1. Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. © 2013 Baker & McKenzie LLP MASSACHUSETTS EXPORT CENTER EXPORT EXPO Hot Topics in Export Compliance: Trade Sanctions Developments December 10, 2013 Lise S. Test, Associate Baker & McKenzie LLP Washington, DC

2. © 2013 Baker & McKenzie LLP Iran Update –Iran Nuclear Programme deal  Very limited suspension of sanctions –Effective October 9, 2012, owned/controlled foreign affiliates of U.S. persons are fully subject to the OFAC sanctions against Iran  Owned/controlled affiliates can rely on same exemptions and general licenses as their U.S. parents 2

3. © 2013 Baker & McKenzie LLP Iran Update (cont’d) –October 22, 2012 - reissuance of Iranian Transactions Regulations to Iranian Transactions and Sanctions Regulations  Represents major overhaul of the regulations  New general license and authorized payment term for Ag/Med transactions  New limitations on funds transfers  “Payments or transfers of funds” are excluded from the scope of “ordinarily incident and necessary” (ITSR 560.405)  Practical effect is that you must find general or specific license that expressly authorizes your payment activities (e.g., 560.530/532 anfd 560.516) 3

4. © 2013 Baker & McKenzie LLP Iran Update (cont’d) –SEC disclosure requirements for “knowingly” engaging in certain activitites, most of which target Iran  No materiality threshold  Few exceptions to disclosure –General License D for certain exports incident to the exchange of personal communications  General License D is in addition to the general license in 560.540 (which authorizes exports free of charge that were incident to the exchange of personal communications) 4

5. © 2013 Baker & McKenzie LLP Burma/Myanmar Update –“New investment” reporting requirement to the State Department  USD 500,000 threshold – “over any period”  Only applies to U.S. persons making “new investments”  Does not apply to U.S. persons “facilitating” “new investments” –Imports no longer prohibited, except jadeite and rubies –General License No. 19  Asia Green Development Bank, Ayeyarwady Bank, Myanma Economic Bank, Myanma Investment and Commercial Bank  Banks remain on SDN list but can be used for nearly all financial transactions 5

6. © 2013 Baker & McKenzie LLP Questions? 6 Contact Information: Lise Test Associate Baker & McKenzie LLP Phone: (202) 835-6131 Email: lise.test@bakermckenzie.com :