The Treasury Department’s Office of Foreign Assets Control on June 5 issued a series of frequently asked questions to clarify a January executive order that expanded U.S. sanctions authority against Iran (see 2001100050). The FAQs clarified that the U.S. will not target Iranian medical manufacturers, defined the sectors of Iran’s economy referenced in the order and specified which goods and services may be targeted. Before this guidance, the agency had done little to define the broad scope of the order, which was causing confusion about the reach of the authorities and the Iranian sectors that would be subject to expanded sanctions (see 2001170034).
The government of Canada issued the following trade-related notices as of June 5 (note that some may also be given separate headlines):
China released a list of approved pre-shipment inspection agencies for imported solid waste used as raw materials, according to an unofficial translation of a June 3 notice. China is ramping up efforts to decrease solid waste imports (see 2006030010).
China issued customs measures and a “trial entry and exit management system for goods” at the “Yangpu Bonded Port Area,” part of the Hainan free trade port (see 2006030007), according to an unofficial translation of a June 3 notice. Along with the trial management system, the measures contain a list of restricted goods and products that require inspections and quarantine.
An aircraft holding company is suing the Treasury Department after the agency blocked a transaction involving the company and an alleged Specially Designated Global Terrorist, according to court records filed June 2. In the lawsuit, Seychelles-registered Askan Holdings, owned by Romania-based Transylvania International Airlines SRL, argued that no sanctioned party was involved in the transaction and said the Treasury’s Office of Foreign Assets Control failed to identify the blocked party or grant Askan a license. Askan is asking a court to order OFAC to grant the license or to stop blocking the transaction.
The top Republican on the House Ways and Means Committee said most in Congress believe “Trump is right to hold China accountable for fundamental rights in Hong Kong,” but declined to say what should be done if that action leads to a breakdown in the phase one trade deal with China. China has already stopped some purchases of soybeans, but has not officially declared it will cease purchases of U.S.-grown commodities.
The U.S. added seven entities to the Cuba Restricted List for supporting the “Castro dictatorship,” the State Department said June 3. The military-owned entities include three hotels, two scuba diving centers, one financial institution and one marine park for tourists. The designated entities are: Hotel Marqués de Cardenas de Montehermoso, Hotel Regis, Hotel Playa Paraiso, FINCIMEX, the Varadero Diving Center, the Gaviota Las Molas International Diving Center and the Cayo Naranjo Dolphinarium. The additions will take effect June 12.
President Donald Trump’s June 2 executive order to support international religious freedom authorizes the Treasury Department to impose sanctions on countries violating those freedoms. The order directs the Treasury secretary to recommend “the use of economic tools to advance” religious freedom in “countries of particular concern.” Those tools include the use of sanctions under the Global Magnitsky Human Rights Accountability Act, the order said.
The Treasury Department’s Office of Foreign Assets Control announced regulations to implement an October executive order authorizing certain Syria-related sanctions, OFAC said in a June 4 notice. The notice includes detailed descriptions of the regulations, including transactions that are blocked, definitions, licensing procedures and penalties for violations. OFAC said it plans to release a “more comprehensive” set of regulations, including potential guidance documents and general licenses. The regulations take effect June 5.
Reports that China would be slowing or stopping its purchases of soybeans because of U.S. action over Hong Kong (see 2006010044) are inaccurate, U.S. Trade Representative Robert Lighthizer said. Lighthizer, who was speaking to the Economic Club of New York, Washington and Chicago by video on June 4, said China made $185 million worth of U.S. soybean purchases since that story was published. He said that coverage of the trade agreement frequently focuses on the purchase promises and neglects the structural reforms that were pledged, but that both tracks have been going well in the three months since the deal went into effect. “You’ll know what the score is before too long,” he said.