Although Chinese ocean operations and domestic trucking activities are returning to normal, there remains significant concerns over equipment and space availability for ocean fighters around the world, according to a March 17 emailed alert from Crane Worldwide Logistics. Air cargo transportation also remains uncertain, with availability of ports in China constantly changing and countries canceling flights to regions with high concentrations of coronavirus cases, the alert said.
The head of the Commerce Department Bureau of Industry and Security revoked a shipping company’s export privileges for 15 years for export violations but ordered a review of the assessed fine, saying it was too high, according to a March 11 order. The company and its chairman -- Singapore-based Nordic Maritime Pte. Ltd and Morten Innhaug, respectively -- were originally fined more than $30 million by an administrative law judge, who also revoked the company’s export privileges until the fine was paid, according to the order. But Cordell Hull, BIS’s acting undersecretary, said the fine was too high, ordering the judge to review its decision to impose the penalty.
Export Compliance Daily is providing readers with some of the top stories for March 9-13 in case you missed them.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said the export restrictions on masks, respirators, medicines and other goods needed for responding to the COVID-19 pandemic is “a bad cycle,” and he urged the president and world leaders “to work together on a coordinated response on the epidemic.” Grassley, who was speaking with reporters on a conference call March 16, said restrictions reduce global supply and lead to higher prices. “I was encouraged to see the G7 leaders' statement today,” he said, which mentioned support for global trade.
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 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.
A top Commerce Department official tempered fears that the U.S. wants to stifle industry competitiveness (see 2003100044 and 2002180060) as it considers further restricting exports to Huawei and China, saying that is not the administration's goal. “Why would you restrict a U.S. company if you're only going to be enabling their competitor?” said Rich Ashooh, Commerce’s assistant secretary for export administration. “That’s a very important principle to engage in.”
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 Census Bureau is reaching out to companies that conduct value-added for re-exports in an effort to learn more about the process, Kiesha Downs, chief of the Census Bureau Foreign Trade Division’s regulations branch, said during a March 10 Regulations and Procedures Technical Advisory Committee meeting. Census has reached out to two companies so far, Downs said, but encourages other re-exporters to contact the agency.
The timeline for the release of CBP’s electronic export manifest system remains unclear despite hopes on the part of some officials that the system would be launched last year (see 1910180061). “I believe it’ll be a little bit down the road,” Kiesha Downs, chief of the Census Bureau Foreign Trade Division’s regulations branch, said during a March 10 Regulations and Procedures Technical Advisory Committee meeting. “Everybody knows how long it takes to go through the regulatory process.”