The Shanghai-based Xin Bai law firm released a May report on sanctions in China (see 2101110042), providing an overview and “practical information” on China’s evolving sanctions regime. The report lays out the framework of China’s sanctions legislation, including what types of sanctions it can impose, the scope of those restrictions, potential penalties, compliance requirements for businesses, and the export licensing and reporting process.

The European Commission in a May 27 opinion clarified two questions on national competent authorities (NCAs) requirements regarding assets frozen under various sanctions. One question asked whether it's legal under the EU's Libyan sanctions to liquidate an EU investment fund compartment that holds a listed entity's shares if the proceeds are then immediately frozen in a segregated EU bank account. The second involves whether it is possible under the Syrian sanctions to transfer a frozen bank account from an EU-based branch to the United Kingdom parent bank. In answering both, the commission focused on ensuring no one could use the assets.

New European Union export controls on dual-use goods meant to promote human rights have the effect of shifting legislative authority from a member state's legislative body to its regulatory arm, Sheppard Mullin said in a May 14 analysis. Officially passed on March 26, the human rights export controls allow, among other things, a member state to impose a prohibition on the exports of items not on the Dual-Use Control List for human rights considerations. Subsequently, other member states are also prohibited from making unlicensed exports of these items if they have been notified by the appropriate competent authorities that the items are intended to be used for human rights violations. “In Member States whose legislation does not empower their licensing authorities unilaterally to impose export licensing requirements on new items, the Regulation effectively transfers legislative authority from one organ of Member State government (the legislature) to another (the export licensing authority),” Sheppard Mullin said.

European individuals and entities should not be allowed to cancel contracts with entities in Iran, or other countries sanctioned by third parties, solely on the basis of seeking to avoid third party sanctions on that nation, a legal adviser to the Court of Justice of the European Union said in a May 12 opinion. Advocate General Gerard Hogan said in the non-binding opinion that a German company's decision to cut ties with an Iranian bank could be met by a European blocking statute that was passed to counter U.S. sanctions and to ensure that the bloc does not recognize any court ruling that enforces American penalties.

In two separate decisions, the European Union General Court dismissed two applications from listed individuals urging the court to annul the acts maintaining their designations on the EU's sanctions list. In an April 28 order, according to an unofficial translation, the court rejected a bid from Syrian businessman Ammar Sharif to depart from the sanctions list because he had failed to rebut the notion that he is no longer an “influential businessman” conducting business in Syria. Sharif did not present sufficient evidence to dispute the European Council's assessment on three of his business activities in Syria, leading to the court's decision.

The European Union's proposal for new legal framework for artificial intelligence distinguishes among different types of risk and highlights what sorts of applications would be barred under the new regulation, Mayer Brown said May 5 in an analysis. The proposal distinguishes among unacceptable, high and low risks that AI poses to users of the technology and recommendss differing levels of restrictions accordingly.

Following the United Kingdom's departure from the European Union, the European Commission does not want to see the U.K. join the bloc's 2007 Lugano Convention -- a pact that recognizes jurisdiction and enforcement of judgment in civil and commercial matters. In a May 4 communication from the EC to the European Parliament and Council, the commission said the Lugano Convention is meant for the internal market of the EU. and because the U.K. is now a “third party without a special link to the internal market,” it does not warrant access to the convention. In its stead, the commission recommends taking the normal course of action in recognizing jurisdiction with Britain and following the framework laid out by the Hague Conventions in the field of civil judicial cooperation.

Lithuanian fertilizer manufacturer Lifosa UAB does not have to pay taxes twice for transportation costs it negotiated on imports from a Belarusian company, the Court of Justice of the European Union ruled April 22. In its purchase contract, Lifosa negotiated that the Belarusian company would pay the transport costs of the goods, making them essentially priced into the goods themselves, the court said, even if those transportation costs are greater than the cost of the goods. "The costs actually incurred by the producer for their transport to the place where they have been brought into the customs territory of the European Union should not be added to the transaction value of the goods when, according to the agreed delivery terms, the obligation to cover those costs lies with the producer, even though those costs exceed the price actually paid by the importer, provided that that price corresponds to the real value of the goods, a matter which is for the referring court to establish,” the opinion said.

Representatives of the governments of the member states of the European Union appointed two judges and two advocates-general to the Court of Justice, the European Council announced in an April 21 press release. Eugene Regan of Ireland and Dimitrios Gratsias of Greece were appointed judges to the court, while Athanasios Rantos of Greece and Nicholas Emiliou of Cyprus were appointed advocates-general. The decision to appoint the four individuals will enter into force the day following its publication in the Official Journal of the EU, the release explained.