Export controls on masks used by medical workers -- an idea that had been floated (see 2004030063) -- have been averted, 3M announced the evening of April 6. The multinational company is producing 35 million masks a month in the U.S., and the president had said none of that production should be exported to Canada and Latin America, major recipients of that output. But now, the administration will address U.S. regulatory restrictions that prevented some Chinese masks from being used for medical workers, and 3M will import 166.5 million N95 masks, mostly from its China plant, over the next three months, the company said. “The plan will also enable 3M to continue sending U.S. produced respirators to Canada and Latin America, where 3M is the primary source of supply,” the press release noted.
The United Kingdom’s Department of Health and Social Care issued an April 6 guidance on the European Union’s export restrictions on personal protective equipment. The guidance lists what goods are covered under the restrictions, how exporters can apply for a license and how the U.K. determines license decisions. When reviewing a license application, the U.K. said it will consider whether the export will threaten the need for PPE within the U.K. and the EU, whether it will satisfy a “legitimate need” in the destination country, and whether the export will fulfill “one or more of the purposes set out” in the export control legislation.
India announced restrictions on exports of certain “diagnostic kits,” according to an April 4 notice from the country’s Directorate General of Foreign Trade. The export restrictions apply to certain “diagnostic or laboratory reagents.” The measure took effect April 4. India previously restricted exports of hydroxychloroquine, ventilators and sanitizers due to the COVID-19 pandemic (see 2003250014 and 2003240045).
CBP removed several exemptions from the Automated Export System Trade Interface Requirements due to the recent transfer of gun export controls from the State Department to the Commerce Department (see 2001170030), CBP said in an April 6 CSMS message. The update removes firearms exemptions related to certain exports to Canada, temporary exports and more.
Senior Trump administration officials agreed to three measures that will tighten restrictions on China’s ability to obtain advanced U.S. technology, according to an April 1 Reuters report. The measures, agreed to during a March 25 meeting (see 2003260036), will “introduce hurdles” to block Chinese companies from buying U.S. optical materials, radar equipment and semiconductors, the report said. It is unclear if President Donald Trump will sign off on the new rules, Reuters said. It is also unclear how these measures relate to potential changes to the Direct Product Rule and the de minimis rule that administration officials have been considering for months (see 2003050041, 2003130037 and 1912100033).
Australia placed export controls on non-commercial shipments of personal protective equipment, alcohol wipes and hand sanitizer that are essential to combating the COVID-19 pandemic, according to a March 30 notice from the Australian Border Force. The controls, which took effect March 30, also allow Australia’s Home Affairs minister to “determine additional goods” subject to export controls. Australia listed several exemptions to the controls, which allow exports to a person's relatives, for their personal use; exports through humanitarian organizations for non-commercial uses; and exports by an “Australian manufacturer of the goods,” the notice said. The Border Force also listed several other exemptions that allow “legitimate exporters to continue to trade in goods essential to combating the pandemic.”
The World Trade Organization recently updated a guidance detailing how the COVID-19 pandemic is impacting world trade, saying every WTO member is “free” to impose export controls on key medical supplies. However, the WTO stressed that international trade is “crucial to ensuring access to medicines and other medical products,” and said members should not impose controls that “discriminate” or “constitute a disguised restriction.” The guidance also contains an updated list of member notifications to the WTO that detail export control actions and other trade measures to combat the spread of the coronavirus and the disease it causes. Several countries have said they are committed to keeping trade lanes open and stressed the importance of refraining from imposing export controls during the pandemic (see 2003260029).
Arent Fox issued an export control reference guide with governments that have imposed export restrictions on personal protective equipment due to the coronavirus COVID-19 pandemic, according to a March 27 post. The law firm recently updated the list to include export control measures imposed by Bahrain, Canada, Kenya, New Zealand and Vietnam, and updated information for controls imposed by India, Singapore and Turkey.
Senior administration officials agreed to new measures to further restrict foreign exports of chips to Huawei (see 2003050041), according to a March 26 Reuters report. The measures would alter the Foreign Direct Product Rule to restrict foreign sales that contain U.S. chip making equipment, Reuters said, although it remains unclear if President Donald Trump will sign off on the change. Trump has said that he wants to ease restrictions on exports and sell more to China (see 2002180057). The change, which has been discussed within the administration for months (see 1912100033, 1912130052 and 2002050047) has been met with criticism from the semiconductor industry (see 2002180060). The White House and the Commerce Department Bureau of Industry and Security did not comment.
The Commerce Department Bureau of Industry and Security canceled its annual export control conference set to be held in Los Angeles in April due to coronavirus concerns, BIS said March 12. BIS said it made the decision “out of an abundance of caution.” The Export Control Forum, which was scheduled for April 1-2, will instead be offered as a “remote access program in the near future” and will provide some of the information officials “intended to present” at the conference, the agency said. BIS has not yet determined the date of that program. BIS also said the event’s co-sponsor, the District Export Council of Southern California, will return registration fees.