The Office of Foreign Assets Control is amending the base civil penalty amount for certain sanctions violations to reflect inflation adjustments for its civil monetary penalties, a notice released Aug. 10 said. The change, which takes effect Aug. 11, revises the definition for OFAC’s “applicable schedule amount,” which establishes a base penalty for non-egregious sanctions violations cases that do not involve a voluntary self-disclosure.
Australia is considering renewing certain sanctions entries under Iran, Egypt, Syria and Lebanon, including designations for terrorism-related reasons, it said Aug. 10. Before the sanctions are renewed, Australia said it will accept requests by the listed people to revoke the sanctions or to make a “statement of case.” Australia will accept submissions until 5 p.m. Australian Eastern Standard Time on Sept. 4.
The Office of Information and Regulatory Affairs on Aug. 7 concluded an interagency review for a final Commerce Department rule that will implement export control decisions from the 2019 Wassenaar Arrangement plenary. The rule, which OIRA received June 9 (see 2006120018), will place new controls on emerging technologies. Commerce officials said in May the agency was preparing to issue several emerging technology controls (see 2005190052), including six controls agreed to at Wassenaar. OIRA also recently completed review of a rule to implement export control decisions from the 2018 Wassenaar Arrangement plenary (see 2007220015).
China sanctioned 11 U.S. citizens Aug. 10, including six lawmakers, days after the U.S. designated various Hong Kong officials for implementing Beijing’s so-called national security law (see 2008070039). Along with its sanctions, China criticized the U.S., saying it should “correct” the designations, which included asset freezes of security officials and Hong Kong leader Carrie Lam.
Mexico recently issued timelines for verification activities and government enforcement of new labeling regulations for imported foods, a U.S. Department of Agriculture Foreign Agricultural Service report released Aug. 5 said. Among other provisions, the measure will exempt certain producers and importers from being penalized Sept. 1-Nov. 30 “during verification activities” for labels of prepackaged processed foods and nonalcoholic beverages. In addition, Oct. 1-Nov. 20, food and beverages that do not display the “front of pack warning sign,” which is required under Mexico’s new labeling law, can be “marketed and sold to the final consumer.” Previous guidance published on July 10 noted the allowance for use of temporary front of pack labeling stickers until March 31, 2021. The new labeling law will take effect Oct. 1.
Indonesian palm oil exports and soybean imports are expected to decline due to weakening demand from soy-food producers and less demand in major export markets, including China and India, a U.S. Department of Agriculture Foreign Agricultural Service report released Aug. 5 said. Demand for palm oil imports is expected to particularly decrease in China as the country increases soybean imports for crushing, the report said. Less demand for soybean imports in Indonesia will likely affect the U.S., which is the largest supplier of soybeans to that country. “U.S. soybean shipments to Indonesia have declined by 14 percent to 1.4 million tons from October 2019 to May 2020, compared to same period last year,” the report said. Canada, however, has steadily increased soybean shipments to Indonesia in recent years, “more than doubling to 155,000 tons in 2019/20. The recent spike in shipments to Indonesia occur as Canada’s soybean exports to China, previously its largest market, have declined sharply.”
The president and sales representative for a U.S. electronics company were arrested for illegal exports to Hong Kong and China, the Department of Justice said Aug. 6. President Chong Sik Yu and employee Yunseo Lee used America Techma Inc. (ATI) to allegedly ship electronics components to the region, violating the Export Control Reform Act. Both were also arrested on wire fraud and money laundering charges.
The United Kingdom and Japan made progress toward a free trade agreement during meetings last week and expect to finalize the deal’s details by the end of August. The two sides reached “consensus on major elements” of the deal, Elizabeth Truss, the U.K.’s trade secretary, said Aug. 7. Japanese Foreign Minister Toshimitsu Motegi said “a substantial agreement has been reached in most of the 24 chapters,” according to an unofficial translation of a transcript of an online press conference. Motegi said the negotiations have focused on e-commerce trade, rules of origin and other “market access issues,” adding that the two sides “agreed to aim for a general agreement by the end of August.” The two countries began negotiations June 9 (see 2006090025).
The Office of Foreign Assets Control on Aug. 7 sanctioned Bi Sidi Souleymane, leader of the Central African Republic militia group Return, Reclamation, Rehabilitation (3R). OFAC said Souleymane was involved in killings, torture and the displacement of thousands of people. The move came days after the United Nations Security Council sanctioned Souleymane (also spelled Souleman and Soulemane) (see 2008060019).
A U.S. technology company is being investigated by the Office of Foreign Assets Control for possible Iran sanctions violations, the company said in an Aug. 4 Securities and Exchange Commission filing. California-based Harmonic Inc. said OFAC is looking into transactions made with Iran by France-based Thomson Video Networks, which Harmonic acquired in 2016. The company said it may be subject to civil, criminal and monetary penalties, the loss of export privileges or “in extreme cases, imprisonment of responsible employees.”