United States Imposes Export Restrictions Against Russia - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
In response to Russia’s invasion of Ukraine, the United States has imposed significant restrictions on exports to Russia. Effective February 24, 2022, goods covered by Categories 3-9 of the Commerce Control List (CCL) are subject to license requirements and licensing is under a “policy to deny.” The involved CCL categories cover: Electronics; Computers; Telecommunications; Information Security; Sensors and Lasers; Navigation and Avionics; Marine; and Aerospace and Propulsion. These restrictions apply to exports, re-exports, and in-country transfers. The new measures follow an Executive Order issued on February 21, 2022, which barred any transactions relating to two eastern regions of Ukraine (the so-called DNR and LNR regions).
The announced sanctions also restrict the export of nearly all goods to “military end users” or for “military end uses.” Several dozen entities and individuals (both in Russia and in Belarus) have also been added to U.S. sanction lists. Additionally, the U.S. Treasury Department is acting to prohibit Russia’s two largest banks (Sberbank and VTB Bank) from processing payments through the U.S. financial system.
The situation is quite fluid at the moment and it is possible that the scope of these sanctions will evolve. Should you have any questions, please contact Joseph Spraragen (JSpraragen@GDLSK.com) or any of our attorneys.
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Emergency Import Restrictions Imposed on Archaeological and Ethnological Material of Afghanistan - Department of Homeland Security
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the U.S. Customs and Border Protection (CBP) regulations to reflect the imposition of emergency import restrictions on certain archaeological and ethnological material from Afghanistan. The Acting Assistant Secretary for Educational and Cultural Affairs, United States Department of State, determined that conditions warrant the imposition of emergency restrictions on categories of archaeological material and ethnological material of the cultural heritage of Afghanistan. This document contains the Designated List of Archaeological and Ethnological Material of Afghanistan that describes the types of objects or categories of archaeological and ethnological material to which the import
restrictions apply. The emergency import restrictions imposed on certain archaeological and ethnological material of Afghanistan will be in effect until April 28, 2026, unless extended. These restrictions are being imposed pursuant to determinations of the United States Department of State made under the terms of the Convention on Cultural Property Implementation Act.
DATES: Effective on February 18, 2022.
FOR FURTHER INFORMATION CONTACT: For legal aspects, W. Richmond Beevers, Chief, Cargo Security, Carriers and Restricted Merchandise Branch, Regulations and Rulings, Office of Trade, (202) 325-0084, ot-otrrculturalproperty@cbp.dhs.gov. For operational aspects, Julie L. Stoeber, Chief, 1USG Branch, Trade Policy and Programs, Office of Trade, (202) 945-7064, 1USGBranch@cbp.dhs.gov.
See: Register Volume 87, Number 35 (Tuesday, February 22, 2022)
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Notice of Scope Ruling Applications Filed in Antidumping and Countervailing Duty Proceedings
• Circular Welded Carbon-Quality Steel Pipe From Oman, Pakistan, and the United Arab Emirates: Final Results of Expedited Sunset Reviews of Antidumping Duty Orders
• Investigations; Determinations, Modifications, and Rulings, etc.: Lemon Juice From Brazil and South Africa; Determinations
• Agency Information Collection Activities; Proposals, Submissions, and Approvals: Customs-Trade Partnership Against Terrorism (CTPAT) Program and CTPAT Trade Compliance Program
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Welded Carbon Steel Standard Pipes and Tubes From India: Initiation of Circumvention Inquiry on the Antidumping Duty Order
• Initiation of Antidumping Duty Changed Circumstances Review: Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People's Republic of China
• Pure Magnesium From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Circular Welded Carbon-Quality Steel Pipe From Oman, Pakistan, and the United Arab Emirates; Notice of Commission Determination to Conduct Full Five-Year Reviews
• Investigations; Determinations, Modifications, and Rulings, etc.: Notice of a Final Determination Finding No Violation of Section 337; Termination of the Investigation
• Investigations; Determinations, Modifications, and Rulings, etc.: African Growth and Opportunity Act (AGOA); Program Usage, Trends, and Sectoral Highlights
• Urea Ammonium Nitrate (UAN) Solutions From Russia and Trinidad and Tobago Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Multilayered Wood Flooring From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Results of Antidumping Duty Administrative Review; Notice of Amended Final Results
• Steel Concrete Reinforcing Bar From the Republic of Turkey: Final Results of Antidumping Duty Administrative Review and Final Determination of No-Shipments; 2019-2020; Correction
• Stainless Steel Wire Rod From Japan, the Republic of Korea, and Taiwan: Continuation of the Antidumping Duty Orders
• Large Residential Washers From Mexico: Preliminary Results of Antidumping Duty Administrative Review; 2020-2021
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Mobile Telephones, Tablet Computers With Cellular Connectivity, and Smart Watches With Cellular Connectivity, Components Thereof, and Products Containing Same; Notice of Institution
• Certain Mobile Phones, Tablet Computers, Smart Watches, Smart Speakers, and Digital Media Players, and Products Containing Same; Institution of Investigation
• Certain Mobile Phones and Tablet Computers, All With Switchable Connectivity Institution of Investigation; Institution of Investigation Pursuant to 19 U.S.C. 1337
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Turkey: Notice of Initiation and Preliminary Results of Countervailing Duty Changed Circumstances Review
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U.S. Treasury Imposes Immediate Economic Costs in Response to Actions in the Donetsk and Luhansk Regions - U.S. Department of the Treasury
The United States Remains Fully Prepared to Impose Further, Expansive Economic Costs
New Sector Determination Enables Treasury to Target Russia’s Entire Financial System
WASHINGTON – Today (2/22/22), the United States is taking action to respond to President Vladimir Putin’s decision to recognize the so-called Donetsk and Luhansk People’s Republics (DNR and LNR) as “independent” states and to deploy troops to these regions by sanctioning two major Russian state-owned financial institutions, imposing additional restrictions on Russian sovereign debt, and sanctioning five Kremlin-connected elites. This action from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) builds on yesterday’s Executive Order imposing severe restrictions on economic activity with the DNR and LNR regions of Ukraine.
