China’s Foreign Ministry criticized President Donald Trump’s signing of the Uyghur Human Rights Policy Act of 2020 (see 2006170064), saying it “grossly” interferes in Chinese affairs, according to a June 18 report from Xinhua, China’s state-run news agency. China said it will take countermeasures. “China will respond resolutely, and the United States must bear all the consequences arising therefrom,” the ministry said.
The State Department approved a potential military sale to Ukraine worth about $600 million, the Defense Security Cooperation Agency said June 17. The sale includes 16 “Mark VI Patrol Boats” and related equipment. The prime contractor is SAFE Boats International in Washington state.
Senate Majority Leader Mitch McConnell, R-Ky., urged the Trump administration to sanction China for its infringement on Hong Kong’s autonomy, saying Beijing must face penalties. “I encourage the administration to use the tools Congress has given it and to work with like-minded nations to impose those costs,” McConnell said on the Senate floor June 18. The administration certified last month that Hong Kong no longer warrants special customs treatment and Trump vowed to impose sanctions and export controls against the region (see 2005290047), but the administration has yet to announce concrete measures (see 2006040038). “Every nation that cares about democracy and stability has a stake in ensuring that Beijing’s actions in Hong Kong carry consequences,” McConnell said.
The United Kingdom released a June 16 guidance on the country’s Russia sanctions after Brexit, including the restrictions that will impact financial and investment actions with Russia. The guidance also includes a list of exceptions for doing business with Russian entities and frequently asked questions.
The State Department corrected its recent update to the Cuba Restricted List to also include FINCIMEX, which it omitted from the original notice. The U.S. updated the list last week to add seven entities for supporting the Castro regime (see 2006040014 and 2006110019).
The European Council renewed sanctions against Russia for its annexation of Crimea and Sevastopol, it said in a June 18 press release. The sanctions, extended until June 23, 2021, ban imports from Crimea into the European Union; block exports of certain goods and technologies to Crimean companies; and place restrictions on Crimea’s transport, telecommunications and energy sectors.
The Office of Foreign Assets Control sanctioned three people, eight entities and two ships for evading U.S. sanctions against Venezuela, according to a June 18 press release. OFAC also issued a general license authorizing certain wind-down activities with two of the sanctioned entities and the two sanctioned ships.
The Bureau of Industry and Security's increased restrictions on shipments to military end-users (see 2004270027) presents “significant questions” for industry, which may struggle to comply with the new due diligence expectations, said Ajay Kuntamukkala, an export controls lawyer with Hogan Lovells and a former BIS official. Kuntamukkala said the rule will “significantly impact business transactions” with Chinese entities.
A KPMG June tax report on shipping and offshore activities details country developments on easing and restricting tax measures for the shipping industry. The report covers revisions of tonnage taxes in Croatia, Cyprus and Greece; reduced value-added tax rates in Germany; a recently issued tax regime for ship leasing in Hong Kong; and other information.
The World Customs Organization issued the following releases on commercial trade and related matters: