The semiconductor industry was surprised by the U.S.’s increased restrictions on Huawei (see 2008170029) and expects significant short-term supply chain disruptions, industry officials and experts said in interviews. Officials also thought the initial version of the rule, issued in May (see 2005150058), was sufficient, and were frustrated that the Bureau of Industry and Security did not ask for feedback on the new requirements.
Cree views 5G as a “multiyear expansion, with major traction coming,” CEO Gregg Lowe said on an Aug. 18 investor call. The company supplies silicon-carbide radio frequency (RF) and power chips for 5G infrastructure applications. “There have been a number of recent announcements coming out of Asia pointing towards growing 5G momentum in that region. While the global pandemic has further delayed some rollouts in other regions, we continue to be well positioned to support this global expansion.” Cree stopped shipping to Huawei “for the better part of a year” after the Commerce Department’s export ban took effect, Lowe said: “We have no Huawei revenue plans in any of our future projections or forecasts.” Any “large impact” from Huawei, “we've basically taken it out of the picture,” he said. “We have developed good relationships with other players around the world and are repurposing the technology that we had developed for Huawei for those customers.” Lowe conceded the “Huawei situation was a pretty significant setback for us. ... But we've adjusted our plans, we've adjusted our focus to go after non-Huawei customers.”
Dubai Customs will soon introduce an artificial intelligence-driven security system at ports to protect against illegal or “hazardous” shipments, the Hong Kong Trade Development Council reported Aug. 18. The system, announced Aug. 5, will include surveillance cameras, “state-of-the-art inspection technologies,” drones, “round‑the‑clock rapid intervention teams” and a “security vessel” that can track and take “control of ships before they reach port,” the report said. The system is aimed at boosting trade by improving the flow of “legitimate goods” into Dubai, the HKTDC said. Officials expect to implement the technologies at all ports within the United Arab Emirates. Dubai Customs reported that in 2019, customs authorities seized close to 4,450 illegal shipments entering at its ports.
CBP will extend its travel restrictions on the northern and southern borders through Sept. 21, it said in a two notices released Aug. 19. The travel restrictions were to expire Aug. 20 (see 2007210006). The travel bans do not apply to cargo, and exempt crossing the border from Canada or Mexico to work in the U.S.
India revised its export policies for certain textile raw materials used in mask and coverall production, the country’s Directorate General of Foreign Trade said Aug. 18. The change removes export restrictions on eight Harmonized System codes classified under “non-woven fabrics for 25-70 GSM” and “non-woven fabrics other than 25-70 GSM,” a measure of grams per square inch. The exception for “melt-blown fabric of any GSM” continues, and it is not allowed for export.
Registration and licensing applications for the State Department’s Defense Export Control and Compliance System will be unavailable 6 a.m. to 8 a.m. EDT Aug. 24, an Aug. 20 notice said. The system will be down for scheduled maintenance, the State Department said, and users should save work in progress before the downtime commences.
Two U.S. citizens, Muzzamil Zaidi and Asim Naqvi, and Pakistani national Ali Chawla were charged with violating the International Emergency Economic Powers Act after they allegedly arranged for transport of U.S. currency from the U.S. to Iran for Supreme Leader Ali Khamenei in 2018 and 2019, the Justice Department said Aug. 19. After the U.S. sanctioned Khamenei in 2019 (see 1906240046), all three allegedly were involved in collecting U.S. currency from donors through a “religious tax” authorized by Khamenei, sometimes transporting the money first to Iraq, then Iran. The Justice Department alleges Zaidi and Naqvi structured the shipments to “avoid reporting requirements.” Zaidi, who resides in Iran; Naqvi, who lives in Houston; and Chawla, who lives in Iran, each face a maximum 20-year prison sentence for violating the IEEPA.
The Treasury and State departments on Aug. 20 sanctioned six members of the Syrian government and military to further pressure the Bashar Al-Assad regime. Treasury’s sanctions target Luna Al Shibl, a senior adviser and press officer for Assad, and Mohamad Ammar Saati bin Mohamad Nawzad, a longtime leader within the Syrian Ba’ath Party who has served in high-ranking government positions. The State Department sanctioned Yasser Ibrahim, an Assad supporter; Fadi Saqr, a Syrian National Defense Forces commander; Ghaith Dalah, an NDF brigadier general; and Samer Ismail, a regiment commander.
The United Nations Security Council Committee revised entries for two people and three entities on its Democratic Republic of the Congo Sanctions List, it said Aug. 19. The changes add identifying information, including addresses and personal details.
China again criticized U.S. restrictions on Huawei, TikTok and WeChat but said the measures will not affect an expected call between officials from the two countries to discuss the phase one trade deal. The call, originally scheduled for Aug. 15 (see 2008170022), will be held “in the near future,” a Chinese Ministry of Commerce spokesperson said Aug. 20, according to an unofficial translation. The call is expected to serve as a six-month compliance check on both countries’ commitment to the phase one agreement. The Office of the U.S. Trade Representative did not comment.