Recent Trade Compliance News

US Government Imposes Sanctions Against Burma

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On February 10, 2021, President Biden issued Executive Order 14014 “Blocking Property with Respect to the Situation in Burma” (EO 14014), which provides for the imposition of sanctions on certain Burmese parties in response to the Burmese military’s coup against the democratically elected civilian government in Burma. In parallel with the issuance of EO 14014, the US Treasury Department’s Office of Foreign Assets Control (OFAC) designated thirteen parties on February 10, 2021 and two parties on February 22, 2021 connected to the military apparatus responsible for the coup.

See:

https://www.govinfo.gov/content/pkg/FR-2021-02-12/pdf/2021-03139.pdf

https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210211

https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210222_33

OFAC issues FAQs clarifying restrictions on purchasing securities of certain Chinese companies

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During the first two weeks in January, the Office of Foreign Assets Control (OFAC) published a series of FAQs related to Executive Order 13959, “Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies” (the “CCMC EO” or the “EO”). That EO aimed to prevent US investors from financing the development of the People’s Republic of China’s military, intelligence, and security capabilities by prohibiting purchases of securities of certain “Communist Chinese military companies.”

See https://home.treasury.gov/policy-issues/financial-sanctions/faqs/topic/5671

Commerce delays effective date of Aluminum Import Monitoring and Analysis System

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On January 27, 2021, the International Trade Administration, Department of Commerce published in the Federal Register a document delaying the effective date of a final rule and requesting comments on the “Aluminum Import Monitoring and Analysis System,” from January 25, 2021 until March 29, 2021.

See https://www.govinfo.gov/content/pkg/FR-2021-01-27/pdf/2021-01804.pdf 

CBP issued guidance on the UAE Sec. 232 aluminum quotas but then issued CSMS continuing previous procedures after reversal by current Administration

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On January 27, 2021, CBP issued CSMS #45967303 – United Arab Emirates Section 232 Aluminum Absolute Quota limits beginning February 3, 2021, to implement Presidential Proclamation 10139. However, on February 1, 2021, President Biden revoked Proclamation 10139 before it was to take effect and restored the 10% duties for aluminum from the UAE. As a result, CBP issued CSMS #46027083 – United Arab Emirates Section 232 Aluminum Presidential Proclamation 10139 REVOKED February 1, 2021, which stated that UAE aluminum imports will continue to be processed as established under Section 232 duty filing.

See https://content.govdelivery.com/bulletins/gd/USDHSCBP-2be514b?wgt_ref=USDHSCBP_WIDGET_2

Commerce delays effective date of Aluminum Import Monitoring and Analysis System

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On January 27, 2021, the International Trade Administration, Department of Commerce published in the Federal Register a document delaying the effective date of a final rule and requesting comments on the “Aluminum Import Monitoring and Analysis System,” from January 25, 2021 until March 29, 2021.

See https://www.govinfo.gov/content/pkg/FR-2021-01-27/pdf/2021-01804.pdf

CBP issued guidance on the UAE Sec. 232 aluminum quotas but then issued CSMS continuing previous procedures after reversal by current Administration

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On January 27, 2021, CBP issued CSMS #45967303 – United Arab Emirates Section 232 Aluminum Absolute Quota limits beginning February 3, 2021, to implement Presidential Proclamation 10139. However, on February 1, 2021, President Biden revoked Proclamation 10139 before it was to take effect and restored the 10% duties for aluminum from the UAE. As a result, CBP issued CSMS #46027083 – United Arab Emirates Section 232 Aluminum Presidential Proclamation 10139 REVOKED February 1, 2021, which stated that UAE aluminum imports will continue to be processed as established under Section 232 duty filing.

See https://content.govdelivery.com/bulletins/gd/USDHSCBP-2be514b?wgt_ref=USDHSCBP_WIDGET_2

OFAC Issues General License 1A Concerning Restrictions on Communist Chinese Military Companies and Related FAQs

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On January 27, 2021, the US Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License 1A, “Authorizing Transactions Involving Securities of Certain Communist Chinese Military Companies,” (“GL 1A”) in relation to OFAC’s Communist Chinese Military Companies (“CCMCs”) sanctions program as implemented pursuant to Executive Order 13959 (“EO 13959”) and amended by Executive Order 13974.  OFAC concurrently published frequently asked questions (FAQs) 878 and 879, which clarify OFAC’s previous guidance on subsidiary entities with names that “closely match” the name of a CCMC.

As with the original GL 1, GL 1A authorizes US persons to engage in all transactions and activities otherwise prohibited by EO 13959 involving publicly traded securities (as well as publicly traded securities that are derivative of, or are designed to provide investment exposure to such securities) of any entity whose name “closely matches, but does not exactly match,” the name of a company on OFAC’s Non-SDN Communist Chinese Military Companies List (“NS-CCMC List”).  This authorization has been extended until 9:30 a.m. eastern daylight time on May 27, 2021 (from the original January 28, 2021 cut-off.)

See:

https://home.treasury.gov/system/files/126/ccmc_gl1a_01272021_1.pdf

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/878

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/879