The Trump administration successfully persuaded the Dutch government to not renew an export license for a Dutch chip manufacturer, which was poised to sell the technology to China, according to a Jan. 6 Reuters report. The administration “mounted an extensive campaign” to block the sale, which included lobbying from Secretary of State Mike Pompeo and White House officials, who shared “classified intelligence” with the Netherlands’ prime minister, Reuters said. The campaign began in 2018 after the Netherlands granted an export license to ASML, a semiconductor equipment company, to sell “its most advanced machine” to a Chinese customer.
Export Compliance Daily is providing readers with some of the top stories for 2019 in case they were missed.
Although multilateral export regimes share many of the same concerns over emerging technologies, coming to an agreement on the controls is proving increasingly difficult, according to a report by the Stockholm International Peace Research Institute. Regimes are facing issues reaching consensus due to the large number of “membership combinations” across multiple regimes, which have to take into account the needs of every state, and an inability to coordinate, the report said.
A lack of export control harmonization and an uneven playing field across the European Union are increasingly hurting Europe’s semiconductor industry, said Aude Jalabert, a trade compliance manager for Infineon Technologies and a member of the European Semiconductor Industry Association. The export licensing and control regimes across EU member states are mainly marred by inconsistencies, language barriers and a lack of staffing, Jalabert said.
Export Compliance Daily is providing readers with some of the top stories for Dec. 16-20 in case you missed them.
China will implement lowered temporary import tariffs on more than 850 products in 2020, including frozen pork, avocado, orange juice and certain types of semiconductors, China’s Ministry of Finance said in a Dec. 23 notice, according to an unofficial translation. The tariffs, which will take effect Jan. 1, 2020, are lower than the most-favored-nation rates and will be used to import “consumer goods” that are “relatively scarce,” in China, the ministry said in a statement.
A bipartisan group of 161 House members are asking U.S. Trade Representative Robert Lighthizer to open negotiations for a free trade deal with Taiwan. The letter, sent Dec. 19, was led by Rep. Steve Chabot, R-Ohio, Rep. Albio Sires, D-N.J., Rep. Mario Diaz-Balart, R-Fla., and Rep. Gerry Connolly, D-Va. “Taiwan is a longstanding ally and a like-minded partner in the Indo-Pacific region that upholds and shares our values. Taiwan is our 11th largest trading partner worldwide, the 8th largest export market for U.S. agricultural products, a major purchaser of U.S. LNG exports, and the supplier of a significant amount of the semiconductors used by our manufacturers in their finished goods,” they said. “As the trade and investment relationship with Taiwan already supports an estimated 373,000 U.S. jobs, working toward the negotiation of a high-standard and comprehensive U.S.-Taiwan bilateral trade agreement would further enhance our shared goal of enhancing the global competitiveness of U.S. industries while spurring American job creation.”
The Commerce Department plans to release its first set of proposed controls on emerging technologies in six areas, including the semiconductor and artificial intelligence sectors, a top Commerce official said. The six proposed rules (see 1912130055), which may not be released until early next year, include restrictions on items in the fields of quantum technology, semiconductor design, chemicals, biotechnology, artificial intelligence and possibly 3D printing, said Matt Borman, Commerce’s deputy assistant secretary for export administration. The controls stem from an advance notice of proposed rulemaking published more than a year ago.
The Commerce Department is considering a host of expanded restrictions on foreign shipments to Huawei containing U.S. technology, said Rich Ashooh, Commerce’s assistant secretary for export administration. The agency is discussing expanding the Direct Product Rule -- which subjects certain foreign-made products containing U.S. technology to U.S. regulations -- and a broadened de minimis rule, Ashooh said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. Ashooh’s comments confirmed details in a Nov. 29 Reuters report that said the U.S. was discussing ways to restrict more foreign exports to Huawei (see 1912040014).
An Iranian businessman was sentenced to 46 months in prison for illegally exporting carbon fiber from the U.S. to Iran, the Justice Department said Nov. 14. Behzad Pourghannad worked with two others between 2008 and 2013 to export the carbon fiber to Iran from third countries using falsified documents and front companies, the agency said.