Treasury Secretary Steven Mnuchin told TV reporters that Chinese Vice Premier Liu He is "most likely" to come to Washington later in January, and, Mnuchin said, "I would expect the government shutdown would have no impact." In Beijing, the Commerce Ministry spokesman answered questions Jan. 10 about the latest round of U.S.-China negotiations on the tariff escalations at a regular press conference, describing the talks as "extensive, in-depth and meticulous exchanges on trade issues and structural issues of common concern," and confirmed that forced tech transfer, intellectual property rights, non-tariff barriers and cyber attacks were all part of the discussion. He did not directly answer a question on whether agreement might be reached by the March 2 deadline (see 1812240001), instead saying the consultations "have progressed."

Rusal, which was sanctioned by the U.S. Department of the Treasury in April, will be delisted from sanctions Jan. 18, 2019, Treasury told Congress earlier this month. Although Rusal, a major aluminum producer based in Russia, was sanctioned in April, it received a series of stays of execution over the months as the government negotiated on how the company could avoid being put out of business as a result of the sanctions.

The Office of Foreign Assets Control on Nov. 5 issued a final rule implementing the “snap back” of its Iran sanctions regulations following the U.S. decision to withdraw from the Joint Comprehensive Plan of Action in May (see 1805080056). The agency is also re-adding more than 700 persons to its Specially Designated Nationals list that had been removed as a result of the now-defunct Iran nuclear deal. The actions come at the end of a 180-day “wind-down” period of phased reimplementation of the Iran sanctions, with many provisions on trade having already come into effect in August. This final phase mostly affects Iranian shipping, petroleum and financial institutions. OFAC also updated its frequently asked questions document on the Iran sanctions with new information related to the return of sanctions, including on provisions related to payments for goods or services already provided before sanctions were reinstated.

The Office of Foreign Assets Control is amending its regulations on trade in rough diamonds to update requirements for Kimberly Process Certificates. OFAC’s final rule incorporates recent changes to Census Bureau requirements for submission of Kimberly Process Certificates for imports and exports of rough diamonds (see 1804230045), and also clarifies which entity may issue Kimberly Process Certificates for rough diamond exports. OFAC is also adding definitions for rough diamond packaging requirements and voided certificates, and making “certain technical and conforming changes” to penalty provisions. The final rule takes effect June 19, 2018.

The Alcohol and Tobacco Tax and Trade Bureau will not approve formulas or labels for alcoholic beverages that contain controlled substances, including forms of hemp, it recently said on its website. The Controlled Substances Act defines marijuana as all parts of the cannabis plant, as well as substances derived from the plant, with certain specific exclusions, TTB said. Hemp seed oil, sterilized hemp seeds and non-resinous, mature hemp stalks are exempt. Formulas for alcoholic beverages containing hemp must be approved by TTB, and product labels must “accurately and specifically identify the ingredient in a manner that makes it clear that the ingredient is not a controlled substance (e.g., ‘hemp seed oil’ rather than ‘hemp oil’),” the agency said. “Additionally, labeling statements for alcohol beverage products may not create the misleading impression that the product contains a controlled substance or has effects similar to those of a controlled substance.”

The Alcohol and Tobacco Tax and Trade Bureau is expanding and extending an alternate tax calculation procedure allowing more wine to qualify for expanded excise tax credits under recent tax reform legislation, it said in an industry circular dated May 17. TTB will until Dec. 31 allow producing wineries to pay taxes on wine physically stored at a bonded wine cellar or bonded winery, and not on the producing winery’s bonded premises, as if the wine were located at the producing winery’s bonded premises. That allows the wine to benefit from the tax credits without having to physically transport it back to the producing winery’s bonded premises, as would otherwise be required because the new tax law’s credits are not transferrable, TTB said. TTB had earlier announced a similar policy that applied only to bonded wine cellars and was set to run until June 30. The agency is extending the policy until Dec. 31 and also allowing wine at other bonded wineries to qualify. Under the tax reform legislation, tax credits formerly applicable only to small wineries were expanded by removing an eligibility cap on wine production (see 1711170012).

The Treasury Department is issuing a current list of countries that require or may require participation in, or cooperation with, an international boycott. The list includes Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, the United Arab Emirates and Yemen, unchanged from the previous iteration of the list (see 1801050015)

The Office of Foreign Assets Control issued the "the largest North Korea-related sanctions tranche to date," the Treasury Department said in a Feb. 23 news release. The sanctions are "aimed at disrupting North Korean shipping and trading companies and vessels to further isolate the regime and advance the U.S. maximum pressure campaign," it said. The action "targets one individual, 27 entities, and 28 vessels located, registered, or flagged in North Korea, China, Singapore, Taiwan, Hong Kong, Marshall Islands, Tanzania, Panama, and Comoros. " Concurrently, Treasury, the State Department and the U.S. Coast Guard issued an advisory "alerting the public to the significant sanctions risks to those continuing to enable shipments of goods to and from North Korea," the release said.

The Office of Foreign Assets Control sanctioned four Congolese men Feb. 5, freezing their U.S. assets and adding them to the Specially Designated Nationals List. The action came a few days after the United Nations Security Council sanctioned them -- militia leaders Gedeon Kyungu Mutanga, Guidon Shimiray Mwissa, Lucien Nzabamwita and Brigadier General Muhindo Akili Mundos. The Treasury Department said all four are responsible for human rights violations and prolonging the country's civil war.

The Office of Foreign Assets Control has added four individuals and four entities to its Specially Designated Nationals (SDN) list under transnational criminal organization designations, and another 21 individuals and 21 entities under Ukraine sanctions designations, including 12 entities subject to sectoral sanctions, OFAC said in two notices.