U.S. sanctions under the Trump administration have at times been imposed recklessly, which could permanently alienate allies and lead to less effective sanctions programs, according to a November Atlantic Council report. But the trend can be corrected under the incoming Joe Biden administration, the report said, which should be more patient with its sanctions use, provide a clear “endgame” and strategy for its sanctions programs, and work closer with allies to pressure dangerous actors.
The United Kingdom's Department for International Trade issued a guidance Nov. 19 on how its retained blocking regulation will be applied after Brexit. The guidance includes information on U.K. enforcement, reporting and license applications related to the regulation, which aims to offset how U.K. companies and people are impacted by U.S. extraterritorial sanctions on Iran and Cuba.
The Netherlands Parliament urged the European Union to restrict weapons exports to Turkey and impose sanctions on people in Turkey and Azerbaijan responsible for violence in the ongoing Nagorno-Karabagh conflict, according to a Nov. 18 post on the EU Sanctions blog. The parliament specifically asked the EU for a moratorium on weapons exports that could be used in the conflict, to impose sanctions on people responsible for the violence and to designate senior officials in Azerbaijan, including President Ilham Aliyev, his family members and “other key figures in the Azerbaijani offensive.” Sanctions should also be imposed on Syrian fighters in the conflict deployed by Turkey, the post said.
The U.S. plans to impose new sanctions on Iran in the “coming weeks and months,” Secretary of State Mike Pompeo said, warning of the “dangerous” consequences if the restrictions are lifted. In a Nov. 18 statement, Pompeo touted the U.S. sanctions regime against Iran and called on other countries to not give in to Iranian demands for sanctions relief.
The Office of Foreign Assets Control sanctioned two entities involved in the “exportation of forced labor” from North Korea, according to a Nov. 19 press release. The designations target Mokran LLC, a Russian construction company, and Korea Cholsan General Trading Corporation, a North Korean company operating in Russia, for exporting forced labor to generate revenue for the North Korean government, OFAC said.
Cordell Hull, who has led the Bureau of Industry and Security for the last year (see 1911180040), will resign next month ahead of the incoming Joe Biden administration. His last day will be Dec. 4, a BIS spokesperson said. “I am proud of what we have achieved on important issues of national security at BIS and I have decided to look for the next challenge in the private sector,” Hull said in a Nov. 19 statement. “I am grateful to Secretary [Wilbur] Ross for giving me this opportunity to serve.”
The U.S. needs to work closer with allies on export controls and foreign investment screening to counter China, a Republican House member and two former Trump administration officials said. They said the U.S.’s current unilateral approach to trade restrictions is not working and could cede U.S. technology leadership to China.
The United Kingdom on Nov. 18 issued a guidance on its performance targets for the Export Control Joint Unit’s export licensing system. The ECJU said it aims to process 70% of standard individual export license applications within 20 working days and 99% within 60 working days. The guidance also outlines how the system aims to advise exporters, how exporters can appeal license decisions and the ECJU’s standards.
The Office of Information and Regulatory Affairs began a review of a final rule from the Bureau of Industry and Security that would clarify the scope of certain export restrictions to reflect decisions made at the June 2019 Australia Group plenary meeting. The rule would amend the scope of Export Control Classification Number 1C991, which covers vaccines, immunotoxins, medical products, and diagnostic and food testing kits. OIRA received the rule Nov. 16.
A Chinese national who is a naturalized U.S. citizen and former Raytheon Missiles and Defense engineer was sentenced to 38 months in prison after pleading guilty to violating U.S. export controls, the Justice Department said Nov. 17. Wei Sun, who was charged in January (see 2002050025), violated the Arms Export Control Act when he took a company laptop with sensitive military technology data to China. His computer contained data controlled under the International Traffic in Arms Regulations, including technical information on a missile guidance system. Raytheon didn’t comment.