Regulatory Compliance updates 04/22

Published on April 19, 2022

Australia: Russia sanctions regime

Australia imposes autonomous sanctions in relation to Russia in response to the Russian threat to the sovereignty and territorial integrity of Ukraine. They were first imposed in 2014 and extended in 2015 and 2022. Australia imposes other autonomous sanctions in relation to the specified Ukraine regions in response to the Russian threat to the sovereignty and territorial integrity of Ukraine. Go to the Specified Ukraine Regions Sanctions Regime and the Ukraine Sanctions Regime for further information. Australia will also extend to the Donetsk and Luhansk regions of Ukraine the sanctions measures already applied to Crimea and Sevastopol. These sanctions measures target exports and commercial activity in relation to the transport, telecommunications, energy and exploitation of oil, gas and mineral reserve sectors; and prohibit all imports.

These sanctions measures will apply to the Donetsk and Luhansk regions of Ukraine from 28 March 2022. This will allow Australians and Australian entities with interests in those regions to consider whether their activities are captured by the sanctions measures; and if they are, either to cease their activities, or to apply to the Minister for Foreign Affairs for a sanctions permit to continue their activities. The Regulations also include a power for the Minister to specify other areas of Ukraine, should they fall under Russian influence, to which these sanctions measures would then apply.

  • IMPORT PROHIBITION – OIL AND OTHER ENERGY PRODUCTS

Australia will prohibit the import of oil, refined petroleum products, natural gas, coal and other energy products from Russia. The Autonomous Sanctions (Import Sanctioned Goods—Russia) Designation 2022 (the Import Designation) designates as ‘import sanctioned goods’ for Russia all goods in Chapter 27 of the Combined Australian Customs Tariff Nomenclature and Statistical Classification. This document is available on the Australian Border Force website. The Import Designation will commence on 25 April, 45 days after it was registered on the Federal Register of Legislation on 11 March. The Minister for Foreign Affairs made the Import Designation under subregulation 4A(3) of the Autonomous Sanctions Regulations 2011.

  • EXPORT PROHIBITION – SPECIFIED LUXURY GOODS

Australia will prohibit the supply, sale or transfer of certain luxury goods directly or indirectly to, for use in, or for the benefit of Russia. The Autonomous Sanctions (Export Sanctioned Goods—Russia) Amendment (No.1) Designation 2022 (the Designation) designates certain luxury goods as ‘export sanctioned goods’ for Russia. The Designation will commence on 7 April. The goods designated by the Designation are described by reference to codes in the Australian Harmonized Export Commodity Classification (AHECC). The AHECC is available on the Australian Bureau of Statistics website. The Minister for Foreign Affairs made the Designation under sub regulation 4(3) of the Autonomous Sanctions Regulations 2011.

Restrictions on the export or supply of certain goods

It is prohibited to directly or indirectly supply, sell or transfer to Russia any of the following goods:

  • arms or related materiel
  • aluminium ores (including bauxite), alumina and related products
  • certain luxury goods (as listed in the Autonomous Sanctions (Export Sanctioned Goods – Russia) Amendment (No.1) Designation 2022)
  • items suited for use in the following categories of oil exploration or oil production projects in Russia (as specified in the Autonomous Sanctions (Russia, Crimea and Sevastopol) Specification 2015):
  1. oil exploration and production in waters deeper than 150 metres;
  2. oil exploration and production in the offshore area north of the Arctic Circle;
  3. projects that have the potential to produce oil from resources located in shale formations by way of hydraulic fracturing (other than exploration and production through shale formations to locate or extract oil from non‐shale reservoirs).

 Arms or related matériel includes, but is not limited to, weapons, ammunition, military vehicles and equipment, and spare parts and accessories for any of those things. It also includes paramilitary equipment. While each case will be considered individually, goods on the Defence and Strategic Goods List are likely to be considered arms or related matériel. Depending on the context, end user and end use, other goods may also be considered arms or related matériel. Go to Factsheet: Arms and Related Matériel for information on what to consider when assessing whether a good is an arm or related matériel.

Restrictions on certain commercial activities

It is prohibited to deal with financial instruments issued by, or providing loans or credit to:

  • specified publicly‐owned or controlled Russian banks
  • specified Russian companies predominantly engaged in activities relating to military equipment or services
  • specified publicly‐owned or controlled Russian companies involved in the sale or transport of crude oil or petroleum products
  • majority owned subsidiaries or entities acting as agents for any of the above.

Africa e-trade platform to connect 22 countries

Kenya Trade Network Agency (KenTrade) has launched the Africa e-trade platform to handle the exchange of commercial documents. The platform has been in a pilot phase for about 18 months in Kenya, Morocco, Tunisia, Cameroon and Senegal, and will now be integrated in 22 countries, which are members of the African Alliance for Electronic Commerce (AAEC). The platform will ease the cost of doing business and also help traders to exchange information on trade as the Africa Continental Free Trade Agreement (AfCFTA) takes shape. Speaking at the launch of three online trading platforms — AAEC, Africa E-Trade hub and the upgraded KenTrade’s Trade Facilitation Platform (TFP) programme, Mr Wangora said Africa intra-trade will only succeed if member states adopt technology. The new TFP will integrate all systems including the Kenya Revenue Authority’s Integrated Customs Management System (iCMS).“The new platform shall serve as a single entry point and platform for any person involved in trade and transport to lodge documents electronically for processing and approval and facilitate the electronic payment for fees and levies. 

