The Office of Foreign Assets Control created a resource page for information on Hong Kong-related sanctions. The page includes links to frequently asked questions, guidance on U.S. sanctions and restrictions on Hong Kong, applying for a Hong Kong-specific license and more. President Donald Trump recently issued an executive order ending preferential treatment for Hong Kong and detailing a range of sanctions authorities and export bans related to the region (see 2007150019).
The State Department updated its guidance for the Countering America’s Adversaries Through Sanctions Act to address sanctions related to Russian energy export pipelines (see 2007150021), especially Nord Stream 2 and the second line of TurkStream, a notice released July 22 said. The agency deleted portions of the guidance that limited the focus of the act’s sanctions authorities to Russian pipeline projects for which a contract was signed on or after Aug. 2, 2017, the notice said. The agency also clarified that the “focus of implementation” will include Russian pipeline projects, such as Nord Stream 2, a pipeline from Russia to Europe, and the second line of TurkStream, from Russia to Turkey.
It's not enough to just restrict sales of chips to Huawei, and convince allies not to use the Chinese company in their 5G networks, experts said at a Senate Banking Committee Economic Policy Subcommittee hearing on July 22. Rather, they testified, both 5G and export controls should be looked at more broadly. Martijn Rasser, senior fellow in the Center for a New American Security's Technology and National Security Program, said that 5G networks will be essential to all that the U.S. does in technology, so getting 5G right is urgent.
The Bureau of Industry and Security has begun a broad review of new export controls on surveillance technologies going to China, which may also include additions to the agency’s Entity List, Acting Commerce Undersecretary for Industry and Security Cordell Hull said. Hull called the review “comprehensive” and “in-depth,” saying it could lead to controls over advanced surveillance tools, artificial intelligence software and biometric technologies.
The State Department’s Directorate of Defense Trade Controls will amend the International Traffic in Arms Regulations to reflect recent changes made by the United Nations to its Central African Republic arms embargo (see 2007200005 and 1909170054), a notice released July 21 said. The change, effective July 22, allows for more exemptions for certain exports to the region. DDTC also specified that “no broker … may engage in” CAR-related brokering activities subject to the ITAR without agency approval. The notice also makes two technical edits to ITAR language.
A Lebanese national was sentenced to 42 months in prison for conspiring to illegally export U.S. drone parts and technology to Hezbollah, the Justice Department said July 20. Usama Darwich Hamade violated the international Emergency Economic Powers Act, the Export Administration Regulations, the Arms Export Controls Act and the International Traffic in Arms Regulations when he tried to illegally export a range of U.S.-origin items, including “inertial measurement units,” digital compasses, a jet engine, piston engines and recording binoculars. During an investigation, the Justice Department said the U.S. discovered Hezbollah was the “ultimate beneficiary” of the exports.
Three Republican lawmakers urged the White House to do more to sanction China-backed cyber attackers who steal U.S. intellectual property. In a July 20 letter, Reps. Michael McCaul, R-Texas; Greg Walden, R-Ore.; and Patrick McHenry, R-N.C., said Chinese hackers are more frequently targeting U.S. agencies to try to steal information and public health data related to COVID-19 vaccines and treatments.
The Office of Information and Regulatory Affairs began an interagency review for a proposed Bureau of Industry and Security rule to control “software” for the operation of “automated nucleic acid assemblers and synthesizers.” BIS will request comments on the proposed export controls. OIRA received the rule July 20.
Export Compliance Daily is providing readers with some of the top stories for July 13-17 in case you missed them.
United Kingdom Foreign Secretary Dominic Raab said the U.K. was not “strong-armed” by the U.S. into recent actions against Beijing and Hong Kong, saying the U.K. shares many of the same policy goals as the U.S. But Raab did say recent U.S. restrictions against Huawei and Chinese officials have factored into U.K. policymaking.