Senators on June 20 voted to block the sale of billions of dollars worth of arms to Saudi Arabia and the United Arab Emirates after weeks of criticism from bipartisan members of Congress. The sale, originally announced by the Trump administration on May 24, used an emergency provision in the Arms Export Control Act to allow the State Department to bypass congressional approval and certify 22 arms transfers to the Middle East. But Democratic and Republican members in both the House and Senate criticized the move, saying it was a misuse of executive power (see 1906120066).
A Senate bill introduced June 13 with bipartisan support would require the Trump administration to submit reports to Congress on whether Hong Kong is following U.S. export control laws and sanctions. The requirement, part of a bill that would amend the Hong Kong Policy Act of 1992, would order the Treasury, State and Commerce secretaries to send several House and Senate committees a report on whether Hong Kong has enforced U.S. export controls with respect to “sensitive dual-use items” and abided by both U.S. and United Nations sanctions. The administration would need to submit the reports within 180 days after the enactment of the bill, which was introduced by Sen. Marco Rubio, R-Fla.
Commerce’s Bureau of Industry and Security added five Chinese computing companies to its Entity List, requiring licenses for all items subject to the Export Administration Regulations with a review policy of presumption of denial. The entities are: Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Higon, Sugon and Wuxi Jiangnan Institute of Computing Technology.
The Treasury’s Office of Foreign Assets Control is updating its Reporting, Procedures and Penalties Regulations to change how parties file reports on blocked property, unblocked property and rejected transactions related to economic sanctions, OFAC said in a June 20 notice. The amended regulations, to be published in the June 21 Federal Register, also detail revisions to OFAC’s electronic license application procedures, the availability of its records under the Freedom of Information Act and other “certain technical and conforming changes,” OFAC said.
The U.S. is continuing sanctions on the Western Balkans beyond the June 26 expiration date, extending a national emergency first declared June 26, 2001, according to a June 18 White House press release. The White House cited the continued threat of people involved in “extremist violence” in the region and acts that obstruct the implementation of United Nations Security Council resolutions. The actions continue to pose an “unusual and extraordinary threat” to U.S. national security, the press release said.
Iran is reducing its commitments under the Joint Comprehensive Plan of Action because it said other JCPOA “parties do not abide by theirs,” according to a June 18 press release by the Atomic Energy Organization of Iran.
The Treasury’s Office of Foreign Assets Control sanctioned Russian Financial Society, a Russian financial services entity, after OFAC said it helped North Korea evade U.S. sanctions, Treasury said in a June 19 press release. Russian Financial Society provided or attempted to provide “financial, material, technological, or other support for” U.S.-sanctioned Dandong Zhongsheng Industry & Trade Co. Ltd, the press release said. Dandong Zhongsheng is owned by Foreign Trade Bank, North Korea’s “primary foreign exchange bank,” which is sanctioned by both the U.S. and the United Nations, Treasury said.
The Treasury’s Office of Foreign Assets Control will end its practice of allowing sanctions violators to satisfy OFAC penalties through payments to other agencies, changing how it calculates penalties in investigations that involve more than one enforcement agency, OFAC Director Andrea Gacki said.
In the June 18 edition of the Official Journal of the European Union the following trade-related notices were posted:
Brazil published measures June 5 on enforcement of sanctions against people “investigated or accused of terrorism, its financing or related acts,” according to a post from law firm TozziniFreire. The decree includes “sanctions imposed” by United Nations Security Council resolutions, other countries and Brazilian authorities, TozziniFreire said. Sanctions may include import or export restrictions, assets freezes, the post said, and travel restrictions to Brazil. Brazil plans to publish a list of people and entities subject to the sanctions, which are part of a “movement to expand and consolidate the application of sanctions in Brazil” and to demonstrate “the importance of implementing solid trade compliance controls,” according to the post.