Today Treasury is targeting Russia’s ability to finance aggression against its neighbors by sanctioning the Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (VEB) and Promsvyazbank Public Joint Stock Company (PSB), along with 42 of their subsidiaries. VEB is crucial to Russia’s ability to raise funds, and PSB is critical to Russia's defense sector. These sanctions ensure VEB and PSB can no longer do business in the United States and are cut off from the U.S. financial system. All assets under U.S. jurisdiction will be immediately frozen and U.S. individuals and entities are prohibited from doing business with these institutions unless authorized by OFAC. This will immediately impair the ability of VEB and PSB to perform basic functions in the international financial system. Today’s action constrains Russia’s ability to finance defense-related contracts and raise new funds to finance its campaign against Ukraine. Treasury is also designating influential Russians and their family members in Putin’s inner circle believed to be participating in the Russian regime’s kleptocracy, including the Chairman and CEO of PSB.
“Today’s actions, taken in coordination with our partners and allies, begin the process of dismantling the Kremlin’s financial network and its ability to fund destabilizing activity in Ukraine and around the world,” said Secretary of the Treasury Janet L. Yellen. “We continue to monitor Russia’s actions and if it further invades Ukraine, the United States will swiftly impose expansive economic sanctions that will have a severe and lasting impact on Russia’s economy.”
Today’s actions were taken pursuant to Executive Order (E.O.) 14024, which authorizes sanctions against Russia for its harmful foreign activities, including violating core principles of international law such as respect for the territorial integrity of other states. Pursuant to E.O. 14024, the Secretary of the Treasury, in consultation with the Secretary of State, has determined that section 1(a)(i) of E.O. 14024 applies to the financial services sector of the Russian Federation economy, and that persons determined to operate or have operated in this identified sector can be subject to sanctions. This allows Treasury to target any person that operates or has operated in Russia’s financial services sector, including today’s designations of PSB and VEB.
BLOCKING MAJOR RUSSIAN FINANCIAL INSTITUTIONS
OFAC designated two financial institutions that are crucial to financing the Russian defense industry, as well as 42 of their subsidiaries. These financial institutions play significant roles in the Russian economy, holding combined assets worth tens of billions of dollars.
VEB and PSB are state-owned institutions that play specific roles to prop up Russia’s defense capability and its economy. VEB’s $53 billion asset portfolio makes it large enough to be among Russia’s top five financial institutions. VEB occupies a unique role in Russia’s financial system as the servicer of Russia’s sovereign debt, financier for exports, and a funding source for investment projects with a loan portfolio of over $20 billion. VEB finances Russia’s national economic development, including large-scale projects to develop domestic infrastructure and other industries that are critical to Russia’s generation of revenue. Currently Russia’s 8th largest bank, PSB was earmarked by the Russian government to finance Russia’s Ministry of Defense and the Russian defense sector. It services nearly 70 percent of Russia’s defense contracts and provides banking and personal finance to Russian military personnel. Today’s designation of PSB exposes the Russian government’s scheme to minimize sanctions risk exposure through PSB’s illicit sanctions evasion activity.
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USITC Makes Determination in Five-Year (Sunset) Review Concerning Narrow Woven Ribbons with Woven Selvedge from China and Taiwan - US International Trade Commission
The U.S. International Trade Commission (USITC) today determined that revoking the existing countervailing duty order on imports of narrow woven ribbons with woven selvedge (“narrow woven ribbons”) from China and antidumping duty orders on narrow woven ribbons from China and Taiwan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from China and Taiwan will remain in place.
Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative.
Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on these five-year (sunset) reviews.
The Commission’s public report Narrow Woven Ribbons with Woven Selvedge from China and Taiwan (Inv. Nos. 701-TA-467 and 731-TA-1164-1165 (Second Review), USITC Publication 5292, March 2022) will contain the views of the Commission and information developed during the reviews.
The report will be available by March 28, 2022; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.
BACKGROUND
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.
The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.
The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.
The five-year (sunset) reviews concerning Narrow Woven Ribbons with Woven Selvedge from China and Taiwan were instituted on August 2, 2021.
On November 5, 2021, the Commission voted to conduct expedited reviews. Commissioners Jason E. Kearns, Randolph J. Stayin, David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel concluded that the domestic group response was adequate and the respondent group responses were inadequate and voted for expedited reviews.
A record of the Commission’s vote to conduct expedited reviews is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802..
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Proposed Revocation of One Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification of Babies' Swimwear - USCBP Bulletins
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
ACTION: Notice of proposed revocation of one ruling letter and proposed revocation of treatment relating to the tariff classification of babies’ swimwear.
SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)), as amended by section 623 of title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises interested parties that U.S. Customs and Border Protection (CBP) intends to revoke one ruling letter concerning tariff classification of babies’ swimwear under the Harmonized Tariff Schedule of the United States (HTSUS). Similarly, CBP intends to revoke any treatment previously accorded by CBP to substantially identical transactions. Comments on the correctness of the proposed actions are invited.
DATE: Comments must be received on or before March 25, 2022.
ADDRESS: Written comments are to be addressed to U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Attention: Erin Frey, Commercial and Trade Facilitation Division, 90 K St., NE, 10th Floor, Washington, DC 20229–1177. Due to the COVID-19 pandemic, CBP is also allowing commenters to submit electronic comments to the following email address: 1625Comments@cbp.dhs.gov. All comments should reference the title of the proposed notice at issue and the Customs Bulletin volume, number and date of publication. Due to the relevant COVID-19-related restrictions, CBP has limited its on-site public inspection of public comments to 1625 notices. Arrangements to inspect submitted comments should be made in advance by calling Ms. Erin Frey at (202) 325–1757.
FOR FURTHER INFORMATION CONTACT: Parisa J. Ghazi, Food, Textiles, and Marking Branch, Regulations and Rulings, Office of Trade, at (202) 325–0272.
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Pre-Columbian Artifacts Seized by CBP are Returned to the Dominican Republic - US Customs & Border Protection
SAN JUAN, Puerto Rico — US Customs and Border Protection (CBP) and Homeland Security Investigations (HSI) made the official handout to the Consulate of the Dominican Republic of seven Pre-Columbian artifacts in a ceremony held last week from the Casa Blanca Museum in Old San Juan.
On Feb. 17, the Honorable Opinio Diaz, Consul of the Dominican Republic in Puerto Rico received artifacts that archeologists of the Institute of Puerto Rican Culture concluded were made by the indigenous “taino” natives who populated the Caribbean during Pre-Columbian times.
“I am proud of the CBP Officers that were able to identify these priceless artifacts. It is our privilege to return these historical treasures to the Dominican Republic,” indicated Gregory Alvarez, Director of Field Operations for CBP in Puerto Rico and the U.S. Virgin Islands. “We will continue working with our state and federal partners to ensure we rescue these types of historical objects from the hands of those who profit on the theft of cultural property.”
CBP seized the items during various incidents from different passengers that arrived into San Juan and Mayaguez from the Dominican Republic.
“Investigating Cultural Property, Art and Antiquities is an important part of the HSI mission,” said Ivan Arvelo, HSI San Juan Special Agent in Charge. “The return of these artifacts to our brothers and sisters from the Dominican Republic are essential for the continued partnership between the two governments.”
Most countries have laws that protect their cultural property. Art/artifacts/antiquities; archeological and ethnological material are also terms used to describe this material. These laws include export controls and/ or national ownership of cultural property. Even if purchased from a business in the country of origin or in another country, legal ownership of such artifacts may be in question if brought into the United States.
Therefore, although they do not necessarily confer ownership, you must have documents such as export permits and receipts when importing such items into the United States.
U.S. law may also restrict the importation of specific categories of art/artifacts/antiquities like pre-Columbian monumental and architectural sculpture and murals from Central and South American countries.
Importation of such items is permitted only when an export permit issued by the country of origin is presented with the article. Purveyors of such items have been known to offer phony export certificates. Additional U.S. import restrictions may be imposed in response to requests from other countries.
CBP officers screen international travelers and cargo and search for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality.