LONDON -- The U.K. government is pouring more resources into enforcement of its sanctions and export controls, with a particular focus on closing loopholes that may be allowing Russia to receive restricted business services or continuing to buy critical items for its military, a senior U.K. trade official said this week.
The Group of 7 nations and the EU issued a first-of-its-kind joint guidance, which aims to help companies prevent Russia-related sanctions and export control evasion. The guidance includes a list of red flags that may indicate a company is trying to evade the measures and a set of best practices for companies to follow.
Members of the European Parliament approved a resolution last week calling on the EU to expand sanctions against Russia, Belarus, and non-EU countries and entities providing Russia with military and dual-use technologies.
China is investigating American clothing company PVH Group, which owns Calvin Klein, Tommy Hilfiger and other major fashion retailers, for possible inclusion on its so-called unreliable entity list, China's Ministry of Commerce announced Sept. 24, according to an unofficial translation. China said PVH is suspected of violating “normal market trading principles” for products related to the country’s Xinjiang region, along with the “interruption of normal transactions with Chinese companies, other organizations or individuals, and adoption of discriminatory measures.”
The House Foreign Affairs Committee on Sept. 24 approved the Houthi Human Rights Accountability Act, which would authorize sanctions on the Yemen-based Houthis for human rights abuses (see 2409230017). The committee also approved the Strategic PRC Port Mapping Act, which would require the Defense and State departments to monitor China’s efforts to build or buy “strategic foreign ports.”
While a possible Kamala Harris administration would likely continue the current Biden administration’s approach of streamlining various denied-party lists through measured, phased-in updates, a Donald Trump-run government would probably pursue a “blunter approach” and spend less time on evaluating industry impact before putting in place sweeping new sanctions, the Rhodium Group said in a report last month. Although the report examines a hypothetical situation in which the U.S. adds companies from the Commerce Department’s Entity List to the Treasury Department’s sanctions list, it called that a “bazooka option” and said more likely scenarios include expanding the scope of the Treasury Department’s list of Chinese military companies subject to certain investment restrictions.
The Office of Foreign Assets Control this week sanctioned five Colombian nationals and two Mexican businesses for ties to illegal drug trade.
The Office of Foreign Assets Control this week issued more guidance about its new Russia-related information technology and software services restrictions that took effect Sept. 12 (see 2409120033). One FAQ addresses questions about certain authorized services, and the other two address questions about the scope of the exclusions under the restrictions.
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The Bureau of Industry and Security has removed multiple companies from a list of flagged foreign suppliers accused of illegal sales to Russia, including one after the company told BIS it was added by mistake, Export Compliance Daily has learned.