New rules for the transfer of export controls over firearms and ammunition from the State Department to the Commerce Department are expected this week, according to the National Shooting Sports Foundation. In a newsletter emailed Jan. 13, the NSSF said the rules, which will transfer controls over firearms, guns, ammunition and other defense items from the U.S. Munitions List to the Commerce Control List, will take effect 45 days after they are published this week.
The European Council renewed sanctions for its terrorist list against people, groups and entities subject to asset freezes due to terrorism involvement, the council said in a Jan. 13 press release. The list is reviewed every six months and updated with “any new facts and developments,” the council said.
The Treasury’s Office of Foreign Assets Control sanctioned two North Korean entities involved in illegal exploitation of North Korea labor to generate money overseas, Treasury said in a Jan. 14 press release. Treasury said the two North Korean companies -- North Korea-based Namgang Trading Corporation (NTC) and China-based Beijing Sukbakso -- evade United Nations Security Council resolutions by sending North Korean laborers abroad. All UN member states were required to expel North Korean laborers in December, the press release said. NTC “maintained” laborers in “multiple” countries, including Russia, Nigeria and throughout the Middle East. Sukbakso, a lodging facility, handles portions of the travel and logistics for NTC personnel working overseas, Treasury said.
Export Compliance Daily is providing readers with some of the top stories for Jan. 6-10 in case you missed them.
Final FIRRMA Regulations Address Commenter Concerns, Omit Clearer Definition for Critical Technology
The Treasury Department’s final regulations for the Foreign Investment Risk Review Modernization Act made several changes to the proposed rules based on public comments and provided more clarity about FIRRMA’s “excepted foreign states” concept. But Treasury did not provide a more specific definition for “critical technologies” despite several requests from industry.
The Uni, Germany and France said they remain committed to the Joint Comprehensive Plan of Action, again urged Iran to return to the deal and expressed concerned with U.S. sanctions. “We have made clear our regret and concern at the decision by the United States to withdraw from the JCPoA and to re-impose sanctions on Iran,” the countries said in a Jan. 12 joint statement. “Despite increasingly difficult circumstances, we have worked hard to preserve the agreement … it is essential that Iran return to full compliance with its commitments.”
China’s Foreign Ministry criticized the U.S.’s decision to impose more Iran sanctions last week, saying the measures, which affected some Chinese entities, should be reversed. Along with Iranian officials and metal companies, the U.S. sanctions targeted a Beijing-based company for buying Iranian steel and a China-based company for managing a vessel that transported the steel (see 2001100050). “We urge the U.S. to cease immediately the wrongful sanctions on Chinese businesses,” a ministry spokesman said during a Jan. 13 press conference. “We will continue to staunchly defend Chinese enterprises' legitimate rights and interests.” China said it has been dealing with Iran for a “long time” and “such cooperation, which is justified and lawful and doesn't harm any third party's interests, should be respected and protected.”
The Commerce Department should make clear who involved in the import process might be subject to the proposed procedures for how to review transactions that involve information and communications technology and services (ICTS) and are seen as a potential threat, the Express Association of America said in comments. The Commerce proposal is meant as a way for the government to oversee transactions, including importations, seen as risky (see 1911260032). Comments on the proposal were due Jan. 10 and were posted in Commerce docket 2019-0005.
The Treasury’s Office of Foreign Assets Control sanctioned seven Venezuelan government officials who attempted to seize control of the country’s National Assembly and block an election, Treasury said in a Jan. 13 press release. The officials include Luis Eduardo Parra Rivero, Jose Gregorio Noriega Figueroa, Franklyn Leonardo Duarte, Jose Dionisio Brito Rodriguez, Conrado Antonio Perez Linares, Adolfo Ramon Superlano and Negal Manuel Morales Llovera. The sanctions came less than a week after the European Union announced intentions to soon impose sanctions on Venezuelan officials who tried to block the election process (see 2001100014).
The U.S., the European Union and Japan should do more to align their export control regimes and cooperate on new export control measures to defend against Chinese mercantilist trade practices, the Information Technology & Innovation Foundation said in a Jan. 13 report. The three parties should schedule “formal meetings” to discuss export controls, saying previous discussions have been too “limited in scope. They should be broader given the changing nature of China’s pursuit of advanced technology.”