The White House is delaying decisions on Huawei export licenses after China announced it was suspending purchases of U.S. agricultural products, Bloomberg reported Aug. 8. President Donald Trump announced in June that the U.S. planned to loosen restrictions on Huawei, but that promise was contingent on China increasing U.S. agricultural purchases, Bloomberg said. In an Aug. 1 tweet, Trump said China is not buying enough agricultural goods and announced a 10 percent tariff on $300 billion worth of Chinese goods.
The Japan-South Korea trade dispute may impact the U.S. and potentially require the intervention of U.S. export control officials, experts said during an Aug. 7 Heritage Foundation panel discussion. They also said it will be difficult for South Korea to get back on Japan’s so-called “whitelist” of preferential trading partners, a move that could hurt Japanese companies more than any other party.
The Commerce Department's Bureau of Industry and Security denied a man export privileges after he was convicted of illegally exporting a “barrel and breech casing” for a Glock carbine pistol to Latvia, Commerce said Aug. 5. Michael Shapovalov, who was sentenced to 34 months in prison after his May 2018 conviction for violating the Arms Export Control Act, is banned from exporting from the U.S. until May 23, 2025.
The Commerce Department's Bureau of Industry and Security denied a man export privileges after he was convicted in August 2018 of helping to illegally export about 1,000 rounds of ammunition from the U.S. to Mexico in violation of the Arms Export Control Act, Commerce said Aug. 5. Juan Jesus De La Rosa was sentenced to 27 months in prison and three years of supervised release for aiding and abetting the export and trying to export the ammunition, which were designated as defense items on the U.S. Munitions List and required a State Department license. De La Rosa is banned from exporting from the U.S. until Aug. 28, 2028.
The Commerce Department Bureau of Industry and Security denied a woman export privileges after she was convicted of illegally exporting space communication technology from the U.S. to Hong Kong in violation of the International Emergency Economic Powers Act, Commerce said Aug. 5. Si Chen was convicted in October 2018 and sentenced to 46 months in prison and three years of supervised release. She is banned from exporting items from the U.S. until Oct. 10, 2028, Commerce said.
The Treasury’s Office of Foreign Assets Control on Aug. 6 issued a set of Venezuela-related frequently asked questions, amended 12 general licenses, created 13 new general licenses and released a Venezuela sanctions guidance detailing which types of transactions are authorized between U.S. companies and Venezuela. The moves were in coordination with President Donald Trump’s Aug. 5 executive order that expanded certain sanctions on Venezuela.
The Commerce Department plans to issue decisions on Huawei-related export license applications “within the next few weeks,” Secretary Wilbur Ross said July 23 on Bloomberg Television. Ross said Commerce has received about 50 applications from 35 companies. “We’re processing them as quickly as we responsibly can,” he said.
The Commerce Department’s presumption of denial for Huawei-related export licenses may no longer apply, Akin Gump lawyers said during a July 18 webinar.
Commerce plans to eliminate license exceptions for civil end-users from the Export Administration Regulations, according to an alert from Akin Gump. Commerce did not say when the changes would take effect, the alert said, but U.S. companies should “prepare for the possibility that currently exempted activities may soon require specific licenses” from the Bureau of Industry and Security. The Office of Information and Regulatory Affairs recently completed a review of the changes, according to a notice on the OIRA website.
Three trade experts discussing the role of technology in the U.S.-China trade war were split over how and when the two nations will reach a trade deal, with two saying they expect a deal soon and one saying China is willing to wait until a potentially new administration in 2020. But the experts, speaking July 18 during a panel at the Brookings Institution, agreed on one point: If there is a deal, the ban on Huawei Technologies will be lifted.