Although the EU is trying to reform its approach to export controls and other economic security issues, there still are loopholes in the bloc’s rules that allow technology to be illegally exported to China and elsewhere, EU policy experts said this week.
American, Canadian and Mexican customs brokers and freight forwarders are urging Canada to rethink its upcoming deployment of a new customs management system in two months, saying they’re concerned the country’s current approach could significantly disrupt trade.
The U.S. announced more countries signed on to a commitment to place export controls around spyware technology, part of an effort to raise trade guardrails for cyber-related items that can be used for human rights violations. The group, which now includes 17 nations, plans to meet this week to share best practices and exchange policy ideas for how they can better control technologies used for “malicious cyber activity.”
A trade association representing ASML, Applied Materials and other major semiconductor companies called on the EU to keep any new export controls narrowly targeted and abandon its plans for an outbound investment screening mechanism, saying new restrictions would be a “major interference” for the chip industry. It also cautioned European lawmakers about introducing new supply chain reporting obligations that would place too big a burden on industry.
A Swiss private banking group agreed to pay about $3.7 million to settle allegations that it violated multiple U.S. sanctions programs, including restrictions against Russia and Cuba. The Office of Foreign Assets Control said EFG International AG, which operates about 40 global subsidiaries, bought and sold securities on behalf of people sanctioned by OFAC.
The U.S. announced new export controls against Nicaragua this week in response to human rights abuses by the country's government and its support for Russia’s invasion of Ukraine. The measures, outlined in two final rules effective March 15, will put in place stronger Commerce Department export licensing requirements for Nicaragua and add the country to a list of nations maintained by the State Department that generally don’t receive license approvals for controlled defense items.
The European Parliament this week voted to approve new rules that could require member states to treat sanctions violations as criminal offenses, leading to harsher penalties and possible prison time (see 2312120059).
A U.K. law firm this week warned about sanctions risks tied to property purchases, saying one of its lawyers had to first obtain approval from a U.K. bank before a British-Iranian client could buy property in the U.K.
Although entities on the Treasury and Defense departments’ Chinese military company lists aren't necessarily subject to export controls, it's still very risky to do certain business with them, former Bureau of Industry and Security officials said this week. They said they would advise companies to treat those listed entities as prohibited Chinese military end-users unless they can prove otherwise.
Members of the European Parliament this week disagreed on the best path forward for new EU-wide supply chain due diligence rules, although an official with the Belgian presidency said it believes the EU can reach a compromise before the end of the current parliament’s term in April.