The Commerce Department’s new export restrictions on military end-users may significantly raise due diligence requirements for industry, leading to licensing delays and a burdensome vetting process for technology companies, law firms said. If Commerce's Bureau of Industry and Security does not clarify the scope of the rule to limit its impact, the rules are likely to damage the semiconductor, telecommunications and aircraft sectors, the law firms said. “This could have a detrimental impact on a broad swath of U.S. industry,” Baker McKenzie said in an April 30 blog post. “A universe of transactions triggering license requirements could significantly increase.”
The European Union Council urged the United Nations to renew its arms embargo against South Sudan, saying in an April 30 press release the country is still marred by “widespread violations of human rights.” The EU also said it is prepared to impose more sanctions against South Sudan “if such violations continue or the peace process is undermined.”
The government of Canada issued the following trade-related notices as of May 4 (note that some may also be given separate headlines):
The Environmental Protection Agency issued a final rule setting new significant new use rules (SNURs) under the Toxic Substances Control Act (TSCA) for three chemical substances that were the subject of premanufacture notices (PMNs). As a result of the SNURs, persons planning to manufacture, import or process any of the chemicals for an activity that is designated as a significant new use by this rule are required to notify EPA at least 90 days in advance. Importers of chemicals subject to these SNURs will need to certify their compliance with the SNUR requirements, and exporters of these chemicals will now become subject to export notification requirements. The final rule takes effect July 6.
United Nations human rights experts are urging the U.S. to lift sanctions and other trade measures against Cuba to help the country respond to the COVID-19 pandemic, according to an April 30 news release. The UN called on the U.S. to lift trade barriers, tariffs, quotas and other non-tariff measures that may be blocking Cuban imports of humanitarian goods. The experts said U.S. policy toward Cuba creates a “cumbersome and expensive licensing process” for exports. They also said the U.S. has “ignored repeated calls to waive sanctions that undermine the capacity of Cuba and other countries to respond effectively to the pandemic.” The Treasury Department said it maintains sufficient exemptions for humanitarian trade (see 2004170017 and 2004100044).
Germany sanctioned Hezbollah and confiscated its assets, according to an unofficial translation of an April 30 government notice. The sanctions also apply to Hizballah “sub-organizations” based in Germany, the notice said.
Canada issued limits for exporting newly prohibited firearms, in a May 1 notice to exporters. “The purpose of this Notice is to advise exporters of export controls implications flowing from the announcement by the Prime Minister that a number of firearms are now considered 'prohibited firearms,'” it said. The Canada Border Services Agency also posted a notice that said that several firearms are now illegal to import. “Please be advised that the ... (CBSA) will immediately begin prohibiting the importation of all firearms that are listed in the Regulations by individuals or businesses, unless an exemption is met,” it said.
China’s Commerce Ministry criticized the U.S. Commerce Department’s decision to increase restrictions on exports to Chinese military users, saying it will “damage the interests of related U.S. companies more.” The measures, introduced last week (see 2004280052), were examples of the U.S. “abusing export control measures and impeding normal trade and cooperation among trading partners,” a ministry spokesperson said during an April 30 press conference, according to an unofficial translation of a transcript of the event. China said governments have a “responsibility” to reduce trade barriers during the COVID-19 pandemic “rather than create obstacles,” adding that “it is hoped that the U.S. side will stop wrong practices.”
The Congressional Research Service issued a report April 30 on exports of U.S.-made defense products. The report includes explanations of U.S. regulations covering defense exports, international governing bodies of those exports -- including the Wassenaar Arrangement -- the foreign military sales process and more. The report also suggested that Congress should consider whether increasing trade should be an “explicit goal” of U.S. arms sales policy and whether current sales methods are consistent with the intent of the Arms Export Control Act.
The Environmental Protection Agency issued a final rule setting new significant new use rules (SNURs) under the Toxic Substances Control Act (TSCA) for 20 chemical substances that were the subject of premanufacture notices (PMNs). As a result of the SNURs, persons planning to manufacture, import or process any of the chemicals for an activity that is designated as a significant new use by this rule are required to notify EPA at least 90 days in advance. Importers of chemicals subject to these SNURs will need to certify their compliance with the SNUR requirements, and exporters of these chemicals will now become subject to export notification requirements. The final rule takes effect June 3.