The United Kingdom’s Office of Financial Sanctions Implementation on June 30 added 11 entries to its Venezuela sanctions list. The sanctions target government officials and prosecutors within President Nicolas Maduro's government.
Export Compliance Daily is providing readers with some of the top stories for June 22-26 in case you missed them.
The Bureau of Industry and Security clarified the agency’s suspension of license exceptions for exports to Hong Kong, saying it will no longer allow exceptions for items subject to the Export Administration Regulations “that provide differential treatment than those available” to China. In a guidance issued after its June 29 suspension announcement (see 2006290063), BIS said U.S. exporters cannot use license exceptions for any shipments to Hong Kong “except for transactions that would otherwise be eligible for a license exception” for mainland China.
China’s Foreign Ministry criticized the Senate’s passage of a bill that would sanction Chinese officials, companies and foreign banks for interfering in Hong Kong’s autonomy (see 2006250043), threatening to impose countermeasures. China “will react firmly” if the bill is signed into law, a ministry spokesperson said during a June 29 news conference, “and the U.S. shall bear all the consequences.” The spokesperson also said the sanctions will not stop any Chinese actions in Hong Kong. “Their attempts are doomed to fail,” the spokesperson said. “This act will be nothing more than a piece of paper.”
A Canadian woman was sentenced to 18 months in prison for illegally exporting gas turbine engine parts from the U.S. to Iran, the Justice Department said June 26. Angelica Preti, who worked as the export operations manager at a Canadian forwarding and customs brokerage services provider, helped to ship U.S.-origin engine parts and valve assemblies to Iran by concealing Iran as the end-user, the agency said. She also filed false electronic export information. During Preti’s time as export manager, the company was involved in 23 shipments exported from the U.S. traced to Iran destinations. DOJ said Preti violated the International Emergency Economic Powers Act and U.S. sanctions.
The Office of Information and Regulatory Affairs began an interagency review for a final Bureau of Industry and Security rule that will revise country groups for Ukraine under the Export Administration Regulations. OIRA received the rule June 25.
The Bureau of Industry and Security stressed the importance of increased due diligence measures in a guidance (see 2004280052) on its new export licensing restrictions for military-related exports, saying industry must be careful to avoid shipping goods to entities with any nexus to the Chinese military. The newly issued guidance touches on due diligence best practices and addresses shipments to distributors and universities but does little to address the “unmanageable” compliance burdens industry said the rule will cause (see 2006150031, 2006180035 and 2005050035). BIS also did not grant a request by at least 20 industry groups to delay the rule’s effective date (see 2006150031). The rule took effect June 29.
The U.S. will suspend certain export license exceptions for shipments to Hong Kong and ban exports of U.S.-origin defense goods to the region, the Trump administration said June 29. The administration also plans to further restrict sales of dual-use technologies to Hong Kong to bring those measures in line with restrictions imposed on exports to mainland China. The administration said it is imposing the restrictions because of China’s infringement in Hong Kong’s autonomy (see 2005290047).
The United Nations Security Council on June 25 renewed sanctions against the Democratic Republic of the Congo for one year. Among other measures, the sanctions restrict the sale of arms and other “related material and assistance” to nongovernmental entities and individuals in the country. The measures are renewed until July 1, 2021.
Sen. Tom Cotton, R-Ark., and Rep. Mike Gallagher, R-Wis., asked the Trump administration to sanction 20 Chinese companies after they were identified last week by the Defense Department as having ties to the Chinese military (see 2006250024). The lawmakers said they hope the administration releases the names of more companies, and called on President Donald Trump to “impose economic penalties.” The lawmakers said the list “is one piece of a broader campaign our nation must wage against the Chinese Communist Party and its parasitic technology transfer efforts.”