The owner of a Chicago technology company was charged with illegally exporting computer equipment to a Pakistani government nuclear research agency, the Justice Department said Sept. 21. The indictment charges Chicago-area resident Padula Syed, who owns Chicago-based BSI USA as well as Pakistan-based Business System International Pvt. LTD. Syed and Business Systems International were charged with conspiracy to violate the International Emergency Economic Powers Act and foreign trade regulations, and violating IEEPA.
The Bureau of Industry and Security added 47 entities and individuals to its Entity List for “acting contrary” to U.S. national security and foreign policy interests. The additions include entities in Canada, China, Hong Kong, Iran, Malaysia, Oman, Pakistan, Thailand, Turkey, the United Arab Emirates and the United Kingdom. Designations were for a range of illegal procurement activities, including sending nuclear-related items and other products to Iran. BIS will also correct four existing entries under China.
The Canada government issued the following trade-related notice as of Sept. 16 (some may also be given separate headlines):
The U.S. is seeking to seize more than $955,000 belonging to two China-based companies for acting as intermediates for North Korea’s purchase of telecommunications equipment from ZTE, the Department of Justice said Sept. 11. The companies -- Ryer International Trading Limited and Rensy International Trading Co., Limited -- allegedly helped North Korea illegally buy millions of dollars worth of U.S.-origin parts from ZTE between 2010 and 2016 by negotiating contracts, processing payments and receiving goods on behalf of North Korean customers. DOJ alleged Ryer and Rensy also acted as conduit for North Korean money laundering through sanctioned North Korean banks.
China launched a countervailing duty investigation into imports of certain monoalkyl ethers of ethylene glycol and propylene glycol originating in the U.S., the Ministry of Commerce said Sept. 14, according to an unofficial translation. China said it expects to complete the investigation by Sept. 14, 2021.
The United Kingdom and Japan agreed Sept. 11 to a free trade accord that will reduce Japanese tariffs on a range of U.K. agricultural products and benefit exporters of Japanese cars and auto parts. The U.K. said the deal, the first major trade agreement for it as a nation independent of the European Union, will eliminate tariffs on 99% of exports to Japan.
The Bureau of Industry and Security should impose targeted export controls on specific facial recognition software but take care not to restrict the entire technology category, some of which can be used for benign purposes, IBM said. While some technologies are “clear use-cases that must be off limits” for export, such as artificial intelligence-powered software used for mass surveillance and human rights abuses, other technologies are safe for everyday uses, the company said.
The Canada government issued the following trade-related notices as of Sept. 9 (some may also be given separate headlines):
While the changes to de minimis for Canada and Mexico have been heavily discussed, Doug Band, the Canada Border Services Agency's director general of trade and anti-dumping, directed traders to the revisions' finer points during a CBP Virtual Trade Week seminar on the USMCA, known as CUSMA in Canada.
China plans to launch a system to electronically exchange origin and other trade information with Indonesia, China’s customs authority said in a Sept. 2 notice, according to an unofficial translation. The system, which will be launched Oct. 15, will allow for preferential treatment for exchanging certain certificate of origin documents and is designed to lead to more efficient declarations.