It's unclear how a President Joe Biden would try to use policy to shape the global supply chain, but the Atlantic Council's Asia Security director said that since Biden prefers a multilateral approach, he “might be less likely” to impose tariffs or export controls. Miyeon Oh, who was speaking during an Atlantic Council webinar June 26, said he might try to get allies to coordinate an effort “to rebalance the global supply chain,” and he might seek to use American participation in the Trans-Pacific Partnership as a way to do so.
The Office of Foreign Assets Control likely did not understand the industry burdens imposed by the update to its reporting, procedures and penalties regulations (see 1906200036) and will probably narrow their scope, said Jason Rhoades, a KPMG sanctions lawyer and former OFAC compliance officer. The regulations, which were updated last year, expanded the scope of transactions that must be reported to OFAC, including for non-financial institutions. The update was met with widespread criticism from industry, which called them confusing, unclear and overly burdensome (see 1907290015 and 1907230054). OFAC issued a set of frequently asked questions in February to try to clarify the new requirements (see 2002200057).
The Defense Department on June 24 released a list of Chinese companies with links to the Chinese military, including Huawei and Hikvision. The list includes 20 companies, most which are already listed on the Commerce Department’s Entity List, that could be subject to additional U.S. sanctions. "As the People’s Republic of China attempts to blur the lines between civil and military sectors, 'knowing your supplier' is critical," a Defense Department spokesperson said in a statement. "We envision this list will be a useful tool for the U.S. Government, companies, investors, academic institutions, and likeminded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows." The release of the list comes two months after Commerce issued a rule expanding export licensing restrictions on shipments to military end-users or for military end-uses in China, Russia and Venezuela (see 2004270027).
A North Korean national was convicted in Singapore of violating United Nations sanctions after he helped two Singapore companies supply luxury goods to North Korea, a June 23 notice said. Between 2014 and 2017, Li Hyon worked with T Specialist International and SCN Singapore to ship $400,000 (Singapore dollars) worth of goods to North Korea, it said. He worked as the “contact liaison” between the companies and the North Korea buyer and also hand-carried some goods, the notice said. He was sentenced to four weeks’ imprisonment. T Specialist International pleaded guilty to 10 related charges last year and was fined $380,000. Court proceedings for SCN Singapore are ongoing.
The Senate passed a bill June 25 that would sanction Chinese officials, companies and foreign banks associated with Beijing’s interference in Hong Kong’s autonomy (see 2005260031). “We urge the Government of China to abandon their ongoing efforts to repress freedoms in Hong Kong,” Sen. Chris Van Hollen, D-Md., who introduced the bill along with Sen. Pat Toomey, R-Pa., said in a statement. “There will be a price to pay if they continue down that path.” Toomey said he hopes the House will “pass it in short order, so the president can sign it.”
Concerns over imported and exported food during the COVID-19 pandemic are unfounded, and efforts to restrict food trade have no scientific basis, Food and Drug Administration Commissioner Stephen Hahn and Agriculture Secretary Sonny Perdue said in a joint statement June 24. “The United States understands the concerns of consumers here domestically and around the world who want to know that producers, processors and regulators are taking every necessary precaution to prioritize food safety especially during these challenging times. However, efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission,” they said. “There is no evidence that people can contract COVID-19 from food or from food packaging. The U.S. food safety system, overseen by our agencies, is the global leader in ensuring the safety of our food products, including product for export.”
Switzerland announced sanctions against Nicaragua on June 24 for human rights violations. The sanctions target six people with ties to Nicaraguan President Daniel Ortega, including two of Ortega’s personal advisers and four “high-ranking” justice system and police force officials, Switzerland’s Federal Council said. The sanctions impose asset freezes and travel bans.
The Office of Foreign Assets Control sanctioned nine companies operating in Iran’s metals sector, including five subsidiaries of Iran-based Mobarakeh Steel Company, the agency said June 25. The sanctions target Mobarakeh Steel subsidiary Germany-based Tara Steel Trading GmbH; Mobarakeh majority-owned Iran-based Metil Steel; and Mobarakeh majority-owned Pacific Steel FZE, Better Future General Trading Co LLC and Tuka Metal Trading DMCC, all based in the United Arab Emirates. OFAC also designated Iran-based South Aluminum Company, Sirjan Jahan Steel Complex and Iran Central Iron Ore Company.
More than a dozen Canadian senators asked Prime Minister Justin Trudeau to sanction Chinese officials for human rights violations against Hong Kong protesters and the country’s Uighur population. In a June 23 letter, the lawmakers said they sent Trudeau a list of Chinese officials who should be designated with Magnitsky Act sanctions and said China has committed “gross” violations of freedoms. “China is continuously showing us that it poses the biggest threat to mankind and a danger to international security,” the senators said. President Donald Trump said he is planning to impose sanctions on China (see 2005290047) but also said he previously held off doing so to avoid damaging the countries’ trade deal (see 2006220023).
The Bureau of Industry and Security postponed the effective date for certain filing requirements outlined in an April rule on military-related exports (see 2004270027). The agency said this week it will not require Electronic Export Information filings for some exports captured under the rule until Sept. 27 -- a three-month extension from the original June 29 effective date. Other EEI filing requirements described under the rule take effect June 29.