Recent Trade Compliance News

US Government sanctions Burmese military conglomerates, issues wind-down and humanitarian General Licenses and tightens export controls for Burma (Myanmar)

The US Government has imposed a series of sanctions against Myanmar Economic Corporation Limited (MEC) and Myanma Economic Holdings Public Company Limited (a.k.a. Myanmar Economic Holding Limited) (MEHL), two military-affiliated conglomerates, in response to the February military coup in Burma (Myanmar). The combined restrictions are likely to have a significant impact on business activities in Burma as these conglomerates have substantial interests and joint ventures in several sectors of the Burmese economy, including trading, natural resources, tourism, alcohol, cigarettes, and consumer goods. In addition, the US Government has significantly tightened export controls for Burma.

EU designates eleven individuals and four entities under Global Human Rights Sanctions Regime

On 22 March 2021, the EU imposed restrictive measures on eleven individuals and four entities in relation to alleged human rights violations, including: four individuals and one company with links to the large-scale arbitrary detentions of Uyghurs in Xinjiang, etc.

See https://www.consilium.europa.eu/en/press/press-releases/2021/03/22/eu-imposes-further-sanctions-over-serious-violations-of-human-rights-around-the-world/

BIS and DDTC implement strengthened US Export Controls on Russia in response to poisoning and imprisonment of Navalny

On March 18, 2021, the US State Department (State) published a Federal Register notice that formally outlines the various US export controls targeting Russia that will be strengthened pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) as a result of State’s determination that the Russian Government had used a chemical weapon against its own nationals in violation of international law. On the same day, State’s Directorate of Defense Trade Controls (DDTC) published a notice explaining its implementation of the CBW Act in the International Traffic in Arms Regulations (ITAR) and the US Commerce Department’s Bureau of Industry and Security (BIS) published its own notice explaining its implementation of the CBW Act in the Export Administration Regulations (EAR).

See https://www.govinfo.gov/content/pkg/FR-2021-03-18/pdf/2021-05527.pdf

   https://www.govinfo.gov/content/pkg/FR-2021-03-18/pdf/2021-05530.pdf

   https://www.govinfo.gov/content/pkg/FR-2021-03-18/pdf/2021-05488.pdf

Restrictions extended on import of certain archaeological and ethnological materials from Colombia

On March 12, 2021, US Customs and Border Protection (CBP) published in the Federal Register a final rule that amends the CBP regulations to reflect an extension of import restrictions on certain archaeological and ecclesiastical ethnological material from Colombia. The restrictions, which were originally imposed by CBP Dec. 06-09 and last extended by CBP Dec. 16-05, are due to expire on March 15, 2021. The Assistant Secretary for Educational and Cultural Affairs, US Department of State, has made the requisite determinations for extending the import restrictions that previously existed, and the Governments of the United States and Colombia entered into a new agreement to reflect the extension of these import restrictions. The new agreement, which entered into force on March 10, 2021, supersedes the existing Memorandum of Understanding (MOU) that became effective on March 15, 2006, and enabled the promulgation of the existing import restrictions. Accordingly, the import restrictions will remain in effect for an additional five years, and the CBP regulations are being amended to reflect this further extension until March 10, 2026. The final rule was effective on March 10, 2021.

See https://www.govinfo.gov/content/pkg/FR-2021-03-12/pdf/2021-05173.pdf

CBP issues guidance on the suspension of large civil aircraft sec. 301 duties of merchandise from the EU

On March 12, 2021, CBP issued CSMS #46590066 – GUIDANCE: Suspension of EU Duties in Section 301 Action: Enforcement of U.S. World Trade Organization (WTO) Rights in Large Civil Aircraft Dispute. The purpose of this message is to provide notice of the United States Trade Representative’s (USTR) determination to temporarily suspend additional duties on products of the European Union (EU) under the Section 301 Large Civil Aircraft (LCA) Dispute.  The suspension is effective for products of the EU entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 11, 2021 and before 12:01 a.m. eastern standard time on July 11, 2021.

See https://content.govdelivery.com/bulletins/gd/USDHSCBP-2c6e872?wgt_ref=USDHSCBP_WIDGET_2

CBP issues guidance on the suspension of large civil aircraft sec. 301 duties of merchandise from the UK

On March 10, 2021, CBP issued CSMS #46561075 – GUIDANCE: Suspension of UK Duties in Section 301 Action: Enforcement of U.S. World Trade Organization (WTO) Rights in Large Civil Aircraft Dispute. The purpose of this message is to provide notice of the United States Trade Representative’s (USTR) determination to temporarily suspend additional duties on products of the United Kingdom (UK) under the Section 301 Large Civil Aircraft (LCA) Dispute.  The suspension is effective for imports, or warehouse withdrawals for consumption, on or after 12:01 a.m. eastern standard time on March 4, 2021 and before 12:01 a.m. eastern standard time on July 4, 2021.

See https://content.govdelivery.com/bulletins/gd/USDHSCBP-2c67733?wgt_ref=USDHSCBP_WIDGET_2?utm_source=search.usa.gov&utm_medium=search.usa.gov&utm_term=undefined&utm_content=undefined&utm_campaign=(not%20set)&gclid=undefined&dclid=undefined&GAID=1597151793.1545933934

US completes WTO quota negotiations with EU

On March 8, 2021, the Acting US Trade Representative announced the conclusion of negotiations with the European Union on adjustments to the EU’s WTO tariff rate quotas (TRQ) as a consequence of the United Kingdom’s withdrawal from the EU.  The agreement, after two years of negotiations under WTO procedures, will determine how to split TRQ quantities between the EU-27 and the United Kingdom (UK). The agreement will be signed and implemented after formal approval procedures are completed by the EU.

See https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/march/ustr-announces-conclusion-wto-quota-negotiations-european-union

President Biden Signs Executive Order to Review and Strengthen US Supply Chains

On February 24, 2021, President Biden signed an Executive Order on America’s Supply Chains (the “Supply Chain EO”) ordering federal agencies to identify vulnerabilities in key US supply chains and develop policy recommendations to make those supply chains more resilient, diverse, and secure.

See https://www.federalregister.gov/documents/2021/03/01/2021-04280/americas-supply-chains

Biden Administration removes Ansarallah from the SDN List and revokes its designation as a Foreign Terrorist Organization

On February 16, 2021, the US Treasury Department’s Office of Foreign Assets Control (OFAC) removed Ansarallah, a political movement and militia group in Yemen also known as the Houthis, from the Specially Designated Nationals and Blocked Persons List (“SDN List”). Ansarallah had been added to the SDN List on January 19, 2021, as a Foreign Terrorist Organization (“FTO”) and Specially Designated Global Terrorist (“SDGT”). As a result of the removal, US Persons no longer require authorization from OFAC to engage in transactions or activities with Ansarallah, which broadly controls the northern part of Yemen, provided such activities do not involve blocked persons or otherwise prohibited activities.

See  https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210216

USTR Declines to Adjust Sec. 301 Action in Large Civil Aircraft Dispute

On February 12, 2021, the Office of the United States Trade Representative (USTR) published in the Federal Register a notice stating that the USTR together with the affected United States industry have agreed that it is unnecessary at this time to revise the action in the Section 301 investigation involving the enforcement of US rights in the World Trade Organization (WTO) dispute involving Large Civil Aircraft subsidies provided by certain current or former member States of the European Union. The USTR will continue to consider the action taken in the investigation.

See: https://www.govinfo.gov/content/pkg/FR-2021-02-12/pdf/2021-02869.pdf