President Donald Trump issued an executive order May 19 to provide “regulatory relief” for companies during the COVID-19 pandemic, stressing that agencies should be fair when issuing enforcement decisions. Government agencies should modify, waive or provide exemptions for any regulations “that may inhibit economic recovery,” the order states, adding that agencies should abide by “principles of fairness.” The order emphasizes that agencies “bear the burden” of proving alleged violations of regulations and says enforcement actions should be “prompt and fair.” Penalties for violations should be “proportionate” and transparent, the order says, and liability for violations should be imposed “only for violations of statutes or duly issued regulations” with an opportunity for the penalized party to respond. “Agencies must be accountable for their administrative enforcement decisions,” the order says. The order says it does not apply to national security or homeland security functions of the U.S., except for “procurement actions and actions involving the import or export of non-defense articles and services.”
The Senate Commerce Committee recommended a bill that would establish a volunteer National Shipper Advisory Committee that would give advice to the Federal Maritime Commission about the reliability, competitiveness, integrity and fairness of international ocean freight. The commission would invite 12 importers and 12 exporters to participate. S.B. 2894, introduced by Sen. Roger Wicker, R-Miss., passed out of committee on a voice vote on May 20.
The United Kingdom’s Office of Financial Sanctions Implementation submitted its quarterly report to Parliament on its asset-freezing regime, OFSI said May 19. The report provides details of U.K. sanctions actions from October through December, including data on total funds frozen, new designations, delistings, renewals, licensing and more.
The Treasury’s Office of Foreign Assets Control sanctioned Iranian officials and a group controlled by the country’s law enforcement authority for human rights abuses, Treasury said May 20. The designations target Abdolreza Rahmani Fazli, Iran’s interior minister, seven senior officials of Iran’s Law Enforcement Forces and a commander in Iran’s Islamic Revolutionary Guard Corps. The sanctions also target the LEF Cooperative Foundation -- an “economic collaborative” controlled by the LEF -- along with its director and board of trustees.
The Treasury Department issued a proposed rule to modify mandatory declaration requirements for certain transactions involving critical technologies. Under the rule, transactions would require a declaration if the critical technology would normally be subject to a U.S. export license. This would be a change from certain declaration requirements for the Committee on Foreign Investment in the U.S. outlined under a 2018 pilot program, which based those decisions on whether the transactions met criteria established by the North American Industry Classification System.
Three senators are concerned the U.S.’s deal with the Taiwan Semiconductor Manufacturing Company (see 2005150033) may disadvantage U.S. chip companies through unfair subsidies and could allow China access to sensitive technologies. In a May 19 letter to the Commerce and Defense departments, Senate Minority Leader Chuck Schumer, D-N.Y., and Sens. Patrick Leahy, D-Vt., and Jack Reed, D-R.I., urged the administration to stop all negotiations with TSMC regarding plans to build a U.S.-based chip factory. The senators said they have “serious questions” about how the deal, announced last week, aligns with the U.S’s strategy of diversifying its semiconductor supply chain away from China.
The government of Canada issued the following trade-related notices as of May 20 (note that some may also be given separate headlines):
The top executive for customs policy at UPS said the consequence of the COVID-19 pandemic will be that companies “reassess everything” about supply chains. Norm Schenk, executive vice president for customs policy, was on a panel that included the director of corporate customs for a major logistics provider, the head of customs for a major automaker, and the executive director of the Georgia Ports Authority. The panelists, hosted by the U.S. Chamber of Commerce on May 19, agreed that even after the crisis is over, trading will not return to how it was.
KPMG posted a series of questions and answers regarding Saudi Arabia’s recent spike in value-added taxes (see 2005110024). In a May 18 post, KPMG said it expects the Saudi government to issue industry guidance on the change before it takes effect July 1. The firm also provided guidance on how the rate may apply to goods and services received before the effective date but invoiced after, how the changes will impact contracts, a potential grace period and more.
The 16 member countries of the Southern African Development Community announced they will soon introduce an electronic certificate of origin system, according to a May 19 report from the Hong Kong Trade Development Council. The system will first feature a test rollout this month in six member states: Botswana, Eswatini, Malawi, Namibia, Tanzania and Zambia. After the test, the system will be in use across all member nations, which includes nearly all African countries south of the equator, the HKTDC said. The system is expected to save exporters time and money by no longer requiring hard copy submissions.