The State Department announced debarments against 10 people convicted of violating U.S. export control laws. The debarments, which will be imposed starting June 15, target Maria Guadalupe Almendarez, Murat Bukey (see 2303220054), Kevin Jerome Cassidy, Usama Darwich Hamade (see 2007210014), Andrew Scott Pierson, Ihor Radionov, Joe Sery (see 2206100018), Arif Ugur (see 2212150082), Tian Min Wu (see 2212020039) and Hany Veletanlic (see 2001300016). All 10 are “generally ineligible” to participate in activity controlled by the International Traffic in Arms Regulations for three years following their dates of convictions. At the end of that period, they must apply to be reinstated from their debarment before engaging in ITAR activities.
The Bureau of Industry and Security recently revoked export privileges for seven people after they illegally exported or tried to export controlled items, including military equipment, firearms and ammunition.
The Office of Foreign Assets Control this week renewed three General Licenses, which were scheduled to expire June 17, that expand and clarify humanitarian-related exemptions for shipments and activities related to Syria, Iran and Venezuela (see 2106180015 and 2206100030). OFAC also updated a guidance on providing humanitarian aid to combat COVID-19.
An Iranian car manufacturer is asking a federal court to order the Treasury Department to remove it from a U.S. sanctions list, saying Treasury has “no real intention of rescinding” its designation no matter what evidence it is shown. Bahman Group, which was first sanctioned in 2018, said Treasury continues to “manufacture a pretext” to maintain sanctions against the company despite being provided proof that it’s no longer engaging in sanctionable activities.
The World Trade Organization is steadily headed towards irrelevancy to global trade and is facing a "long, slow sunset," said Peter Harrell, former senior director for international economics and competitiveness at the White House, during remarks at the Georgetown International Trade Update on June 13.
China’s Ministry of Commerce criticized recent U.S. sanctions targeting companies in China and Hong Kong for helping Iran procure missile parts and technology (see 2306060043), saying the allegations lack “factual basis and due process.” The U.S. should stop its “unreasonable suppression of Chinese companies and individuals,” a ministry spokesperson said June 12, according to an unofficial translation. “China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies and individuals.”
China “firmly” opposed the U.S. additions of Chinese entities to its Entity List this week, a Foreign Ministry spokesperson said, calling on the Biden administration to “immediately stop using military and human rights-related issues as pretexts to politicize, instrumentalize and weaponize trade and tech issues.” The U.S. should “stop abusing export control tools such as entity lists to keep Chinese companies down,” the spokesperson said during a regular press conference June 13. The export controls targeted companies in China and elsewhere for supporting China’s military or the government’s human rights abuses in Xinjiang (see 2306120030).
The Treasury Department should sanction Russian state-owned nuclear company Rosatom, a “major source of funds” for Moscow and “one of the only largely unsanctioned Russian energy companies,” said Gregory Meeks, the House Foreign Affairs Committee’s top Democrat. Meeks, speaking during a June 13 House Financial Services Committee hearing, pointed to his bill introduced last month that would require the administration to designate Rosatom (see 2305120015).
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A ramping up of U.S. export enforcement efforts is causing companies to revisit their compliance practices, particularly as the Bureau of Industry and Security conducts more outreach to exporters, said Alan Enslen, a trade lawyer with Womble Bond. He said companies are more frequently auditing their export compliance programs amid a number of signs that the Biden administration is increasing scrutiny on potential export violations, including a multi-agency memo issued in March that Enslen said was a “shot across the bow” for U.S. exporters.