Belarus new EU restrictive measures
The Council adopted restrictive measures targeting the Belarusian economy, in view of the regime’s involvement in Russia’s illegal, unprovoked and unjustified war of aggression against Ukraine. The measures agreed today will affect various sectors of the Belarusian economy:
- Trade:
Extending the export ban on dual-use/advanced goods and technologies, as well as introducing further export restrictions on goods which could contribute to the enhancement of Belarusian industrial capacities.
Further restrictions are also introduced on exports to Belarus of maritime navigation goods and technologies, and luxury goods.
Regarding imports, it will be prohibited to import directly or indirectly, purchase or transfer namely of gold and diamonds from Belarus, as well as helium, coal and mineral products including crude oil. The latter measure will be complemented by a new export ban on goods and technologies suitable for use in oil refining and the liquefaction of natural gas.
- Services:
Prohibiting the provision of certain services to Belarus, its government, public bodies, corporations or agencies and to any natural or legal person acting on behalf or at their direction.
- Transport:
The Council is broadening the prohibition on the transport of goods by road within the territory of the EU, by trailers and semi-trailers registered in Belarus, including when hauled by trucks registered outside Belarus.
In order to minimise the risk of circumvention, EU operators which are owned for 25% or more by a Belarusian natural or legal person, should be prohibited from becoming a road transport undertaking or from transporting goods by road in the Union, including in transit.
- Anti-circumvention:
This decision requires that EU exporters insert in their future contract the so-called 'no-Belarus clause', through which they contractually prohibit the re-exportation to Belarus or re-exportation for use in Belarus of sensitive goods and technology, battlefield goods, firearms and ammunition.
In order to minimise the risk of circumvention, the EU will prohibit the transit via the territory of Belarus of dual-use goods and technologies, goods and technologies which might contribute to Belarus’s military and technological enhancement or to the development of its defence and security sector, goods which could contribute to the enhancement of Belarusian industrial capacities, goods and technologies for use in the aviation or space industry, as well as arms exported from the EU. Link
Czech court imposes fine for breach of Russia sanctions
A Czech court has imposed a fine of around EUR 143,000 on Russian businessman for breach of Russia-related EU sanctions. He had tried to export three luxury cars to Russia in May 2022, the export of which is prohibited under Article 3h Council Regulation (EU) No 833/2014.
Dutch company pays for the breach of Crimea sanctions
Dutch company Dieseko Group B.V. has paid EUR 1,780,000 to settle a fine imposed by the Netherlands’ Public Prosecution Service for violations of Russia-related sanctions. The Dutch authorities found this to breach EU sanctions in relation to Russia’s annexation of Crimea, specifically EU Regulation No. 692/2014.
EU VAT goes digital: new electronic VAT exemption certificate
The Commission invites you to have your say on the proposal regarding electronic version of the VAT exemption certificate until 13 September 2024. To help EU Member States keep pace with the digital age and to reduce the administrative burden on businesses, the European Commission proposes to replace the current paper version of the VAT exemption certificate with an electronic one. The move is a decisive step towards digitalising exemption procedures, with an electronic version of the certificate and corresponding IT infrastructure to process it. The VAT exemption certificate serves as a supporting document for international organisations and institutions to prove that the goods or services they purchase are exempt from VAT. The existing paper version of the VAT exemption certificate is not ready for the digital age as it is not compatible with the needs of digital administrative procedures, nor does it allow for advanced electronic signature that is common standard in many areas today. Moreover, the current outdated paper version poses challenges to Member States and businesses, including increasing costs, administrative burdens, and a lack of flexibility.
EU Russia sanctions FAQs on “no re-export to Russia” clauses
Article 12g Regulation (EU) No 833/2014 requires exporters to prohibit re-export of certain sensitive goods to Russia unless exemptions apply. The EU added an updated FAQ document on Article 12g, which can be found on the EU Guidance section. Link
EU sanctions extremist Israeli settlers and entities involved in violence against Palestinians
The European Union has designated five extremist Israeli settlers and three settler outposts ‘responsible for serious and systematic human rights abuses against Palestinians in the West Bank.’
