Two U.S. readouts of the meetings between deputies from the three USMCA countries focused on a multitude of irritants and concerns the U.S. has with Canada and Mexico but didn't mention talks on how to resolve the U.S. violation of USMCA in its interpretation of the auto rules of origin (see 2301110058). Mexico and Canada did not issue their own readouts.
Compliance with a new country of origin (COO) reporting requirement in the Automated Export System would be difficult for smaller and occasional exporters, many of which would likely have to develop new processes to report that information, the National Customs Brokers & Forwarders Association of America told the Census Bureau. The NCBFAA urged Census to research whether it can collect that COO information from other sources before it decides to move forward with the proposal.
The Supreme Court of the U.S. held oral arguments on Jan. 17 over Turkish state-owned Halkbank's claims that the U.S. judicial system does not have the jurisdiction to hear criminal cases against foreign governments and their state-owned entities. Halkbank is attempting to shirk prosecution over its efforts to help Iran evade U.S. sanctions in violation of the International Emergency Economic Powers Act. The bank's arguments received a mixed reaction from the Supreme Court, with numerous justices expressing doubt over the plaintiff's claims that it is immune from criminal prosecution under the Foreign Sovereign Immunities Act (Turkiye Halk Bankasi A.S. v. U.S., #21-1450).
Two businessmen -- Russian national Vladislav Osipov and British national Richard Masters -- were charged for their roles in a sanctions evasion and money laundering scheme connected with the ownership and operation of the $90 million superyacht Tango, DOJ announced. The yacht is owned by sanctioned Russian oligarch Viktor Vekselberg. Per the terms of the indictments unsealed Jan. 20 in the U.S. District Court for the District of Columbia, Osipov and Masters are accused of conspiracy to defraud the U.S. and commit offenses against the U.S., violating the International Emergency Economic Powers Act and money laundering, DOJ said.
The World Trade Organization published the agenda for the Jan. 27 meeting of the Dispute Settlement Body. It includes U.S. status reports on the implementation of DSB recommendations on antidumping measures on certain hot-rolled steel products from Japan; antidumping and countervailing measures on large residential washers from South Korea; certain methodologies and their application to antidumping proceedings involving China; antidumping and countervailing duties on ripe olives from Spain; and Section 110(5) of the U.S. Copyright Act. A status report also is expected from Indonesia on measures related to the import of horticultural products, animals and animal products; and from the EU on measures affecting the approval and marketing of biotech products, and on safeguard measures on certain steel products.
The Bureau of Industry and Security this week updated its October chip controls on China to also extend the restrictions to Macau. BIS said Macau -- as a special administrative region of China -- presents a “risk of diversion” of export controlled items and should be subject to the same license requirements introduced by BIS’ October rule, which was intended to restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors (see 2210070049).
The U.S. should allow research labs working on sensitive technologies, including artificial intelligence, to continue operations in China despite new export controls limiting their activities, technology policy experts said in a report this week. They also said the U.S. should create a new research security institution to help academia and industry work through “ethically or geopolitically difficult questions” on research security.
The Office of Foreign Assets Control Dec. 30 fined a multinational Danish-based refrigeration manufacturer more than $4.3 million for violating U.S. sanctions against Iran, Syria and Sudan. Danfoss, which also sells air conditioners and other cooling and heating products, illegally directed customers in all three countries to make payments through a U.S. financial institution, OFAC said in an enforcement notice. The company also made illegal payments to entities in Iran and Syria.
The Bureau of Industry and Security issued a 180-day temporary denial order Dec. 13 against three people and two companies for illegally sending controlled exports to Russia as part of a Moscow-led sanctions evasion scheme. Along with the denial order, DOJ indicted the three individuals, along with others, on charges related to the illegal exports, including money laundering, wire fraud, bank fraud and conspiring to defraud the U.S.
The Census Bureau deployed a new informational message in the Automated Export System Automated Commercial Environment (ACE) certification environment Jan. 10, which will be alerting exporters when the U.S. Principal Party in Interest address state field and state of origin field don’t match (see 2212220023). In a Jan. 9 CSMS message, CBP reminded industry that exporters and software developers submitting Electronic Export Information through the Electronic Data Interface will “need to program and test their software so that their clients receive the new response code message.” CBP also said the message will be active in the ACE production environment on Feb. 7.