The United States announced the successful resolution of the Rapid Response Labor Mechanism (RRM) matter at the Servicios Industriales González, S.A. de C.V. (SIG) facility, a major metal fabricator and supplier for Caterpillar, John Deere and Komatsu  in Nuevo Leon.

A new Country Limitation Schedule (CLS) with the following cover policy changes is effective May 30, 2024. The CLS indicates where EXIM is "open for cover" and where EXIM is "off-cover."

A bipartisan group of lawmakers are urging President Biden to act on a new law allowing him to seize frozen Russian assets and give them to Ukraine for reconstruction ahead of the G7 finance ministers’ meeting. The lawmakers asked for a briefing by June 1 on the progress of talks being led by the National Security Council to encourage G7 and European Union partners to find creative mechanisms for using Russian sovereign funds frozen in their respective jurisdictions.

Friday the Office of Missile, Biological, and Chemical Nonproliferation, Bureau of International Security and Nonproliferation, Department of State, named three individuals and two entities as violators of the Iran, North Korea, and Syria Nonproliferation Act (INKSNA). Industry should be aware of its compliance obligations and exercise extra vigilance due to the ubiquitous nature of many of the items, as Iran utilizes commercial-grade components in its weapons.

A bipartisan group of House members have introduced legislation that would provide investment tax credits to encourage the movement of pharmaceutical supply chains back to territories like Puerto Rico and Guam from China. The Bill states: The critical supply chains reshoring investment credit is an amount equal to 40 percent of the qualified investment with respect to any critical supply chain facility placed in service during such taxable year."  

The Energy Department published guidelines and instructions for obtaining a waiver to the recently signed Prohibiting Russian Uranium Imports Act, which bans the import of certain types of Russian Low Enriched Uranium into the United States beginning on August 11, 2024

A group of developing and developed members appealed for the EU to postpone the implementation of its new Regulation on Deforestation-Free Products (EUDR).

Wednesday the House Foreign Affairs Committee  passed H.R. 8315, the “Enhancing National Frameworks for Overseas Critical Exports Act” (ENFORCE Act) 43-3, with broad bipartisian support.   Introduced by Rep. Michael McCaul, the bill expands the authority of the BIS to control the export of Artificial Intelligence Systems.

Export-Import Bank of the United States (“EXIM”) announced an application for final commitment for a long-term loan of upwards of $1 billion to expand its expposure to solar development schemes in Angola.

Two Florida men have pleaded guilty to one count of wire fraud conspiracy for their roles in a scheme to fraudulently procure deeply discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., doing business as MilliporeSigma, and export them to China using falsified export documents. As a result of MilliporeSigma’s timely self-disclosure and extraordinary cooperation, MilliporeSigma will not be charged, despite the criminal wrongdoing committed by a MilliporeSigma employee.

Customs & Border Protection (CBP) issued an update including a high level comparison between the two Section 321 Programs (Section 321 Data Pilot and the Entry Type 86 Test). Section 321, 19 USC 1321 is the statute that describes de minimis, which provides admission of articles free of duty, but the aggregate fair retail value of articles imported by one person on one day and exempted from the payment of duty shall not exceed $800.

A report from the GAO notes the challenges facing nonproliferation safeguards efforts due to limited funding if the International Atomic Energy Association (IAEA) and a growing set of threat opportunities.

Financial Crimes Enforcement Network (FinCEN) held an outreach event on beneficial ownership reporting requirements at the Puerto Rico Department of State. the May 22 event was FinCEN’s first outreach event in Spanish regarding the Federal requirements to report information to FinCEN about the individuals who ultimately own or control them.

Treasury Secretary Janet Yellen convened with German bankers on Tuesday. The roundtable discussion focused on global macroeconomic trends, the risks to financial security, and the impact of multilateral sanctions against Russia. She asked bankers to be more proactive in their adherence to sanctions restrictions, and to impress the same upon their affiliates and correspondents. In remarks to the Frankfurt School of Finance and Management the day prior, Yellen defended the Boden Administrations efforts to rebuild the transatlantic alliance. "Put simply, the transatlantic alliance has delivered for Americans, Europeans, and many others. And the United States has been committed to advancing it—through multilateralism, most notably through the G7, NATO, and U.S. relations with the EU—and through bilateral relationships between the U.S. and European countries, including, of course, with Germany.

The inaugural Luzon Corridor Steering Committee meeting, to drive infrastructure investment and development along the Corridor met on the sidelines of the Indo-Pacific Business Forum in Manila last week. Luzon Corridor is  the first project of the U.S.-initiated Partnership for Global Infrastructure and Investment in the Indo-Pacific (PGI), which is touted as an alternative to China’s Belt and Road Initiative and Maritime Silk Road.

Tuesday Assistant U.S. Trade Representative for Environment and Natural Resources Kelly Milton was in Hanoi to lead the fourth meeting of the U.S.-Vietnam Timber Working Group.

Kevin Wolf at Akin Gump brings to our attention "a reminder re the scope of the GTN and how to read all technology ECCNs on the CCL (i.e., with a "required" limiter)," can be found in an advisory opinion published in 2014 by Eileen Albanese,  then Acting Director, Office of Exporter Services, now Director of the Office of National Security and Technology Transfer Controls Bureau,

At the opening of the AI Seoul Summit, Secretary of Commerce Gina Raimondo released a strategic vision for the U.S. Artificial Intelligence Safety Institute (AISI), describing the department’s approach to AI safety. Raimondo also shared the department’s plans to work with a global scientific network for AI safety through meaningful engagement with AI Safety Institutes and other government-backed scientific offices.

China's Foreign Ministry on Tuesday announced countermeasures against former U.S. lawmaker Mike Gallagher.   He will be banned from entry into China, and all types of property and assets of his in China will be frozen starting on May 21. Organizations and individuals within the territory of China are prohibited from engaging in relevant transactions, cooperation and other activities with Gallagher. If the sanctions are strictly enforced, those who transact with him, including individuals and institutions, could be affected.

In addition to your monthly edition, we hope you find useful this mid-month summary of recent developments in the field of trade compliance. Readers interested in more frequent updates on Regulatory and Trade Policy developments may find useful a subscription to The Washington Tariff and Trade Letter, our weekly review of developments. For questions about access or editorial, reach out anytime to info@traderegs.com or call the editor, Frank Ruffing at +1.703.283.5220