EU updates new best practices sanctions guidance
The EU published a revised version of its Best Practices Guidelines for the effective implementation of sanctions on 3 July 2024. The revised guidelines are on the EU Guidance section of this site alongside other relevant EU Guidance documents. Link
EU announces sanctions on Iran
EU candidate countries and EFTA nations have aligned with 2 EU Iran sanctions Council Decisions:
- Designating the Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad Organisation ((CFSP) 2024/1791).
- Adding humanitarian exceptions to the Iranian sanctions regime, exempting organisations and agencies acting as humanitarian partners to the EU ((CFSP) 2024/1795).
EU maintains Iran sanctions
The Council of the EU has extended restrictive measures against Iran, for Iran’s military support of Russia, until 27 July 2025, having already broadened the relevant sanctions framework in May 2024. Link
EU A.TR movement certificates issued electronically bearing a QR code
From 8 July 2024, EU Member States will accept ATR movement certificates issued electronically by the competent Turkish authorities, containing a QR code and without a signature executed traditionally. The adoption of a decision of the EU-Turkey Customs Cooperation Committee with retroactive effect is pending.
Link
EU issues Russia sanctions FAQ on maritime safety exception for designated vessels
Under Article 3s Regulation (EU) No 833/2014 (added by the 14th package of EU Russia sanctions) vessels may be prohibited entry to EU ports for transporting Russian military equipment, Ukrainian grain, supporting the Russian energy sector, or circumventing the oil price cap. The EU has issued an FAQ outlining that for reasons of maritime safety or for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, designated vessels may exceptionally receive port access and services for a unique emergency port call for the offloading of the dangerous or polluting goods on board at the date of the targeting of the vessel within a reasonable time, and in any case not later than 30 days from the date of targeting.
EU-India advance cooperation on CBAM
On 1 - 2 July, Director-General of the European Commission Gerassimos Thomas led a mission of Directorate-General for Taxation and Customs Union (DG TAXUD) officials to New Delhi. He met with several key governmental counterparts and industry stakeholders covering a wide range of Tax and Customs matters while focusing on the EU Carbon Border Adjustment Mechanism (CBAM). He highlighted CBAM’s environmental objectives, design, timeline, and opportunities for the Indian industry. Director-General Gerassimos Thomas welcomed India’s plans to decarbonise its economy, underlining the shared commitment to collaborate with India in their decarbonisation efforts.
The visit was an opportunity to listen, learn and improve. To listen to the challenges that Indian businesses face when implementing CBAM. To learn, for example, if and how Indian Micro-, Small and Medium-sized Enterprises (MSMEs) are possibly affected (as the CBAM measure normally affects only big enterprises). And to reiterate and explore jointly efforts to adapt and improve the CBAM measure. Technical meetings with the Ministry of Power including BEE (Bureau of Energy Efficiency) will continue. An assessment report on the transition period will be submitted to Council and the European Parliament before the end of next year and will be public thereby providing the opportunity to Indian industry and authorities to comment and discuss with the European Commission the next steps. Above and over CBAM, the visit confirmed the mutual interest in deepening the exchanges on respective carbon trading markets, pricing mechanisms and the EU cooperation with India in the domain of energy efficiency, renewables and clean tech.
On taxation the Director General discussed with his Indian government counterparts the Two-Pillar Solution to address the tax challenges of the digitalisation of the economy. India confirmed its commitment to Pillar 2. Regarding the UN Framework Convention on international tax cooperation it was mutually agreed that overlap between the different tracks (UN and OECD) should be avoided.
Germany telecoms operators
Mobile network operators in Germany have agreed to phase out ‘critical components’ made by Chinese telecoms giants Huawei and ZTE in their 5G core networks by the end of 2026.
In 2019, the United States banned all of its government departments and agencies from doing business with any entity reliant on technology from the sanctioned Chinese telecoms giants.
Germany updates General Authorisation No. 42
The EU prohibits the sale, supply, transfer, export, of software for the management of Russian enterprises (Article 5n(2b) Regulation (EU) No. 833/2014).
