Export Compliance Just Got More Complicated (Here are Links to Make it Easier)

Normally, the consolidated screening list is found on export.gov; but now that entire website simply returns the message “Due to the lapse in government funding Trade.gov and Export.gov and all associated online activities will be unavailable until further notice.”  For exporters who rely on the consolidated screening list as a compliance tool, this is a significant problem.

Interestingly enough, export enforcement – the ongoing conduct of criminal investigations, and prosecutions, and coordination with other law enforcement and intelligence agencies – has been deemed to be an essential service for the Commerce Department so even though compliance resources are missing, export enforcement will still be available to punish anyone who makes a mistake because of the missing resources.

Due to the lapse in government funding
Trade.gov and Export.gov
and all associated online activities
will be unavailable until further notice

So how do we ensure continued compliance for our exports?  If you’ve been to one of ASA’s export workshops, then you know that the consolidated list is supported by separate iterations of the lists that are consolidated. Some of these lists are still available for review.  Here are some that are particularly useful for civil aircraft parts transactions:

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Sanctions for Aircraft Parts Transactions: Exercise Due Diligence With Your Business Partners

It remains important for aircraft parts exporters to check their customers against the U.S. government export databases.

In today’s Federal Register, restrictions were renewed against an individual and her companies for supporting an Iranian airline, Mahan Airways, that has been designated by the United States as a Global Terrorist.

  • Gulnihal Yegane, Merkez Mah. Hasat Sok. No: 52/6, Sisli, Istanbul, Turkey;
  • Trigron Lojistik Kargo Limited Sirketi, Yanibosna Merkez Mah., Degirmenbah[ccedil]e Cad. No. 11, Airport Hill Sitesi Blok D.6,
    Bah[ccedil]elievler, Istanbul, Turkey;
  • Ufuk Avia Lojistik Limited Sirketi, Merkez Mah. Hasat Sok., No: 52/6, Sisli, Istanbul, Turkey;
  • RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi, Yesilce Mah. Dalgic SK., 3/101 Kagithane, Istanbul, Turkey

According to the Federal Register, Ms. Yegane was originally one of 19 persons accused of procuring parts to support the operation of Mahan Airways in Iran. 78 FR 75,463 (Dec. 12, 2013).  Mahan Airways is designated by the United States as a Specially Designated Global Terrorist. 77 FR 64,427 (Oct. 18, 2011).  Most recently (in 2017), Ms. Yegane was accused of obtaining CFM-56 engines and gaskets and isolators used on Boeing aircraft for shipment to Iran.  83 FR 4897 (Feb. 2, 2018).

Aircraft parts distributors should be cautious in their business dealings to ensure that they are not supporting persons or entities members in violation of the law, and this includes forbidden business dealings with parties subject to export restrictions.

As we’ve discussed in our export classes, one efficient way to identify parties who might be subject to export restrictions is to search the consolidated screening list found online at https://www.export.gov/csl-search.  The Consolidated Screening List is a list of parties for which the United States Government maintains restrictions on certain exports, reexports or transfers of items.  The restrictions are drawn from eleven export screening lists published by the U.S. Departments of Commerce, State and the Treasury.

We recommend that you check your business partners with every transaction, because a previously “clean” partner could be added to the lists at any time.  Linking your computer-based transactions system to the Consolidated Screening List is one way to automatically ensure that every transaction is scanned.  If you choose to do this, then make sure that other parties who are not entered into the system, but who are nonetheless part of the transaction, are also checked by hand.  You can link to the database using the Application Programming interface (API), which enables computers to freely access the CSL in an open, machine-readable format. From this API, any company can build a search engine to quickly find names, aliases, and other screening information. Developers can find more information about the API online at https://developer.export.gov/consolidated-screening-list.html.

 

Treasury Offers New Ways to Search for Export Compliance Risks

In an effort to make it easier to monitor sanctions programs, the Treasury Department has consolidated several sanctions lists.  This consolidation should make it easier to search to ensure compliance, whether you are searching on line or using a computer program to automatically research your customers.

The Treasury Department office with jurisdiction over export programs is the Office of Foreign Asset Control (OFAC).

OFAC has a list of Specially Designated Nationals (SDNs) as well as other (non-SDN) sanctions lists.  OFAC  is now offering all of its non-SDN sanctions lists in a consolidated set of data files called the Consolidated Sanctions List.  This consolidated list will include the following:

  • Non-SDN Palestinian Legislative Council List
  • Part 561 List
  • Non-SDN Iran Sanctions Act List
  • Foreign Sanctions Evaders List
  • Sectoral Sanctions Identifications List

OFAC announced that it plans to discontinue some of these lists as separate lists, so they will only be available as part of the consolidated list.

Persons seeking to check whether there are OFAC sanctions that might apply to their transaction should be sure to check their export business partners (by personal name and company name) against the Specially Designated Nationals List and the Consolidated Sanctions List

One can also use the Sanctions List Search which consolidates both lists into a single searchable database. This tool is useful because it can automatically search for names that are close (bot not exact matches) and can be set to find matches with different levels of confidence (which will then be reviewed by a human to assess whether they actually match).

Exporters should also check the details of their transaction (including destination country) against the Sanctions Programs and Country Information page, which list sanctions programs based on country and on certain other criteria.

 

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