President Donald Trump issued an executive order May 19 to provide “regulatory relief” for companies during the COVID-19 pandemic, stressing that agencies should be fair when issuing enforcement decisions. Government agencies should modify, waive or provide exemptions for any regulations “that may inhibit economic recovery,” the order states, adding that agencies should abide by “principles of fairness.” The order emphasizes that agencies “bear the burden” of proving alleged violations of regulations and says enforcement actions should be “prompt and fair.” Penalties for violations should be “proportionate” and transparent, the order says, and liability for violations should be imposed “only for violations of statutes or duly issued regulations” with an opportunity for the penalized party to respond. “Agencies must be accountable for their administrative enforcement decisions,” the order says. The order says it does not apply to national security or homeland security functions of the U.S., except for “procurement actions and actions involving the import or export of non-defense articles and services.”
The Commerce Department corrected a typo in the savings clause of its May 15 rule that increased export restrictions on Huawei (see 2005150058), the agency said in a letter released May 19. The correction clarified that certain shipments will not be impacted by the rule change as long as they have begun production and will be shipped within 120 days from the rule’s effective date.
CBP has removed a State Department license exemption from the Automated Export System that has been revised by the Directorate of Defense Trade Controls, according to a May 19 CSMS message. The exemption, which was revised last year (see 2005120027), was removed from the AES Trade Interface Requirements appendix for International Traffic in Arms Regulations exemption codes after an April 19, 2020, end date for the exemption, CBP said. The exemption is no longer accepted in Electronic Export Information submissions. Exporters that need to update previously accepted shipments should refer to the exemptions section of the DDTC’s frequently asked questions site or contact the DDTC response team, CBP said.
Parties will soon be able to submit information for transactions relating to U.S. foreign investment reviews through an online portal, the Treasury Department said May 18. Treasury will launch a web portal later this month to allow filers to submit information through a case management system, which will send all “transaction-related information” to the Committee on Foreign Investment in the U.S. Filers who plan to submit a notice or declaration later this month should create an account at ID.me, an online identity verification program that is required to access the CFIUS CMS. Treasury said it will release more information about the CMS before its release. The agency implemented the Foreign Investment Risk Review Modernization Act (see 2002200002) earlier this year and recently announced CFIUS filing fees for certain transactions (see 2004280027).
The Taiwan Semiconductor Manufacturing Corporation will build a chip factory in Arizona in a move expected to boost U.S. semiconductor competitiveness amid the trade war with China. Production is expected to begin in 2024, the TSMC said May 15, and will reach a “20,000 semiconductor wafer per month capacity.”
The U.S. completed its first shipment of oil to Belarus last week, clearing a path for new “trade opportunities” for U.S. oil exporters, the State Department said May 15. State urged Belarus to continue to “increase the access of American businesses to its market” to allow more purchases from U.S. exporters. “The United States stands ready to meet the import requirements of countries that, like Belarus, want to benefit from enhanced energy security based on supply diversification,” the agency said.
The State Department approved a potential $230 million military sale to Hungary for 60 AIM-120C-7/C-8 AMRAAMER missiles and other equipment, the Defense Security Cooperation Agency said May 8. The prime contractor is Raytheon.
The Federal Emergency Management Agency will hold a virtual meeting May 21 to discuss with industry the terms of a potential agreement to produce personal protective equipment, FEMA said in a notice. The agreement would “maximize the effectiveness of the distribution of critical health and medical resources nationwide” to respond to pandemics, FEMA said, including establishing terms for coordination between the federal government and PPE manufacturers. “The agreement would establish the terms, conditions, and procedures under which participants agree voluntarily to contribute and facilitate health and medical resource production and distribution capacity as requested by FEMA,” the agency said. FEMA is currently overseeing export control decisions on U.S. shipments of PPE (see 2004210022).
The State Department approved a potential military sale to the United Arab Emirates worth $556 million, the Defense Security Cooperation Agency said May 7. The sale includes more than 4,500 “MRAP” vehicles, the DSCA said. The vehicles will be sourced from U.S. Army stocks as “excess defense articles,” the agency said.
The State Department approved a potential military sale to Egypt worth $2.3 billion, the Defense Security Cooperation Agency said May 7. The sale includes 43 AH-64E Apache attack helicopters, the DSCA said. The principal contractors are Boeing and Lockheed Martin.