President Biden issued an “Executive Order on America’s Supply Chains” (the “EO”) on February 24, 2021, ordering 100-day and 1-year reviews of certain critical supply chains. The initial 100-day review aims to assess risks posed to the following critical supply chains:
The merging of Hong Kong with China with respect to Hong Kong’s treatment under the Export Administration Regulations (“EAR”) is now reflected in the Department of Commerce’s Bureau of Industry and Security’s Hong Kong recordkeeping guidance. On February 19, 2021, BIS updated its Hong Kong recordkeeping FAQs to make that guidance consistent with the final rule BIS issued on December 23, 2020 implementing Executive Order 13936 (the “E.O.”). The E.O. was signed in the wake of U.S. objections to Chinese government national security legislation imposed on Hong Kong in 2020, which outlaws any act of “secession,” “terrorism,” or “collusion” with a foreign power.
On February 1, 2021, the military of Burma (Myanmar) in an unanticipated coup d’état installed General Min Aung Hlaing as leader and detained the country’s top elected leaders, including the President and Prime Minister. In response, on February 10, 2021, President Biden issued Executive Order 14014 (the “E.O.”) authorizing the U.S. Department of Treasury’s (“Treasury”)
The U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) published regulations in the Federal Register on January 15, 2021 to implement Executive Order 13936 (“E.O. 13936”), titled “The President’s Executive Order on Hong Kong Normalization.” The President determined on July 14, 2020 in E.O. 13936 that Hong Kong was no longer sufficiently autonomous
On January 19, 2021, the U.S. Department of Commerce (Commerce) published a long-awaited interim final rule to address the use of goods or services sourced from “foreign adversaries” in the U.S. supply chain for information communications technology and services (ICTS) transactions. When the interim final rule (ICTS Rules) take effect on March 20, 2021, they will enable the U.S. Secretary of Commerce (the Secretary) to block any ICTS transaction involving goods or services designed, developed, manufactured or supplied from “foreign adversaries” or companies organized in a “foreign adversary” country, conducting operations in a “foreign adversary” country or otherwise subject to the direction or control of a “foreign adversary.” These rules will have especially broad application, but Commerce has also indicated that it will continue to accept comments on the rules for the next 60 days. Commerce will also publish procedures for a “safe harbor” licensing program within the next 60 days and will then implement that licensing program within the next 120 days. Therefore, concerned parties still have an opportunity to submit feedback on the ICTS Rules and also have some remaining time to evaluate whether their transactions or activities might require licensing from Commerce.
On January 14, 2021, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced that it has amended the Export Administration Regulations (“EAR”) to formally implement the rescission of Sudan’s designation as a State Sponsor of Terrorism (“SSOT”), which was rescinded by the Secretary of State on December 14, 2020. BIS has amended
The Office of the United States Trade Representative (“USTR”) announced that it is extending certain product-specific exclusions related to the treatment of COVID-19 from the Section 301 tariffs on imports from China until March 31, 2021. On March 25, 2020, the USTR announced that it was seeking comments on the possible exemption of medical goods
U.S. Customs and Border Protection (“CBP”) issued a notice announcing the lapse of the Generalized System of Preferences (“GSP”) special tariff program, effective December 31, 2020, unless renewed by an act of Congress. The GSP is the oldest U.S. trade preference program and was established by the Trade Act of 1974. GSP effectively promotes the
The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) has issued a final rule amending the Export Administration Regulations (“EAR”) to add 77 entities to the Entity List. This rule took effect on Friday, December 18, 2020 when BIS made a copy available for public inspection on the Federal Register website.
As a
The U.S. Department of State (“State Department”) announced the imposition of sanctions on Turkey’s Presidency of Defense Industries (“SSB”) pursuant to Section 231 of the Countering America’s Adversaries Through Sanctions Act (“CAATSA”). The U.S. is sanctioning SSB over its procurement of the S-400 surface-to-air missile system from Russia’s Rosoboronexport (“ROE”). SSB is Turkey’s primary defense procurement entity and ROE is Russia’s main exporter of arms. As a result of Turkey’s actions, the U.S. is imposing full blocking sanctions on four SSB officials along with certain non-blocking CAATSA sanctions on the SSB entity.