Commerce’s Bureau of Industry and Security on Aug. 19 renewed the temporary general license for Huawei and added 46 more of the company’s non-U.S. affiliates to the Entity List, bringing the total number of impacted Huawei affiliates to more than 100.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
China's newly announced Shanghai Free Trade Zone will continue “regardless” of its trade relationship with the U.S., China’s Vice Commerce Minister and top trade negotiator Wang Shouwen said during an Aug. 6 press conference, according to an unofficial translation of a transcript from it.
There may not be a solution to the Japan-South Korean trade dispute, said James Schoff, a senior fellow for The Carnegie Endowment for International Peace. Schoff suggested that the rift between the two sides is not solely about export controls but is instead the result of a culmination of many factors -- including a decline in trust -- and may not be salvable.
Japan is approving exports for a semiconductor manufacturing material to South Korea days after removing the country from its list of trusted trading partners, stressing that South Korea’s removal from the list was not an export embargo, Japan’s trade minister Hiroshige Seko said during an Aug. 8 press conference. But Seko also said Japan will not hesitate to increase export restrictions on South Korea if it finds more “specific inappropriate cases” of South Korea’s export control regime, according to an unofficial translation of the press conference.
The Japan-South Korea trade dispute may impact the U.S. and potentially require the intervention of U.S. export control officials, experts said during an Aug. 7 Heritage Foundation panel discussion. They also said it will be difficult for South Korea to get back on Japan’s so-called “whitelist” of preferential trading partners, a move that could hurt Japanese companies more than any other party.
The Treasury’s Office of Foreign Assets Control agreed on a $1.7 million settlement with PACCAR Inc., of Bellevue, Washington, for 63 violations of U.S. sanctions on Iran by PACCAR’s subsidiary, OFAC said in an Aug. 6 notice. The subsidiary, Netherlands-based DAF Trucks N.V., sold 63 trucks worth more than $5 million to European customers that DAF knew intended to sell the trucks to Iran, OFAC said.
The Treasury’s Office of Foreign Assets Control on Aug. 6 issued a set of Venezuela-related frequently asked questions, amended 12 general licenses, created 13 new general licenses and released a Venezuela sanctions guidance detailing which types of transactions are authorized between U.S. companies and Venezuela. The moves were in coordination with President Donald Trump’s Aug. 5 executive order that expanded certain sanctions on Venezuela.
U.S. sanctions on Iran will force the country to come to the negotiating table but may be permanently damaging U.S. relationships with other trading partners, said James Cartwright, a former vice chairman of the Joint Chiefs of Staff and a current board director for the Atlantic Council.
President Donald Trump’s Aug. 1 executive order (see 1908020020) announcing a second round of sanctions on Russia under The Chemical and Biological Weapons Control and Warfare Elimination Act includes export licensing restrictions for certain Commerce-controlled goods and technologies, the State Department said. In a fact sheet issued Aug. 2, the agency said all license applications for exporting chemical or biological weapon-related items to Russian state-owned entities are subject to a policy of presumption of denial. License exceptions, however, will "continue to be available" to U.S. companies involved in existing contracts with Russian customers, the State Department said.
CBP updated its mitigation guidelines for export control seizures to include new mitigating factors, aggravating factors, a new list of remission terms and the elimination of the terms “technical violations” and “substantive violations,” CBP said in its updated July guidelines. In previous years, CBP distinguished between technical and substantive violations but said in its most recent guidelines that the terms were “confusing and misleading” to both CBP officers and the public because they were not used by other licensing agencies.