maritime

Yesterday, President Obama issued an amendment to Executive Order 13694 related to malicious cyber activities which imposed sanctions on two Russian intelligence agencies (the Federal Security Service and the Main Intelligence Directorate), four individual intelligence agency officers and three Russian vendors that provided cyber support to one of the sanctioned agencies. In an official statement, President Obama explained that the amendment was a response to “the Russian government’s aggressive harassment of U.S. officials and cyber operations aimed at the U.S. election.” The amendment also authorized the Secretary of the Treasury to sanction any additional individuals or entities determined to be engaged in “tampering with, altering, or causing a misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions.”  The nine individuals and entities named in the E.O. 13694 amendment are now listed on the list of Specially Designated Nationals and Blocked Persons (the “SDN list”) maintained by the Department of Treasury’s Office of Foreign Assets Control (“OFAC”).  This places a freeze on any property within the U.S. belonging to those individuals or entities and also prohibits persons subject to U.S. jurisdiction from engaging in trade with the sanctioned individuals and entities.  Shortly thereafter, OFAC exercised its authority under a separate section of E.O. 13694 and added two Russian cyber criminals to the SDN list along with the nine individuals and entities named by President Obama (list found here).

The Department of Treasury’s Office of Foreign Assets Control (OFAC) has announced new rules, which will take effect December 23, 2016, amending the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). The revised rules expand the scope of medical devices and agricultural commodities that may be exported or re-exported to Iran without specific authorization, pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA).

On December 20, 2016, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued its latest round of Russian sanctions as part of the ongoing U.S. response to Russia’s 2014 annexation of Ukraine’s Crimean peninsula and its subsequent escalation of conflict in the region. The new sanctions target seven individuals, eight entities, and two vessels. OFAC also added an additional 26 subsidiaries of Russian banks already subject to sanctions to the U.S. Sectoral Sanctions List. The new sanctions come one day after the European Union extended its sanctions against Russia for an additional six months.

On December 15, 2016, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) revised their Frequently Asked Questions Relating to the Lifting of Certain U.S. Sanctions Under the Joint Comprehensive Plan of Action (JCPOA), clarifying procedures related to the potential “snapback” of the JCPOA and the subsequent re-imposition of sanctions.

The U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) and the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) recently announced additional rule amendments intended to continue improving relations between the United States and Cuba by allowing even greater commerce and humanitarian efforts between the two countries. These new OFAC  and BIS  rules take effect today.  The new amendments build on previous amendments which Husch Blackwell LLP’s Technology Manufacturing & Transportation Industry Insider blog summarized here, here, and here.

On October 7, 2016, President Obama signed Executive Order 13742, terminating sanctions on more than 200 Burmese businesses and individuals. The Order eliminates prior restrictions on business with Burmese banks, permits the import of Burmese jadeite and rubies, and allows investment reporting through the State Department’s Responsible Investment Reporting Requirements to be made on a voluntary basis. Burma will now receive duty-free treatment on more than 5,000 products exported to the United States.

On August 31, 2016, Hanjin Shipping Co. filed for bankruptcy protection in South Korea. Two days later, Hanjin filed in U.S. Bankruptcy Court for the District of New Jersey for Chapter 15, which provides a mechanism in the U.S. for resolving problems that arise in cross-border bankruptcies. Three out of four U.S. shippers reportedly have…

On September 1, 2016, the Office of Foreign Assets Control (OFAC) placed sanctions on 37 new individuals and entities to prevent attempts to circumvent U.S. sanctions against Russia, help the private sector with compliance and to foster a diplomatic resolution to the conflict in Ukraine. The new list (found here) includes 17 separatists in eastern Ukraine or Russian-occupied Crimea, including 11 officials operating in Crimea.  18 companies operating in Crimea, including a number of construction, defense and maritime firms, and a Ukrainian charity were added to the Specially Designated Nationals (SDN) list.  The list includes construction companies, PJSC Mostotrest and SGM –Most OOO, which were awarded contracts to complete the Kerch Strait Bridge to connect Russia to Crimea.

On March 24, 2015, the Office of Foreign Assets Control (OFAC) updated the Specially Designated National (SDN) List by removing 59 companies, individuals, and vessels previously blocked under the Cuban Assets Control Regulations.  The companies removed include those from the United States, Panama, and Cuba.  The SDN List is maintained by OFAC and identifies certain individuals and companies that are owned or controlled by or act on behalf of targeted countries or terrorist groups.  U.S. citizens and permanent residents are generally prohibited from doing business with individuals or companies appearing on the SDN List.

The current marine container logjams at terminals and containership backups on the West Coast have caused grave concern for all stakeholders in the supply chain.  In recent weeks there have been anywhere from 16 to 35 vessels laying-to awaiting berth availability at LA/Long Beach and other West Coast Ports.  The matter has escalated to the President’s desk with Labor Secretary Tom Perez and Commerce Secretary Penny Prizker weighing in on the labor union/maritime employers side of the problem. The causal factors for this situation that began last July appear to stem from stalled negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) resulting in allegations of slowdowns and lockouts.