The European Commission released a Feb. 4 statement on U.S. sanctions and measures against the Nord Stream 2 pipeline (see 1912230054), saying the European Union does not recognize the “extraterritorial application of U.S. sanctions.” The European Union “regularly” discusses sanctions issues with the U.S. government and Congress, Commission Vice President Josep Borrell said, but U.S. extraterritorial sanctions are “contrary to international law.” Borrell added that “EU policies and practices should not be determined by the threat or imposition of third country sanctions” and “the EU opposes the imposition of sanctions against EU companies conducting legitimate business in accordance with EU law.” Borrell said the EC’s position on the Nord Stream 2 pipeline is “well known,” and any companies that build the pipeline “should know that they will need to be operated in line with EU law.”
Trump administration officials will meet this month in an attempt to resolve differences in the matter of restricting technology exports to China and Huawei, according to a Feb. 4 Reuters report. But Commerce is also discussing expanding its export control jurisdiction to a broader array of foreign sales containing U.S. goods that go beyond exports to just Huawei, according to a person familiar with the situation. “That is the one that would be a nuclear bomb for business,” the person said, adding that Commerce is discussing expanding its export control jurisdiction to “the maximum possible point.”
Iran's Ministry of Industry, Mining and Trade issued 1,000 cryptocurrency mining permits to increase the use of digital currency within Iran’s economy, according to an unofficial translation of a February report from Ibena, an Iranian news agency. The move was intended to allow Iran to “import goods and circumvent the problems of bank sanctions for payments,” a member of Iran’s Blockchain Commission of the Computer Trade Union Organization told Ibena. The report said the move, which is aimed at avoiding U.S. sanctions, could “boost the industry and its revenues.”
The Directorate of Defense Trade Controls will launch the registration and licensing applications for its Defense Export Control and Compliance System on Feb. 18, the DDTC said Feb. 3. Until then, DDTC said users should “continue to process requests as normal.” Users can enroll on the DDTC website. DDTC recently released a recording of its Jan. 14 DECCS webinar (see 2001230011).
Experts disagreed on whether the spread of the coronavirus will make it impossible for China to reach its purchase commitments, or make it more likely that China will wish to please the U.S., as its economy suffers. But one thing most agreed on -- the disease's impact is another reminder, after the tariff war, that companies should diversify instead of being wholly reliant on Chinese factories. The experts were on a panel at the Washington International Trade Association conference Feb. 4 on the future of U.S.-China trade.
The United Kingdom’s Office of Financial Sanctions Implementation renewed sanctions for three entries on its terrorist asset-freezing list, according to a Feb. 3 notice. The renewed sanctions target Egypt-based Musa Abu Marzouk, Lebanon-based Usama Hamdan and Qatar-based Khalid Mishaal.
Export Compliance Daily is providing readers with some of the top stories for Jan. 27-31 in case you missed them.
China took a “few positive steps” to revise the draft of its export control law (see 2001100047) but should address several key areas of concern for U.S. and Chinese companies, the U.S. China Business Council said in comments released this week. The USCBC asked China to clarify the scope of its export controls and the term “national security,” provide a clearer definition for activities that are “deemed exports,” and consider more relaxed requirements for end-user statements and certificates.
The Commerce Department still does not have a timeline for releasing its next set of controls on emerging technologies and its advance notice of proposed rulemaking for foundational technologies, despite expectations from top officials that both would be published before 2020, a Bureau of Industry and Security official said. “I would have thought that they would be out earlier,” said Hillary Hess, director of BIS’s regulatory policy division, speaking during a Feb. 4 Sensors and Instrumentation Technical Advisory Committee meeting. “I think everybody would like to see them come out, but I’m not sure how long it’s going to take. I’m having trouble getting a bead on it myself.”
The United Kingdom’s Department for International Trade released a Feb. 3 collection on trading with the U.K. for overseas exporters. The collection includes links to information on U.K. import procedures, controls and restrictions, commodity rates, value-added tax measures, rules of origin procedures, and packaging and labeling. The collection also includes import requirements for agricultural, environmental and textile goods.