China announced sanctions on U.S. lawmakers and a congressional commission in response to U.S. sanctions on Chinese officials for human rights abuses in the Xinjiang region. China’s sanctions, which include travel restrictions, target Sens. Marco Rubio, R-Fla.; Ted Cruz, R-Texas; and Rep. Chris Smith, R-N.J.; U.S. Ambassador for International Religious Freedom Sam Brownback; and the Congressional-Executive Commission on China, Beijing’s Foreign Ministry said July 13. A ministry spokesperson said the U.S. has “no right and no cause to interfere” in Xinjiang and urged the U.S. to rescind its sanctions or it will issue a “further response.”

Companies affected by the Bureau of Industry and Security's recent rule on military-related exports (see 2004270027) were frustrated by the lack of a comment period before the rule was finalized and BIS’s decision not to postpone the effective date, industry officials said in interviews. Some officials said they were disappointed the new requirements were not first issued as a proposed rule, adding that smaller businesses with fewer compliance department employees have struggled to adjust.

The U.S. sanctioned a Chinese security agency and four officials for human rights abuses in the Xinjiang region. The sanctions, announced July 9 by the Treasury and State departments, came about a month after President Donald Trump signed into law a bill that authorized sanctions on Chinese officials for human rights violations against the country’s Uighur population (see 2006170064).

Trade groups are asking top Mexican politicians to change Mexico's tariff treatment of packages that are under the $117 de minimis level and informal entries. The groups, including the U.S. Chamber of Commerce, the Express Association of America and its Mexican counterpart, and the National Retail Federation, wrote the economy secretary, finance secretary and the head of Mexico's equivalent of the IRS on July 7, because of June 30 amendments to Mexico's Reglas Generales de Comercio Exterior regulations.

The upcoming U.S. presidential election and the increasing government focus on China will likely “exacerbate risk” for companies with supply chains in China’s Xinjiang region, law firm Covington said. The region has come under scrutiny for human rights abuses and has been a recent focal point of U.S. sanctions.

The Office of Foreign Assets Control fined Amazon more than $130,000 for violating several U.S. sanctions programs and failing to follow reporting requirements for hundreds of transactions. Amazon processed online orders sent to a range of sanctioned countries in the Middle East and Asia and did not follow the agency’s reporting requirements for more than 300 transactions conducted under a Crimea general license, OFAC said in a July 8 notice. OFAC said the violations were caused by “deficiencies” in Amazon's sanctions screening program.

The Commerce Department on July 8 issued a guidance on the transfer of gun export controls from the State Department (see 2001170030). The 62-page guidance, which includes more than 100 frequently asked questions, outlines Commerce’s approach to the controls, including licensing exceptions, arms reporting, export clearance requirements, recordkeeping and enforcement. The guidance also defines several “key terms” for exports that it now controls, such as the difference between additive manufacturing and 3D printing.

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With the USMCA in effect, U.S. and Mexican companies will closely monitor a July 8 meeting between President Donald Trump and Mexican President Andres Manuel Lopez Obrador, which is expected to feature talks on USMCA implementation and trade cooperation, experts said. Industry hopes the meeting -- Lopez Obrador’s first visit with Trump -- helps to strengthen the two countries’ commitment to USMCA and underscores attempts to reshore supply chains, reducing dependency on trade with China, the experts said.

The United Kingdom on July 6 set its first sanctions under its new human rights sanctions regime, designating 49 people and organizations because of human rights violations. The sanctions, which have been hinted at by officials for months and were expected this summer (see 2007020014 and 2001100046), marked the first time the U.K. has issued its own designations for human rights abuses, with additional sanctions expected in the coming months, the Foreign and Commonwealth Office said July 6. The U.K. also issued a sanctions guidance for industry and an outline of available licenses, and said European Union sanctions will continue to apply in the U.K. until it leaves the EU on Dec. 31.