Although the U.S. continues to impose new sanctions and export controls against Russia, the Commerce Department’s $300 million penalty assigned to Seagate Technologies last month signals that the U.S. is increasingly prioritizing enforcement, particularly against China, law firms said this month. They also said the fine shows that Commerce is looking to strictly enforce its foreign direct product rule restrictions, even for violations of the rule that may not be obvious.
U.S. export controls and investment restrictions can successfully maintain America’s lead over China in sensitive technologies, including semiconductors, said Michele Flournoy, a former Defense Department official. But she also warned against policies that could push the U.S. toward decoupling from Beijing, saying the government needs to do a better job working with industry to craft the restrictions.
World Trade Organization members during April 25-28 "Fish Week" talks showed a willingness to embark on text-based negotiations on fisheries subsidies talks, the WTO said. While the first Fish Week, held in March (see 2303270014), centered on what members wanted to see from the second phase of the talks, the second Fish Week looked at how these objectives would be achieved via bilateral consultations, small group meetings and two plenary meetings, the WTO said.
An influx of delisting requests spurred by the rapid pace of sanctions against Russia could strain already limited resources at the Treasury Department, former officials and lawyers said, increasing fears that removal efforts will be overlooked even as law firms see an uptick in business.
Bed Bath & Beyond (BBBY) said shipping company Orient Overseas Container Line Limited (OOCL) failed to meet "minimum quantity commitments" as part of a contract with BBBY and imposed unfair detention and demurrage charges. In an April 27 complaint filed with the Federal Maritime Commission, BBBY asked the FMC to investigate OOCL for violations of the Shipping Act, order the company to put reasonable detention and demurrage practices in place and require it to pay reparations for the conduct.
NEW ORLEANS -- CBP is considering “several plans” to modernize its export penalty process, including one that could allow the agency to issue penalty notices electronically instead of through physical mail, said Brian Semeraro, chief of CBP’s outbound enforcement policy branch. Semeraro, speaking during the National Customs Brokers & Forwarders Association of America’s annual conference this week, said CBP is looking at “different ways to utilize the electronic petition processes,” which could reduce “the constant mail back and forth.”
The State Department’s Directorate of Defense Trade Controls initiated more end-use checks in FY 2022 compared with FY 2021 and saw an increase in in-person site visits due to loosened COVID-19 pandemic-related travel restrictions. In its annual Blue Lantern report released this week -- which details the agency’s end-use monitoring efforts on export-controlled defense articles and services -- the agency said it began checks on 305 export authorizations or authorization requests, an uptick from the 281 checks it began in 2021 (see 2204180030).
Compliance departments are “well-poised to handle” DOJ’s recently revised policies for how it assesses corporate compliance programs’ approach to communications platforms (see 2303030056), and “it’s totally within their competency and wheelhouse to do so,” said Julie DiMauro, a compliance professional with Global Relay, which helps businesses supervise and report communications intelligence. DiMauro rebutted comments from a former DOJ official who said this month that the new policies are “virtually unenforceable” (see 2304050081).
European Commission Executive Vice President Valdis Dombrovskis said last week that with the staggering costs of rebuilding Ukraine after the invasion and indiscriminate shelling and bombing by Russian forces, the EU is doing legal analysis on how it could use "confiscated Russian assets," whether seized or frozen, to help pay for Ukraine's reconstruction.
China has become a “world leader” in space and missile technologies despite “far-reaching” U.S. export controls, said Kevin Pollpeter, a senior research scientist at the Center for Naval Analysis. Pollpeter, speaking during a U.S.-China Economic and Security Review Commission hearing last week, said China’s space and missile programs are “not only closing the gap with the United States, but are also increasingly innovative.” He noted that the director of national intelligence recently warned that China could reach “world-class status” in most space technology areas by 2030.