The Office of Foreign Assets Control announced new Cuba sanctions and restrictions to limit the use of certain licenses and prohibit a range of activities in Cuba. The sanctions include restrictions on lodging in Cuba, professional research and “public performances.” The changes, outlined in a final rule released Sept. 23, are effective Sept. 24.
The semiconductor industry was surprised by the U.S.’s increased restrictions on Huawei (see 2008170029) and expects significant short-term supply chain disruptions, industry officials and experts said in interviews. Officials also thought the initial version of the rule, issued in May (see 2005150058), was sufficient, and were frustrated that the Bureau of Industry and Security did not ask for feedback on the new requirements.
The Bureau of Industry and Security on Aug. 17 added 38 Huawei affiliates to the Entity List and refined a May amendment to its foreign direct product rule, further restricting Huawei’s access to U.S. technology, the agency said in an Aug. 17 final rule. BIS also modified four existing Huawei entries on the Entity List, amended language in the Export Administration Regulations and said it will continue one cybersecurity-related authorization under its temporary general license for Huawei. The remainder of the license expired Aug. 13.
The Bureau of Industry and Security added 38 Huawei affiliates to the Entity List and refined a May amendment to its foreign direct product rule, further restricting Huawei’s access to U.S. technology. BIS said the direct product rule will now also apply to transactions where U.S. software or technology is “the basis” for a foreign-made item produced or purchased by Huawei, or when a Huawei entity is “a party to such a transaction.” Secretary of State Michael Pompeo said Huawei "has continuously tried to evade" the previous changes to the foreign direct product rule.
The Office of Foreign Assets Control issued guidance on its Sudan program and Darfur sanctions and removed and revised Sudan-related FAQs. The guidance, issued Aug. 11, clarifies that U.S. people and companies are no longer subject to OFAC’s Sudanese Sanctions Regulations but may be designated under the agency’s Darfur sanctions or captured by Commerce Department export controls.
The United Kingdom’s Department for International Trade officially removed Hong Kong as an eligible destination under 20 open general export licenses, one open general transhipment license and one open general trade control license, an Aug. 4 notice said. The U.K. also revoked two open general licenses in which Hong Kong was the only destination: a license for exports of certain dual-use goods for nonmilitary use and a license for exports of dual-use goods to any destination in Hong Kong. The moves come about a week after the U.K. imposed an arms embargo against Hong Kong due to interference from Beijing (see 2007230018).
The U.S. on July 31 sanctioned a Chinese state-controlled organization and two Chinese officials for human rights violations in Xinjiang. The sanctions target the Xinjiang Production and Construction Corps, former XPCC Party Secretary Sun Jinlong and XPCC Deputy Party Secretary Peng Jiarui.
A Pennsylvania cookware coating manufacturer was fined about $824,000 after its foreign subsidiaries violated U.S. sanctions against Iran, the Office of Foreign Assets Control said in a July 28 notice. OFAC said Whitford Worldwide Company subsidiaries in Italy and Turkey illegally exported coatings to Iran, and U.S. company employees oversaw the transactions.
The United Kingdom’s arms embargo against Hong Kong goes beyond crowd control equipment and will cover any item that could be used for “internal repression,” the U.K. said in a July 22 notice. The embargo, announced by Foreign Secretary Dominic Raab July 20 (see 2007210042), covers military aircraft, helicopters, weapons platforms, armored vehicles and lethal weapons, such as machine guns, large-caliber weapons, bombs, torpedoes, rockets and missiles. The U.K. also said the embargo will cover “specially designed components” of those weapons as well as ammunition. The U.K. said it will revise its Hong Kong open general licenses “to bring them in line with restrictions on China.”
The Office of Foreign Assets Control on July 22 revised nine FAQs to reflect changes made to two Ukraine-related general licenses involving Russian automotive conglomerate GAZ Group issued earlier this month (see 2007160044). The FAQs clarify the authorizations in the licenses and update their language to reflect new expiration dates.