The Treasury Department’s Office of Foreign Assets Control announced regulations to implement an October executive order authorizing certain Syria-related sanctions, OFAC said in a June 4 notice. The notice includes detailed descriptions of the regulations, including transactions that are blocked, definitions, licensing procedures and penalties for violations. OFAC said it plans to release a “more comprehensive” set of regulations, including potential guidance documents and general licenses. The regulations take effect June 5.
The president of the American Automotive Policy Council, former Missouri Gov. Matt Blunt, said the release of the uniform regulations in the U.S.-Mexico-Canada Agreement was so recent that it's too early “to give a definitive view of what needs to be clarified,” or is missing. But he said one of the really important asks of the automotive industry was granted -- an acknowledgement that importers and exporters would need the rest of the year to be ready for full compliance.
U.S. lawmakers and sanctions experts said the administration should move faster to impose sanctions on China for interference in Hong Kong and increase export controls on critical technologies and crowd control equipment. Democratic and Republican senators said they would back a bill introduced in the Senate this week that would sanction Chinese officials and foreign banks, while experts called for a focused, multilateral sanctions approach to minimize impacts on Hong Kong citizens and U.S. companies.
Joshua Holzer, previously chief counsel for global trade at Pfizer, joined the StoneTurn advisory firm, StoneTurn said in a news release. The company said Holzer “offers a unique, practical understanding of economic sanctions,” export controls and import matters.
Reps. Brad Sherman, D-Calif., and Ted Yoho, R-Fla., will introduce a House version of Senate legislation that would expand U.S. sanctions on Chinese efforts to meddle in Hong Kong’s autonomy (see 2005260031). The House bill, like its Senate companion, would sanction “foreign individuals” and banks supporting Chinese efforts to pass a so-called national security law in Hong Kong, according to a June 1 press release. Sherman applauded the Senate for “moving quickly” to introduce their version of the bill. “Congress must act to support the residents of Hong Kong,” he said in a statement. Yoho said the U.S. must “put pressure on Beijing to honor their past agreements.”
A Singapore electronics manufacturer voluntarily disclosed to the Treasury Department possible U.S. sanctions violations, the company said in a May 28 Securities and Exchange Commission filing. The company, Flex Ltd., said the violations may have been committed by its non-U.S. affiliates and that it is conducting an internal investigation, expected to be completed “by the end of the second quarter of fiscal year 2021,” so it cannot estimate possible penalties.
The Commerce Department's Bureau of Industry and Security will officially add 33 companies and government agencies to the Entity List on June 5 for their roles in aiding proliferation activities and human rights abuses in China’s Xinjiang province, BIS said in two Federal Register notices. The notices formalize the additions, which were announced in May (see 2005220058).
The Panama Maritime Authority will impose sanctions on Panamanian flagged ships that “deliberately deactivate, tamper or alter” their Long Range Identification and Tracking System or Automatic Identification System, the authority said in a May notice. Sanctions may include up to a $10,000 fine. Panamanian maritime officials are “monitoring all our fleet 24/7” and will receive an automatic alert if a vessel’s LRIT or AIS is not reporting, the notice said. If there is “no technical support that justifies the missing report,” authorities may impose “sanctions that will be deemed appropriate,” including fines, de-flagging of vessels or deletions from the registry. The U.S. has published guidance on common sanctions evasions practices by ships, which include tampering with AIS signals (see 2005140039).
The Directorate of Defense Trade Controls will hold another Defense Export Control and Compliance System webinar on June 10, DDTC said in a notice this week. The webinar will cover updates to DECCS that took effect since the last webinar (see 2004080022), the State Department’s response to COVID-19, frequently asked questions, best practices and a question-and-answer session. The webinar will take place 2 p.m. to 3 p.m. EDT; login information is provided in the notice.
The Commerce Department's Bureau of Industry and Security corrected the formatting for an April final rule that expanded licensing requirements for certain military-related exports to China, Russia and Venezuela, according to a notice. The corrected format “publishes the full text of each revised Export Control Classification Number on the Commerce Control List,” the notice said. BIS issued the correction because the agency “felt it was easier for compliance purposes,” said Hillary Hess, BIS’s regulatory policy director, speaking during a June 2 Regulations and Procedures Technical Advisory Committee meeting. “It does not change the substance of the rule at all.”