Rockley Photonics, a California photonics-based health monitoring and communications solutions company, won’t follow through with a sale to Hengtong, a Chinese power and fiber optic cable manufacturer, following Hengtong's addition to the U.S. Entity List this month. Rockley suggested the sale, which it described as a “data-communications-related technical sale,” could be subject to the Export Administration Regulations and require a Bureau of Industry and Security license.
The Office of Foreign Assets Control fined TD Bank about $115,000 for two separate instances of sanctions violations, the agency said Dec. 23. The bank illegally processed nearly 1,500 transactions that violated U.S. sanctions against North Korea and maintained two accounts for more than four years for a U.S. resident who was sanctioned under Foreign Narcotics Kingpin Sanctions Regulations. OFAC said both cases resulted from “multiple sanctions compliance breakdowns,” including human errors and screening deficiencies.
The Biden administration needs to more quickly impose powerful, multilateral sanctions against Russia for threatening further military actions in Ukraine, security experts said. But coordinated sanctions with Europe could be challenging, the experts said, and may not deter Russia if the restrictions are enacted too late.
The Commerce Department published its fall 2021 regulatory agenda for the Bureau of Industry and Security, including a new mention of an export control rule for crime-control items and a rule that would reorganize provisions of the foreign direct product rule in federal regulations.
The ports of Los Angeles and Long Beach again postponed a new surcharge meant to incentivize the movement of dwelling containers, the two ports announced Dec. 20. The ports originally planned to begin imposing the fee Nov. 15, but have postponed it several times (see 2111030027 and 2110280031). The latest extension delays the effective date to Dec. 27.
New U.S. and European sanctions against Belarus could have broad implications for companies doing business in the region and could signal more multilateral sanctions in the coming months, law firms said this month. The U.S.’s recent restrictions are particularly noteworthy because of a strict new prohibition on certain transactions involving Belarusian sovereign debt, the firms said.
The U.S. secretaries of transportation and agriculture urged ocean carriers to stop prioritizing imports and leaving the U.S. with empty containers, which has contributed to port congestion and delays, especially on the West Coast. In a Dec. 17 letter to more than 10 of the world’s leading ocean carriers, the agency leaders said carriers should “restore reciprocal treatment of imports and exports” or face potential penalties.
The Commerce Department should immediately expand an exemption to allow U.S. companies to participate in standards-setting bodies that have members designated on the Entity List, industry representatives said. U.S. firms said they have been forced to avoid the bodies because they fear running afoul of U.S. export laws, a practice that could result in the U.S. losing important influence over the future of emerging technology standards.
The Office of Foreign Assets Control added eight Chinese technology firms to its investment blacklist, including drone maker DJI, for helping the Chinese government track and detain Muslim minorities in Xinjiang. The move, announced Dec. 16, also banned investments in Cloudwalk Technology Co., Dawning Information Industry Co., Leon Technology Company, Megvii Technology, Netposa Technologies, Xiamen Meiya Pico Information Co. and Yitu, all of which are already on the Commerce Department’s Entity List.
The Bureau of Industry and Security added 37 entities to the Entity List, including 34 Chinese research institutes and technology companies, for supporting China’s military modernization efforts or Iran’s weapons program. Other entities added to the list, located in Georgia, Malaysia and Turkey, supplied U.S.-origin items to Iranian defense industries, BIS said.