The U.K.’s Department for International Trade released its Most Favored Nation tariff regime, which will replace the European Union’s Common External Tariff after the Brexit transition period ends, the U.K. said May 19. The regime, the U.K. Global Tariff (UKGT), will be “simpler” and “easier” to use than the EU’s system, the U.K. said, adding that it will “scrap red tape and other unnecessary barriers to trade.” The UKGT will simplify nearly 6,000 tariff lines and eliminate “thousands of unnecessary tariff variations on products” by abandoning the EU’s “complex” Meursing table, the U.K. said. Other changes include “scrapping unnecessary tariff variations, rounding tariffs down to standardised percentages, and getting rid of all ‘nuisance tariffs’ (those below 2%).”
Canada announced May 19 that a ban on non-essential travel from the U.S. would continue another month, and the U.S. also said it would continue that freeze on non-essential travel through June 20 (see 2004210046). Trading and workers commuting to jobs in essential industries can continue. Department of Homeland Security Acting Secretary Chad Wolf said it's likely the ban on personal travel between the U.S. and Mexico also will be extended.
Correction: Huawei's rotating chairman, who criticized the Commerce Department's increased export restrictions released last week, is Guo Ping (see 2005180032).
The Commerce Department corrected a typo in the savings clause of its May 15 rule that increased export restrictions on Huawei (see 2005150058), the agency said in a letter released May 19. The correction clarified that certain shipments will not be impacted by the rule change as long as they have begun production and will be shipped within 120 days from the rule’s effective date.
CBP has removed a State Department license exemption from the Automated Export System that has been revised by the Directorate of Defense Trade Controls, according to a May 19 CSMS message. The exemption, which was revised last year (see 2005120027), was removed from the AES Trade Interface Requirements appendix for International Traffic in Arms Regulations exemption codes after an April 19, 2020, end date for the exemption, CBP said. The exemption is no longer accepted in Electronic Export Information submissions. Exporters that need to update previously accepted shipments should refer to the exemptions section of the DDTC’s frequently asked questions site or contact the DDTC response team, CBP said.
The State Department rescinded a policy of denial for a subsidiary of BAE Systems located in Saudi Arabia, according to a notice. The policy no longer applies to BAE Systems Saudi Arabia Limited (BAES SAL), which was one of several BAES subsidiaries convicted of violating the Arms Export Control Act and the International Traffic in Arms Regulations in 2010. The State Department rescinded the denial policy after receiving a request from BAES SAL and determining the action was “in the national security and foreign policy interests” of the U.S.
The State Department issued statutory debarment for 23 people for violations of the Arms Export Control Act, the agency said in a notice. The State Department stressed that they are blocked from participating in activities regulated by the International Traffic in Arms Regulations, including brokering activities, exports and temporary imports. The debarment period will last for three years, at which time the people can apply for reinstatement of export privileges, the agency said. If their export privileges are not reinstated, they remain debarred.
The Department of Justice charged the leaders of a sanctions-evading financial services company in Iran with wire fraud, money laundering, identity theft and sanctions violations, the agency said in a May 18 press release. PAYMENT24 CEO Seyed Sajjad Shahidian and COO Vahid Vali used the company to help Iranian citizens avoid U.S. financial sanctions against Iran, which included purchases of U.S. computer software, software licenses and computer servers. The company offered a package to help clients purchase goods and services from U.S. businesses, including a PayPal account, a fake “ID card,” a remote IP address from the United Arab Emirates and a Visa gift card. The company charged a fee to evade U.S. sanctions, the press release said.
Treasury Secretary Steven Mnuchin, who was testifying in front of the Senate Banking Committee May 19, was asked by Sen. Ben Sasse, R-Neb., why the government hasn't placed sanctions on Huawei. He said that Huawei and some other Chinese companies aren't really private-sector firms, and that they were built by stealing American intellectual property.
The Treasury’s Office of Foreign Assets Control sanctioned China-based Shanghai Saint Logistics Limited for acting as a general sales agent for Mahan Air (see 1912050032), the U.S.-designated Iranian airline, according to a May 19 press release. The designation of Shanghai Saint Logistics is the seventh designation of a general sales agent to Mahan Air since 2018, OFAC said. The company provides freight booking and other services for Mahan Air flights. “We will not hesitate to target those entities that continue to maintain commercial relationships with Mahan Air,” Treasury Secretary Steven Mnuchin said in a statement.