A Philadelphia man pleaded guilty to conspiracy to violate the Arms Export Control Act for attempting to smuggle more than $200,000 worth of firearms out of the U.S., the Department of Justice announced in an April 20 news release. Samet Doyduk agreed to ship firearms parts from the U.S. to Turkey and Georgia in violation of EPA, which prohibits the export of defense articles without first obtaining a license from the State Department. The firearms parts Doyduk attempted to ship include upper receivers, barrels and magazines for different types of Glock handguns in calibers of 9 mm, .40 caliber and .357 caliber.
The U.S. and Congress should impose more sanctions on the Russian financial sector if the government doesn’t release political opposition leader Alexei Navalny from prison, Sen. Bob Menendez, D-N.J., said. Speaking during an April 21 Senate Foreign Relations Committee meeting, Menendez, the committee chairman, said Russia should immediately provide Navalny with medical care after reports of his deteriorating health surfaced this week. If Russia doesn't act, he said, the U.S. should add to Russian sanctions and export controls announced by the Commerce and State departments last month (see 2103170022 and 2103020067). “We must be perfectly clear that if he is not afforded this care, we are prepared to impose sanctions not only on individuals, but on the Russian banking and financial sector,” Menendez said.
The Office of Foreign Assets Control on April 21 sanctioned two Myanmar state-owned entities that are “key economic resources” for the Myanmar military. The designations target Myanmar Timber Enterprise (MTE) and Myanmar Pearl Enterprise (MPE), which are responsible for timber and pearl exports from Myanmar, OFAC said. OFAC also deleted 15 Panama-related entries on its Specially Designated Nationals List. The agency didn’t provide more information on the deletions.
While the U.S. needs a comprehensive technology strategy, it first should create new bureaucratic processes to implement that strategy or else risk uncoordinated policies with little impact, the Center for a New American Security said in an April 20 report. The report, which builds off previous research (see 2103160047) by the think tank that called for a better technology strategy to counter China, argues that current U.S. agencies and government bodies are unequipped to maximize the effectiveness of export controls and other trade policy tools.
The Senate Foreign Relations Committee passed its comprehensive China bill with several amendments, sending a bill to the Senate floor that could update China-related sanctions, export controls and foreign investment reviews. Senators said they expect the Strategic Competition Act of 2021 -- which would authorize a host of measures to address trade and technology competition issues with China and expand the jurisdiction of the Committee on Foreign Investment in the U.S. (see 2104080066) -- to garner broad bipartisan support before the full Senate.
The European Council announced the alignment of a group of European countries with the European Union's restrictive measures against Myanmar officials and entities for their role in the nation's Feb. 1 coup. In an April 19 news release, the council said North Macedonia, Montenegro, Serbia, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway, Ukraine and Moldova will now subject the listed groups to an asset freeze and travel ban.
Export Compliance Daily is providing readers with the top stories for April 12-16 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Three top Senate Democrats urged President Joe Biden to reverse a Trump-era rule that transferred export controls of firearms, ammunition and other defense items from the State Department to the Commerce Department, saying the transfer creates less oversight over dangerous weapons exports. The January 2020 rule (see 2001170030) put in place “less-restrictive controls” over a range of lethal weapons, Sens. Bob Menendez of New Jersey, Dianne Feinstein of California and Patrick Leahy of Vermont said in an April 19 letter. They also said the transfer eliminated Congress’ ability to “be aware of and legally disapprove” of sales above $1 million.
Despite more scrutiny from the U.S., Chinese foreign direct investment in North America grew by almost half in 2020 compared to 2019, according to an April 19 Baker McKenzie report. But trade and investment experts cautioned industry about placing too much stock in those numbers, saying two-way U.S.-China investment remains “very low” and Chinese firms are still wary about gaining approval from the Committee on Foreign Investment in the U.S.
Four Republicans senators reintroduced a bill last week that would require that the executive branch impose sanctions on foreigners responsible for taking U.S. hostages, even if those responsible are government officials. It also creates a mechanism for Congress to require that an administration open a review if a government official was responsible for a hostage taking, and therefore, must be covered by the sanctions. The bill was sponsored by Sen. Tom Cotton, R-Ark., Sen. Ted Cruz, R-Texas, Sen. Todd Young, R-Ind. and Sen. Rick Scott, R-Fla., and introduced April 16. Hawley and Cotton sponsored another bill, called the Global Hostages Act, in 2019 that did not move in committee. Although it is called the Global Hostage Act, it would also apply to politically motivated harassment, abuse, extortion or arrests of American citizens and permanent residents, not just imprisonment or detainment.