The European Commission introduced draft legislation to narrow European Union-wide export controls and extend export exemptions to more territories, according to an April 14 notice. Under the new legislation, the restrictions, which currently apply to a range of personal protective equipment (see 2003200029), would only restrict sales of protective masks. The restrictions would also only last for 30 days beginning April 26, the notice said. The commission said the masks is the “only remaining category, where an export authorization is necessary” to maintain EU supply.
The Drug Enforcement Administration is designating norfentanyl as a fentanyl precursor chemical and setting controls for it as a schedule II substance under the Controlled Substances Act, the DEA said in a final rule. “The scheduling of norfentanyl as an immediate precursor of the schedule II controlled substance, fentanyl, subjects norfentanyl to all of the regulatory controls and administrative, civil, and criminal sanctions applicable to the manufacture, distribution, dispensing, importing, and exporting of a schedule II controlled substance,” DEA said. The final rule takes effect May 18.
The Treasury’s Office of Foreign Assets Control issued an April 16 guidance clarifying available humanitarian trade exemptions for U.S. sanctions regimes that target Iran, Venezuela, North Korea, Syria, Cuba and Ukraine/Russia. The guidance outlines the specific exemptions available for personal protective equipment and stresses that the U.S. will not target legitimate humanitarian trade to sanctioned countries. The guidance comes amid calls from current and former lawmakers and trade experts for more clarity surrounding OFAC humanitarian waivers (see 2004100044, 2004070028 and 2004010019), which has caused confusion among industry (see 2004140027).
The United Kingdom’s Department for International Trade updated its licensing data for its strategic export controls, according to an April 15 notice. The update provides new licensing data and statistics from 2017 through 2019.
Senate Armed Services Committee Chairman Jim Inhofe of Oklahoma and five other Senate Republicans urged the departments of Commerce, Defense, Energy and State Tuesday to “issue regulations as soon as possible confirming that U.S. participation in 5G standards-setting is not restricted by export control regulations” in order to ensure U.S. technology “continues to form the core of 5G foundational technology.” U.S. tech leaders “have been constrained from full participation in 5G standards-setting bodies” since Commerce's Bureau of Industry and Security’s addition of Chinese equipment maker Huawei to its entity list, the senators wrote Energy Secretary Dan Brouillette, Defense Secretary Mark Esper, Secretary of State Mike Pompeo and Commerce Secretary Wilbur Ross. “We are deeply concerned about the risks to the U.S. global leadership position” in 5G “as a result of this reduced participation, and the economic and national security implications of any diminished U.S. role in 5G.” When U.S. export controls “restrict U.S. companies from participating in standards-setting bodies,” Huawei “is well positioned to fill any gaps,” the senators said. The other GOP senators signing the letter were: John Cornyn of Texas, Tom Cotton of Arkansas, Mike Crapo of Idaho, Marco Rubio of Florida and Todd Young of Indiana.
Several U.S. agencies, including the State Department and Treasury Department, issued an April 15 guidance on cyber threats posed by North Korea, including sanctions in place to counter those threats. The guidance includes information on the types of North Korean actions that constitute “sanctionable conduct,” entities and people currently designated for cyber activity, how Treasury investigates possible cyber-related sanctionable conduct and more.
European Parliament members sent a letter earlier this month urging the European Commission to refrain from lifting sanctions against Russia, according to a member of the parliament. Although some officials have called for a global cessation of all sanctions during the pandemic (see 2003250010), 19 members said sanctions should only be lifted in cases in which they hinder humanitarian trade. “[N]ot all existing sanctions prevent sanctioned countries from obtaining medical equipment and essential goods,” the letter said. The members stressed that European Union sanctions on Russia include an arms embargo, an export ban for dual use goods and restrictions on access to sensitive technologies, but do not prohibit Russia from importing medical goods. The EU should do “everything in your power to maintain” Russian sanctions, the letter said.
U.S. restrictions on exports of personal protective equipment are not expected to have a significant impact on U.S. industry, particularly because most U.S. companies produce those goods overseas, trade observers said. Companies have been more heavily impacted by recently announced Chinese restrictions on medical exports, which have caused customs delays and a backlog of shipments, the U.S.-China Business Council said.
The United Kingdom’s Export Control Joint Unit updated its application form for firearms export licenses, according to an April 14 notice. The form was updated to allow licensing officers to “add certain details,” the U.K. said. The form is required for exporting firearms to European Union countries.
The Commerce Department Bureau of Industry and Security this week postponed several upcoming export compliance seminars due to the COVID-19 pandemic response and announced an online-only export control conference for May. The online conference, which will run May 19-22, will cover a range of export compliance topics, BIS said, including the scope of the Export Administration Regulations, classifying items for export, using license exceptions, the de minimis and direct product rules, export enforcement and more. The conference will be hosted by “BIS specialists” during a daily three-hour session from 9 a.m. to noon. The conference will also include a question-and-answer session. Note that the conference is on Pacific Daylight Time.