The European Council on Oct. 9 introduced a new sanctions regime covering people and entities that threaten the "peace, stability or security of Sudan," including those that bar the political transition in the African nation. The restrictions also apply to parties that obstruct the delivery or distribution of humanitarian aid or engage in acts that constitute serious human rights abuses.
Although the EU, the U.S. and other nations want companies to pursue a de-risking strategy toward China, the Chinese government has a “number of tools” to make Western firms’ de-risking strategies “a lot less attractive to the company,” said Janka Oertel, director of the Asia program and senior policy fellow at the European Council on Foreign Relations. She said Western governments should keep in mind that some companies may not voluntarily choose to de-risk, especially if they're given a convincing business offer from Beijing.
The Census Bureau this week published a blog post to provide guidance for Automated Export System users trying to determine how to report the Ultimate Consignee in their Electronic Export Information. Census said ultimate consignee reporting becomes “more complicated” when the known end user and the Ultimate Consignee are two different entities and they reside in two different countries.
A House bill that could apply blocking sanctions on a host of Chinese companies included on various government denied party lists would “create enormous problems” for U.S. companies doing business in China, said William Reinsch, a former Commerce Department official and current Scholl Chair in International Business at the Center for Strategic and International Studies.
A spokesperson for South Korean semiconductor company SK Hynix said the company welcomed the recent U.S. decision to allow the firm to continue supplying its China factories with certain chipmaking tools (see 2310100051). In an Oct. 10 email, the spokesperson confirmed that SK Hynix received a “waiver with regard to the export control regulations” and said the company “greatly appreciate[d]” the South Korean and U.S. governments “for working closely with the companies through close communication and consultation until the decision is reached.”
The Bureau of Industry and Security this week sent for interagency review a much-anticipated final rule that would make updates and corrections to its Oct. 7, 2022, China chip controls (see 2211010042 and 2210070049). BIS said the rule, sent to the Office of Information and Regulatory Affairs Oct. 10, will make “additional changes in response to the comments received” on the Oct. 7 rule, as well as “additional changes identified by BIS that are needed in order to achieve the objectives” of the controls. The Oct. 7 rule introduced new license requirements for a range of semiconductor related exports and activities involving China.
DOJ is now regularly asking companies about their compensation clawback policies, including in investigations into corporate violations of sanctions or export controls, said Jamie Schafer, a trade lawyer with Perkins Coie. She said companies should have a plan for how they will use compensation clawbacks if they need to submit a voluntary disclosure, which could help them mitigate potential penalties.
The European Council on Oct. 9 extended until Oct. 16, 2026, its sanctions regime addressing the proliferation and use of chemical weapons for another three years. The council also extended the "existing restrictive measures" against people and entities sanctioned under the regime for another year until Oct. 16, 2024. The restrictions currently apply to 25 people and three entities.
The U.K.'s Office of Financial Sanctions Implementation on Oct. 6 removed Walid Hamid Tawfiq al-Tikriti from its Iraq sanctions regime. The move follows the U.N.'s decision last week to remove sanctions from al-Tikriti, an Iraqi national and governor of the Basrah province (see 2310060021).
The U.K. issued a sanctions license permitting sanctioned people and entities to make certain payments to the U.K.'s Companies House, the agency that "registers company information and makes it available to the public, and incorporates and dissolves limited companies," the Office of Financial Sanctions Implementation announced. The payments are for fees owed by or due from sanctioned parties to this agency for filing a confirmation statement, and the payment of late filing penalty fees. The license took effect Oct. 6.