U.S. Announces New Restrictions on the Government of Venezuela
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On August 5, President Trump signed an
Executive Order
(EO) blocking, among other things, all property and interests in property of the Government of Venezuela and any entity majority-owned, controlled by, or acting on behalf of the Venezuelan government. In connection with this EO, OFAC
published
new FAQs, as well as 13 new and 12 amended general licenses. The general licenses include an amended
General License 7C
, which allows for certain transactions involving CITGO and PDV Holding, Inc., and a new
General License 28
, which authorizes certain activities necessary for the wind down of operations or existing contracts with entities blocked under the EO, to be concluded prior to September 4, 2019.
It is important to note that this new EO provides broad latitude for the U.S. government to impose sanctions on non-Venezuelan entities doing business in Venezuela. Although it is not yet known how the U.S. government will use this new authority, it is possible that the EO will have a broader regional impact, particularly on countries such as Colombia who have historic ties to Venezuela. As such, for the time being, U.S. companies should tread carefully with any entities that are known to have significant dealings with Venezuela and Venezuelan government-owned entities.
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Trump Administration Issues Additional Tariffs on China, USTR Publishes Initial Details for Implementation
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Following a breakdown in ongoing trade talks between the U.S. and China, on August 1, President Trump announced his intent to impose a 10% duty on another $300 billion worth of Chinese goods coming into the United States. On August 13, the United States Trade Representative (USTR) submitted a
press release
describing next steps in the process of implementing the additional tariffs, which will begin to take effect on some items, including animal and plant products, alcohol, clothing, various foods and spices, and certain metals, starting September 1, 2019. Certain consumer goods products, such as cell phones, laptops, monitors, game consoles, and certain toys, will not be subject to the 10% duty rate until December 15, 2019. USTR stated that it intends to release a Federal Register notice with additional details regarding the implementation of these additional tariffs as soon as possible.
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OFAC Announces Civil Aviation Advisory in Response to Deceptive Practices by Iran
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On July 23, 2019, OFAC published an
Iran-Related Civil Aviation Industry Advisory
, which warned of the potential penalties for entities and individuals operating in Iran’s civil aviation industry. The agency stated that enforcement and sanctions actions are possible for both U.S. and non-U.S. persons engaging in unauthorized transfers of U.S.-origin aircraft or related goods, technology, or services to Iran, and further penalties may occur for any non-U.S. persons involved in certain activities with designated Iranian airlines. OFAC issued this advisory due to Iran’s commercial airlines’ role in “supporting the Iranian regime’s efforts to foment regional violence through terrorism, its weapons programs, and other destabilizing activity to include exploiting its own people through brutal human rights abuses against women, political opponents, and others.”
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DOJ Fines Walmart TechnipFMC Over FCPA Violations
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On June 20 and June 25, the U.S. Department of Justice announced that Walmart and
TechnipFMC
had entered into respective settlement agreements for each company’s alleged violations of the Foreign Corrupt Practices Act (FCPA). As part of their deferred prosecution agreement, TechnipFMC agreed to pay $296 million in fines for their alleged conspiracy to bribe companies associated with Brazilian consultant Zwi Skornicki. For Walmart, the
DOJ
determined that the retail giant’s subsidiaries in Brazil, China, India, and Mexico did not have adequate anti-corruption programs, which allowed for the alleged bribery of local officials to obtain store permits. As a result, Walmart agreed to pay a total of $282 million in fines to the DOJ and the
Securities Exchange Commission
and submit to the presence of a corporate monitor.
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U.S. Regulation of Cross-Border Transactions in the Oilfield Sector
By: Lindsey Roskopf and Martin Lutz
Companies considering business opportunities outside of the United States must be prepared to deal with a myriad of new laws and regulations. There may be foreign laws to contend with, of course, but there are also U.S. laws related to international trade that companies operating only domestically likely have never encountered. There are multiple U.S. government agencies that regulate the transfer of equipment, software, technology, and services from the United States to foreign countries through “export control” and sanctions regulations. These regulations cover shipments leaving the United States; shipments of certain U.S. origin goods amongst foreign countries; data transmissions from the U.S. to other countries; and the
provision of services to or receipt of services from certain countries,
organizations, and individuals. These regulations can even apply
inside the U.S. when sharing certain information with foreign
persons, including prospective business partners and investors, and they can also apply to any facilitation of foreign transactions by U.S. persons.
Click
here
read more,
page 16
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Upcoming McGinnis Lochridge Events
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September 26, 2019
McGinnis Lochridge Employment Law Seminar in Houston, TX
Interested in attending? Click
here
to register, or
email us
if you have questions.
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McGinnis Lochridge International Trade and Transactions Practice Group
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Click
here
to download our brochure and learn more about some of the key areas of representation we provide to our clients.
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