The Bureau of Industry and Security on Feb. 4 posted a new video providing guidance on applying for a license to export biological items. The roughly 10-minute video illustrates how to determine license requirements, use licensing exceptions and apply for licenses for biological items subject to the Export Administration Regulations.
A panel of scholars and a former general consul in Hong Kong agreed that the Biden administration is likely to place more emphasis on export controls and industrial policy to support domestic semiconductor production, and less on the trade deficit and tariffs, even as the new president has to decide what to do about Section 301 tariffs at some point. They were speaking on a virtual panel about U.S.-China relations hosted by the Washington International Trade Association on Feb. 8.
Industry should expect the Biden administration’s review of Trump-era China policies -- including export controls and licensing decisions -- to take two to three months, trade lawyer Peter Lichtenbaum said. He also said the Bureau of Industry and Security will continue to adhere to the Trump administration's strict Huawei licensing policy until it’s changed by incoming political appointees, which has not yet happened.
Germany’s economics and export control authority will stop issuing paper permits and notifications for most documents beginning March 1, a Jan. 29 notice said, according to an unofficial translation. The agency said it will issue electronic permits and notices for all trade-related documents except for certain temporary export and repeated export permits, transit permits, reexport approvals and rejections, and notices of opposition, which will continue to be issued in paper form. The agency will also issue a second copy on paper for permits if a foreign customs office will not accept an electronic version.
The European Commission sent its 2020 report on export controls of dual-use items to the European Parliament and Council on Feb. 2, detailing the changes made to the export control regime, export control contingency plans for Brexit, activities of the Dual-Use Coordination Group and EU export controls data. The report covers implementation of the regulation during 2019. Of note, the report laid out the changes to the 2019 EU control list, including new controls on dual-use items such as discrete microwave transistors, signal generators with specified “Radio Frequency modulation bandwidths,” and software designed to restore operation of microcomputers after Electromagnetic Pulse (EMP) or Electrostatic Discharge Disruption (ESD); for masks and reticles designed for optical sensors; and air-launch platforms for space launch vehicles.
For weeks, dozens of container ships have dotted the waters of California's San Pedro Bay, waiting to unload at a port experiencing its highest level of congestion in years. With no space to drop their cargo, the ships sit in limbo, further slowing imports and exports and clogging a global trading system that some shippers view as broken.
The International Court of Justice threw out U.S. objections to Iran's case against the U.S.'s extensive sanctions regime that say this case is outside the court's scope. In a Feb. 3 decision, the ICJ rejected the U.S. notions that the court didn't have jurisdiction over matters of trade or transactions between Iran and third countries and of the underlying treaty in which Iran staked its claim. Iran claims that the 2018 U.S. decision to reimpose sanctions violates the 1955 Treaty of Amity, Economic Relations and Consular Rights. It brought its case to the ICJ following President Donald Trump's decision to withdraw from the Joint Comprehensive Plan of Action and reimpose sanctions. The ICJ decision cannot be appealed and will lead to the court hearing Iran's main claim on the merits next.
Commerce secretary nominee Gina Raimondo was asked several times in written questions from senators after her hearing about how she would balance the need to prevent cutting edge technologies from being shared with adversaries but also allow U.S. semiconductor manufacturers to compete with foreign companies that don't have the same restrictions on selling chips.
Mexico announced changes to its Authorized Economic Operator (AEO) program to offer customs-related benefits for maquiladora factories. One of the largest changes allows tariff relief for a period of 36 months for items imported temporarily into Mexico or with regard to maquiladora factories, merchandise transferred to companies not operating under the IMMEX (Industria Manufacturera, Maquiladora y de Servicio de Exportación) regime, KPMG said in an alert Feb. 2. Mexico also added two additional digits to its commercial identification numbers to exert more statistical control over its import and export transactions, along with eliminating certain low-volume tariff items and subheadings -- changes made effective at the end of 2020. Other changes include the possibility of canceling value-added tax certifications if companies did not timely submit their renewal request at the end of 2020. Also, firms must now evaluate the implications of “subcontracted” personnel for VAT certification purposes, as the information from suppliers must be updated, due to labor reforms in USMCA.
House Foreign Affairs Committee Chairman Rep. Gregory Meeks, D-N.Y., joined by fellow committee members Rep. Karen Bass, D-Calif., and Rep. Jim Himes, D-Conn., asked the Biden administration to reinstate Magnitsky Sanctions against Dan Gertler, an Israeli businessman with mining operations in the Democratic Republic of the Congo.