Commerce’s Bureau of Industry and Security added five Chinese entities to its Entity List, the latest escalation in the U.S. and China’s ongoing trade war. The move restricts the entities' ability to purchase certain U.S. products and will require licenses for all items subject to the Export Administration Regulations with a review policy of presumption of denial. The entities are: Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Higon, Sugon and Wuxi Jiangnan Institute of Computing Technology. The Wuxi Jiangnan Institute is owned by owned by the Chinese government, Commerce said.
The Treasury’s Office of Foreign Assets Control is updating its Reporting, Procedures and Penalties Regulations to change how parties file reports on blocked property, unblocked property and rejected transactions related to economic sanctions, OFAC said in a June 20 notice. The amended regulations, to be published in the June 21 Federal Register, also detail revisions to OFAC’s electronic license application procedures, the availability of its records under the Freedom of Information Act and other “certain technical and conforming changes,” OFAC said.
The shift in travelers' habits "has given rise to an ongoing evolution in the design and construction of travel goods," creating the need for further customs classification guidance, the Canada Border Services Agency said in Memorandum D10-15-29. The new memo, which was issued June 20, outlines the CBSA's "interpretative policy with respect to the tariff classification of suitcases, travelling bags, backpacks (rucksacks) and handbags of heading 42.02," it said. Chapter 42 covers "Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)" and heading 42.02 includes trunks, suitcases and briefcases.
The Treasury’s Office of Foreign Assets Control will end its practice of allowing sanctions violators to satisfy OFAC penalties through payments to other agencies, changing how it calculates penalties in investigations that involve more than one enforcement agency, OFAC Director Andrea Gacki said.
The day after President Donald Trump officially launched his re-election campaign, moderate Democrat Rep. Ron Kind warned the administration's top trade official that the China trade war is making voters in his home state of Wisconsin lose patience. Trump won Kind's district by 4 percentage points, and narrowly won Wisconsin in the Electoral College.
Mexico will be ready with a list of retaliatory tariffs should the U.S. end up imposing escalating tariffs announced by President Donald Trump at the end of May, Secretary of Economy Graciela Marquez Colin said in remarks to the Mexican Senate June 14. Work continues on the specifics of the list during the 45-day period Mexico has to reduce migration under the deal before the U.S. says it will again consider imposing tariffs (see 1906120039).
Auto exporters will be “among the biggest beneficiaries” of a ratified U.S.-Mexico-Canada Agreement, U.S. Trade Representative Robert Lighthizer said during a June 18 Senate Finance Committee hearing, adding that he has “hope” the U.S. will reach a trade deal with Japan within the next “few months.”
Export Compliance Daily is providing readers with some of the top stories for June 10-14 in case they were missed.
The U.S. Chamber of Commerce expects the U.S.-Mexico-Canada Agreement to pass before Congress’ August recess, two Chamber of Commerce officials said, saying Democrats’ issues with the bill are “bridgeable.” “We do think that we can see USMCA move forward before the August break,” said John Murphy, the Chamber’s senior vice president for international policy. “We want to get on with it. We need the certainty that USMCA will provide.”
India’s decision to impose retaliatory tariffs on U.S. goods was expected by most of the U.S. business community, which has been preparing for the announcement for months, said Amy Hariani, vice president of the U.S.-India Business Council at the U.S. Chamber of Commerce.