The Bureau of Industry and Security added a Chinese electronics company and a Canada-headquartered technology software company to the Entity List for trying to illegally acquire U.S. items or for being involved in other activities that are “contrary” to U.S. national security and foreign policy, the agency said Feb. 26. It also removed one United Arab Emirates-based entity from the Entity List.
The U.S. announced a new set of sweeping Russia-related export controls and sanctions last week to mark the two-year anniversary of Moscow’s invasion of Ukraine and to respond to Russian opposition figure Alexei Navalny's death in prison. The measures include nearly 100 additions to the Commerce Department’s Entity List, more than 500 sanctions designations by the Treasury and State departments and new government guidance, including a new business advisory to warn companies about Russia-related compliance risks.
The Federal Maritime Commission issued its long-awaited final rule for new demurrage and detention billing requirements, describing the information carriers and marine terminal operators must include in their invoices, clarifying which parties can be billed and under what time frames, outlining the processes for disputing charges, and more.
Canadian exporters are increasingly seeing delays when applying for and receiving export permits, especially for shipments to Turkey, the United Arab Emirates and Saudi Arabia, said John Boscariol, a trade lawyer with McCarthy Tétrault. Boscariol, speaking during a virtual event this week hosted by the American Bar Association, said none of those countries are “prohibited destinations” under Canadian export regulations, but the government has still been taking “extra time” in evaluating permits.
The Bureau of Industry and Security this week eliminated some license requirements for exports of certain cameras, systems and related components, which the agency said will help U.S. exporters better compete with foreign firms and reduce licensing burdens. The final rule, released Feb. 22, also introduces a new control for certain high-speed cameras that BIS said pose proliferation risks.
Canada, Germany and the Netherlands released a joint advisory this week to give their companies guidance on how they can identify and report suspected Russian sanctions and export control evasion. The advisory, issued by the financial intelligence units of each country, includes a list of red flags, suggestions for customer due diligence and various case examples of Russian companies trying to evade sanctions.
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The U.S. will announce "major" new sanctions against Russia this week, President Joe Biden told reporters Feb. 20 before leaving on a campaign trip. He said his administration will be releasing new sanctions on Russia as part of a package that will be announced Feb. 23.
The EU and the U.S. should try to reach a more “concrete” set of outcomes before the next Trade and Technology Council meeting in April and may discuss making the body permanent, said Valdis Dombrovskis, the EU’s top trade official. He said the two sides are “fleshing out new ideas” on supply chain, export controls and investment screening issues, and they want to make progress before the current European Commission term ends in October and before the upcoming U.S. presidential election.
Industry lawyers and advisers see the Bureau of Industry and Security's revamped voluntary disclosure policies as a positive set of moves that could reduce compliance burdens on exporters and encourage more companies to come forward with tips about their competitors. But at least one former government official said corporations should remain skeptical about the changes until BIS offers more clarity about how it will implement them in practice.