KPMG issued a Feb. 11 alert detailing recent announcements made by China to simplify customs and trading procedures as the country battles the coronavirus outbreak (see 2002030034). China will exempt certain import duties on ambulances and cars used for emergency purposes -- as well as medical supplies such as reagents, disinfection equipment and protective supplies -- through March 31, KPMG said. Importers are also eligible for tax refunds on qualifying supplies if they already paid duties. KPMG said to expect “more tax relief measures” if the virus continues.

As the coronavirus outbreak continues, companies should review their contracts to determine whether they contain force majeure provisions and what those contracts define as force majeure qualifying conditions, according to a Feb. 13 post from Crowell & Moring. A force majeure provision can be triggered by specific language in a contract clause -- such as natural disasters, human threats or acts of God -- or by official announcements from government agencies and nongovernmental organizations, including the World Health Organization, the post said. But the coronavirus outbreak “presents an unusual situation” because it includes both components -- a naturally occurring element and a government action. China confirmed Feb. 10 that the virus outbreak should be considered a force majeure under Chinese law, the law firm said

Sen. Rick Scott, R-Fla., introduced a bill that would achieve a result similar to that of a rule Commerce is reportedly considering on Huawei export controls (see 2002130014), he said in a news release. Currently, goods made outside the U.S. with less than 25 percent U.S. content can be sold to Huawei -- or any other company on the entity list -- without a special license (see 1905220027). The Commerce Department has discussed lowering that de minimis threshold to 10 percent, though it has not yet issued a proposed rule.

Venezuela said it is “not intimidated” by recent U.S. designations against its airline and plans to ignore the sanctions by more than doubling its international destinations, according to an unofficial translation of a Feb. 12 report from Venezolana de Television, a state-owned news outlet. Even before U.S. sanctions were announced against the Venezuelan airline and its fleet of more than 35 planes (see 2002070041), the country said it received warnings from other countries that they would no longer supply the fleet with fuel, the report said. But Venezuela said its planes can fly up to 14 hours “without needing to be supplied at another airport that is not in national territory.” The report added that the country is working on manufacturing “the first aircraft on Venezuelan soil” and wants to add hundreds of planes.

Ukraine recently revoked all of its special economic sanctions imposed by the country’s Department of Economy, Trade and Agriculture before Feb. 7, according to a Feb. 7 post from Baker McKenzie, referencing a notice from Ukraine. The move, which will lift sanctions on about 27,000 companies, will take effect March 6, the post said. The sanctions removals do not affect sanctions issued by Ukraine’s National Security and Defense Council.

The United Kingdom’s Office of Financial Sanctions Implementation amended its entry for Seka Baluku under designations related to the Democratic Republic of the Congo, according to a Feb. 13 notice. Baluku, leader of the Allied Democratic Forces, a Uganda-based terrorist organization, is still subject to an asset freeze. He was sanctioned by the U.K. and the United Nations Security Council earlier this month (see 2002070010).

The Commerce Department Bureau of Industry and Security asked for an 8% boost in funding for the 2021 fiscal year to increase export control compliance and enforcement, bolster initiatives to counter China, and to better identify emerging and foundational technologies. BIS’s request for a $10 million budget increase, submitted to Congress last week, comes as the agency plans to roll out a series of export controls on sensitive technologies (see 1912160032), which will increase its involvement in the Trump administration's effort to sustain the U.S.'s technological advantage over China. BIS specifically asked for just over $1 million and five new positions to help it control emerging and foundational technologies and enforce those controls.

The United Kingdom is extending the deadline for companies to apply for funding for customs training (see 2001220051) as the U.K. leaves the European Union, the U.K.’s revenue and customs agency said in a Feb. 10 notice. The grant funding deadline, which was originally set to expire Jan. 31, 2020, was extended one year to Jan. 31, 2021, the notice said. The U.K. said it has awarded the equivalent of about $21 million in grants, with about $10 million still remaining in the program.

The Treasury Department made several technical changes to the final regulations for the Foreign Investment Risk Review Modernization Act (see 2001140060), which are intended to “improve the clarity of the rule,” the agency said in a notice. The corrections took effect Feb. 13 and the notice is scheduled to be published in the Federal Register Feb. 18. The final FIRRMA regulations took effect Feb. 13 (see 2002110042).

California-based Alpha and Omega Semiconductor is being investigated by the Justice Department for export control violations relating to shipments to Huawei, the company said in a Feb. 5 press release. The company said it has been ordered by the Commerce Department to stop all shipments to Huawei and is working with the agency to “resolve this issue.” The semiconductor company has an export control compliance program in place and is committed “to comply fully” with U.S. export laws, but said it expects revenue hits due to penalties “incurred in connection with the investigation” and by the “Huawei shipment interruption.”