Specialty Fabrics Review May 2020 - 51

North Korean joint ventures, international
labor arrangements and other deceptive
practices can cause supply chains to
inadvertently purchase North Korean textiles
or those illicitly made with North Korean
labor. Companies that source raw materials
from China in particular were singled out
as at risk of violating the U.N. (and related
U.S. domestic) legal prohibitions on sourcing
items from North Korea.
On Jan. 20, 2020, the Trump administration
imposed so-called secondary sanctions on
Iran's textile sector, among other Iranian
industries. These sanctions are intended
to deter non-U.S. persons (including
corporations) from having significant
transactions with Iran. U.S. law has long
prohibited U.S. persons from transacting
with Iran, including with the textile sector.
Under the new Iranian secondary
sanctions, non-U.S. persons face severe
penalties, including being blacklisted by
the U.S. government, for having significant
transactions with Iran's textile sector. Such
a blacklisting would prevent the target from
accessing the U.S. market or U.S. financial
institutions, and the mere threat of such
sanctions deters non-U.S. persons from
engaging in transactions with Iran.
The net effect of all of these actions will
be greater demands for transparency in the
textile supply chain, both in private contracts
and from regulatory authorities. We expect
that the compliance burdens, from both
an import and an export perspective, will
continue to grow in scope and complexity
for the textile sector, creating new challenges
for businesses.

Cut by an
Eastman
Your business relies on the quality of your products, the precision
in their edges, the elegance of their lines. That's why you rely on your
Eastman. Because for 130 years, Eastman Machine has made the
world around you sharper, faster and more productive. Customers
depend on our machine to cut industrial fabrics for a wide range of
products. We take that trust seriously and continue
to push our products to the edge of greatness.
Visit EASTMANCUTS.COM or call +1-716-856-2200
for PPE production support and assistance

Lawrence A. Ward is a partner with Dorsey
& Whitney LLP in Dorsey's Seattle, Wash.,
office (ward.lawrence@dorsey.com).
Dave Townsend is counsel with Dorsey
& Whitney LLP in Dorsey's Minneapolis,
Minn., office (townsend.dave@dorsey.com).

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Specialty Fabrics Review May 2020

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