Canadian Sanctions Related to Russia

On April 5, 2022, Canada further amended the Special Economic Measures (Russia) Regulations to prohibit the provision of all insurance, reinsurance, and underwriting services for aircraft, aviation and aerospace products either owned by, controlled by, registered to, chartered by, or operated by entities and individuals resident, incorporated, or domiciled in Russia. This amendment also listed an additional nine oligarchs and their family members, as well as regime associates. On April 8, 2022, Canada further amended the Special Economic Measures (Russia) Regulations to list an additional 33 entities that belong to the defence sector which directly or indirectly facilitate or support the violation of the sovereignty or territorial integrity of Ukraine. 

China: Decision of China Customs on abolishing several regulations and subsequent measures for import of coatings

In order to implement the requirements of the State Council, China Customs has abolished some regulations from March 1, 2022 according to the needs of actual work, including Regulations of the Customs of the People's Republic of China on the Administration of Imported Relics, Regulations of the Customs of the People's Republic of China on the Administration of the Export of Cultural Relics Carrying by Passengers and Posting by Individuals, Regulations of the Customs of the People's Republic of China on the Administration of Passengers' Carrying and Personal Posting of Chinese Herbal Medicines and Chinese Proprietary Medicines, etc. Among them, the “Administrative Measures for the Inspection and Supervision of Imported Coatings", which was promulgated by the original AQSIQ Order No. 18 and revised in accordance with the General Administration of Customs Order No. 238 and No. 240, has also been abolished, and the supervision policy of imported coatings has also followed. The changes are as follows:

  • Cancel the registration and filing of imported coatings - after the abolition of the "Measures for the Inspection and Supervision of Imported Coatings", the customs will no longer implement the registration and filing of imported coatings under HS codes 3208 and 3209
  • Adjust the inspection and supervision methods of imported coatings - although the filing link has been cancelled, enterprises still need to ensure that imported coating products meet the requirements of my country's mandatory national standards. The customs will carry out inspection and supervision on imported coatings on the basis of risk analysis, and will no longer distinguish based on whether they are filed
  • Precautions for Hazardous Chemicals - Some imported coatings are listed in the national "Catalogue of Hazardous Chemicals". When importing, it is necessary to declare and provide the customs with hazardous chemicals in accordance with the requirements of the General Administration of Customs Announcement No. 129 of 2020. Corresponding materials are subject to customs supervision
  • Notes on China Compulsory Certification (CCC certification) - the cancellation of this filing method does not affect the CCC certification of related products. All products listed in the compulsory product certification catalogue shall not be imported, sold or used in business and service places without obtaining the certification certificate issued by the designated agency, or without applying the certification mark in accordance with the regulations.

Norway imposed an import ban on iron and steel products when exported from Russia.

Norway imposed an import sanction on iron and steel products originating from Russia and export sanctions on certain products used in the oil industry. It also imposed import and export sanctions against the Ukrainian regions Donetsk and Luhansk, Crimea, and Sevastopol, due to the current crisis in Ukraine. 

South Korea Places Restrictions On Export Of 57 Non-strategic Items To Russia & Belarus

South Korea's Ministry of Trade, Industry, and Energy had, on March 24, announced that it would implement export control on 57 non-essential items to Russia and Belarus in retaliation to the Kremlin's military offensive in Ukraine. The export restrictions came into effect on March 26 and the 57 non-essential items will now have to pass a separate approval procedure. The non-strategic goods include low-performance semiconductors and computer equipment, Business Korea reported. South Korea's Ministry of Trade, Industry, and Energy, in its statement, said that the approval criteria will "take into consideration the comprehensive standards under Article 22 on the “Public Notice on Trade of Strategic Items”, as well as the international community’s heightened approval standards." 

Switzerland imposed an import ban on steel and iron products from Russia.

Switzerland adopted new measures against Russia, further reinforcing its sanctions set. These measures are in line with those adopted by the EU on March 9 and 15, 2022. The new sanctions entered into force at 11:00 p.m. CET on the same day. Since 2014, there has been an authorization regime in place in Switzerland targeting the sale, supply, delivery, export, transit and transport of certain oil industry goods. With the new Ordinance of March 4, 2022, Switzerland imposed a ban on certain transactions related to oil industry goods for petroleum refining, for example. Trade restrictions are now extended to the wider Russian energy sector, which includes companies involved in:

  • Prospecting, production, distribution in the Russian Federation or extraction of crude oil, natural gas or solid fossil fuels, refining fuels, liquefaction of natural gas or regasification;
  • The manufacture or distribution in the Russian Federation of products based on solid fossil fuels, refined petroleum products or gases; and
  • The construction of installations or installation of equipment or the provision of services, equipment or technology in connection with activities related to the generation of energy or electricity.

