The U.S. could rejoin the Iranian nuclear deal (see 2104220008) as early as this summer, a senior State Department official said, but much of the timing will depend on Iran. The official said both countries have had “constructive” talks in recent meetings but said Iran is being unrealistic about the number of sanctions it wants the U.S. to lift.
Export Compliance Daily is providing readers with the top stories for April 26-30 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The European Union finished up two examinations under its Trade Barriers Regulation concerning Saudi Arabia's restrictions on market access to EU ceramic tiles and Mexico's export restrictions on tequila, the European Commission said in a May 4 news release. Following the reviews, the EC said it would engage Saudi Arabia to ensure a “swift and efficient removal” of the kingdom's new technical regulations hindering 75% to 80% of EU exports of ceramic tiles. If engagement fails, the EU could consider taking the issue to the World Trade Organization. In Mexico's case, a measure blocking exports of tequila is under a number of administrative proceedings, so the EC will continue to monitor the situation. The Trade Barriers Regulation allows the EC to review global trade measures that violate international trade rules. Under the regulation, companies, industries, associations and member states may lodge a complaint against a perceived rule violation, prompting the EC to review and potentially act against the violation.
The Environmental Protection Agency released a final rule May 5 setting new significant new use rules (SNURs) under the Toxic Substances Control Act (TSCA) for 13 chemical substances subject to Premanufacture Notices (PMNs), and a microorganism that was the subject of a Microbial Commercial Activity Notice (MCAN). As a result of the SNURs, persons planning to manufacture, import or process any of the chemical substances or microorganisms for an activity designated as a significant new use by this rule are required to notify EPA at least 90 days in advance. Importers of chemicals and microorganisms subject to these SNURs will need to certify their compliance with the SNUR requirements, and exporters of these chemical substances and microorganisms will now become subject to export notification requirements. The final rule takes effect July 6. The SNURs cover the following:
U.S. exporters and forwarders are still unsure how much due diligence is enough to comply with the Commerce’s Department’s recently expanded end-user and end-use restrictions, National Customs Brokers & Forwarders Association of America officials said. Although the Bureau of Industry and Security issued some guidance last year, the guidance didn't address all industry questions and was made more complicated by another set of restrictions that took effect this year, the officials said.
The top Republican on the House Foreign Affairs Committee urged Commerce Secretary Gina Raimondo to address the agency’s “incomplete” implementation of its emerging and foundational technology export control mandate when she testifies before the House this week. Raimondo -- who will testify May 6 before the House Appropriations Subcommittee on Commerce, Justice and Science -- should also address Commerce’s search for a Bureau of Industry and Security leader and outline the agency's export controls strategy to compete with China, said Rep. Michael McCaul, R-Texas.
The State Department fined a U.S. aerospace and technology company $13 million for illegally exporting technical data to several countries, including China, according to a May 3 order. Honeywell International sent drawings of parts for military-related items, including for engines of military jets and bombers, the agency said, all of which were controlled under the International Traffic in Arms Regulations. After discovering the violations, issuing a self-disclosure to the State Department and bolstering its compliance program, the company again illegally exported technical drawings, failing to abide by its improved compliance requirements, the order said.
Forwarders are seeing a rise in maximum penalties issued by CBP for violations surrounding ocean shipments that occurred over a year ago, National Customs Brokers & Forwarders Association of America officials said. Joe Brogan, the chair of NCBFAA’s export compliance subcommittee, said CBP officers are increasingly digging up old violations where forwarders submitted incorrect transportation-related information, such as the date of export or the port of export, and have levied penalties higher than $14,000 for a “single occurrence.”
A strong condemnation was issued by the presidents of the European Council, Commission and Parliament on the imposition of restrictive measures against eight European Union officials, the EC announced in an April 30 press release. The condemnation came following Russia's move to ban European Parliament President David Sassoli, European Commission Vice President Vera Jourova and six EU member states' officials from entering the country in retaliation for sanctions placed on Russia. “This decision, which directly targets the European Union and its Member States, is unacceptable, devoid of any legal justification and baseless,” the joint statement in the release said. “It serves to underline that the Russian Federation has so far chosen the path of confrontation instead of seeking to reverse the negative trajectory of EU-Russia relations.”
The Bureau of Industry and Security fined a California metalworking machinery company $60,000 for illegally exporting an item to the United Arab Emirates, BIS said in an April 30 order. The company, MDA Precision LLC, knowingly violated the Export Administration Regulations when it sold a $34,000 “five-axis benchtop milling machine” to the UAE without a license. BIS said the UAE customer likely intended to transfer the machine to Iran.