Several “unresolved issues” surround fines imposed against companies placed on China’s Unreliable Entity List, including the maximum penalty amount China can impose and the penalty range it can choose from, Beijing-based Zhong Lun Law Firm said in an April client alert posted by Lexology.
Exports to China
U.S. semiconductor company KLA “received clarification” from the U.S. government on matters surrounding chip export controls on China and can “now resume some shipments that we had previously excluded,” the company said as part of its latest earnings report released last week.
Senate Republicans reintroduced a bill last week that could place more restrictions on scientific or research collaboration between U.S. and Chinese entities. The Preventing PLA Acquisition of United States Technology Act, which was first introduced in the Senate May a year ago and also will soon be introduced in the House, would block certain U.S. “covered” entities from working with any Chinese “entity of concern” in “any scientific research or technical exchange” relating to the development of technologies that China is prioritizing as part of its military-civil fusion strategy, the lawmakers said in a news release. The bill, which refers to the People’s Liberation Army, also would prevent partnerships between Chinese “entities of concern" and private American companies that receive federal funding.
National Security Adviser Jake Sullivan said the length of time the White House has been considering a set of outbound investment regulations without releasing a plan isn't "because we're lazy, or we're not doing the work," but because it's difficult to find a solution "that is sustainable and effective."
The World Trade Organization's published agenda for the Dispute Settlement Body's April 28 meeting includes U.S. status reports on the implementation of DSB recommendations on antidumping measures on certain hot-rolled steel products from Japan; antidumping and countervailing measures on large residential washers from South Korea; certain methodologies and their application to antidumping proceedings involving China; and Section 110(5) of the U.S. Copyright Act. Status reports are also expected from Indonesia on measures related to the import of horticultural products, animals and animal products, and from the EU on measures affecting the approval and marketing of biotech products.
NEW ORLEANS -- The Bureau of Industry and Security is working with CBP to try to speed up reviews of exports that may be subject to the October China chip controls (see 2210070049), said Teresa Telesco, a BIS official. Telesco, speaking April 25 during the National Customs Brokers & Forwarders Association of America’s annual conference, urged freight forwarders and other parties handling exports to take steps to make sure their semiconductor-related shipments aren’t being delayed, including by having technical information “on hand” to show CBP agents.
U.S. Trade Representative Katherine Tai, speaking from Asia, where she had just finished a round of meetings with Philippine and Japanese officials, said the U.S.-China trade war did not come up in her meetings, as these visits focused much more on the bilateral trade and economic relationship.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Commerce Department launched a paper this week detailing its strategy for a National Semiconductor Technology Center, a “key component” of the Chips Act designed to support and improve American leadership and competitiveness in semiconductor research, design, engineering and advanced manufacturing. The paper outlines how the NSTC will “accelerate America’s ability to develop the chips and technologies of the future,” the agency said, including by creating “affiliated technical centers around the country.”
A British cigarette manufacturer agreed to pay American authorities more than $635 million to settle alleged sanctions violations after the U.S. said the company illegally sent tobacco and tobacco products to North Korea. British American Tobacco will pay about $508 million to the Treasury Department’s Office of Foreign Assets Control, the agency's largest fine in more than four years, and pay an additional fine as part of a deferred prosecution agreement with DOJ.