The Department of Commerce denied Zimo Sheng’s export privileges after Sheng was convicted of violating the Arms Export Control Act, Commerce said in a March 16 order. Sheng attempted to illegally export to China the “upper assembly” for a Glock 48 pistol, which is listed on the U.S. Munitions List. Sheng was convicted Dec. 13, 2018, and sentenced to 40 months in prison and a $200 fine. After the sentencing, Commerce said Sheng left the U.S. and his “current whereabouts are unknown” to the Bureau of Industry and Security. Commerce revoked Sheng’s export privileges for 10 years from his date of conviction.
The U.S. renewed sanctions against Iran, the White House said March 12. The White House said the sanctions, first imposed March 15, 1995, will continue to deter Iran’s nuclear proliferation, its support for terrorism and the activities of the U.S.-sanctioned Islamic Revolutionary Guard Corps (see 1904080037).
The European Union extended its sanctions against people or companies undermining the sovereignty of Ukraine, until Sept. 15, according to a March 13 notice. The EU also amended entries for 161 people and 11 entities listed under the sanctions regimes, and deleted entries for two deceased people.
The European Commission announced export controls on shipments of certain protective medical equipment, which will now require authorizations before being sent to third countries, according to a March 15 press release. Several European countries also announced travel restrictions due to the coronavirus, including Germany and Poland, which may impact supply chains and cargo shipments.
The State Department issued notifications of proposed export licenses to Congress as required by the Arms Export Control Act, the agency said in a notice in the March 16 Federal Register. The notifications include details about each proposed export license, including the goods involved, the destination and the value of the shipment.
A bipartisan group of lawmakers introduced a bill March 12 that would sanction Huawei and other companies producing 5G technology if they “engage in economic or industrial espionage,” according to a news release. The bill would place those companies on the Treasury Department’s Specially Designated Nationals List, which blocks parties from accessing the U.S. financial system. The House bill was introduced by Reps. Mike Gallagher, R-Wis., Ruben Gallego, D-Ariz., Liz Cheney, R-Wyo., and Chrissy Houlahan, D-Pa., and the Senate bill was co-led by Sens. Chuck Schumer, D-N.Y., Rick Scott, R-Fla., and Chris Van Hollen, D-Md.
The Treasury and State departments have struggled to fill positions related to sanctions implementation and enforcement despite increased funding for sanctions resources, according to a March 11 Government Accountability Office report. Positions have been difficult to fill due to competition from the private sector and a lengthy security clearance process, the GAO said, circumstances that have especially affected the Treasury’s Office of Foreign Assets Control and State’s Office of Economic Sanctions Policy and Implementation. Vacancies ranged from 6% to 26% of its “authorized full time equivalents (FTEs).” GAO said State was authorized to hire six FTEs during the start of the 2020 fiscal year even though more than half of its “authorized persons” were vacant at the start of the year.
Five Senate Democrats asked the European Union to sanction a U.S.-designated Russian national for his involvement in U.S. election interference, according to a March 12 letter. In the letter, Sens. Chuck Schumer, D-N.Y., Sherrod Brown, D-Ohio, Bob Menendez, D-N.J., Jack Reed, D-R.I., and Mark Warner, D-Va., said Yevgeniy Prigozhin and his firms, which include the Wagner Group, a Russian paramilitary organization, are “actively engaged in spreading malign influence.” Due to the “broad reach and expanding nature of Prigozhin and the Wagner group’s malign activities abroad, we urge the European Union to take steps to constrain their ability to operate and to deter the Kremlin from engaging in these activities.” The senators added that U.S. sanctions are “only as strong as our multilateral alliances,” and said U.S. pressure would be “significantly enhanced” with EU collaboration.
The Trump administration is prioritizing efforts surrounding its export controls, investment screening and diplomacy to restrict China from acquiring sensitive dual-use technologies, a senior State Department official said. The official, speaking to reporters March 12, said China has ramped up technology theft and said companies and research institutions should be cautious of any attempts by Chinese companies to divert their products for military end-use, which are often masked in “incentives and inducements.”
The Commerce Department Bureau of Industry and Security added 24 entities to its Entity List and revised five existing entries, the agency said in a notice. The new entries include companies in China, Iran, Pakistan, Russia and the United Arab Emirates; and the revised entries are for entities in France, Iran, Lebanon, Singapore and the United Kingdom. The changes take effect March 16. All shipments now requiring a license as a result of this rule that were on dock for loading or aboard a carrier to a port as of that date may proceed to their destinations under the previous eligibility, BIS said.