The State Department on March 31 issued its annual report to Congress certifying that Hong Kong doesn’t warrant differential treatment from mainland China under U.S. law. The report follows a determination last year by the Trump administration that Beijing’s so-called national security law was infringing upon Hong Kong’s autonomy, which led to a series of U.S.-imposed trade restrictions, sanctions and export controls (see 2005270026, 2012220053 and 2103170027). Secretary of State Antony Blinken said the U.S. will continue to work with Congress and allies “to stand with people in Hong Kong against [China’s] egregious policies and actions.”
The Justice Department and Homeland Security Investigations can do more to track, analyze and disrupt illegal smuggling of guns into Mexico, the Government Accountability Office said in a March 24 report. The GAO said the Bureau of Alcohol, Tobacco, Firearms and Explosives often receives incomplete data on thousands of U.S.-origin guns recovered in Mexican states, and said “additional data and analysis” by HSI “could enhance U.S. efforts to understand firearms sources and smuggling routes.” As a result, both agencies are “unable to assess” their progress toward stopping illegal gun exports and haven’t “fully developed performance measures” for those efforts.
Biden Admin Needs to Prioritize Tech Standards Setting, National Tech Strategy, Former Officials Say
The U.S. should form a strong global technology alliance and promote better interagency cooperation on technology policies to better compete with China and counter its dominance at standards setting bodies, former government officials said. A modern national technology strategy must start with the White House and Congress, the former officials and experts said, which should embrace some form of industrial policy and pour resources into protecting critical technologies.
The Commerce Department’s Bureau of Economic Analysis is conducting its annual mandatory survey on foreign direct investment in the U.S., a March 10 notice said. BEA said it will contact all entities “required to respond to this mandatory survey,” including U.S. businesses that have a “foreign person” with a direct or indirect ownership stake at a certain level. Completed FDI reports covering the previous fiscal year are due by May 31, BEA said, or by June 30 for companies that use the agency’s electronic reporting system.
As of March 8, all imported and exported goods that must be “analyzed and verified to accurately determine the payable tax amount” will require the tax-paying entity to temporarily pay tax on the goods before they are released, a Vietnamese customs magazine reported March 10. If additional analysis and verification of the goods results in an increase in the tax amount required of the importer or exporter, the taxpayer must pay the difference between that and its declaration within five business days of receiving the request for additional declaration. Customs authorities are responsible for handling overpaid amounts if the levied tax amount on imports and exports was too high.
The aerospace and satellite industry urged the Commerce Department to maintain staffing levels at the Office of Space Commerce until a new director is named, citing the office’s key role in aiding the U.S. aerospace industry. The office creates a “‘one-stop’ Commerce entry point” for connecting industry to other agency activities that directly affect aerospace companies, including export controls, the Aerospace Industry Association, the Commercial Spaceflight Federation and the Satellite Industry Association said in a March 9 letter. The groups specifically highlighted the importance of the office’s work to connect industry to Commerce efforts to place controls on “imagery analysis software” and promote trade. “[T]he space industry requires a strong U.S. Office of Space Commerce to drive continued growth here and abroad for U.S. space industry,” the groups said. Commerce didn’t comment.
The Commerce Department plans to soon test possible data sources to replace the Electronic Export Information submitted by exporters for shipments to Puerto Rico, an agency official said. If the data sources are accurate and reliable, the Census Bureau may remove the EEI requirements from the Automated Export System, which could reduce costs and filing obligations for shippers to the territory. But Census is unsure whether the alternative data sources will be viable and is still reviewing the proposed changes to the filing requirements, which were outlined in a September pre-rule (see 2009160033).
The Bureau of Industry and Security denied a New Jersey man export privileges after he illegally exported electronic components to Russia, BIS said in a March 8 order. BIS denied Alexander Brazhnikov export privileges for 15 years. Brazhnikov pleaded guilty to the charges in 2015 and was sentenced to 70 months in prison in 2016 (see 1607010044).
House Trade Subcommittee Chairman Earl Blumenauer, D-Ore., told an online audience that over the next four months, the U.S. government is going to set the stage for a trade program that supports environmental goals. Blumenauer, a longtime environmentalist, said he's not concerned that the European Union will dictate the terms of a carbon border adjustment mechanism, since its politicians have a head start. “We’ve had preliminary discussions, we’re going to have more,” he said during a webinar March 5 at the Center for Strategic and International Studies on environment and trade.
Canadian silver mining company First Majestic Silver Corp. submitted a request for arbitration to the International Centre for Settlement of Investment Disputes on behalf of itself and its Mexican subsidiary, it said March 2. The company said good faith negotiations with the Mexican government broke down, so First Majestic is seeking international arbitration. First Majestic said the Mexican government violated the terms of its Advance Pricing Agreement. The silver company said its grievance is based on Chapter 11 of the North American Free Trade Agreement during the 2010 to 2014 fiscal years. First Majestic said it instructed Arent Fox, its counsel in Washington, to begin the process under ICSID rules for convening an arbitration tribunal.