Cross-Border Compliance Update

Cross-Border Compliance Update: June - July 2020

August 7, 2020

Foley Hoag’s Trade Sanctions & Export Controls Practice offers experienced, proactive regulatory advice to help clients avoid regulatory compliance missteps and to prevail in official proceedings. For more information about global compliance, visit the Foley Hoag Trade Sanctions & Export Controls Practice Group.

Included in this Issue:

  • Hong Kong Updates and Alerts
    • New Restrictions on Exports to Hong Kong – License Exceptions for Hong Kong Suspended
    • Hong Kong Autonomy Act and New Executive Order
  • Exporter Alert: Military End-Use and End-User Expansion on China, Russia, and Venezuela Exports Creates Enhanced Diligence Burden and Restrictions
  • Trump Administration Issues New EO to Authorize Sanctions on Persons Affiliated with the International Criminal Court (ICC)
  • Huawei Updates
    • New Rule Allows “Standards Development” Disclosures to Huawei
    • Huawei included in Defense Department list of Chinese Military Companies Operating in United States
    • U.K. Prohibits Huawei equipment in 5G Networks
    • Huawei Restrictions for Government Contractors to go into Effect August 13, 2020
    • New Visa Restrictions Include Huawei Employees
  • Updated CAATSA Public Guidance
  • New Additions to the Export Administration Regulations
  • Syria Sanctions: Additional Regulations; Caesar Act Sanctions Imposed
  • Iran Sanctions Updates:  Impacts on Shippers and Metal Industry
  • Venezuela Sanctions Update
  • Nicaragua Sanctions Regulations Amendments, Designations
  • Sanctions on Nigerian Cyber Actors
  • Chinese Media Entities Designated as “Foreign Missions”
  • BIS Seeks Comments on Export Controls Impacting Surveillance and Human Rights
  • Xinjiang Uyghur Autonomous Region (XUAR) Updates
    • Chinese Entities Added to the BIS Entity List for Human Rights Abuses
    • Advisory Issued for Business Risks Related to XUAR Human Rights Violations
    • Magnitsky Act Designations for Human Rights Abuses Against Ethnic Minorities in the XUAR.
  • Additions to the Cuba Restricted List
  • Reminder to Submit Blocked Property Reports
  • CFIUS Online Case Management System Now in Effect
  • DOJ and SEC Release Second Edition of FCPA Resource Guide

Excerpt:

Hong Kong Updates and Alerts

New Restrictions on Exports to Hong Kong – License Exceptions for Hong Kong Suspended
On June 29, 2020, the State Department announced that the U.S. will end the export of U.S.-origin defense equipment to Hong Kong and will impose the same restrictions on U.S. defense and dual-use technologies exported to Hong Kong as it does for China. On July 31, the Bureau of Industry and Security (BIS) published a Final Rule implementing changes (announced on June 30) to the Export Administration Regulations (EAR) which suspend the availability of all license exceptions for exports or re-exports to Hong Kong, or transfers within Hong Kong, that provide different treatment for exports to Hong Kong as compared to China. Exporters should ensure that their internal processes are updated to avoid seeking to use such license exceptions when shipping to Hong Kong.

Download the June - July 2020 Foley Hoag Cross-Border Compliance Update (pdf).