The Bureau of Industry and Security (BIS) issued a final rule prohibiting transactions involving the sale or import of connected vehicles or components integrating specific hardware and software linked to the PRC or Russia. The final rule bans the import of VCS hardware or connected vehicles containing such hardware, as well as the import and sale of vehicles with VCS or ADS software linked to the PRC or Russia. VCS encompasses systems enabling external communication, such as telematics, Bluetooth, cellular, satellite, and Wi-Fi modules. ADS refers to components enabling highly autonomous vehicle operation without a driver. The rule also prohibits manufacturers with a sufficient nexus to the PRC or Russia from selling new connected vehicles that incorporate VCS hardware or software or ADS software in the United States, even if the vehicle was made in the United States.
The Department of Homeland Security (DHS) announced the addition of 37 entities to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, marking the largest expansion since the law’s enforcement began in 2022. The additions include globally recognized companies involved in mining critical minerals, producing solar modules, and manufacturing textiles.
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The Department of the Treasury's Office of Foreign Assets Control (OFAC) has published its Memorandum of Understanding with the United Kingdom's Office of Financial Sanctions Implementation (OFSI). The Memorandum of Understanding (MoU) outlines a framework for collaboration to strengthen their shared mission of enforcing and promoting compliance with economic and trade sanctions
The U.S. Customs and Border Protection (CBP) has issued a proposed amendment to its regulations to strengthen oversight of low-value shipments valued at $800 or less. The proposed rule would establish a new process for entering low-value shipments under Section 321(a)(2)(C) of the Tariff Act. This process would enable CBP to collect enhanced electronic data to better identify high-risk shipments, including those potentially containing illicit drugs such as fentanyl, counterfeit goods, or other contraband.
The U.S. Customs and Border Protection (CBP) has issued a proposed amendment to its regulations to strengthen oversight of low-value shipments valued at $800 or less. The proposed rule would establish a new process for entering low-value shipments under Section 321(a)(2)(C) of the Tariff Act. This process would enable CBP to collect enhanced electronic data to better identify high-risk shipments, including those potentially containing illicit drugs such as fentanyl, counterfeit goods, or other contraband.
The Biden Administration released its proposed "AI Diffusion Rule" Monday morning, aiming to control exports of chips used for artificial intelligence. Quotas will restrict the number of chips to be exported to about 120 countries, while a short list of G-7 and other allied countries are exempt from restrictions. Sales to China, Iran, Russia & North Korea are blocked. The limits focus on Advanced Graphics Processing Units (GPUs) used to train AI models. Cloud services providers like AWS and Microsoft will enjoy some waivers from the rules, in a material concession to the data center industry. Cloud providers will have geographic limits, ensuring no more than half their computing power resides offshore.
The US Trade Representative’s Office issed six policy papers on trade and investment policy initiatives that promote supply chain resilience. The policy papers address a trade policy framework for supply chain resilience; challenges and opportunities for advancing resilience in the US textile and apparel industries; use of rules of origin to promote resilience; how more effective responses to non-market policies and practices build resilience; data and analytics for developing resilience-oriented trade policy; and sectoral trade agreements for enhancing resilience.
Prepared by a team at Pacific Northwest National Laboratory for the National Bureau of Asian Research, this report examines the existing export control regime of the People’s Republic of China (PRC) and presents a methodology for anticipating and identifying future PRC controls on raw materials. The PRC’s system of export controls has historically been piecemeal, and its administration poorly understood. Recent formalization of the system beginning in 2020 and escalating in 2023 is consistent with the PRC’s increased exercise of lawfare and demonstrates greater regulatory capabilities. PRC authorities are able to weaponize supply chains by targeting specific critical minerals under new export controls.
The United States is asking Mexico to review whether workers at Compañía Hulera Tornel SA de CV tire plant are being denied the right to freedom of association and collective bargaining. The request marks the 32nd time the United States has formally invoked the Rapid Response Labor Mechanism in the US-Mexico-Canada Agreement. Tornel produces tires for industrial, cargo, off-road, agricultural and passenger vehicles that are exported to the United States. Compañía Hulera Tornel is part of JK Tyre group of India.
