Cleary International Trade and Sanctions Watch

Latest from Cleary International Trade and Sanctions Watch

January 22, 2020

On January 13, 2020, the U.S. Department of the Treasury (“Treasury”) released final regulations (the “Final Regulations”) implementing the updates to the foreign investment review process of the Committee on Foreign Investment in the United States (“CFIUS”) contained in the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”). The Final Regulations, effective February 13, 2020, largely track the September 2019 proposed regulations (the “Proposed Regulations”) to implement FIRRMA’s expansion of CFIUS’s jurisdiction. FIRRMA in…

Cleary International Trade and Sanctions Watch

Iran Secondary Sanctions Expanded to Cover Construction, Mining, Manufacturing, and Textiles Sectors

By Paul Marquardt & Nathanael Kurcab

January 10, 2020

Update: On January 16, 2020, OFAC announced a 90-day wind-down period for persons engaged in transactions that could be sanctioned under Executive Order 13902 with respect to the construction, mining, manufacturing, and textiles sectors of the Iranian economy. Parties should wind down any sanctionable dealings in those sectors before April 9, 2020. Consistent with previous wind-down periods, OFAC noted that parties entering into new business during this period may be sanctioned.…

Cleary International Trade and Sanctions Watch

Two Years On: Implementation of the New Methodology in Anti-Dumping Cases

By Till Müller-Ibold, François-Charles Laprévote & Katherine Nobbs

December 20, 2019

Regulation 2017/2321,[1] which introduced a new methodology for calculation of normal value[2] in trade defence cases (“New Methodology”), entered into force on December 20, 2017 (see here). Two years on, a review of the Commission’s implementation practice provides useful insight into questions of evidentiary burden, practical application, and selection of representative third country.…

Cleary International Trade and Sanctions Watch

Compromise U.S. Defense Bill Provides for New Secondary Sanctions Against Russia, Syria, and North Korea

By Paul Marquardt & Samuel H. Chang

December 11, 2019

On the evening of December 9, 2019, a U.S. congressional conference committee released the compromise version of the National Defense Authorization Act for Fiscal Year 2020 (“NDAA 2020” or “Defense Bill”). NDAA 2020, which will be voted upon without further amendment and is virtually certain to be enacted into law, contains provisions that would authorize new secondary sanctions relating to the Nord Stream 2 and TurkStream projects, Syria, and North Korea.…

Cleary International Trade and Sanctions Watch

Proposed Regulations Create National Security Review of U.S. IT and Telecom Transactions Linked to “Foreign Adversaries”

By Paul Marquardt & Nathanael Kurcab

November 27, 2019

Today, the U.S. Department of Commerce published for comment proposed regulations that would create sweeping authority to oversee, and potentially require the removal of, purchases of foreign telecommunications and IT technology linked to “foreign adversaries” by persons in the United States and U.S. companies overseas. The draft regulations on “Securing the Information and Communications Technology and Services Supply Chain” are open for comment for thirty days. The Proposed Regulations create a process for…

Cleary International Trade and Sanctions Watch

US Tightens Controls on US-Origin Components in Goods Exported to Cuba

By Paul Marquardt

October 22, 2019

The U.S. Department of Commerce’s Bureau of Industry and Security has issued a rule, effective immediately, lowering the permissible level of de minimis U.S.-origin content in goods to be exported to Cuba. Items manufactured outside the United States now may have no more than 10% U.S.-origin content (reduced from 25%) if they are to be exported to Cuba without violating U.S. export controls. The rule also restricts leasing of aircraft and vessels subject to…

Cleary International Trade and Sanctions Watch

US Imposes Sanctions Against Turkish Ministries, Officials

By Paul Marquardt

October 16, 2019

On October 23, 2019, the Trump Administration rescinded the designation of Turkish officials and ministries. The Executive Order remains in force, and so authority to re-impose sanctions remains. On October 14, President Trump issued Executive Order 13894, styled “Blocking Property and Suspending Entry of Certain Persons Contributing to the Situation in Syria.” Under this order, OFAC designated the Turkish Ministry of Energy and Natural Resources, the Turkish Ministry of Defense, and the Ministers of…

Cleary International Trade and Sanctions Watch

High Court of England: U.S. Secondary Sanctions can Trigger Illegality Clauses

By Matthew Fisher

October 15, 2019

U.S. authorities take an expansive view of their jurisdiction when it comes to sanctions. They cannot, however, directly restrict persons outside U.S. jurisdiction from dealing with sanctioned persons. They therefore exert pressure on persons outside U.S. jurisdiction by threatening to designate them as sanctioned persons if they engage in certain activities contrary to U.S. sanctions policy (“Target Activities”). Sanctions imposed in such circumstances are known as ‘secondary sanctions’, and were the topic of the September…

Cleary International Trade and Sanctions Watch

Proposed CFIUS Regulations Expand Its Jurisdiction

By Paul Marquardt, John P. McGill, Jr., Sameer Jaywant & Hani Isam Bashour

September 26, 2019

On September 17, 2019, the Department of the Treasury proposed regulations implementing most of the remaining provisions of the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”), which updated the statute authorizing reviews of foreign investment by the Committee on Foreign Investment in the United States (“CFIUS”).…

Cleary International Trade and Sanctions Watch

The Impact of Sanctions on Arbitration: A Recent Case Study Involving the EU Sanctions Regime

By Christopher P. Moore, Milo Molfa, Adam Grant & Sarah Haddad

September 16, 2019

In the case of Ministry of Defence and Support for Armed Forces of the Islamic Republic of Iran v International Military Services Ltd [2019] EWHC 1994 (Comm), the High Court examined in detail the effect of the EU sanctions regime against Iran in the context of the enforcement of arbitral awards. The High Court found that EU sanctions precluded Iran’s Ministry of Defence (“MODSAF”) from enforcing the interest element of an ICC award against International Military Services…

Cleary International Trade and Sanctions Watch

Blog Authors

CFIUS Releases Final FIRRMA Regulations

Iran Secondary Sanctions Expanded to Cover Construction, Mining, Manufacturing, and Textiles Sectors

Two Years On: Implementation of the New Methodology in Anti-Dumping Cases

Compromise U.S. Defense Bill Provides for New Secondary Sanctions Against Russia, Syria, and North Korea

Proposed Regulations Create National Security Review of U.S. IT and Telecom Transactions Linked to “Foreign Adversaries”

US Tightens Controls on US-Origin Components in Goods Exported to Cuba

US Imposes Sanctions Against Turkish Ministries, Officials

High Court of England: U.S. Secondary Sanctions can Trigger Illegality Clauses

Proposed CFIUS Regulations Expand Its Jurisdiction

The Impact of Sanctions on Arbitration: A Recent Case Study Involving the EU Sanctions Regime

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