Export Compliance Daily is providing readers with some of the top stories for March 16-20 in case you missed them.
Companies will likely be faced with a reshuffled supply chain after the novel coronavirus COVID-19 pandemic subsides, placing greater importance on maintaining sound trade compliance programs even as business uncertainty increases, said Kerry Contini, an export control and sanctions lawyer with Baker McKenzie. As supply chain actors struggle to stay in business and as new parties enter and leave the supply chain, companies may face a host of new suppliers or customers, Contini said, a transition that will likely affect global industries on a large scale.
The European Union renewed sanctions against Egypt for one year, according to a March 20 notice. The sanctions, which now expire March 22, 2021, apply asset freezes to certain people and companies in Egypt.
There will be “minimum disruption” to the export licensing process for exporters in the United Kingdom, which expects to continue processing license applications amid the coronavirus pandemic response, according to a March 20 notice from the U.K.’s Export Control Joint Unit. Processing “strategic” export license applications has been “identified as a business-critical operation” by the Department for International Trade, the ECJU said, adding that it recognizes authorizations for dual-use and military exports are “essential.” In addition, as more of the industry works from home, the ECJU clarified that there are “no export license compliance issues” with industry accessing U.K. “export control regulated data” from home using a company computer. Users will continue to receive communications and license decisions from SPIRE, the U.K.’s online export licensing system, in the “normal way,” the notice said.
The United Kingdom’s Department for International Trade canceled its export control training courses planned for April, May and June, the agency said in a March 20 notice. The move follows an announcement by the prime minister to stop all non-essential contact and unnecessary travel, the agency said. The cancellation will impact 11 scheduled training courses, the DIT said, adding that it is looking at “alternative methods of delivering training.” The agency may cancel future courses as the “situation evolves.”
The European Union published its common military list, detailing rules governing exports of military technology and equipment, according to a March 13 EU Journal notice. The list updates the previous version adopted by the EU in 2019. Among the changes are new controls over software “designed or modified for the conduct of military offensive cyber operations,” according to a March 20 Baker McKenzie blog post.
The Commerce Department Bureau of Industry and Security is operating normally and will continue to process export license applications amid the global response to curbing the COVID-19 pandemic, a BIS spokesperson said. “Operations are not impacted,” the spokesperson said. In notices to industry, the Census Bureau said it will continue responding to industry but requested electronic submissions for disclosures (see 2003180029), while the Directorate of Defense Trade Controls said some licensing processing may face delays (see 2003190017).
The United Kingdom’s Office of Financial Sanctions Implementation amended an entry under its sanctions for the Democratic Republic of the Congo, according to a March 20 notice. OFSI amended identifying information for Ignace Murwanashyaka, who is still subject to an asset freeze, the notice said.
The Treasury’s Office of Foreign Assets Control extended the expiration dates for two Ukraine-related general licenses that authorize certain transactions with U.S.-sanctioned GAZ Group, OFAC said in a March 20 notice. General License No. 13N authorizes certain transactions necessary to divestments and debt transfers. General License No. 15H authorizes certain transactions related to the maintenance or wind down of operations of existing contracts, and activities related to certain automotive safety and environmental systems in vehicles produced by GAZ Group.
European governments are skeptical about the use of U.S. export controls to restrict transfers of sensitive technologies even as the U.S. ramps up attempts to convince them to adopt similar measures, according to a March 18 report from the Mercator Institute for China Studies. As the U.S. has taken an increasingly aggressive approach to restricting emerging technology sales to China, Europe increasingly sees export controls as a “blunt instrument” for tackling technology risks, the report said, viewing them instead as a U.S.-driven effort to contain China's rise.