Applying the EU derogation in Article 5n(10(h)), Germany has updated General Authorisation No 42 to permit the sale, supply, transfer or export of enterprise software and services to Russian companies which are subsidiaries of companies based in the EU or partner countries.
The exceptions under Article 5n (1), (2), (2a), (2b) and (3a)(a) of Regulation (EU) No 833/2014 continue to apply. The updated General Authorisation No. 42 applies from 1 October 2024 and is valid until 31 December 2025.
Germany: Smuggling thousands of military components to Russia
The Stuttgart Higher Regional Court in Germany has sentenced a pair – both holding Russian and German nationalities – to separate prison terms of up to nearly seven years for supplying electronic components for military equipment to Russia.
German nationals convicted for Russian drone exports
Two German nationals were sentenced in Stuttgart on 17 July 2024 for allegedly transporting drone components to Russia. The defendants were a couple holding German and Russian citizenship, and were not identified by the Court in line with German privacy customs. They were accused of sending 120,000 spare parts and other components for Orlan-10 reconnaissance drones to Russia between 2020 and 2023 in violation of EU sanctions.
India seeks to extend the time period for re-export of certain foreign origin goods when imported for maintenance, repair and overhaul.
India customs authority Seeks to amend 32 notifications in order to extend their validity to a further period and amend notification No. 153/94-Customs to extend the time period for re-export of certain foreign origin goods when imported for maintenance, repair and overhaul.
Italy publishes national dual-use control list
The Italian Ministry of Foreign Affairs has published a national control list for dual-use goods and technology restricted in Italy pursuant to Article 9 of the EU Dual-Use. Controlled items include items for materials processing, electronics, and computers. Link
Lithuania imposes fine for breach of Russia sanctions and terrorist financing laws
Lithuania’s Financial Crime Investigation Service (FCIS) has imposed a record fine of more than EUR 9.3 million on UAB Payeer, a virtual currency operator. The company was found to have breached EU sanctions by allowing customers to carry out transactions to and from sanctioned Russian banks by using their cryptocurrency platform.
OFSI publishes new UK financial sanctions FAQs
OFSI has added 7 FAQs its UK financial sanctions FAQs (92 to 98). The update also adds 2 new FAQ subheadings: Trust Services Sanctions; and General Licence INT/2024/4919848.
The updated FAQs clarify that:
- in the context of the prohibition of trust services to or for the benefit of a person connected with Russia or persons designated (under Regulation 18C of the Russia Regulations), ‘to or for the benefit’ includes being a potential beneficiary;
- there is a trust services General Licence;
- trust services apply across UK Crown Dependencies and Overseas Territories; and
- when an asset freeze is in place, the trust services sanctions include “an exception to permit the provision of trust services for the purpose of complying with the asset freeze”.
Poland sanctions enforcement statistics
Poland’s National Revenue Administration has commenced 51 proceedings against companies for breaching Russia and Belarus trade restrictions. 37 final decisions have been taken on these investigations, and 24 fines have been imposed to date.
Poland fines 2 entities for violation of Polish asset freeze measures
It has been reported that Polish authorities have fined Krakow-based Novatek Green Energy 12 million zloty (£2.36 million) and Geleo 4 million zloty (£786,000) for violating Polish asset freeze measures. Novatek Green Energy and OAO Novatek are designated on Poland’s sanctions list, they are not designated by the EU. Link
Poland Prosecutor’s Office charges CEO for export controls violations
Poland’s National Prosecutor’s Office has charged the CEO of WSK Poznan, a state-owned engineering company, for allegedly selling dual-use goods without the required licence. The company sold pumps to Iranian companies which have subsequently been used in drones transferred to Russia.
