Huawei is increasing its investments in local chip companies to stabilize its supply chain amid a host of U.S. export restrictions on the company, the Nikkei Asia newspaper reported Jan. 13. Since being cut off from certain imports from many global semiconductor suppliers, the company has invested in 20 semiconductor-related companies during the past year and a half, the report said, and is building a “small-scale chip production line for research purposes” in Shenzhen, China. Ten of Huawei’s recent investments came after the U.S. amended its foreign direct product rule in May to further restrict Huawei’s ability to source foreign-made products containing a certain amount of U.S.-origin goods (see 2008170029), the report said. Nikkei also said Huawei is receiving government support to find new “targets for investments,” with one being China-based SiEn Integrated Circuits Co., Ltd. The investment would help Huawei with a range of chip services, the report said, including design, production, packaging and testing. Huawei didn’t comment.
Country of origin cases
The United Kingdom and Canada announced a range of measures to restrict trade with China’s Xinjiang region over allegations of human rights violations committed against Uighurs and other ethnic minorities. The measures include export controls, restrictions on certain imports produced by forced labor in the region and penalties for companies that violate the measures. Both countries also issued business advisories for companies operating in the region, warning them about compliance risks and exposure to penalties.
The government of Canada issued the following trade-related notices as of Jan. 8 (some may also be given separate headlines):
The government of Canada issued the following trade-related notices as of Jan. 6 (some may also be given separate headlines):
Singapore Customs issued guidance to industry about claiming tariff benefits for goods exported to and imported from the United Kingdom under the U.K.-Singapore Free Trade Agreement (see 2012100017). The documents, issued Dec. 31, detail which tariff rates affect which imports, rules of origin criteria for exports, and the procedures for benefiting from the preferential tariffs.
The Bureau of Industry and Security renewed its temporary export control on certain artificial intelligence software as it prepares to propose the control at multilateral control groups. The control, first issued in January 2020 (see 2001030024), placed unilateral restrictions on geospatial imagery software, adding it to the 0Y521 Temporary Export Control Classification Numbers Series. BIS extended the control for one year, effective Jan. 6, a notice said.
The government of Canada issued the following trade-related notices as of Jan. 4 (some may also be given separate headlines):
Singapore announced Dec. 31 revised procedures for canceling certificates of origin and preferential COs issued by the country’s customs authority. “Do note that only unutilised CO/PCOs can be cancelled,” it said. The change, which takes effect Jan. 11, requires cancellation requests to be submitted online. Singapore said the canceled hard copy of the CO does not need to be returned to customs.
The Office of Foreign Assets Control accepted a settlement from a French bank of than $8.5 million for apparent violations U.S. sanctions against Syria, OFAC said in a Jan. 4 notice. Union de Banques Arabes et Françaises (UBAF) operated U.S. dollar accounts for Syrian financial institutions and “indirectly conducted USD business” for those accounts on behalf of the institutions through the U.S. financial system, OFAC said. UBAF agreed to remit $8,572,500 to settle its potential civil liability for 127 “apparent violations.”
The government of Canada issued the following trade-related notices as of Dec. 30 (some may also be given separate headlines):