The Office of Foreign Assets Control fined Amazon more than $130,000 for violating several U.S. sanctions programs and failing to follow reporting requirements for hundreds of transactions. Amazon processed online orders sent to a range of sanctioned countries in the Middle East and Asia and did not follow the agency’s reporting requirements for more than 300 transactions conducted under a Crimea general license, OFAC said in a July 8 notice. OFAC said the violations were caused by “deficiencies” in Amazon's sanctions screening program.
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.
With the USMCA in effect, U.S. and Mexican companies will closely monitor a July 8 meeting between President Donald Trump and Mexican President Andres Manuel Lopez Obrador, which is expected to feature talks on USMCA implementation and trade cooperation, experts said. Industry hopes the meeting -- Lopez Obrador’s first visit with Trump -- helps to strengthen the two countries’ commitment to USMCA and underscores attempts to reshore supply chains, reducing dependency on trade with China, the experts said.
The United Kingdom on July 6 set its first sanctions under its new human rights sanctions regime, designating 49 people and organizations because of human rights violations. The sanctions, which have been hinted at by officials for months and were expected this summer (see 2007020014 and 2001100046), marked the first time the U.K. has issued its own designations for human rights abuses, with additional sanctions expected in the coming months, the Foreign and Commonwealth Office said July 6. The U.K. also issued a sanctions guidance for industry and an outline of available licenses, and said European Union sanctions will continue to apply in the U.K. until it leaves the EU on Dec. 31.
The Senate unanimously passed a bill July 2 that authorizes sanctions against Chinese officials and foreign banks associated with passing Hong Kong’s so-called national security law. The bill passed in the House July 1 without opposition and will now be sent to the White House to be signed by President Donald Trump. The Senate passed a similar bill last month (see 2006250043) but adopted the House version after technical changes were made.
Industry should expect the Bureau of Industry and Security to dedicate significant resources to enforcing its new export restrictions on shipments to military end-users and end-uses, export control experts said. Although the rule (see 2004270027), which took effect June 29, increased license restrictions for shipments to China, Russia and Venezuela, companies should expect increased enforcement and monitoring specifically for exports to China as the Trump administration hardens its stance on countering China’s civil-military fusion efforts, the experts said.
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).
The Trump administration is considering more measures to punish Beijing for interference in Hong Kong, including sanctions outlined in the Hong Kong Autonomy Act, Secretary of State Mike Pompeo said. While Pompeo declined to say how far the administration would go to sanction China, he said President Donald Trump wants to ensure Hong Kong is “treated just like mainland China.”
The Bureau of Industry and Security clarified the agency’s suspension of license exceptions for exports to Hong Kong, saying it will no longer allow exceptions for items subject to the Export Administration Regulations “that provide differential treatment than those available” to China. In a guidance issued after its June 29 suspension announcement (see 2006290063), BIS said U.S. exporters cannot use license exceptions for any shipments to Hong Kong “except for transactions that would otherwise be eligible for a license exception” for mainland China.
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.
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).