The U.K. announced plans this week to put in place a carbon border adjustment mechanism, which could lead to new import taxes and due diligence requirements on aluminum, cement, ceramics, fertilizer, glass, hydrogen, iron, steel and other industrial sectors associated with high carbon emissions. The mechanism, which is expected to be implemented in 2027, came after a 12-week public comment period in which over 100 representatives from industry, non-governmental organizations, think tanks and academia gave input about the types of products that should be covered, how import taxes should be calculated, a timeline for implementation and more.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The Bureau of Industry and Security last week removed four Chinese companies from the Unverified List after it was able to successfully complete end-use checks.
A trade group is urging the Bureau of Industry and Security to revise its export controls surrounding encryption and mass-market goods, saying some of those less-sensitive items should no longer be subject to strict license requirements. The group also asked BIS to eliminate some encryption-related reporting requirements that burden compliance professionals and said the agency should devote more resources to its licensing division, which will help speed up decisions on applications and classification requests.
Although scholars from the U.S., Japan and South Korea said the three countries largely agree on China-related semiconductor export controls, they said those conversations could grow more difficult as the U.S. continues to restrict a broader set of advanced chips and chipmaking equipment.
The Bureau of Industry and Security is working more closely with the Office of Foreign Assets Control on enforcement issues, which could allow the two agencies to better align the BIS Entity List and OFAC’s Specially Designated Nationals List, a BIS official said this week.
The semiconductor industry is pushing the Biden administration for more transparency surrounding its future plans for export controls on chips and chip tools, saying the uncertainty is causing more foreign customers to avoid using advanced U.S.-origin technology. The industry also warned that China has seen a sharp uptick in domestic orders for chips and chipmaking equipment following the most recent U.S. controls, potentially jeopardizing sales to the American semiconductor industry’s largest market.
Exporters will have at least another month to digest the Bureau of Industry and Security's recently updated semiconductor export controls before the agency issues clarifications and corrections.
The U.S. this week sanctioned more than 250 people and companies supplying Russia’s military in violation of U.S. sanctions and export controls, targeting procurement networks in China, Turkey, the United Arab Emirates and elsewhere. The Treasury and State departments said many of the newly sanctioned companies supplied Russia with goods listed on the Commerce Department’s list of common high-priority items, including electronic components, while others sold Russia advanced weapons and military technology.
New York-based stock exchange Nasdaq agreed to pay more than $4 million to settle allegations that its former Armenian subsidiary, which owned the Armenian stock exchange, violated U.S. sanctions against Iran. The enforcement notice released by the Office of Foreign Assets Control, which details violations stemming from transactions more than a decade ago, said Nasdaq failed to apply its sanctions compliance policies to the Armenian stock exchange, which illegally allowed the Armenian branch of an Iranian bank to participate.
New guidance from the Biden administration this week warned shippers, forwarders, brokers, ship owners and others involved in maritime and other transportation industries to better know their cargo, saying they each have a “responsibility” to craft their own “rigorous” compliance programs. The 10-page sanctions advisory specifically calls out freight forwarders, saying they play a “key role” in compliant supply chains.