The Census Bureau is unsure how much longer it needs to decide whether to eliminate export filing requirements for shipments to Puerto Rico, saying it is still reviewing public comments and speaking with industry officials, Puerto Rican researchers and other U.S. agencies that use the data. Perhaps most important, the agency remains unsure whether it can use alternative data sources to compensate for all the information that would no longer be collected if Census decides to nix the Electronic Export Information requirements, said Omari Wooden, a senior Census official.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The Commerce Department is open to establishing a national export strategy to help increase foreign market access for U.S. manufacturers, farmers, carmakers and other industries, Commerce Secretary Gina Raimondo said. Commerce, she said, has noticed a trend of “declining exports,” particularly for smaller companies, and wants to provide more support for U.S. exporters alongside efforts to boost domestic manufacturing in semiconductors and other critical goods (see 2103110047).
While the U.S. needs a comprehensive technology strategy, it first should create new bureaucratic processes to implement that strategy or else risk uncoordinated policies with little impact, the Center for a New American Security said in an April 20 report. The report, which builds off previous research (see 2103160047) by the think tank that called for a better technology strategy to counter China, argues that current U.S. agencies and government bodies are unequipped to maximize the effectiveness of export controls and other trade policy tools.
The Senate Foreign Relations Committee passed its comprehensive China bill with several amendments, sending a bill to the Senate floor that could update China-related sanctions, export controls and foreign investment reviews. Senators said they expect the Strategic Competition Act of 2021 -- which would authorize a host of measures to address trade and technology competition issues with China and expand the jurisdiction of the Committee on Foreign Investment in the U.S. (see 2104080066) -- to garner broad bipartisan support before the full Senate.
Three top Senate Democrats urged President Joe Biden to reverse a Trump-era rule that transferred export controls of firearms, ammunition and other defense items from the State Department to the Commerce Department, saying the transfer creates less oversight over dangerous weapons exports. The January 2020 rule (see 2001170030) put in place “less-restrictive controls” over a range of lethal weapons, Sens. Bob Menendez of New Jersey, Dianne Feinstein of California and Patrick Leahy of Vermont said in an April 19 letter. They also said the transfer eliminated Congress’ ability to “be aware of and legally disapprove” of sales above $1 million.
Despite more scrutiny from the U.S., Chinese foreign direct investment in North America grew by almost half in 2020 compared to 2019, according to an April 19 Baker McKenzie report. But trade and investment experts cautioned industry about placing too much stock in those numbers, saying two-way U.S.-China investment remains “very low” and Chinese firms are still wary about gaining approval from the Committee on Foreign Investment in the U.S.
Congress should codify regulations from a November executive order that imposed investment bans on certain Chinese companies with ties to the military, said Matt Pottinger, a former deputy national security adviser during the Trump administration. He also said the U.S. should take a stricter stance on export licenses involving semiconductor shipments as China tries to become the world’s “only” supplier of advanced technologies.
The Office of Foreign Assets Control fined an Oklahoma steel manufacturer about $435,000 for violating U.S. sanctions against Iran, OFAC said April 19. Alliance Steel committed 61 sanctions violation by maintaining a “business relationship” with an Iranian company for five years, OFAC said.
The U.S. will likely continue to update the regulations for the Committee on Foreign Investment in the U.S., which has created some complications for industry, trade lawyers told the American Bar Association April 15. The recently revised regulations have also severely reduced incoming Chinese investments, which could have long-term implications, one lawyer said.
President Joe Biden signed a sweeping executive order authorizing new sanctions against Russia, allowing the U.S. to designate people and companies operating in Russia’s defense and technology sectors or involved in attempts to influence foreign elections. The order, announced April 15, also authorizes sanctions against a range of Russian government officials and their associates as well as people and companies involved in Russian corruption, actions to “undermine democratic processes,” and human rights violations and transactions designed to circumvent U.S. sanctions.