The State Department announced penalties on foreign entities for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act. The entities transferred items subject to multilateral control lists that contribute to weapons proliferation or missile production, the agency said in a notice released Nov. 24. The entities are: China-based Chengdu Best New Materials Co. Ltd. and Zibo Elim Trade Co.; and Russia-based Aviazapchast, Joint Stock Company Elecon and the Nilco Group. The companies and their subsidiaries are barred from purchasing items controlled on the U.S. Munitions List and by the Arms Export Control Act. The State Department will also suspend any current export licenses used by the companies and bar them from receiving new export licenses for any goods subject to the Export Administration Regulations. Government agencies are barred from entering into procurement contracts with them. The measures took effect Nov. 6.
The U.S. extended by one year the national emergency authorizing sanctions against Nicaragua, the White House said Nov. 24. President Daniel Ortega’s regime continues to undermine democratic institutions and abuse human rights in the country, the notice said. The emergency would have ended Nov. 27.
Export Compliance Daily is providing readers with the top stories for Nov. 16-20 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The U.S. and its allies should come to an international agreement on reviewing incoming and outgoing Chinese investment to make sure those deals are not enabling human rights abuses or funding Chinese military and technological advances, said H.R. McMaster, President Donald Trump’s former national security adviser. The Joe Biden administration will have a chance to secure such an agreement if it pursues more multilateral cooperation with allies, McMaster said.
The Office of Information and Regulatory Affairs on Nov. 20 completed a review for a final Bureau of Industry and Security rule that will revise country groups for Ukraine, Mexico and Cyprus under the Export Administration Regulations. OIRA received the rule June 25.
Antony Blinken, President-elect Joe Biden's choice for secretary of state, has said that the Section 301 tariffs on China and Section 232 tariffs on Europe “harm our own people,” according to coverage of a U.S. Chamber of Commerce talk he gave in September. “We would use tariffs when they’re needed, but backed by a strategy and a plan,” he added. Blinken, who served as deputy secretary of state under President Barack Obama, said, “The EU is the largest market in the world. We need to improve our economic relations, and we need to bring to an end an artificial trade war that the Trump administration has started,” Reuters reported from the Chamber talk.
Russia announced sanctions on 25 United Kingdom officials in retaliation for U.K. sanctions against Russia earlier this year (see 2007060025). “We once again call on the British leadership to abandon an unfounded confrontational line with regard to our country,” Russia’s Ministry of Foreign Affairs said Nov. 21, according to an unofficial translation. “Any unfriendly steps will not be left without an inevitable proportionate response.”
France, Germany and the United Kingdom said they remain committed to the Iran nuclear deal but said they are concerned by Iran’s “numerous, serious violations” of its nuclear commitments. In a Nov. 18 statement, the three countries said they are “extremely concerned by Iran’s actions, which are hollowing out the core nonproliferation benefits of the deal.” But they said they still plan to honor the deal and have taken “additional efforts to allow Iran to pursue legitimate trade,” including through the use of INSTEX (see 2002280029).
The European Council on Nov. 13 published the proposed regulations for its new export control regime covering dual-use technologies (see 2011100021). The regulations include procedures for information sharing between member states on export controls, licensing procedures, general definitions, enforcement methods and more.
The European Union is preparing another round of Belarus sanctions and considering more severe trade restrictions in response to the country’s unfair elections earlier this year, said Josep Borrell, the EU’s foreign policy chief. Borrell said “many” member states have asked for more sanctions, adding that the EU may designate companies in addition to government officials (see 2010050010).