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."
NEW ORLEANS -- The National Customs Brokers & Forwarders Association of America is preparing to ask Congress to allow the Federal Maritime Commission to exercise jurisdiction over certain rail storage fees. NCBFAA is drafting a letter to Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D. -- the two House authors of the Ocean Shipping Reform Act -- that could ask the lawmakers to require the FMC to more forcefully regulate rail-assessed demurrage fees charged on ocean containers traveling inland.
The State Department’s Directorate of Defense Trade Controls initiated more end-use checks in FY 2022 compared with FY 2021 and saw an increase in in-person site visits due to loosened COVID-19 pandemic-related travel restrictions. In its annual Blue Lantern report released this week -- which details the agency’s end-use monitoring efforts on export-controlled defense articles and services -- the agency said it began checks on 305 export authorizations or authorization requests, an uptick from the 281 checks it began in 2021 (see 2204180030).
NEW OREANS -- The Census Bureau and the State Department are working on a change that would require exporters to submit additional information in the Automated Export System when shipping items controlled under U.S. Munitions List Category XXI, said Omari Wooden, Census’ assistant division chief for trade outreach and regulations. Wooden said the change will be outlined in a proposed rule and could eventually lead to a fatal error in AES if not followed.
The State Department’s Directorate of Defense Trade Controls plans to remove export controls from certain high-energy storage capacitors with a voltage rating of 125 volts or less, saying the capacitors are widely commercially available and no longer provide military or intelligence advantages. The change, outlined in an interim final rule released April 26 and effective May 21, builds on the agency’s decision last year to temporarily suspend export license requirements for the capacitors (see 2211230030 and 2212060007). Comments on the rule are due May 30.
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.
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The U.S. needs to create a formal doctrine to outline guardrails for deploying sanctions, export controls and other economic statecraft tools, said Daleep Singh, President Joe Biden’s former deputy national security adviser, speaking during an April 25 Atlantic Council event. He also said the U.S. needs to conduct an assessment of its past use of those trade and financial measures to determine when they worked best and make sure they aren’t being overused.
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.
The Bureau of Industry and Security should add the Commercial Aircraft Corporation of China (COMAC), a state-owned aerospace manufacturer, to its Military End-User List, Florida Sens. Marco Rubio and Rick Scott said in an April 24 letter to BIS Undersecretary Alan Estevez. The Republican lawmakers said COMAC works closely with the Aviation Industry Corporation of China (AVIC), which is already included on the Entity List and MEU list and holds a minority stake in COMAC.