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The Daily Bugle Weekly Highlights: Week 21 (18-22 May 2020)

Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 8,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, Salvatore Di Misa, and Elina Tsapouri.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.

Last week’s highlights of The Daily Bugle included in this edition are:

  1. Commerce/BIS Extends Temporary General License to Huawei; Monday, 18 May 2020; Item #1.
  2. UK DIT Updates Negotiations on the UK’s Future Trading Relationship with the US; The Daily Bugle; Monday, 18 May 2020; Item #7.
  3. Commerce/BIS Amends General Prohibition Three and the Entity List; The Daily Bugle; Tuesday, 19 May 2020; Item #1.
  4. EU Council: “COVID-19 Transport Measures: Council Adopts Temporary Flexibility for Licences and Port Services”; Thursday, 21 May 2020; Item #13.
  5. Treasury/OFAC Sanctions Senior Nicaraguan Government Officials, Increasing Pressure on President Ortega’s Regime; The Daily Bugle; Friday, 22 May 2020; Item #5

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Commerce/BIS Extends Temporary General License to Huawei 

(Source: Federal Register, 18 May 2020) [Excerpts]

 

* 85 FR 29610: Final Rule 

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Final rule.

* SUMMARY: The U.S. Government has decided to extend through August 13, 2020, the temporary general license to Huawei Technologies Co., Ltd. (Huawei) and one hundred and fourteen of its non-U.S. affiliates on the Entity List. In order to implement this decision, this final rule revises the temporary general license to remove the expiration date of May 15, 2020, and substitutes the date of August 13, 2020. In addition, BIS sought public comments regarding future extensions of the Huawei TGL (85 FR 14428, March 12, 2020) and is in the process of reviewing those comments.

* DATES: This rule is effective May 15, 2020, through August 13, 2020. The expiration date of the final rule published on February 18, 2020 (85 FR 8722), is extended until August 13, 2020.

 

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UK DIT Updates Negotiations on the UK’s Future Trading Relationship with the US

(Source: UK DIT, 18 May 2020) [Excerpts]

 

Around 200 negotiators from the UK and the US held the first round of negotiations for a UK-US Free Trade Agreement (FTA) between 5-15 May 2020.

More trade is essential if the UK is to overcome the unprecedented challenges posed by Covid-19. New FTAs will be an important factor in facing that economic challenge, providing new opportunities for businesses and entrepreneurs who have faced significant challenges in this difficult period. An FTA with the US can help create opportunities for UK businesses, provide better jobs and boost the economy in every part of the country.

Both sides are hopeful that negotiations for a comprehensive trade agreement can proceed at an accelerated pace. Ambassador Lighthizer and I agreed that a second virtual round will take place in the weeks of 15 and 22 June, and that in advance of that negotiating teams will continue their work and meet virtually on a rolling basis, with meetings continuing throughout this week and beyond.

Negotiations over the past two weeks were conducted virtually but proceeded efficiently, with UK and US negotiators participating in extensive discussions in nearly 30 different negotiating groups covering all aspects of a comprehensive trade agreement. …

Both sides also set out a mutual commitment to creating new opportunities for businesses on both sides of the Atlantic and to delivering benefits for workers, consumers and farmers. This includes the confirmation that both sides will quickly pursue a standalone Small and Medium Enterprises (SME) Chapter and will continue the UK-US SME Dialogue.

In the same manner as this negotiating round, discussions in the second round will cover all areas to be included in a Free Trade Agreement.

The Government is committed to negotiating a comprehensive agreement with the US and we look forward to making further progress at the next round of negotiations. The Government will make a further statement on progress following the second round of talk.

 

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Commerce/BIS Amends General Prohibition Three and the Entity List

(Source: Federal Register, 19 May 2020) [Excerpts]

 

* 85 FR 29849: Interim final rule; request for comments.

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Interim final rule; request for comments.

* SUMMARY: This rule amends General Prohibition Three, also known as the foreign-produced direct product rule, by exercising existing authority under the Export Control Reform Act of 2018 (ECRA), to impose a new control over certain foreign-produced items, when there is knowledge that such items are destined to a designated entity on the Entity List. A foreign-produced item is subject to the new control if the entity for which the item is destined has a footnote 1 designation in the Entity List. This rule also applies this new control to Huawei Technologies Co., Ltd. (Huawei) and its non-U.S. affiliates listed as entities. The Bureau of Industry and Security (BIS) is requesting comments on the impact of this rule.

* DATES: Effective date: This rule is effective May 15, 2020.

Comment date: Submit comments on or before July 14, 2020.

* ADDRESSES: You may submit comments, identified by docket number BIS 2020-0011 or RIN 0694-AH99, through the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. … 

 

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EU Council: “COVID-19 Transport Measures: Council Adopts Temporary Flexibility for Licences and Port Services”

(Source: Council of the European Union) [Excerpts]

 

The EU is adapting certain rules for different transport sectors to help companies and authorities cope in the extraordinary circumstances created by the coronavirus crisis.

Today, the Council adopted temporary measures enabling the extension of the validity of certain certificates and licences in road, rail and waterborne transport, and relaxing the rules on charging ships for the use of port infrastructures.

 

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Treasury/OFAC Sanctions Senior Nicaraguan Government Officials, Increasing Pressure on President Ortega’s Regime

(Source: Treasury/OFAC, 22 May 2020) [Excerpts]

 

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two senior Nicaraguan government officials, Julio Cesar Aviles Castillo and Ivan Adolfo Acosta Montalvan for supporting the corrupt Ortega regime. Since April 2018, the Ortega regime has cracked down on political opposition, leading to more than 300 deaths, 2,000 injuries, hundreds of political and civil society actors imprisoned, and over 100,000 refugees fleeing the country.

“The Ortega regime’s continued violations of basic human rights, blatant corruption, and widespread violence against the Nicaraguan people are unacceptable,” said Treasury Secretary Steven T. Mnuchin. “The United States will target those who prop up the Ortega regime and perpetuate the oppression of the Nicaraguan people.” 

Julio Cesar Aviles Castillo and Ivan Adolfo Acosta Montalvan are being designated pursuant to Executive Order (E.O.) 13851 “Blocking Property of Certain Persons Contributing to the Situation in Nicaragua.” …

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of these individuals that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by such individuals are also blocked. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked or designated persons.

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