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December 18, 2020 – On December 18, 2020,
the U.S. Department of Commerce, Bureau of Industry and Security
( BIS ) released a final rule that would add 77 new entities,
including Semiconductor Manufacturing International Corporation
Incorporated ( SMIC ), to the Entity List. All of the
newly added entities are subject to a license requirement for all
items subject to the Export Administration Regulations
( EAR ), even though some entities are subject to
different license review policies. Consistent with BIS s
clarification of the Entity List licensing requirements from
earlier this year, the license requirement will apply whenever any
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On December 2, 2020, U.S. Customs and Border Protection (CBP) issued an order blocking all imports of cotton and cotton products from Xinjiang Production and Construction Corps (XPCC), a Chinese state-owned company operating in the Xinjiang Uighur Autonomous Region. The impact of the order, intended to combat the alleged use of forced labor of ethnic Uighur Muslims, is potentially sweeping as, by some estimates, XPCC produces 7% of the world’s cotton.
This is CBP’s sixth enforcement action in three months targeting goods from China’s Xinjiang region, underscoring not only Washington’s heightened focus on this issue, but also the need for U.S. importers to carefully review (and potentially reassess) their supply chains moving forward.
Thursday, December 17, 2020
On December 2, 2020, U.S. Customs and Border Protection (CBP) issued an order blocking all imports of cotton and cotton products from Xinjiang Production and Construction Corps (XPCC), a Chinese state-owned company operating in the Xinjiang Uighur Autonomous Region. The impact of the order, intended to combat the alleged use of forced labor of ethnic Uighur Muslims, is potentially sweeping as, by some estimates, XPCC produces 7% of the world’s cotton.
This is CBP’s sixth enforcement action in three months targeting goods from China’s Xinjiang region, underscoring not only Washington’s heightened focus on this issue, but also the need for U.S. importers to carefully review (and potentially reassess) their supply chains moving forward.
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Recent court rulings enjoining enforcement of the Trump Administration’s Executive Order (“EO”) targeting TikTok show signs of curbing the sweeping powers of the International Emergency Economic Powers Act (“IEEPA”), which arguably sits at the center of the modern U.S. sanctions and export control regimes. Separate statutory constraints with respect to restrictions on sales of agricultural commodities, food, medicine, and medical supplies could also potentially limit the impact of the designation of the Xinjiang Production and Construction Corps (“XPCC”).
While Presidents have often turned to IEEPA to impose economic sanctions in furtherance of U.S. foreign policy and national security objectives, the Trump administration’s reliance on IEEPA authority for its TikTok EO appears to be having a rough time getting past the courts. Similarly, the impact of the Trump Administration’s designation of XPCC as a S