by the U.S. Department of Commerce which recognize these as…
Despite recent efforts to repeal the U.S. ban on crude oil exports, the restrictions remain firmly in place.  Recently, however, the Bureau of Industry & Security (“BIS”) authorized exports of U.S. light crude oil in exchange for imports of Mexican heavy crude, causing a stir in the industry and some confusion regarding the legal context for such a crude oil “swap.” To provide some clarification, Reed Smith attorney Jeffrey Orenstein explains 10 things exporters need…