A U.S. electronics and computer component company may have violated U.S. sanctions on Iran and Syria, the company said in a Nov. 7 filing with the Securities and Exchange Commission. Colorado-based Arrow Electronics said a “limited number of non-executive employees … facilitated product shipment” to customers for re-export to people covered by U.S. sanctions on Iran and Syria. The transactions took place between 2015 and 2019 and were valued at about $5,000, the company said. Arrow Electronics said it voluntarily disclosed the potential violations to the Treasury’s Office of Foreign Assets Controls and the Commerce Department Bureau of Industry and Security earlier this year. It also disciplined or fired employees involved in the transactions and said it plans to “cooperate fully” with BIS and OFAC. The company said it is not able to “estimate” the potential penalty it may receive.
President Donald Trump signed bills that could remove Hong Kong from receiving special customs and export controls treatment and restrict exports of rubber bullets, tear gas and other items to the region. The bills (see 1911200036), signed Nov. 27, led to backlash from China, which said the country is prepared to retaliate. “We urge the U.S. to not continue going down the wrong path, or China will take countermeasures, and the U.S. must bear all consequences,” a Chinese Foreign Ministry spokesperson said Nov. 28.
As the European Union prepares revised regulations of its dual-use export controls (see 1906050039), EU industries are “divided” over whether human rights violations should be an “explicit justification” for export controls, according to a briefing of the EU review released Nov. 26. The 11-page briefing, released by the European Parliament, details how the controls would be changed, including impacts on export controls of surveillance technology, a revamp of the EU’s “licensing architecture” and a focus on terrorism and human rights.
David O'Sullivan, a former European Union ambassador to the U.S., joined Steptoe and Johnson in the firm's Brussels office, it said in a news release. “O'Sullivan will contribute in areas ranging from global trade to regulatory matters to compliance,” it said.
The World Customs Organization issued the following releases on commercial trade and related matters:
The United Kingdom's Department for International Trade updated its guidance on overseas business risks in Poland, according to a Nov. 27 notice. The guidance details the main “security and political risks” facing British companies when trading and doing business with Poland, including issues surrounding intellectual property, organized crime, human rights, bribery and corruption, and terrorism risks.
The European Commission referred Denmark to the Court of Justice of the European Union for failing to comply with European Union law regulating illegal cheese exports, the commission said in a Nov. 26 press release. Companies based in Denmark are producing and exporting “white cheese” to non-EU countries after labeling it with “Feta,” the commission said, which violates EU law. Feta is registered as a Protected Designation of Origin (PDO) and can only be produced in Greece, the commission said. The action is a “direct breach” of the protected designation and “Danish authorities have failed to prevent or stop it,” the commission said. The actions also may endanger “ongoing negotiations” between the EU and third countries surrounding trade deals that ensure protection of EU PDOs.
The government of Canada issued the following trade-related notices as of Nov. 27 (note that some may also be given separate headlines):
Vietnam plans to import more pork to meet domestic demand due to African swine fever affecting local supply, according to a Nov. 27 report from Customs News, the mouthpiece for Vietnam Customs. The country is short about 200,000 tons of pork, the report said, and it expects the imports to be expensive. A Vietnam official said due to “high” pork prices around the world, it won’t “necessarily be cheap,” according to the report. The official also said the country has no import quotas for pork.
Japan’s Ministry of Economy, Trade and Industry is launching an anti-counterfeiting campaign to combat an increased number of counterfeit imports, particularly through goods bought online, the agency said in a Nov. 25 press release. The agency is encouraging both buyers and sellers to research their products before importing or exporting. The campaign is a collaboration with Japan’s Intellectual Property Policy Headquarters and its Ministry of Justice, Ministry of Foreign Affairs, customs agency and others, including the National Police Agency. “Always do research and use your Good Judgment!!” kicks off Dec. 2.