The European Union on Oct. 11 officially launched its foreign direct investment (FDI) screening mechanism for member states to coordinate on screenings to prevent suspicious transactions and acquisitions involving EU companies, the EU said Oct. 9. The mechanism establishes a “framework” for “formal contact points and secure channels” between member states and introduces procedures for member states and the European Commission to “quickly react to FDI concerns and to issue opinions.” The move comes as the U.S. pushes its allies, including the EU and Japan, to increase scrutiny of foreign investments from China (see 2002260042). The EU has encouraged member states to increase their investment screenings (see 2003260003) and recently implemented new criteria for screening investments, including transactions involving critical technologies and dual-use items (see 1903210049).
The Canada government issued the following trade-related notices as of Oct. 9 (some may also be given separate headlines):
Mexico recently revised its standard labeling requirements for prepackaged food and non-alcoholic beverage imports, KPMG said in an Oct. 7 post. The changes, which took effect Oct. 1, require food and beverage importers to include certain information on the product label, such as added sugar, saturated fats and sodium. Prepackaged products that contain sweeteners must not have labels with “characters, animations, cartoons, celebrities, athletes, pets or interactive elements that are aimed at children,” KPMG said. The packaging must also not “promote or encourage” consuming products with “high caloric content.” Traders wishing to submit challenges or “suspension requests” relating to the new requirements must file an action by Nov. 17.
China revised measures for submitting electronic cargo manifests for ground vehicles, its General Administration of Customs said in a notice released Oct. 9, according to an unofficial translation. The notice makes changes to “filing specifications” for certain data items, a “fast customs clearance” procedure for certain cargo, and other electronic declarations related to goods. Changes will take effect Dec. 1. The measures are meant to “strengthen the management of road inbound and outbound transportation vehicles” and standardize the submission of data declarations, China said.
An Illinois businessman and a Ukrainian resident were charged with illegally exporting gun parts and other defense items to Ukraine, the Department of Justice said in an Oct. 9 press release. Glenn Stepul worked with Ukrainian resident Andriy Yakin to export pistol slides and stainless steel gun barrels without the required State Department license, which violated the Arms Export Control Act, DOJ said. The two people also worked with an unnamed third person in Ukraine to export rifle scopes and night vision cameras without required licenses from the Commerce Department. Stepul hid the export-controlled items inside shipments of drilling equipment and falsely declared them as household goods, cosmetics, toys, stationary and cassettes, the charges say. Stepul pleaded not guilty to the charges on Oct. 8. Yakin is believed to be living in Ukraine, DOJ said, and the U.S. has issued a warrant for his arrest.
The European Union and the U.S. should negotiate a limited trade deal on medical supplies and equipment, and environmental goods and services that is open to other World Trade Organization members that agree to the commitments, according to a think tank report issued Oct. 6. The German Marshall Fund of the United States also called for consultation between the EU and the U.S. on financial sanctions on third countries when those sanctions “will have an adverse impact on alliance partners,” and it said those sanctions should have limits.
An ongoing cyberattack on shipper CGA CGM is causing problems for filing export manifests, CBP said in a CSMS message Oct. 9. “CBP locations should be aware that CGA CGM has limited capability to supply export manifests filings and is expected to be able to file export manifests by early next week,” the agency said. “Ports should exercise discretion on penalization of CGA CGM to provide the export manifest timely. Export notification will still be required and individual export filers will still need to file timely in [the Automated Export System]. Ports should attempt to work with CGA CGM to receive any export documentation for these filings thru alternate means, if possible.” Those instructions were effective as of 10 p.m. EDT Sept. 27, it said.
The U.S. extended by one year a national emergency authorizing sanctions for the “situation in and in relation to” Syria, the White House said Oct. 8. The White House specifically pointed to Turkish military actions in northeast Syria that have undermined the “campaign” to defeat the Islamic State of Iraq and Syria. The authority would have expired Oct. 14.
The United Kingdom Office of Financial Sanctions Implementation issued its 2019-2020 annual report Oct. 9, including details on sanctions improvements made during the past year, sanctions statistics and licensing items. OFSI said it plans to focus on sanctions in the maritime sector in 2020-2021 and to publish “sector specific guidance with supporting blogs and targeted events” relating to maritime sanctions “later in the year.” OFSI also said it continues to prepare for the end of the Brexit transition period and aims to increase outreach with industry to improve sanctions compliance. The agency called industry engagement a “priority” and stressed that the format for its consolidated list will not change after the transition period.
The United Kingdom Office of Financial Sanctions Implementation on Oct. 9 added one entry to its ISIL (Da’esh) and al-Qaida Organisations sanctions list and corrected 17 entries on its Global Human Rights sanctions list. The U.K. added Jamal Hussein Hassan Zeiniye, leader of the Al-Nusrah Front for the People of the Levant, a terrorist organization, to its ISIL (Da’esh) and al-Qaida sanctions. It also revised identifying information for 17 Saudi, Russian, Myanmar and North Korea related entries. The Saudi individuals were cited for involvement in the killing of Saudi journalist Jamal Khashoggi, who had been living in exile in the United States, in the Saudi consulate in Turkey.