Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Ocean Shipping Reform Act, which has both passed the House and was included in the House version of a China package, is scheduled for a hearing in the Senate Commerce Committee next month. The hearing will be March 3.
House Republicans on the Ways and Means Committee told U.S. Trade Representative Katherine Tai that she needs to provide "a detailed analysis" of how China did or did not live up to the phase one trade deal. "We have great confidence in your abilities to address the many challenges China presents to the United States and other market economies, and we hope you will expand detailed communication on these matters so that Congress and the Administration can be partners in developing effective U.S. responses," they wrote Feb. 24.
Two new export control rules from the Bureau of Industry and Security on emerging and foundational technologies are weeks away, said Matt Borman, BIS deputy assistant secretary-export administration, during the Feb. 23 meeting of the agency’s Emerging Technology Technical Advisory Committee.
Several companies this month disclosed their filings with the Committee on Foreign Investment in the U.S. or updated the status of their ongoing CFIUS reviews. The American telecommunications company Vonage is awaiting a CFIUS decision before completing its transaction with Swedish telecom company Ericsson, Vonage said in a Securities and Exchange Commission filing. Vonage said it doesn’t expect CFIUS to object to the deal, which should be finalized in the first half of this year.
Sen. Todd Young, R-Ind., co-sponsor of the Endless Frontiers Act that was rolled up into a larger China competition package, said during a Bipartisan Policy Center program broadcast Feb. 18, "I think we’re poised to … have a genuine sit-down conference." There has been talk in the Capitol that there would be a negotiating process led by the leaders of the Republican and Democratic caucuses in the House and Senate, and that while committee chairs would have a say on the sections of the bills under their jurisdiction, there would not be a formal conference committee, whose discussions would be open to the public (see 2202020055). "That is the most methodical, I think, responsible process, and collaborative process," he added.
South Korea-based KT Corp. agreed to pay $6.3 million after it violated the Foreign Corrupt Practices Act, the Securities and Exchange Commission said Feb. 17. The telecommunications company, “engaged in multiple schemes” to make “improper payments” to government officials in South Korea and Vietnam, the SEC said, and didn’t have adequate internal accounting controls over charitable donations, third-party payments, executive bonuses and gift card purchases.
Ukrainian businessman Max Polyakov said he will sell his stake in Texas-based Firefly Aerospace to satisfy the Committee on Foreign Investment in the U.S.’a national security concerns. CFIUS had asked Polyakov to divest his share over concerns that he could transfer valuable U.S. technology from Firefly to Ukraine or Russia (see 2201030057). Polyakov will sell his stake for $1, he said in a Feb. 16 Facebook post. “Dear CFIUS, Air Force and 23 agencies of USA who betrayed me and judge me in all your actions for past 15 months,” he said. “I hope now you are happy. History will judge all of you guys.” Firefly didn’t respond to a request for comment. A spokesperson for the Treasury Department, which chairs CFIUS, declined to comment.
If Russia doesn’t invade Ukraine, the U.S. and allies should still move forward with some sanctions to impose consequences on the Kremlin, experts and former government officials said. Those may include more sanctions against Russian oligarchs, they said, and possibly Nord Stream 2.
More than 30 Senate Republicans introduced a bill Feb. 15 that would impose new sanctions against Russia and expedite certain U.S. arms sales as President Vladimir Putin threatens to invade Ukraine. The bill, titled the Never Yielding Europe’s Territory Act, would mandate post-invasion sanctions against the Russian-backed Nord Stream 2 pipeline and various Russian government officials, military leaders, oligarchs and banks. The bill would also impose sanctions on members of Putin’s inner circle regardless of whether an invasion occurs.