Export Compliance Daily is providing readers with some of the top stories for May 6-10 in case they were missed.
China plans to hit a wide range of goods from the U.S. with 20 percent tariffs in response to the Trump administration's increase in tariffs on Chinese goods (see 1905130002) Among the major items by value targeted by the Chinese on its 20 percent tariff list are machines and mechanical appliances in 8479.89.99; parts of diodes, transistors and similar semiconductor devices in 8541.90.00; other optical instruments in 9031.49.90; and North American hardwood in 4403.99.60. The tariffs will take effect June 1.
There seems to be a growing interest in ways to evade U.S. sanctions and export controls, several experts said while speaking at a House Foreign Affairs subcommittee hearing on May 9. One panelist specifically pointed to China, which he said he expects to begin smuggling oil from Iran to avoid U.S. sanctions.
The Commerce Department's Bureau of Industry and Security added 12 foreign entities or persons to BIS’s Entity List, according to a May 13 notice, including several entities in China. BIS said the additions include four entities with locations in China and Hong Kong, along with two other entities in China and one Pakistani entity and five entities or individuals in the United Arab Emirates. Each is now subject to specific license requirements “for the export, reexport, and/or in-country transfer of controlled items,” BIS said. The 12 "have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests," the agency said in a separate notice.
China will raise tariff rates on 5,140 tariff lines of U.S. goods in response to the latest escalation in the trade war, the Chinese Foreign Ministry announced May 13. The tariff increases mostly follow the lists China released last year in response to U.S. plans to add tariffs on $200 billion worth of goods from China (see 1905130002). The retaliatory tariffs were implemented last year at lower rates than were initially announced. China now plans to increase those retaliatory tariffs on June 1.
During a House hearing on China’s influence in Europe, several experts said the U.S. needs to more strongly cooperate with Europe against Chinese trading practices and economic influences, including on export controls and information sharing.
The Treasury's Office of Foreign Assets Control sanctioned two companies and two ships for operating in the Venezuelan oil sector, Treasury said in a May 10 press release. As part of the announcement, it said that Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo “determined that persons operating in the defense and security sector of the Venezuelan economy” may be sanctioned.
The U.S. seized a North Korean cargo ship for violating U.S. and international sanctions after it transported coal and “heavy machinery” and used U.S. banks for various transactions, the Department of Justice said in a May 9 press release.
The U.S. trade war with China and the stalled revision of NAFTA have severely limited their export markets, filling their warehouses with unmovable products and slashing their revenues, farmers said during a House hearing on the state of the farm economy. The farmers called for a quick resolution of trade disputes with China and ratification of the U.S.-Mexico-Canada Agreement, and suggested another market facilitation program similar to the relief package the Trump administration authorized in 2018 to aid farmers suffering from ongoing sparring over tariffs.
The Trump administration on May 8 announced an executive order placing sanctions on Iran’s iron, steel, aluminum and copper sectors in what it said are the country’s “largest non-petroleum-related sources of export revenue."