Rep. Elise Stefanik, R-N.Y., joined by one Republican and three Democratic congressmen from the New York House delegation, is asking the U.S. Trade Representative to make sure that Canada keeps its promises on dairy tariff rate quotas and eliminating Class 6 and Class 7 milk price controls.
The Bureau of Industry and Security clarified the agency’s suspension of license exceptions for exports to Hong Kong, saying it will no longer allow exceptions for items subject to the Export Administration Regulations “that provide differential treatment than those available” to China. In a guidance issued after its June 29 suspension announcement (see 2006290063), BIS said U.S. exporters cannot use license exceptions for any shipments to Hong Kong “except for transactions that would otherwise be eligible for a license exception” for mainland China.
The Canada Border Services Agency issued a memorandum June 25 on its interpretation of the phrase “for domestic purposes” under certain tariff items under the Harmonized System headings 94.01 and 94.03. Canada said “intended use, rather than the actual use, of furniture is the test” to determine whether furniture is classified “for domestic purposes,” the memorandum said. Canada also said the phrase should be given “a broad enough interpretation to include products that are used primarily in a domestic setting,” and that an item's “design, characteristics, marketing and pricing” should all be considered.
The U.S. will suspend certain export license exceptions for shipments to Hong Kong and ban exports of U.S.-origin defense goods to the region, the Trump administration said June 29. The administration also plans to further restrict sales of dual-use technologies to Hong Kong to bring those measures in line with restrictions imposed on exports to mainland China. The administration said it is imposing the restrictions because of China’s infringement in Hong Kong’s autonomy (see 2005290047).
One of the nominees for director general of the World Trade Organization, Hamid Mamdouh, told the Washington International Trade Association that the failings of the appellate body are because the WTO has abandoned negotiations. This is the same view held by the U.S., which has brought the issue to a head by killing the appellate body. Mamdouh, a senior counsel at King & Spalding, was speaking during a WITA webinar June 23.
The Commerce Department’s increased restrictions on shipments to military end-users is causing widespread confusion and could cripple exporters struggling to survive during the global COVID-19 pandemic (see 2005010037), industry groups said. The Bureau of Industry and Security's April 28 final rule (see 2004270027), set to take effect June 29, is too complex and was released with “poor” timing and without industry input, the National Customs Brokers & Forwarders Association of America said.
A Singapore electronics manufacturer voluntarily disclosed to the Treasury Department possible U.S. sanctions violations, the company said in a May 28 Securities and Exchange Commission filing. The company, Flex Ltd., said the violations may have been committed by its non-U.S. affiliates and that it is conducting an internal investigation, expected to be completed “by the end of the second quarter of fiscal year 2021,” so it cannot estimate possible penalties.
President Donald Trump said that the administration will begin the process of revoking Hong Kong's differential treatment from China, including its more lenient "export controls on dual-use technologies, with few exceptions."
The Office of the U.S. Trade Representative said its negotiators will seek to make things easier for express shippers in Kenya, will seek to get Kenya to agree to basing its phytosanitary rules on science, and “secure comprehensive duty-free market access for U.S. industrial goods” as it works towards a free-trade agreement with that country.
The Taiwan Semiconductor Manufacturing Company declined to say whether it has stopped processing new orders for Huawei and said it is still reviewing new U.S. export restrictions issued last week (see 2005150058). In a statement, a TSMC spokesperson said the company does not comment on details relating to customer orders but said it has “always complied with the law. The company said it has hired outside counsel to “conduct legal analysis and ensure a comprehensive examination and interpretation” of the new restrictions. “The semiconductor industry supply chain is extremely complex,” the spokesperson said. “TSMC is following the U.S. export rule change closely.”