The Canadian government has sent its letter to the U.S. and Mexico certifying it is ready for the USMCA date of entry into force, Deputy Prime Minister Chrystia Freeland announced April 3, but a top Mexican official said his country did not certify it was ready by March 31, which means a June 1 date of entry into force is out of reach.

The European Union will officially waive customs duties and value-added taxes on medical equipment imports from non-EU countries, the European Commission said April 3. The measure, signaled in a March 30 customs guidance (see 2003310030), was approved by the commission to help combat the COVID-19 pandemic after requests from member states. Import duties and VATs will be lifted for six months for masks, protective equipment, testing kits, ventilators and other medical equipment, the commission said, adding that the measure will take effect retroactively from Jan. 30. The EU may consider an extension after six months.

Companies involved in sanctions compliance should closely communicate with regulators during the COVID-19 pandemic and carefully document compliance procedures during work-from-home operations, according to Nicole Sayegh Succar, a trade lawyer with Crowell & Moring. Those steps could minimize scrutiny and potential sanctions penalties after the pandemic subsides, Succar said during an April 2 webinar hosted by the law firm.

As countries seek to acquire needed supplies of ventilators, masks and other protective gear, the deputy director for trade and agriculture at the Organization for Economic Cooperation and Development said that nationalizing production of these goods is not the answer for the next pandemic. Julia Nielson, who was speaking on a Washington International Trade Association webinar April 2, said, “I don’t think nationalization of supply has ever meant security of supply.” She said that countries may need to consider the inventories they hold, and redundancies in where they get goods, but that given the way this pandemic is spreading in waves, relying on one country, even your own, could be risky.

Expectations for sanctions compliance are increasing amid the COVID-19 pandemic as both U.S. and United Kingdom agencies continue sanctions enforcement, trade lawyers said. The U.S. Treasury Department Office of Foreign Assets Control and the U.K. Office of Financial Sanctions Implementation continue to issue sanctions, pursue enforcement and expect heightened due diligence from industry, the lawyers said, “You've got OFAC doing its continuing expansion of U.S. sanctions and … you've got increasing pressure from even the U.K.,” said David Wolff, a trade lawyer with Crowell & Moring, speaking during an April 2 webinar hosted by the law firm. “The regulatory expectations, if anything, are getting worse.”

The U.S. may consider lifting sanctions on countries significantly impacted by the COVID-19 pandemic, Secretary of State Mike Pompeo said. While Pompeo said the U.S. provides exemptions for exports of humanitarian goods, he suggested the Trump administration will review its sanctions regimes. “Would we ever rethink it? Of course,” Pompeo said during a March 31 press conference. “We’re constantly trying to make sure we have our policies right.”

The European Union will suspend certain import duties and customs penalties, and is “strongly” encouraging traders to only apply for “essential customs declarations,” due to the COVID-19 pandemic, the European Commission said in a March 30 guidance. In the guidance, the EU presented measures intended to ease burdens for European customs agents, postal operators and couriers, who are “struggling to cope” with trade operations, especially the large number of imported e-commerce goods. The measures also ease time pressures on customs officials and industry by extending deadlines for approving customs declarations.

Export Compliance Daily is providing readers with some of the top stories for March 23-27 in case you missed them.

The Trump administration should be doing more to restrict sales of emerging technologies to China, lawmakers said in interviews earlier this month. Senators commended the administration for increasing foreign direct investment restrictions (see 2002260042) and going further than previous administrations in confronting China’s unfair trade practices, but said they will continue pushing for tighter restrictions.

The COVID-19 pandemic may lead to an increase in electronic trade documentation as both governments and industries are increasingly forced to communicate online, said Kevin Shakespeare, director of stakeholder engagement at the Institute of Export and International Trade. Although there has already been a global shift toward online customs and trade procedures, the coronavirus spread may cause that process to speed up, Shakespeare said during a March 26 webinar hosted by the institute.