A State Department official this week denied allegations that the agency has held back sanctions and export controls in an effort to limit damage to the U.S.-China relationship, saying the Biden administration continues to enforce a range of human rights-related trade restrictions against Beijing. But the official also said the administration hasn’t yet imposed mandatory sanctions under the Uyghur Human Rights Policy Act of 2020 and was accused by at least one lawmaker of failing to comply with a congressional subpoena that sought information on sanctions against China.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The Bureau of Industry and Security this week added four European spyware and surveillance technology companies to the Entity List for their role in “threatening” cyber activities. BIS accused all four of “trafficking in cyber exploits used to gain access to information systems, threatening the privacy and security of individuals and organizations worldwide.”
The Commerce Department published its spring 2023 regulatory agenda for the Bureau of Industry and Security and the Census Bureau, including new rules that will add more entities to the Entity List and finalize new export filing requirements.
The Biden administration’s potential outbound investment screening program could feature a combination of notification requirements and, in some cases, outright prohibitions on American investments in China, Treasury Secretary Janet Yellen said this week. She also offered the administration’s strongest comments to date in support of a new investment screening regime, saying there’s a “good chance” the U.S. issues the rules.
The U.S. may need to address export control loopholes to better prevent China and others from acquiring sensitive technologies, Sen. Mark Warner, D-Va., said, but he also cautioned the U.S. against imposing controls that are too broad and said they need to be coordinated with allies.
The Bureau of Industry and Security last week fined two defense companies close to $100,000 combined to resolve their violations of the agency’s antiboycott regulations. The agency fined Arizona-based defense weapons systems manufacturer Profense $48,500 and Washington-based defense contractor B.E. Meyers & Co. $44,750 after they complied with requests from freight forwarders to certify that their goods weren’t Israeli origin.
Canada launched investigations of Nike Canada and Dynasty Gold this week after receiving complaints that both companies’ supply chains have ties to forced labor in China. A Canadian agency said it’s probing allegations that Nike has “supply relationships” with Chinese companies that use Uyghur forced labor and that Dynasty Gold, a mining company, benefited from Uyghur forced labor at a Chinese mine in which it had a majority stake.
The State Department’s recently published spring 2023 regulatory agenda continues to mention rules that will update export controls for items on the U.S. Munitions List and make other changes to the International Traffic in Arms Regulations.
The Committee on Foreign Investment in the U.S. is expected to increase the number of penalties it issues for violations of mitigation agreements, StoneTurn consultant Scott Boylan said. Orion Berg, a lawyer with White & Case, said there will be a similar uptick in activity from European countries, adding that he expects all EU member states to have an active foreign direct investment screening regime within two years.
Freight forwarders are urging shippers to enroll in a government-run cargo screening program before the end of October, when their air freight will no longer benefit from an exemption for cargo deemed ”impracticable to screen.” So far, “very few” shippers are enrolled in the program, said Brandon Fried of the Airforwarders Association, sparking fear of export delays or potential compliance violations by shippers unaware of the impending change.