Twelve countries, including China, vowed to continue refraining from imposing export controls and other trade restrictions that would damage global supply chains during the COVID-19 pandemic. The July 2 joint statement, issued by China’s Commerce Ministry and signed by Singapore, the United Arab Emirates, Canada, New Zealand, Australia, Chile, Uruguay and others, said, “it is in our mutual interest to ensure that trade lines remain open, including via air and sea freight, to facilitate the flow of goods.” The countries said they recognize “the importance of refraining from the imposition of export controls or tariffs and non-tariff barriers,” and that existing restrictions on medical supplies should be removed.
The United Nations Security Council granted a sanctions exemption to allow an organization in Finland to deliver humanitarian goods to North Korea, a June 24 letter said. Finn Church Aid, a nongovernmental organization, is authorized to ship food supplies and learning materials to primary school children for the next six months. Finland may conduct “necessary business and financial transactions only for the purchase of goods and services exempted” by the UNSC.
The United Kingdom will impose its first human rights sanctions before the summer recess of its Parliament, U.K. Foreign Secretary Dominic Raab said July 1. Raab said he “will not speculate on or pre-empt who or what will be in those designations.”
The Office of Foreign Assets Control July 2 removed sanctions from eight companies and vessels that had been sanctioned for operating in Venezuela's oil sector. The agency also revoked a general license that authorized certain transactions with two of the shipping companies, Marshall Islands-based Delos Voyager Shipping and its Delos Voyager and the Greece-based Romina Maritime and its Euroforce (see 2006180044). OFAC also removed designations from the Delos Voyager and Euroforce, along with the Marshall Islands-flagged vessel Voyager I, Marshall Islands-based Sanibel Shiptrade Ltd. and Adamant Maritime Ltd., and the Bahamas-flagged vessel Seahero, which were sanctioned June 2 (see 2006020024).
Rich Ashooh, the Commerce Department’s assistant secretary for export administration, submitted his resignation and will officially leave the agency July 16, a Commerce spokesperson said. The spokesperson declined to comment on the reasons for Ashooh’s departure. Ashooh’s resignation was first reported by Reuters.
The Senate unanimously passed a bill July 2 that authorizes sanctions against Chinese officials and foreign banks associated with passing Hong Kong’s so-called national security law. The bill passed in the House July 1 without opposition and will now be sent to the White House to be signed by President Donald Trump. The Senate passed a similar bill last month (see 2006250043) but adopted the House version after technical changes were made.
Industry should expect the Bureau of Industry and Security to dedicate significant resources to enforcing its new export restrictions on shipments to military end-users and end-uses, export control experts said. Although the rule (see 2004270027), which took effect June 29, increased license restrictions for shipments to China, Russia and Venezuela, companies should expect increased enforcement and monitoring specifically for exports to China as the Trump administration hardens its stance on countering China’s civil-military fusion efforts, the experts said.
The State Department issued a correction to its May 20 notice that placed statutory debarments on 23 people for violations of the Arms Export Control Act. The correction was to “clarify Department policy,” the agency said. The effective date for the 23 statutory debarments remains May 20.
The European Council renewed sectoral sanctions against Russia for six months until Jan. 31, 2021, the council said June 29. The sanctions limit Russian banks’ access to the European Union market, block trade in defense and dual-use goods, and restrict the sale to Russia of sensitive technologies that can be used in its energy sector. The restrictions were originally introduced in 2014 in response to Russia’s actions to destabilize Ukraine.
The Office of Foreign Assets Control on July 1 issued a reminder to industry to file annual reports on blocked property by Sept. 30. Companies that are “holders of blocked property” must provide OFAC with a list of all blocked property held as of June 30. Property that was unblocked by an OFAC license or was previously blocked by a sanctions program that was terminated before June 30 does not need to be reported, OFAC said. The notice includes a link to the 2020 blocked property report spreadsheet and an updated guidance on filing blocked property reports.