The new ban on the sale, supply, delivery, export, transit and transport targets certain energy-related goods such as oil and gas tubes and pipes (listed in Annex 5 of the Ordinance) as well as related technical assistance, brokering, financing and financial assistance. These prohibitions do not apply to transactions governed by a contract entered into before March 26, 2022 and executed until September 17, 2022. 

UK’s new trade restrictions against Russia

New sanctions target strategic industries, banks and business elites. Liz Truss has announced 65 sanctions, targeting strategic industries, banks and business elites. the sanctions target those aiding Russia’s invasion of Ukraine including the Wagner Group, multiple defence companies and Russian Railways. the UK has now sanctioned over 1,000 individuals and businesses under the Russia sanctions regime since the invasion. Foreign Secretary Liz Truss has announced 65 new Russian sanctions (Thursday 24 March) against a range of key strategic industries and individuals. The UK has now sanctioned over 1,000 individuals and businesses under the Russia sanctions regime since the invasion. Sanctions target key industries supporting Russia’s illegal invasion, including Russian Railways and defence company Kronshtadt, the main producer of Russian drones. The Wagner Group – the organisation Russian mercenaries reportedly tasked with assassinating President Zelenskyy - has also been sanctioned.
Six more banks are targeted, including Alfa Bank whose cofounders include previously sanctioned oligarchs Mikhail Fridman, Petr Aven and German Khan. The world’s largest diamond producer Alrosa is also sanctioned. Individuals sanctioned include the billionaire oil tycoon Eugene Shvidler, founder of Tinkoff bank Oleg Tinkov, Herman Gref, the CEO of Russia’s largest bank Sberbank, and Polina Kovaleva, Foreign Minister Lavrov’s step daughter. Galina Danilchenko, who was installed by Russia as the ‘mayor’ of Melitopol is also sanctioned - the first time an individual has been sanctioned for collaboration with Russian forces currently in Ukraine.  

United States: A Proclamation on Adjusting Imports of Steel into the United States

The modifications to the HTSUS made by clause 1 of this proclamation shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 1, 2022, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated. Any imports of steel articles from Japan that were admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on April 1, 2022, shall be subject upon entry for consumption made on or after 12:01 a.m. eastern daylight time on April 1, 2022, to the provisions of the tariff‑rate quota in effect at the time of the entry for consumption.
Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency. 

United States: Expansion of Sanctions Against Russia and Belarus Under the Export Administration Regulations (EAR)

In response to the Russian Federation’s (Russia) ongoing aggression in Ukraine following its further invasion of the country, as substantially enabled by Belarus, this rule expands license requirements for Russia and Belarus under the Export Administration Regulations (EAR) to all items on the Commerce Control List (CCL). It also removes license exception eligibility for aircraft registered in, owned or controlled by, or under charter or lease by Belarus or a national of Belarus. 

United States: Additions to the List of Countries Excluded from Certain License Requirements under the Export Administration Regulations (EAR)

In response to the Russian Federation’s (Russia’s) further invasion of Ukraine and to protect U.S. national security and foreign policy interests, the Department of Commerce established highly restrictive license requirements and policies for certain transactions involving Russia and Belarus under the Export Administration Regulations (EAR). To recognize partner countries implementing substantially similar export controls on Russia and Belarus, the Department of Commerce published a list of countries excluded from certain U.S. export controls related to foreign-produced items.  In this rule, the Department of Commerce adds Iceland, Liechtenstein, Norway, and Switzerland to the list of excluded countries. 

United States: Addition of Certain Entities to the Entity List; Correction.

On February 14, 2022 (87 FR 8180), BIS published a final rule that amended the Export Administration Regulations (EAR) by revising the Entity List entry for “Huawei Cloud Brazil” (under Brazil) and adding a new entry for “Huawei Technologies Co., Ltd.” (under China, People’s Republic of).  These correcting amendments revise the “License requirement” column for each of these entities by updating the reference to the foreign direct product (FDP) provisions to read § 734.9(e), instead of § 736.2(b)(3), which was the FDP reference prior to the publication of BIS’s FDP rule on February 3, 2022 (87 FR 6022).  These amendments also correct a typographical error, in the “License requirement” column for “Huawei Technologies Co., Ltd.” (under China, People’s Republic of), by revising the phrase “except for” to read “EXCEPT2   for”, consistent with the application of Entity List footnote 2 to this entity. 

United States: Additions of Entities to the Entity List

In response to the Russian Federation’s (Russia’s) further invasion of Ukraine on February 24, 2022, the Department of Commerce is amending the Export Administration Regulations (EAR) by adding 120 entities under 120 entries to the Entity List. These 120 entities have been determined by the U.S. Government to be acting contrary to the national security interests or foreign policy of the United States and will be listed on the Entity List under the destinations of Belarus and Russia.