January 8th, the USTR released the findings of its 2024 Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List). The Notorious Markets List highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy. This year’s Notorious Markets List’s issue focus section examines illicit online pharmacies and counterfeit medicines. The issue focus describes the growth in illicit online pharmacies and the dangers of counterfeit medicines, including the health and safety risks. USTR calls on trading partners to improve on criminal and border enforcement against counterfeit goods, particularly counterfeit medicines.
Beneath the surface of outlandish claims on allied sovereignty, the incoming administration appears to be hashing out a strategy to kick off President Trump's second term with some big, beautiful tariffs. Facing the prospect of another ineffectual Congress, Team Trump is exploring tools that permit unilateral executive action on tariffs and trade. The transition team has reportedly drafted executive orders that give Trump wide-ranging authority, including Section 301, Section 338 and Section 122 authorities, as well as the powers available under the International Economic Emergency Powers Act.
The trade security community spent last week atwitter over the widely anticipated export controls on Artificial Intelligence related technology. The "Export Control Framework for Artificial Intelligence Diffusion" rule aims to control the global shipments of graphics processing units (GPUs) to forestall diversion through third countries. Restrictions are said to include geographic controls as well as a worldwide licensing system that includes reporting requirements and exceptions. The rule is expected to be introduced in final form, dispensing with the customary review and public comment process. As the publication was expected Friday, some in the rulemaking process may be having second thoughts about that.
The Justice Department announced today that the United States entered into an agreement to transfer approximately $52.88 million in forfeited assets to the Federal Republic of Nigeria in recognition of Nigeria’s assistance to the department in an investigation into corruption in the Nigerian oil industry. The funds will be used for electrification projects and cross-border efforts to combat terrorism, according to the agreement between Washington and Lagos.
The Department of Defense (DoD) announced the formal establishment of the Strategic and Critical Materials Board of Directors, pursuant to the Stock Piling Act and the Federal Advisory Committee Act. The Board is a non-discretionary Federal Advisory Committee and will advise the Under Secretary of Defense for Acquisition and Sustainment on a strategy for securing DoD's supply chains for strategic and critical materials and strengthening the National Defense Stockpile (NDS).
United States President Joe Biden signed an executive order amending existing sanctions measures targeting individuals and groups involved in "ongoing attempts to undermine the sovereignty and territorial integrity of the countries of the Western Balkans." The sanctions were imposed in response to activities that undermine post-war agreements and institutions, as well as serious forms of corruption that undermine the rule of law and trust in democratic institutions. In November the Administration sanctioned parties involved in "destabilizing activities in Bosnia and Herzegovina. "
University of Michigan has announced it is ending its joint institute with Shanghai Jiao Tong University (SJTU). In a letter, Santa Ono, president of the University of Michigan, said following a thorough review the university has initiated the six-month process to “officially end the partnership” with Shanghai Jiao Tong University in the Chinese metropolis of Shanghai. Ono said the university, while valuing academic international partnerships, takes “matters of national security very seriously” and will better vet visa requirements for international students.
A Montreal man was sentenced Wednesday to to 40 months in prison for conspiring to commit export control violations. Nikolay Goltsev masterminded a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. Some of the electronic components shipped by Goltsev were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
New US sanctions will add nearly 200 more Russian ships, and two of the principal Russian maritime insurers New US sanctions add nearly 200 more Russian ships, two oil producers and two of the principal Russian maritime insurers to efforts to restrict Russian oil revenues. The new sanctions affect producers Gazprom Neft and Surgutneftegaz and insurers Ingosstrakh and Alfastrakhovanie, which insure much of Russia's "shadow fleet" of tankers. Also included are "opaque traders of Russian oil" and two UAE-based ship managers. Restrictions on the provision of oil services in Russia may finally impact the flourishing Russian trade of Houston oil services firm SLB.
OFAC has sanctioned a senior Hungarian government official, for his involvement in corruption in Hungary. Antal Rogan is Minister in Charge of Prime Minister Viktor Orban’s Cabinet Office. Rogan controls many government entities, including the National Communications Office, the Digital Government Agency, and the Hungarian Tourism Agency.