The Trump administration issued an advisory for companies doing business with China’s Xinjiang region, which could expose companies to sanctions, export controls and forced labor risks. In a 19-page guidance issued July 1, the departments of State, Commerce, the Treasury and Homeland Security describe supply chain risks and possible sanctions exposure for companies trading with the region, and includes suggested due diligence practices. The guidance comes less than a month after President Donald Trump authorized sanctions against Chinese officials for human rights violations against the country’s Uighur population in the Xinjiang region (see 2006170064).
CBP Executive Assistant Commissioner for Trade Brenda Smith told reporters June 30 that CBP staffers “are very well-prepared to implement the agreement” that takes over from NAFTA at midnight.
Mexican companies may struggle to comply with U.S.-Mexico-Canada Agreement provisions due to uncertainty caused by the COVID-19 pandemic and confusion about certificate of origin provisions, two former Mexican government officials said. Some Mexican businesses may opt to forgo the preferential treatment under USMCA, which takes effect July 1, and instead pay most favored nation rates on imports until they better understand the agreement’s provisions, the former officials said.
A Canadian woman was sentenced to 18 months in prison for illegally exporting gas turbine engine parts from the U.S. to Iran, the Justice Department said June 26. Angelica Preti, who worked as the export operations manager at a Canadian forwarding and customs brokerage services provider, helped to ship U.S.-origin engine parts and valve assemblies to Iran by concealing Iran as the end-user, the agency said. She also filed false electronic export information. During Preti’s time as export manager, the company was involved in 23 shipments exported from the U.S. traced to Iran destinations. DOJ said Preti violated the International Emergency Economic Powers Act and U.S. sanctions.
The U.S. will suspend certain export license exceptions for shipments to Hong Kong and ban exports of U.S.-origin defense goods to the region, the Trump administration said June 29. The administration also plans to further restrict sales of dual-use technologies to Hong Kong to bring those measures in line with restrictions imposed on exports to mainland China. The administration said it is imposing the restrictions because of China’s infringement in Hong Kong’s autonomy (see 2005290047).
The Bureau of Industry and Security postponed the effective date for certain filing requirements outlined in an April rule on military-related exports (see 2004270027). The agency said this week it will not require Electronic Export Information filings for some exports captured under the rule until Sept. 27 -- a three-month extension from the original June 29 effective date. Other EEI filing requirements described under the rule take effect June 29.
The Canadian government issued the following trade-related notices as of June 24 (note that some may also be given separate headlines):
Peru is aiming to digitize all of its trade operations to avoid COVID-19 exposure and to speed up cargo clearances, the Hong Kong Trade Development Council said in a June 23 notice. Peru issued regulations that will no longer require trade operators to obtain “different signatures and approvals” at ports, warehousing facilities, shipping line warehouses and maritime agency offices throughout the country, HKTDC said. Peru also emphasized that customs officials cannot require original copies of a document if it has been “properly submitted” through the country’s single window for trade. Peru hopes the regulations allow “all operations linked to the international trade logistics chain” to be conducted electronically, the HKTDC said.
The World Customs Organization issued the following releases on commercial trade and related matters:
Export Compliance Daily is providing readers with some of the top stories for June 15-19 in case you missed them.