President Donald Trump has invoked the Defense Production Act to try to claim more 3M masks for U.S. workers, made in the U.S. or in China. The company issued a statement April 3 that said: “In the course of our collaboration with the Administration this past weekend, the Administration requested that 3M increase the amount of respirators we currently import from our overseas operations into the U.S. We appreciate the assistance of the Administration to do exactly that. For example, earlier this week, we secured approval from China to export to the U.S. 10 million N95 respirators manufactured by 3M in China.
China is blocking imports transported by truck drivers from five of Vietnam’s cities and provinces, including the country’s capital, according to an April 3 report from CustomsNews, the mouthpiece for Vietnam Customs. China informed Vietnam that it will bar drivers delivering goods from Hanoi, Ho Chi Minh City, Quang Ninh, Da Nang and Binh Thuan, saying those regions have “recorded many new and complex cases of coronavirus” COVID-19. Vietnam Customs is telling agricultural companies to “plan for the consumption of agricultural goods in the domestic market” and to remain in communication with the customs agency to minimize the “backlog of goods and economic losses.”
China announced changes to its inspections and supervision procedures for imported cotton, according to an April 3 report from the Hong Kong Trade Development Council. The measures, which were scheduled to take effect April 5, aim to improve the “business environment” at ports by carrying out inspections “upon application by enterprises” instead of a “sampling inspection by customs officials batch by batch.” If the consignee or agent of the imported cotton does not require a quality certificate, the cotton will be released “directly” after “passing the on-site inspection and quarantine.”
Vietnam is drafting regulations to defer payments of value-added taxes for certain companies, products and industry sectors due to the COVID-19 pandemic, according to an April 2 post from KPMG. VATs will be extended for entities engaged in production or processing in the agricultural, forestry, fishery, food processing, clothing, rubber, electronic, computer and auto sectors, KPMG said in an alert. The deferrals will also apply to the transportation sector, including rail, road, waterways, aviation and warehousing.
China recently announced procedures for returns of cross-border exported and imported e-commerce goods, according to an April 3 report from the Hong Kong Trade Development Council. Traders seeking to return goods must apply to China’s customs authority to “engage in return business,” the report said. Any returns must come with a “guarantee” that the returns are the original goods, the report said, and must be completed within a certain time frame. The measures for returns of exports took effect March 27, and for returns of imports, on March 28.
The Commerce Department is seeking comments on an information collection related to the five-year record retention requirement for export transactions and boycott actions, the agency said in a notice. The retention requirement applies to all parties involved in the export, re-export, transshipment or diversion of items subject to the Export Administration Regulations and involved in a reportable boycott request. Comments are due June 5.
The Directorate of Defense Trade Controls updated its Defense Export Control and Compliance licensing system (see 2002190025) to reflect changes made by the recent transfer of gun export controls from the State Department to the Commerce Department (see 2001170030), according to an April 3 notice. The change “only applies to new license submissions,” the DDTC said.
The Directorate of Defense Trade Controls issued four new frequently asked questions regarding the use of technical data following the expiration of technical assistance agreements and manufacturing license agreements, according to an April 3 notice. The first FAQ clarifies that defense items manufactured during the life of a TAA or MLA may be transferred among the “same foreign signatories and sub-licensees” for the same end-users and end-uses previously authorized under the TAA or MLA. The second FAQ addresses the U.S. agreement holders’ intellectual property rights, and the third FAQ clarifies that foreign parties may continue to use and exchange technical data previously authorized even after the expiration of a TAA if the data is used for the same authorized end-use. The fourth FAQ says defense items produced or manufactured during the life of a TAA or MLA using technical data or defense services received through the agreement may not be transferred to a foreign person who was not a party to the agreement, after the agreement's expiration, without further authorization.
The Treasury’s Office of Foreign Assets Control extended the expiration date for a Venezuela-related general license, OFAC said in an April 3 notice. General License No. 13E, which replaces No. 13D (see 1910170057), authorizes certain transactions involving Nynas AB, a joint venture between biofuel producer Neste and Petroleos de Venezuela, Venezuela's state-run oil company. OFAC extended the expiration because Nynas is discussing with OFAC a “proposed corporate restructuring” that could “result in significant changes to Nynas AB’s ownership and control,” the notice said, and the expiration will “afford additional time to complete this engagement.” The license, which was scheduled to expire April 14, will now expire May 14.
International sanctions should be lifted to prevent hunger crises in countries significantly impacted by the COVID-19 pandemic, Hilal Elver, United Nations special rapporteur on the right to food, said March 31. Suspended sanctions could help Syria, Venezuela, Iran, Cuba and Zimbabwe, which are “already under stress and cannot handle the additional burden of sanctions,” Elver said. Sanctions may also be disproportionately impacting civilians in Yemen, South Sudan, Gaza and Syria, Elver said. A UN official previously called for the removal of global sectoral sanctions (see 2003250010).