More than 40 Republican lawmakers urged President Joe Biden to refrain from providing sanctions relief to Iran, saying that nation is supporting “terrorist activity” against Israel. The senators -- including Jim Risch of Idaho, the top Republican on the Senate Foreign Relations Committee -- said Iran is supporting “Palestinian terrorists” in Gaza and has encouraged the group to attack Israel amid the ongoing conflict between the two sides.
The Office of Foreign Assets Control amended its Narcotics Trafficking Sanctions Regulations and the Foreign Narcotics Kingpin Sanctions Regulations to add and revise general licenses, prohibitions, definitions and technical changes, the agency said in a notice released May 14. The final rule, effective May 17, will revise several general licenses related to payments for “legal services,” certain transactions for “maintenance of blocked tangible property” and emergency medical services, which will be subject to new recordkeeping requirements. The agency also revised definitions for “foreign person” and “specially designated narcotics trafficker,” updated certain “regulatory provisions” in the sanctions language, and made other conforming changes.
The U.S. issued guidance last week to address industry uncertainty and a rising number of questions about export licensing jurisdiction for goods sent under its Foreign Military Sales Program. The guidance -- which includes frequently asked questions developed by Homeland Security, CBP and the Commerce, State and Defense departments -- was issued because the agencies “continue to receive questions” about exports that were moved from the U.S. Munitions List to the Commerce Control List but are exported under FMS authority. They said exporters are “having difficulty” understanding how Commerce’s Export Administration Regulations, the State Department’s International Traffic in Arms Regulations and the FMS Program “relate to each other” for goods that have recently transitioned from the ITAR to the EAR.
Alvarez & Marsal Taxand hired Michael McGee to lead the consultancy's new Global Trade and Customs practice, it said in a May 12 news release. McGee was previously the global director of International Trade Regulations at BP America. “The political landscape and the pandemic have led to more regulations, increasingly complex tax regimes and the need to redraw supply chains. As a result, there is greater demand for expert tax advisory services, including for global trade and tariffs and duties,” said Ernesto Perez, managing director of the Houston firm. “In line with A&M’s leadership, action, results approach, A&M Taxand is responding to the shifting business environment by expanding and strengthening specialized tax services to maximize value for clients.” A&M said McGee has “expert knowledge of U.S. Customs Law, Department of Commerce Export Administration Regulations, Department of Treasury Office of Foreign Asset Control, and Department of Commerce Antiboycott Regulations.”
European individuals and entities should not be allowed to cancel contracts with entities in Iran, or other countries sanctioned by third parties, solely on the basis of seeking to avoid third party sanctions on that nation, a legal adviser to the Court of Justice of the European Union said in a May 12 opinion. Advocate General Gerard Hogan said in the non-binding opinion that a German company's decision to cut ties with an Iranian bank could be met by a European blocking statute that was passed to counter U.S. sanctions and to ensure that the bloc does not recognize any court ruling that enforces American penalties.
U.S. Trade Representative Katherine Tai, in her second day of testimony on Capitol Hill, heard again and again from members of Congress who are hearing from companies in their districts that they want Section 301 tariff exclusions back. She heard repeatedly that the 9% countervailing duties on Canadian lumber are making a bad situation worse. And she heard that the Miscellaneous Tariff Bill and Generalized System of Preferences benefits program should be renewed. On each topic, both Democrats and Republicans shared concerns, though on GSP, Republicans only spoke of the cost to importers, while Democrats worried about the effects of GSP on the eligible countries. Tai testified for more than four hours in front of the House Ways and Means Committee on May 13.
The United Kingdom's Office of Financial Sanctions Implementation added two individuals and one entity to its Libya sanctions regime and amended one entry, in a May 13 financial sanctions notice. Mohamed Al-Kani and Abdurahem Al Kani were added to the list for their serious human rights abuses in Libya, along with the al-Kaniyat militia on the grounds that the group has committed shocking violations of international humanitarian law. In addition, OFSI updated the individual listing of Aisha Muammar Muhammed Abu Minyar Qadhafi, updating her Libyan passport number.
The Office of Foreign Assets Control removed designations from three people and one entity earlier this week (see 2105110030) after the agency determined that “circumstances no longer warrant” their inclusion on sanctions lists, a May 13 notice said. The agency removed sanctions from Syrian military official and Brig. Gen. Jami Jami, Netherlands-based entity Staroil B.V. and two other people: Alexander Hollebrand and Paul Van Mazijk. The people and entities were previously listed under OFAC’s Syria sanctions regime.
The State Department’s recent $13 million penalty against Honeywell International highlighted the importance of company employees closely following internal compliance procedures and treading carefully when dealing with China, law firms said. It also showed that the State Department is committed to targeting weaker compliance programs but will impose lenient penalties if violations are self-disclosed, the firms said. Honeywell signed a settlement agreement with the agency earlier this month after it illegally sent drawings of export-controlled parts for military-related items to potential customers in several countries, including China (see 2105040018).
The Senate likely will vote on the Endless Frontier Act next week and should pass the bill before the end of the moth, Majority Leader Chuck Schumer, D-N.Y., said May 13. The bill, which would provide more federal funding and incentives for semiconductor research, has “strong” bipartisan support, Schumer said, and will help maintain U.S. technological leadership over trade competitors, including China. “The Endless Frontier Act would right the ship by making one of the largest investments in American innovation in generations,” Schumer told the Senate.