Friday, March 11, 2022 – Today, United States President Joseph Biden formally announced via Executive Order that the following Russian-origin goods will no longer be permitted importation into the U.S. customs territory:

  • Fish, seafood, and preparations thereof;
  • Alcoholic beverages;
  • Non-industrial diamonds; and
  • Any other products of Russian Federation-origin as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce.

The prohibition takes immediate effect, except that the Office of Foreign Assets Control (OFAC) has issued a General License providing that all such prohibited transactions ordinarily incident and necessary for the importation of these goods into the United States pursuant to written contracts or agreements entered into prior to March 11, 2022 are authorized through 12:01 am (EDT), March 25, 2022.

Today’s announcement is an expansion of the import ban announced earlier this week by the Biden Administration and implemented by Executive Order 14066 (Mar. 8, 2022) in which the United States prohibited the importation of certain Russian-origin energy products, including crude oil, petroleum, petroleum fuels, oils and products of their distillation, liquidized natural gas, coal and coal products.  This move by the U.S. Government is among a number of actions taken to escalate efforts to apply pressure on the administration of Russian President Vladimir Putin in response to its recent military aggression in the sovereign state of Ukraine.  The trade community awaits formal publication of today’s executive order and further instruction from the U.S. Government regarding the implementation of this import ban.  Today’s Executive Order authorizes the promulgation of rules and regulations to carry out the purposes of the Order.  Crowell and Moring LLP (Crowell) is monitoring this space closely to provide specific guidance to clients with exposure to this type of government action.

In another move to leverage trade power over the Putin regime, today the  Group of Seven (G7) also announced its intent to strip Russia of its Permanent Normal Trade Relations status for key products.  WTO members generally commit to treating other members equally in connection with trade barriers, e.g., tariffs, for goods and services.  This treatment is known as “Most-Favored Nation” (MFN) treatment.  To strip Russia of its normal trade relations status would be to revoke MFN treatment, which opens the door to tariffs on Russian goods imported into individual countries.  The G7 forecasted a statement by a broad coalition of WTO members, including the G7, to collectively revoke Russia’s MFN status.  The Biden Administration also expressed its intent to work closely with Congress to deny Russia MFN treatment.  Crowell is tracking any develops in the revocation of Russian MFN status and any subsequent tariff actions by individual countries.

Takeaways for Importers:

  • Assess the exposure of your company’s U.S. import profile to the Russian-origin goods covered by the import ban, including not only energy products, but also now numerous consumer goods.
  • Assess your Company’s trade exposure more broadly to Russian-origin goods shipped globally, in the event that individual countries revoke Russia’s MFN status and elect to apply tariffs.
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Photo of John Brew John Brew

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations…

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations on matters involving customs administration, enforcement, compliance, litigation, legislation and policy.

John represents clients in proceedings at the administrative and judicial levels, as well as before Congress and the international bureaucracies that handle customs and trade matters. He advises clients on all substantive import regulatory issues handled by U.S. Customs and Border Protection and Immigration and Customs Enforcement, such as classification, valuation, origin, marking, tariff preference programs, other agency regulations, admissibility, import restrictions, quotas, drawback, audits, prior disclosures, penalties, investigations, Importer Self Assessment and Customs-Trade Partnership Against Terrorism programs, importations under bond, the Jones Act, vessel repairs, and foreign trade zone matters.

Photo of Anand Sithian Anand Sithian

For high-stakes internal and government investigations and complex regulatory and compliance matters, companies and individuals look to Anand to provide strategic advice and counseling, particularly on issues relating to the Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”), economic sanctions, and digital assets. Anand

For high-stakes internal and government investigations and complex regulatory and compliance matters, companies and individuals look to Anand to provide strategic advice and counseling, particularly on issues relating to the Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”), economic sanctions, and digital assets. Anand is resident in the firm’s New York office and a member of the firm’s International Trade, White Collar and Regulatory Enforcement, and Financial Services groups.

A former federal prosecutor, Anand leverages his government experience to guide clients through complex white-collar matters, including grand jury and regulatory investigations, enforcement proceedings, and internal investigations. Anand has deep experience in parallel criminal and civil investigations and proceedings, and often represents clients in defending against civil lawsuits related to government investigations.

Representing some of the world’s largest banks and technology companies, Anand has addressed a wide range of issues, including economic sanctions, BSA/AML; economic sanctions and national security; payments and cryptocurrency; securities laws; and cybersecurity enforcement. In the regulatory space, Anand prides himself on providing commercial and actionable advice, including in the developing areas of digital assets, FinTech, and payments.

Photo of Frances P. Hadfield Frances P. Hadfield

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving…

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving customs compliance, audits, customs enforcement, as well as import penalties.

Frances represents clients before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, as well as in proceedings at the administrative level. She advises corporations on both substantive federal and state regulatory issues that involve U.S. Customs and Border Protection, the Federal Trade Commission, Food and Drug Administration, and U.S. Fish & Wildlife in matters pertaining to product admissibility, audits, classification, import restrictions, investigations, marking, licenses, origin, penalties, and tariff preference programs.

Photo of Chandler Leonard Chandler Leonard

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce…

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce, State, and Treasury. Chandler has experience analyzing and advising U.S. and non-U.S. companies with respect to proposed transfers of U.S. origin technology, software, hardware, and services. She has performed jurisdictional and classification analyses under the ITAR and EAR, including drafting Commodity Jurisdiction requests and CJ Reconsideration requests. She assists in developing and/or reviewing U.S. export and sanctions compliance programs, including risk assessments. Chandler also has experience training a wide variety of audiences, both U.S. and foreign, on compliance with U.S. export control and sanctions requirements.