China is unlikely to violate U.S. sanctions against Russia because it fears the consequences of U.S. secondary sanctions too much, said Kevin Rudd, president of the Asia Society and former Australian prime minister. China also will likely avoid providing military support to Russia, Rudd said, which could invite similar U.S. sanctions that could hurt its major state-run and private technology companies.
The Los Angeles and Long Beach ports again postponed by a week a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced March 18. The ports originally planned to begin imposing the fee in November last year, but have postponed it each week since. The latest extension delays the effective date until March 25.
The Bureau of Industry and Security last week released a list of commercial and private aircraft that have violated U.S. export controls by flying into Russia and which require a license for “any form of service.” The agency said it will impose penalties, jail time or loss of export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the aircraft without a required BIS license.
Companies are increasingly choosing to voluntarily file with the Committee on Foreign Investment in the U.S. to avoid being caught up in CFIUS’s non-notified transaction process, CFIUS lawyers and experts said. That trend, combined with faster CFIUS clearances, could mean an increase in CFIUS filings this year, they said.
As the U.S. continues to tighten Russia export controls (see 2203110056), more companies may ask customers to sign end-use statements as a way to document their due diligence, said Marwa Hassoun, a trade lawyer with ArentFox Schiff. Businesses must also make sure they are taking certain minimum compliance steps to comply with U.S. sanctions, said ArentFox Schiff sanctions lawyer Matthew Tuchband, including more regular screening of restricted party lists.
The Commerce Department is still working on its long-awaited routed export rule and is unsure when it will be finalized, officials said this week. Kiesha Downs, chief of the Census Bureau’s Foreign Trade Division’s regulations branch, said Census is “still in a holding pattern” for the rule, which requires more work between Census and the Bureau of Industry and Security.
The Census Bureau has received mostly opposing comments on a proposal for a new country of origin data element in the Automated Export System but hasn’t yet made a decision about whether to move forward with the change, said Kiesha Downs, chief of the agency’s Foreign Trade Division’s regulations branch. The rule (see 2112140033), which would require U.S. exporters of foreign-produced goods to declare the country of origin (COO) for their item in AES, could lead to costly compliance challenges (see 2201040044), companies and trade groups recently told the agency.
The Bureau of Industry and Security has started a large-scale industry outreach effort to ensure companies understand compliance requirements under the new Russian export controls, including direct talks with U.S. and foreign businesses and work on new guidance. The effort, previewed by BIS officials this week, underscores the significant export control and regulatory undertaking by the agency since late February, which has resulted in hundreds of pages of new Russian and Belarusian export restrictions.
Ahead of a meeting with Chinese officials, U.S. national security adviser Jake Sullivan publicly warned China that it will face severe penalties if it helps Russia evade Western sanctions. The Biden administration is “watching closely” to see whether Beijing provides Moscow with “material support or economic support,” Sullivan told CNN March 13, which could give Russia an economic lifeline as it faces crippling financial restrictions from Europe, the U.S. and many of its trading partners.
The Los Angeles and Long Beach ports again postponed by a week a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced March 11. The ports originally planned to begin imposing the fee Nov. 15, 2021, but have postponed it each week since. The latest extension delays the effective date until March 18.