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United States to Further Increase Tariffs, Impose More Sanctions on Russia

Economic sanctions are commercial and financial penalties applied by one or more countries against a targeted self-governing state, group, or individual. Economic sanctions are not necessarily imposed because of economic circumstances—they may also be imposed for a variety of political, military, and social issues.

The United States is increasing import tariffs on hundreds of goods from Russia and imposing a number of additional sanctions against that country in response to its ongoing war against Ukraine.

For more information on the wide range of trade restrictions the United States has imposed on Russia and how to ensure your company is in compliance, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.

Under an April 2022 law that revoked permanent normal trade relations status for (and thus increased tariffs on) imports from Russia, President Biden has issued an executive order that, effective July 27, will further increase to 35 percent United States import tariffs on more than 570 groups of goods from Russia.

The annex to the proclamation listing the affected goods by HTSUS number is available here, and the Office of the United States Trade Representative said it includes steel and aluminium; minerals, ores, and metals; chemicals; arms and ammunition; wood and paper products; aircraft and parts; and automotive parts.

The White House said the United States and other G-7 member countries will “seek authority to use revenues collected by new tariffs on Russian goods to help Ukraine and to ensure that Russia pays for the costs of its war.”

The United States is also prohibiting new imports of gold from Russia, which is the world’s second-largest producer and has gold as its second-biggest export behind energy.

Information from the United Kingdom, which along with other G-7 members is also imposing this ban, states that the ban will apply to “newly mined or refined gold” but not “Russian-origin gold previously exported from Russia.”

The White House pointed out that most of Russia’s gold exports go to the United Kingdom and that the United States imported less than $1 million in Russian gold in 2021.

Other measures the United States intends to take in the near future include the following:

  • adding companies “engaging in backfill activities in support of Russia” to the Entity List, which will prohibit those companies from purchasing United States-made goods and technologies;
  • imposing blocking sanctions against (1) major Russian state-owned defence enterprises, defence research organisations, and other defence-related entities and (2) persons tied to aiding Russia’s efforts to evade United States sanctions;
  • issuing an alert to financial institutions to aid in detecting potential violations of export controls.

For more information, please contact Charles L. Crowley at (914) 433-6178 or ccrowley@strtrade.com or Robert D. DeCamp at rdecamp@strtrade.com or (212) 549-0141.

Global Trade Law Firm Expands West Coast Presence

Global trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. In most countries, such trade represents a significant share of gross domestic product.

Customs and international trade law firm Sandler, Travis & Rosenberg, P.A., announced today the addition of Juan Moreno as Director, Trade Compliance. He will be based in the San Diego area.

Mr. Juan Moreno

Mr. Juan Moreno

“Juan is an ideal fit for the ST&R team,” said Lenny Feldman, a member of the firm’s Operating Committee. “He has decades of pragmatic trade compliance experience in a wide variety of core areas that are crucial for our clients, particularly as they are working to both improve compliance efforts and strengthen their bottom lines amid today’s shifting global trade environment.

Juan has helped a lot of companies develop controls and tools to address just these types of issues.”

Juan Moreno advises importers, exporters, trade associations, and multinational corporations in the United States and Mexico on a wide variety of regulatory and international trade subjects. He has been especially active on USMCA compliance, helping companies transition operations from NAFTA to USMCA rules, and he is well-versed in Mexico’s IMMEX and PITEX programs.

He also engages and guides companies on strategies for legally lowering MFN, Section 301, and other duties, including by taking advantage of classification, origin, valuation, and other customs strategies as well as free trade agreements, preferential trade programs, and other tools.

A member of the international trade community since 1994, most recently Juan Moreno served for 14 years as director of trade compliance for a San Diego-based customs law firm. He worked for many years as a customs compliance manager, first with a leading customs broker and then with a company closely involved with operating maquiladoras in Mexico.

He has trained professionals all over the United States and Mexico on compliance issues and is a sought-after speaker on a wide range of international trade matters.

Juan Moreno can be contacted at (415) 490-1402 or jmoreno@strtrade.com.