Russia sanctions FAQs on chemicals & central security depositories
The EU Commission has published revised and updated Russia sanctions FAQs on chemicals and central depository security depositories. The chemicals FAQs contains 21 new answers to FAQs Link
The updated central securities depository FAQs give guidance on depositary receipts, asset swaps, and ‘‘free-of-payment’ transfers. Link
UK guidance on trust services and sanctions
OFSI has published further guidance on the provision of trust services in respect of the UK’s Russian sanctions. Link
UK issues GL authorising sale of financial assets
OFSI have issued General Licence - INT/2024/4919848 under the UK’s Russia regulations. It authorises the sale, divestment, and transfer of financial instruments held by the National Settlement Depository (NSD).
Link
UK: Update to Home Office Drug Precursor Measures
This update is due to the Department for Business and Trade correcting their dataset entry in respect of an incorrectly applied measure type 362 - Home Office Controlled Drugs (import) measure for the following commodity code ending as of 2 August 2024:
- 2928009070- Butanone oxime (cas rn 96-29-7)
This update is due to the Department for Business and Trade correcting their missing dataset entry in respect of a measure type 358 - Home Office pre-cursor chemical authorisation measure for the following commodity code as of 2 August 2024:
- 2914120000 - Butanone (methyl ethyl ketone)
UK: Update to Trade Remedies Rebar Measures for China
During the recent mid-year commodity code changes some commodity codes falling under Chapter 72 have been end dated. This has resulted in measure type 552 - Definitive anti-dumping duty measures on high fatigue performance steel concrete reinforcement bar (rebar) originating in the People’s Republic of China being moved to new commodity codes.
As of 1 August 2024, measure type 552 - Definitive anti-dumping duty measures have been created for the following commodity codes:
Commodity code | Classification
- 7228302000: Of tool steel
- 7228304100: Containing by weight 0,9% or more but not more than 1,15% of carbon, 0,5% or more but not more than 2% of chromium and, if present, not more than 0,5% of molybdenum
- 7228304900: Other
- 7228306100: Other
- 7228306900: Less than 80 mm
- 7228307000: Of rectangular (other than square) cross-section, hot-rolled on four faces
- 7228308900: Other
As the coverage of the new measures differs slightly from what is found in the original Trade Remedies Notice above, waiver code 9Y03 and footnote AD005 have been created.
9Y03: Not high fatigue performance steel concrete reinforcement bar (rebar).
AD005: Use of document code 9Y03 constitutes a legal declaration that the products imported are not high fatigue performance steel concrete reinforcement bar (rebar), and as such are exempt from the measure. Users of this document code must hold evidence in their records to demonstrate eligibility for the exemption and produce this to UK customs upon demand.
United Kingdom: New GB Ban on Export of Livestock and Horses for Fattening or Slaughter
From 22nd July 2024, there is a ban on the export of livestock (cattle, goats, pigs, sheep) and horses for fattening or slaughter from Great Britain. It applies to journeys from, and transit journeys through, Great Britain to destinations outside the UK, the Channel Islands, and the Isle of Man.
Live animal exports for other purposes, for example, breeding and competitions, is still permitted providing the animals are transported in line with legal requirements which protect their welfare. The ban does not apply to exports of other live animals such as poultry, and it does not apply in Northern Ireland. The legislation does not affect livestock and horse movements within the UK. Exporters will be required to sign a declaration on Section 1 of all journey log applications for export or transit journeys of livestock and horses confirming that the consignment is not for slaughter or fattening.
Switzerland adopts further sanctions against Russia
The Federal Department of Economic Affairs, Education and Research (EAER), in its capacity as the competent body for sanctions, expanded its sanctions listings against Russia on 8 July. Switzerland is thus adopting the additional sanctions listings decided by the EU in response to Russia’s ongoing military aggression against Ukraine. The changes will take effect at 6pm on 9 July.
The EAER has placed an advertising ban on the four media outlets Voice of Europe, RIA Novosti, Izvestia and Rossiyskaya Gazeta owing to Russia's continuous propaganda and disinformation campaigns. In contrast to the measures in the EU, these media are not subject to a broadcasting ban in Switzerland. Although these channels are used for the targeted dissemination of Russian propaganda and disinformation, the Federal Council still believes that it is more effective to counter false and harmful statements with facts rather than to prohibit them.