The Los Angeles and Long Beach ports again postponed by one month a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced Nov. 18. The ports had planned to begin imposing the fee a year ago, in November 2021, but postponed it each week until July 29, when the ports announced their first one-month postponement (see 2207290053). The latest one-month extension delays the effective date until Dec. 16.
U.S. liquified natural gas export capacity will grow by about half over the next few years as countries increasingly turn away from Russian energy supplies, Geoffrey Pyatt, the State Department’s assistant secretary for energy resources, said last week. Pyatt predicted Russia will “never” recover its share of the global energy market and the transition away from Russian fuel will ultimately benefit U.S. and allied traders, including those operating in the emerging renewable energy sector.
The Bureau of Industry and Security’s new Unverified List policies, which allow the agency to move a company from the UVL to the Entity List if it can’t complete an end-use check within 60 days, likely will lead to an uptick in companies added to the Entity List, said Nazak Nikahtar, former acting BIS undersecretary. Nikakhtar said she believes many Chinese companies added to the UVL won’t participate in an end-use check that meets the U.S.’s standards.
The U.K. this week ordered a subsidiary of China’s Wingtech Technology to divest from Britain's largest microchip facility, Nexperia Newport (formerly Newport Wafer Lab), several months after U.S. lawmakers urged the Biden administration to intervene in the acquisition. The U.K.’s Department for Business, Energy & Industrial Strategy’s decision will force Wingtech’s subsidiary, Netherlands-based Nexperia, to sell at least 86% of its stake in Nexperia Newport “within a specified period and by following a specified process.” Nexperia acquired the stake in then Newport Wafer Lab in 2021.
Companies should expect “robust enforcement” from the Bureau of Industry and Security surrounding its new China-related chip controls (see 2211010042 and 2210070049), which could include more end-use checks and additions to the Entity List, said Stephenie Gosnell Handler, a Gibson Dunn trade lawyer, speaking during a webinar hosted by the law firm this week. She said companies should “ensure their red flag indicators are up to date and are being vetted appropriately.”
Congress should create a new, “permanent” committee in the executive branch tasked with planning sanctions against China under “a range of possible scenarios,” including if it invades Taiwan, a congressional commission said this week. The bipartisan commission also said the Commerce Department should provide Congress with regular enforcement and licensing reports on certain China-related export control decisions and said the administration should create a new list of Chinese firms that should be subject to strict export licensing requirements.
U.S. and foreign companies “seem to be equally confused” by the Bureau of Industry and Security's new China chip export restrictions (see 2210070049), said Alison Stafford-Powell, a trade compliance lawyer with Baker McKenzie, speaking Nov. 15 during a virtual event hosted by the law firm. She called the new BIS rule “incredibly complex" and said industry needs more guidance from the agency.
The Bureau of Industry and Security's new administrative enforcement policies, including higher penalties for more serious violations, hasn’t led to a significant rise or fall in voluntary self-disclosures so far, said Matthew Axelrod, the agency’s top export enforcement official. Axelrod, speaking during a Nov. 14 event hosted by the Society for International Affairs, said BIS received 150 new VSDs since the policy change in June (see 2206300069), which he said was about the same number it received during the same time period each of the last two years.
The EU’s foreign direct investment screening mechanism has several glaring “shortcomings” that hinder the bloc’s ability to monitor harmful FDI and can lead to delays in regulatory decisions on investments, the Organisation for Economic Co-operation and Development said in a recent report. Although the OECD said “most actors” involved in the EU’s investment screening efforts approve of the new mechanism, its effectiveness is limited by member states that haven’t yet implemented FDI screening and don’t properly share information about ongoing screening efforts.
The Treasury Department wants to modernize its licensing approach to more easily allow humanitarian groups to send aid to sanctioned jurisdictions, said Alex Parets, counselor to Treasury’s undersecretary for terrorism and financial intelligence. Parets, speaking during a Nov. 14 event hosted by the Center for Strategic and International Studies, said the administration is prioritizing work to improve its exemption process for humanitarian organizations and banks working with them.