An Iranian businessman was convicted of violating U.S. sanctions after he funneled more than $115 million through the U.S. financial system for a Venezuelan construction project, the Justice Department said in a March 16 press release. Ali Sadr Hashemi Nejad funneled the money to his family business, the Stratus Group, which helped the Iranian International Housing Company work with U.S.-sanctioned Petroleos de Venezuela to build housing units in Venezuela. Nejad was convicted on several counts, including conspiracy to violate the International Emergency Economic Powers Act and money laundering, both of which carry a maximum 20-year prison sentence.
President Donald Trump, asked about a letter from businesses and trade groups sent earlier on March 18 that said he should lift sections 232 and 301 tariffs, said he couldn't imagine why Americans would want that. “China is paying us billions and billions of dollars in tariffs and there’s no reason to do that,” reporters quoted him as saying at a press conference. "It could be that China will ask for a suspension or something. We’ll see what happens. China is having a very rough time.”
The United Kingdom amended entries under its Ukraine sanctions list, according to a March 18 notice from the U.K.’s Office of Financial Sanctions Implementation. The U.K. removed asset freezes from two entries -- Evgeni Viktorovich Bushmin and Valery Kirillovich Medvedev -- and updated identifying information for 154 people and 11 entities.
The State Department sanctioned Amir Muhammad Sa’id Abdal-Rahman al-Mawla, the new leader of the Islamic State of Iraq and Syria, as a Specially Designated Global Terrorist, according to a March 17 news release. The agency also released identifying information on Ali Abdullah Ayoub (see 2003170042), the Syrian official sanctioned by the Treasury Department March 17. Ayoub was sanctioned for contributing to the country’s humanitarian crisis, the agency said.
United Kingdom customs and trade logistics operations may be quickly overwhelmed when the U.K. officially leaves the European Union next year, which could lead to delays at ports and create significant shortages of customs intermediaries, two U.K. industry experts said. The U.K. is expected to face a shortage of more than 40,000 customs intermediary staff and 50,000 truck drivers, all while export declarations are expected to increase by 500%, said John Lucy, a trade manager at the Freight Transport Association, and George Baker, founder of U.K.-based shipping company George Baker Shipping. “These factors will add significant potential costs and time implications in order to cross borders,” Lucy said during a March 16 webinar hosted by the Institute of Export & International Trade.
Treasury Secretary Steven Mnuchin hasn't talked specifically to cargo airlines' executives, though he said with regard to passenger airlines “I've had conversations around the clock with all the airline CEOs.” Mnuchin spoke to reporters after leaving the Senate Republicans luncheon. “Essential travel, we want to have airlines that operate, maybe on a reduced basis. Airlines have a short-term liquidity issue, and absolutely, that's something we talked about today” with Senate Republicans. “I've also spoken to the [House] Speaker about that,” he said.
The Federal Maritime Commission should quickly adopt its proposed interpretive rule for addressing detention and demurrage charges (see 1909130026), trade associations said in a March 16 letter to the FMC. “With ongoing challenges posed by the coronavirus, there is real concern about these fees being assessed when there are equipment issues beyond the control of the shipper or motor carrier,” the groups said. “Thus, these fees appear to be punitive measures by the ocean carriers, not an incentive to expedite container flow.”
The United Kingdom’s exports grew by multiple percentage points in 2019 as global demand for U.K. goods is increasingly coming from countries outside the European Union, according to new statistics released March 17 by the U.K. Revenue and Customs department. The U.K. Department for International Trade said exports from England grew 2%, exports from Scotland grew nearly 4.5%, exports from Wales grew 3%, and exports from Northern Ireland grew about 2%, according to a March 17 notice.
The Canada Border Services Agency will allow for duty-free treatment for goods imported in response to the COVID-19 pandemic, it said in a customs notice. The Goods for Emergency Use Remission Order “in conjunction with Tariff Item No. 9993.00.00 allows for the relief of duty and tax for goods required for an emergency and are imported by or on behalf of federal, provincial or municipal entities involved such as centres for health care as well as by or on behalf of members of first response organizations such as police, fire and local civil defence groups, including medical response teams,” it said. Such goods “shall be exported from Canada whenever they are no longer required except goods that are consumed or destroyed during the emergency,” the CBSA said. “The requirement to export does not apply if the goods are permanently imported with applicable duties and taxes paid.” The goods may be subject to examination and verification, it said.
Vietnam will review its agricultural production and focus on producing “key” goods as the coronavirus pandemic slashes its agricultural trade, according to a March 16 report from CustomsNews, the mouthpiece for Vietnam Customs. The virus has had a “direct impact” on the country’s agricultural sector, reducing its exports by nearly 3% and imports by nearly 7% compared with the same period last year, the report said. To mitigate the impact, the country will try to focus on agricultural production for “key export products with favorable market signals,” such as rice, fruit trees, dragon fruit, durian and passion fruit. The country also hopes to diversify its export markets and “gradually” reduce dependence on any single market.