The State Department announced penalties on foreign entities for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act, the agency said in a notice. The entities transferred items subject to multilateral control lists -- such as the Wassenaar Arrangement -- that contribute to weapons proliferation or missile production. The entities mentioned in the notice include companies based in China, Iraq, Russia and Turkey and are barred from purchasing items controlled on the U.S. Munitions List and by the Arms Export Control Act. In addition, the State Department will suspend any current export licenses used by the companies; State will bar them from receiving new export licenses for any goods subject to the Export Administration Regulations; and government agencies are barred from entering into procurement contracts with them. The measures took effect Feb. 3.

The United Kingdom’s Office of Financial Sanctions Implementation renewed the designations for three entries under its terrorist asset-freezing regime, according to a Feb. 12 notice. The entries are: Hazan Izz-Al-Din, Abdelkarim Al-Nasser and Ibrahim Al-Yacoub.

There are “significant gaps” in private sector knowledge on North Korea and Iran sanctions compliance and implementation, according to a Feb. 6 report by the Royal United Services Institute and the Association of Certified Anti-Money Laundering Specialists. The report, based on more than 350 responses to a survey sent to the finance industry, shows that large, international banks have a greater grasp of sanctions compliance than local and national banks, which are more often “being exploited” by proliferators. The report also said that U.S. banks are most vulnerable to proliferation risks from Iran and that “few banks” consult the United Nations Panel of Experts reports on North Korea.

Traders who use the “batch submission process” to send license information to the Directorate of Defense Trade Controls need to receive the latest version of the client software from OCR Services before the Defense Export Control and Compliance System is launched, the DDTC said Feb. 13. The updated client version contains “necessary revisions” for submitting in batch, the DDTC said. DECCS will launch Feb. 18 (see 2002040060).

The Pentagon will “likely” support new U.S. restrictions on foreign sales to Huawei, a reversal of its objection to a proposed rule considered by the Commerce Department earlier this year (see 2001240012), according to a Feb. 12 Reuters report. Reuters said Commerce Secretary Wilbur Ross recently called Defense Secretary Mark Esper to discuss the rule and the two planned a meeting for next week. The rule would have lowered the U.S.-origin threshold on exports to Huawei to 10 percent, but required the State, Commerce, Defense and Energy departments to approve with input from the Treasury. Trump administration officials plan to meet this month in an attempt to resolve differences over the rule and technology exports to Huawei, and may discuss expanding Commerce’s export control jurisdiction beyond Huawei (see 2002050047).

The Commerce Department withdrew a rule that was expected to impose controls on exports of field effect transistor technology (see 1912170031), according to the Office of Information and Regulatory Affairs within the Office of Management and Budget. The “Gate-All-Around Field Effect Transistor (GAAFET) Technology” rule, which was sent to OIRA in November and withdrawn Feb. 11, was expected to be one of six rules issued by Commerce early this year (see 1912160032) as part of the agency’s effort to control emerging technologies. Commerce has faced delays while trying to release the rules, which officials expected to be issued by now (see 2002040057). So far, Commerce has issued one rule in the vein of emerging technologies: a January interim final rule to control geospatial imagery software (see 2001030024).

Huawei and four of its subsidiaries -- including two U.S. companies -- were charged with racketeering and conspiracy to steal trade secrets as part of a decadeslong scheme to steal U.S. technology, the Justice Department said Feb. 13. The indictment charges Huawei, Huawei Device Co., Huawei Device USA Inc., Futurewei Technologies Inc. and Skycom Tech Co., and Wanzhou Meng, Huawei’s chief financial officer, with attempts to steal intellectual property, including from six U.S. companies. The stolen property includes trade secret information, source codes, antenna technology and robot testing technology, the Justice Department said, all obtained after Huawei told and incentivized employees to steal confidential information from other companies.

The Commerce Department renewed the temporary general license for Huawei and 114 of its non-U.S. affiliates until April 1, Commerce said in a notice. The 45-day extension is the third extension granted to Commerce since it was placed on the Entity List in May (see 1905160072). The previous extension was set to expire on Feb. 16. License applications will continue to be reviewed under a presumption of denial. The notice is scheduled to be published in the Federal Register on Feb. 18.

The Agriculture Transportation Coalition is urging U.S. exporters, before loading their containers, to confirm with ocean carriers that the cargo will reach their Chinese customers and will have proper refrigeration in case of delays at Chinese ports due to the coronavirus outbreak. The AgTC also said it is continuing to urge ocean carriers to refrain from imposing detention penalties on containers that are stuck at ports due to the virus containment measures in place (see 2002030034). “Within China, the supply chain has been compromised, starting at the China maritime terminals extending all the way to the ultimate inland destination points,” the AgTC said in a Feb. 11 emailed press release.

The Office of the U.S. Trade Representative released an extensive critique of the appellate body at the World Trade Organization. But the administration offered no proposals for what other countries could do to satisfy it so that it would allow the appellate body to be rejuvenated. Currently, there is no quorum for the body, so it cannot hear appeals. Many of the complaints are about how the WTO has ruled on antidumping and countervailing duty cases in the U.S. -- the report mentions “zeroing,” a method used in antidumping, nearly 100 times. The report said, “The United States is publishing this Report -- the first comprehensive study of the Appellate Body’s failure to comply with WTO rules and interpret WTO agreements as written -- to examine and explain the problem, not dictate solutions.”