The U.S. government decision to increase license requirements for certain foreign exports to Huawei may damage U.S. companies more than Huawei and China, experts said. The same may be true for sanctions being prepared against China for interference with Hong Kong’s autonomy (see 2005220011), the experts said, which may present a large challenge for U.S. businesses. “If the administration follows through on the kinds of threats that they’re talking about … it will have a hugely negative impact on U.S. companies operating there, it will have a hugely negative impact on the people of Hong Kong, and it will have a minuscule effect on China,” said Nicholas Lardy, a Chinese economy expert at the Peterson Institute for International Economics.

Nigeria issued a clarification related to its recently announced value-added tax exemption for food items, according to a May 22 KPMG post. For VAT purposes, Nigeria's definition of “basic food items” does not include items sold at restaurants, hotels, “eateries, lounges and other similar premises,” KPMG said. In addition, basic food items sold by “contractors, caterers and other similar vendors” do not qualify for the exemption.

Singapore Customs scheduled system maintenance for its ASEAN Single Window gateway for May 27, 10 a.m. to 8 p.m. local time, Singapore said May 22. During this time, certain features of the gateway may be unavailable, such as the electronic transmission of “Form Ds to the importing ASEAN Member State,” Singapore said.

Japan’s Ministry of Economy, Trade and Industry released its annual “unfair trade report,” which details foreign countries’ trade policies that are inconsistent with World Trade Organization rules, according to an unofficial translation of a May 25 notice. The report includes unfair trade policies conducted by a range of Asian countries -- including China, Vietnam, Indonesia and India -- as well as the European Union.

China will allow imports of Indonesian dragon fruit, the country’s General Administration of Customs said in a May 23 notice. The notice includes quarantine and phytosanitary requirements for imports.

China criticized the U.S.’s decision to add more Chinese companies to its Entity List (see 2005220058), adding that it will take measures to “protect the legitimate rights and interests of the Chinese enterprises.” A Chinese Foreign Ministry spokesperson said the U.S. has “overstretched the concept of national security” and abused its export controls. “We urge the U.S. to correct its mistake, rescind the relevant decision, and stop interfering in China's internal affairs,” the spokesperson said during a May 25 press conference.

The United Nation Security Council designated Amir Muhammad Sa’id Abdal-Rahman al-Mawla, the new leader of the Islamic State of Iraq and Syria, according to a May 21 notice. The United Kingdom’s Office of Financial Sanctions Implementation updated its sanctions list to reflect the change. The ISIS leader was sanctioned by the U.S. in March (see 2003180022).

The State Department certified that Nicaragua is not taking steps to combat corruption, protect civil rights and hold fair elections, which could lead to additional U.S. sanctions, according to a notice. Under the Nicaragua Human Rights and Anticorruption Act of 2018, the U.S. may impose or sustain asset-freezing measures and other penalties after Secretary of State Mike Pompeo certifies that Nicaragua is not taking “effective steps” to stop corruption and other activities.

The Treasury’s Office of Foreign Assets Control sanctioned two senior Nicaraguan government officials for human rights violations and corruption, Treasury said in a May 22 press release. The sanctions target Julio Cesar Aviles Castillo, the commander-in-chief of the Nicaraguan Army, and Ivan Adolfo Acosta Montalvan, the Minister of Finance and Public Credit.

Export Compliance Daily is providing readers with some of the top stories for May 18-22 in case you missed them.