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US – CBP issues guidance for Sec. 301 Covid-19 exclusion extensions

By 6 Mins Read

On December 30, 2020, CBP issued CSMS #45318223 – GUIDANCE: Section 301 Modifications and Product Exclusion Extensions from China Duties (9903.88.62, 9903.88.63, 9903.88.64, 9903.88.65), which provides guidance for the USTR exclusions granted in a Federal Register notice published on December 29, 2020. It follows: The purpose of this message is to provide guidance regarding the modification of the Section 301-China action and the extension of product exclusions from additional duties on certain medical-care products to…

US – Commerce removes Hong Kong as a separate designation under the EAR

By , and 5 Mins Read

On December 23, 2020, the Commerce Department’s Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR), in further implementation of Executive Order 13936 (EO 13936), to remove provisions that provide differential and preferential treatment for exports, reexports, and transfers of items to Hong Kong as compared to China. As a result of these changes, Hong Kong will be removed as a separate destination on the Commerce Country Chart and in other places in the EAR, which…

US – BIS adds Chinese multinationals to the Entity List and publishes FAQs about the Huawei FPDP rule

By , and 4 Mins Read

On December 22, 2020, the US Commerce Department’s Bureau of Industry and Security (“BIS”) published a final rule (“Final Rule”) in the Federal Register adding 77 entities and individuals to the Entity List, including several prominent Chinese multinationals (together, the “Designees”). The Final Rule took effect on December 18, 2020. On the same day, BIS also published FAQs related to its recent expansion of the foreign-produced direct product rule (the “Huawei FPDP Rule”). Entity List Designations In press statements (here and here) released with the…

US – BIS adds a “Military End User List” to the EAR consisting of 102 Chinese and Russian entities

By , and 4 Mins Read

On December 23, 2020, the US Commerce Department’s Bureau of Industry and Security (BIS) issued a final rule amending the Export Administration Regulations (EAR) by adding a new “Military End User List” (MEU List) as supplement no. 7 to part 744 of the EAR. The final rule adds 102 entities to the MEU List, which will consist of Chinese, Russian, and Venezuelan entities that the US Government has determined are “military end users” for purposes…

US – USTR will extend China Sec. 301 exclusions related to Covid19

By 4 Mins Read

On December 23, 2020, the US Trade Representative (USTR) posted on its website an advance copy of a notice of product exclusion extensions and additional modifications to be published in the Federal Register. In prior notices, the USTR modified the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by excluding from additional duties certain medical-care products needed to address the COVID-19 outbreak. On…

US – Four additional Chinese entities subject to restriction on US securities transactions

By , and 2 Mins Read

On December 3, 2020, the Department of Defense announced its third list of “Communist Chinese military companies” operating in the United States, pursuant to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999, as amended (“Section 1237”). The practical impact of the announcement is that these four companies become subject to Executive Order 13959, which restricts US investment in these companies. The first and second lists also issued pursuant to Section 1237 are found here and here. The…

US – Treasury labels Vietnam and Switzerland as currency manipulators

By 2 Mins Read

On December 16, 2020, US Department of the Treasury delivered to Congress the semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. Treasury determined that both Vietnam and Switzerland are currency manipulators. For each country, Treasury assessed, based on a range of evidence and circumstances, that at least part of its exchange rate management over the four quarters through June 2020, and particularly foreign exchange intervention, was for…

US – CBP issues WRO on cotton products made by Xinjiang Production and Construction Corps using prison labor

By 2 Mins Read

On December 2, 2020, the Department of Homeland Security (DHS) announced that US Customs and Border Protection (CBP) Office of Trade directed the issuance of a Withhold Release Order (WRO) against cotton products originating from the Xinjiang Production and Construction Corps (XPCC).in China based on information that reasonably indicates the use of forced labor, including convict labor. The WRO applies to all cotton and cotton products produced by the XPCC and its subordinate and affiliated…

CBP issues guidance for Sec. 301 Tranche 3 technical amendment

By 4 Mins Read

On November 18, 2020, CBP issued CSMS #44905878 – GUIDANCE: Section 301 Tranche 3 – $200B Action Technical Amendment to Product Exclusion from China,reproduced below: Background On November 13, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 72748, announcing a technical amendment to amend a previously granted exclusion under Section 301 related to goods from China (Tranche 3 – $200B Action). The technical amendment relates to the imposed additional duties announced in 83 FR 47974,…

President signs Executive Order prohibiting US Persons from purchasing securities of certain Chinese companies

By , and 4 Mins Read

On November 12, 2020, President Trump signed Executive Order 13959, “Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies” (the “China Securities EO”), which aims to prevent US investors from financing the development of the People’s Republic of China’s military, intelligence, and security capabilities by prohibiting purchases of securities of certain “Communist Chinese military companies.” This development builds on US Government concerns over China’s civil/military fusion and access to US capital markets and financing.…