Export Compliance Daily is providing readers with the top stories for Jan. 11-15 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The State Department updated its review policy for approving certain exports of precision-guided weapons to better ensure the items will not be used to harm civilians or abuse human rights. The change will affect license application reviews for direct commercial sales (DCS) of U.S. precision-guided munitions (PGM), the Directorate of Defense Trade Controls said this week, which will better align the review policy for DCS with the agency’s Foreign Military Sales (FMS) program.
The State Department should clarify to the Commerce Department that Electronic Export Information filings are not required for exports of certain licensed technical data controlled under the International Traffic in Arms Regulations, the American Association of Exporters and Importers said in a Jan. 8 letter. Even though the export of that data is authorized by an ITAR exemption and exempt from Automated Export System filings, the AAEI said “regulatory modifications made to support Single Window automation inadvertently” created uncertainty about whether AES filings are required. The uncertainty stemmed from the removal of language in the ITAR that “previously indicated no AES filing was required for such exports,” AAEI said. “This inconsistency causes confusion within industry, potentially impacts trade statistics, and may cost companies in business processing time,” the group said. AAEI urged the Directorate of Defense Trade Controls to clarify the filing requirement “either through issuance of an amendment” or “informally through coordination with” the Census Bureau. DDTC didn’t comment.
The United Kingdom’s Office of Financial Sanctions Implementation amended entries under eight sanctions regimes, the U.K. said in Jan. 19 notices. OFSI amended entries under its regimes for Belarus, Burma, Chemical Weapons, North Korea, Democratic Republic of the Congo, Libya, Russia and Syria. The amendments update identifying information for the entries, which are still subject to asset freezes.
China announced sanctions on 28 Trump administration officials and advisers who have “seriously violated China's sovereignty,” according to a Jan. 20 statement by China's Foreign Ministry. The sanctions target former Secretary of State Mike Pompeo, former national security adviser Robert O’Brien, former White House adviser Peter Navarro and others. The sanctions include a ban on traveling to mainland China, Hong Kong and Macau and will prohibit the former officials from “doing business with China.”
No short-term action should be expected on sanctions, export controls or foreign investment scrutiny, as President Joe Biden takes over U.S. trade policy following President Donald Trump's thorough shake-up of traditional policy, lawyers said on a Thompson Hine webinar Jan. 19. The Trump administration made significant policy changes in all three of these areas, and it appears Biden will shy away from any immediate course reversal due to a stated desire to focus initially on domestic concerns and to use Trump measures as a leverage point in future negotiations, lawyer David Schwartz of Thompson Hine said. The only difference the lawyers predict for the Biden administration will be in the general approach to these issues, with a special emphasis on a more measured tone, they said. For instance, while the sanctions themselves may stay in place, Biden will shift from dubbing the White House's approach to Iran as a “maximum pressure” campaign to one that applies “compliance pressure,” Schwartz said. He also predicts a more measured use of the Specially Designated Nationals and Blocked Persons List to promote multilateral cooperation.
The Bureau of Industry and Security on Jan. 19 updated its guidance for exports to military-end users and for end-uses in China, Russia and Venezuela (see 2006290045). BIS said it amended one frequently asked question concerning exports to national police. The agency recently amended the Export Administration Regulations to add a military end-user list, which consists of entities subject to export licensing requirements (see 2012220027).
The U.S. will no longer impose a presumption of denial policy for export license applications for Sudan but will still limit which export license exceptions can be used for those exports, the Bureau of Industry and Security said in a Jan. 19 guidance. The guidance, issued less than a week after BIS amended Sudan’s status to loosen certain restrictions in the Export Administration Regulations (see 2101140018), also covered how BIS will control exports of aircraft, encrypted telecommunication items and anti-terrorism controlled items.
An Indonesian paper product manufacturer agreed to a fine of more than $1.5 million in order to settle charges related to bank fraud involving trade with North Korea, the Justice Department said Jan. 17. The company, PT Bukit Muria Jaya (BMJ), also entered into a settlement agreement with the Treasury Department and was fined more than $1 million by the Office of Foreign Assets Control for violating U.S. sanctions (see 2101140045). The Justice Department said BMJ admitted to the violations and agreed to implement an improved compliance program, as part of a deferred prosecution agreement. OFAC said it planned to credit the penalty money owed by BMJ once the company completes payment of its fine to the Justice Department.
China’s Foreign Ministry imposed retaliatory sanctions against U.S. officials, lawmakers and entities for the State Department’s decision this month to designate Chinese and Hong Kong officials (see 2101150038). China sanctioned U.S. executive branch officials, members of Congress and nongovernmental organizations that “behaved egregiously” on Hong Kong-related issues, a ministry spokesperson said Jan. 18 during a regular agency press conference, according to a transcript it provided. She did not provide names. China urged the U.S. to “stop meddling with Hong Kong affairs.” The move follows Chinese announcements last year of similar retaliatory sanctions against U.S. officials (see 2012100022). The White House didn’t comment.