The State Department is increasing civil monetary penalties for violations of the Arms Export Control Act to account for inflation, it said in a notice published in the March 19 Federal Register. For violations of AECA Section 38(e) (control of arms exports and imports) the maximum penalty will rise to $1,163,217 (from $1,134,602). Penalties for incentive payments in offset agreement violations under Section 39A(c) will rise to the greater of $845,764 or five times the payment, up from $824,959 or five times the payment; and penalties for transactions with countries supporting acts of terrorism under Section 40(k) will rise to $1,006,699, from $981,935.

Export Compliance Daily is providing readers with some of the top stories for March 11-15 in case they were missed.

A no-deal Brexit on March 30 is still the current default outcome unless the United Kingdom can convince European Union leaders it has good reason for extending the deadline, said Michel Barnier, the EU’s chief Brexit negotiator during a March 19 press conference. “The House of Parliament voted against the withdrawal agreement” negotiated between the EU and the U.K. “and against a no-deal scenario,” he said. “But voting against no deal does not prevent it from happening. Every one should now finalize all preparations for a no-deal scenario,” he said.

The Permanent Technical Committee of the World Customs Organization unanimously re-elected Ian Saunders, assistant commissioner of International Affairs at CBP, as chairperson of the PTC, the WCO said in a news release. Gordana Vidanovic of Serbia was re-elected as vice-chairperson.

The World Customs Organization issued the following releases on commercial trade and related matters:​​

In the March 18 edition of the Official Journal of the European Union the following trade-related notices were posted:

The European Chemicals Agency reminded companies that they still “need to prepare for a UK withdrawal without a transition period, that is, one without an agreement ratified by both sides ensuring that the withdrawal happens in an orderly manner,” in a press release dated March 18. ECHA has published instructions for what actions companies need to take, such as transferring their REACH registrations from a U.K.-based registrant to a registrant based in an EU member state. “The Agency would like to emphasise that while UK companies can initiate a REACH asset transfer in ECHA’s IT tools at any time before the date of withdrawal, the successor company in the EU-27 should only accept the transfer after the actual date of the withdrawal,” it said.

The European Union and China need to “develop a more balanced and reciprocal economic relationship” in light of China’s “proactive and state-driven industrial and economic policies,” the European Commission said in a report on the EU-China strategic outlook, dated March 12. Echoing recent U.S. criticism of China, the report calls out China’s favoring of its own domestic champions, including when enforcing intellectual property rights and other domestic laws, as well as investment restrictions and forced technology transfer. A more balanced relationship “can be achieved through various means: by working together with China in international fora to upgrade the rules and by making decisive progress in bilateral negotiations, but also by making use of tools such as the recently modernised and strengthened trade defence instruments,” the report said.

Counterfeit goods made up as much as 6.8 percent of total imports into the European Union in 2016, up from 5 percent just three years earlier, mirroring a worldwide increase in trade in counterfeits, the European Union Intellectual Property Office said in a new report. China remained the world’s top shipper of counterfeits, though Hong Kong plays an increasing role as a transit point, and “India, Malaysia, Mexico, Singapore, Thailand, Turkey and the United Arab Emirates remain among the top provenance economies,” the report said.

The government of Canada recently issued the following trade-related notices for March 18 (note that some may also be given separate headlines):