The U.S. is preparing several new restrictions on exports of semiconductor manufacturing equipment to China to further impede Beijing’s semiconductor capabilities, according to multiple reports.
The Bureau of Industry and Security on Aug. 2 suspended the export privileges of a Venezuela-based cargo airline for violating U.S. export controls. The agency said Empresa de Transporte Aéreocargo del Sur, also known as Aerocargo del Sur Transportation Company, acquired control of a U.S.-origin Boeing aircraft from Mahan Air -- Iran’s sanctioned airline -- and illegally flew that plane between Venezuela, Iran and Russia. BIS suspended the airlines’ export privileges for 180 days, barring it from participating in transactions subject to the Export Administration Regulations.
The Office of Foreign Assets Control’s recent finding of a violation sent to Midfirst Bank can serve as useful insight into OFAC’s compliance expectations, various firms focusing on compliance said. The enforcement notice, which outlined several mistakes by the bank in its attempt to comply with U.S. sanctions, also represents a warning to companies with insufficient screening processes, the firms said.
The Bureau of Industry and Security updated its restricted aircraft list with 25 foreign-produced planes that have violated U.S. export controls, the agency said in an news release. BIS said the commercial planes -- which are the first foreign-produced aircraft added to the list -- violated the Export Administration Regulations’ de minimis threshold for U.S. components by flying into Russia or Belarus. Certain activities involving the planes, including maintenance and repair, are now subject to restrictions outlined in General Prohibition 10 of the EAR.
The Guangzhou Automobile Group -- the Chinese state-owned partner of Stellantis -- accused the European auto giant of disrespecting Chinese customers by shutting down its only Jeep factory in China. In announcing the shutdown, Stellantis cited local political interference in China and worries that political tensions could result in sanctions on the carmaker (see 2207280018). In a statement, GAC Group, as Guangzhou is known, said its joint venture with Stellantis “has not been able to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years,” Bloomberg reported July 29. Stellantis CEO Carlos Tavares said the reasons for leaving China were steeped in "broken trust" with the GAC Group along with Chinese policy, Bloomberg said.
The EU General Court in a July 27 judgment rejected RT France's bid to annul sanctions levied against it in March. The restrictions bar EU operators from broadcasting and facilitating the broadcast of RT France and suspend any broadcasting license or arrangement with the media outlet. The court ruled that the European Council didn't violate the law in finding that RT France was controlled by the Russian government and issues statements backing the war in Ukraine. Further, the court dismissed the media company's challenge to the council's reasons for imposing the sanctions, the fairness of the procedures used to make the listing and the arguments that the sanctions were a disproportionate restriction on RT France's right to freedom of expression.
The European Commission updated its Russian sanctions frequently asked questions pages, providing guidance on gold imports, aviation, asset freezes and oil reporting obligations. The gold imports FAQs cover why the EU introduced the import ban and what it covers, and whether processed gold, including gold jewelry, is included in the ban and if there are exceptions. The aviation FAQs include whether measures affect a non-Russian operator that operates a Russian registered aircraft, or if the ban concerns private flights owned or rented by Russian citizens or EU or third-country registered aircraft rented by Russian citizens.
President Joe Biden last week extended for one year beyond Aug. 1 a national emergency that authorizes certain sanctions against people who undermine Lebanon’s government or contribute to the “deliberate breakdown in the rule of law” in Lebanon, the White House said. Certain “ongoing activities,” including Iran’s “continuing arms transfers” to Hezbollah, “serve to undermine Lebanese sovereignty” and contribute to political and economic instability in the region, the White House said.
The Office of Foreign Assets Control on July 29 sanctioned two people and four organizations for supporting Russia's "global malign influence operations and election interference activities." The sanctions target Natalya Valeryevna Burlinova, founder and president of an entity that relies on state funding and has ties to Russian intelligence services. The agency also designated Aleksandr Viktorovich Ionov, Russian Federal Security Service (FSB) "co-optee," who has worked to "promulgate the Kremlin’s disinformation and malign influence agenda," OFAC said. Also sanctioned are the Anti-Globalization Movement of Russia, Ionov Transkontinental, STOP-Imperialism and the Center for Support and Development of Public Initiative Creative Diplomacy.
CBP hopes to issue a notice of proposed rulemaking to eventually mandate electronic export manifest (see 2207180041 and 2205060015) by the end of this year, said Jim Swanson, an agency official. The agency has written the regulations for ocean, air and rail manifest but is in the middle of a lengthy government review process before it can publish the NPRM in the Federal Register and officially request public comments, Swanson said.