Export Compliance Daily is providing readers with some of the top stories for June 8-12 in case you missed them.
The Commerce Department’s increased restrictions on shipments to military end-users is causing widespread confusion and could cripple exporters struggling to survive during the global COVID-19 pandemic (see 2005010037), industry groups said. The Bureau of Industry and Security's April 28 final rule (see 2004270027), set to take effect June 29, is too complex and was released with “poor” timing and without industry input, the National Customs Brokers & Forwarders Association of America said.
Companies operating in Hong Kong and mainland China should be reviewing their portfolios in preparation for increased U.S. export controls, which could impact a wide range of global firms, a Mayer Brown trade lawyer said. Aside from sanctions against Chinese officials for interference in Hong Kong’s autonomy, the U.S. is likely to align export control policies for Hong Kong with its policies toward mainland China, creating a significantly more restrictive trade environment, the lawyer said.
The United Kingdom on June 12 announced new plans to phase in import entry requirements for goods from the European Union over a six-month period following the end of the Brexit transition period on Dec. 31, 2020. The U.K. government will also provide £50 million in additional funding for customs brokers, forwarders and express couriers for recruitment, training and information technology (IT) expenses.
Lawmakers introduced legislation this week to incentivize U.S. semiconductor manufacturing and provide more federal support for research and development. The bill includes refundable investment tax credits, a $10 billion federal match system to match state and local incentives, and the establishment of a new semiconductor program within the Commerce Department.
President Donald Trump issued an executive order authorizing sanctions and visa restrictions against the International Criminal Court for “harassment” and “abuse” of officials of the U.S. government and its partner governments. The order, issued June 11, authorizes the State Department and the Treasury Department to sanction any person who works with the ICC to investigate, detain, arrest or prosecute any U.S. or partner government’s “personnel” without consent from that person’s national government. The order also authorizes sanctions against people who provide the ICC support, including the provision of goods and services. An ICC spokesperson said the court is aware of the sanctions and is still reviewing the order.
U.S.-China technology competition and the Trump administration’s restrictions on Huawei have likely dashed the prospects of a phase two trade deal, China experts said. The experts also agreed that the phase one purchase agreements are unlikely to be met, even as the U.S. trade representative continues to tout progress on Chinese purchase commitments (see 2005210036).
The State Department may introduce more measures to help industry mitigate the impacts of the COVID-19 pandemic, including more license extensions or fee reductions, an agency official said. The agency is considering more measures after lowering certain fees and extending licensing deadlines in April (see 2004240017), which was received positively by companies, said Mike Miller, the State Department’s deputy assistant secretary for defense trade.
A U.S. official again argued that the U.S. has the authority to invoke snapback sanctions under the Iran nuclear deal and threatened to impose them unless an international arms embargo against Iran is extended. Brian Hook, the U.S. special representative for Iran, said the U.S. will trigger a United Nations provision to reimpose a host of international sanctions against Iran if the arms embargo, set to expire in October, is not extended. Without the embargo, Iran could import a range of advanced military weapons from China and Russia, Hook said. “One way or another, we're going to accomplish this,” he said, speaking during a June 9 virtual talk hosted by the Heritage Foundation.
Export Compliance Daily is providing readers with some of the top stories for June 1-5 in case you missed them.