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Another Stab at a Farm Bill

The farm bill is a multiyear law that governs many agricultural and food programs. It's the second largest piece of legislation that the U.S. government regularly passes.
Congressional lawmakers are taking another stab at trying to put together and pass the 2024 Farm Bill after running into difficulties last year. Both Senate Agriculture Committee Chair Debbie Stabenow (D-Mich) and House Agriculture Committee Chair Glenn “GT” Thompson (R-Penn) unveiled their Farm Bill proposals last week. While the Senate version appeals to the customary bipartisan compromise, the House Committee's ranking Democrat complains his GOP colleagues " turned what could have been a genuinely bipartisan bill into a messaging exercise to appease their right flank that has no chance of becoming law.”
Private sales to countries like Kyrgyzstan, Laos, Mali and Yemen will be declined.
Friday the Department of Commerce released an interim final rule amending the Department’s licensing policy for exports of firearms, ammunition, and related components under its jurisdiction. Coming on the six-month anniversary of a controversial "90 day pause" in firearms export license approval, the new rule proposes significant changes.
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Aid Bill Includes Ten Year Sanctions Lookback

Included among the munitions and TikTok drama, the foreign aid package signed last week has material changes for the sanctions compliance practitioner. Front and center for sanctions practitioners is the extension of the statute of limitations for sanctions (SOL) violations.

CFIUS Volume Growth Calls for Reforms: GAO Report

The Committee on Foreign Investment in the United States (CFIUS) has seen explosive caseload in recent years, though a performance audit finds the committee organization and management has struggled to keep up, according to a report released  by the General Accounting Office (GAO).

Welcome to Your WTTL

The Washington Tariff and Trade Letter introduces a web-based format for easier review, research and sharing.  Clicking on a story in the newsletter will now bring you to the full text on our new web site. A .pdf version of the newsletter is available below.   For any questions about website access and your subscription, please contact us at Info@TradeRegs.com – Or call the Editor, Frank Ruffing, at +1.703.283.5220

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Sather tower, UC Berkeley

DDTC University Review Yields ITAR Compliance Guide

The Directorate of Defense Trade Controls is issuing a white paper providing general findings from visiting various universities and research centers that are engaged in activities of the International Traffic in Arms Regulations from 2020 to early 2024.  The paper provides general compliance commendations, including “best practices” and recommendations that the Office of Defense Trade Controls Compliance provided to the universities following each visit.

IRS Updates EV Credit Rules

The U.S. Department of the Treasury and IRS released final rules on the clean vehicle provisions of the Inflation Reduction Act. The rules update  taxpayer and vehicle eligibility for the credit for new clean vehicles and the previously-owned clean vehicle credit. The rules also address the critical minerals and battery components requirements and Foreign Entity of Concern (or “excluded entity”) restriction that were added to the clean vehicle credit by the IRA.
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Teak Logs, Irrawaddy River, Mandalay, Myanmar, 2011

TIMBER Working Group Marks One Year

Assistant Attorney General Todd Kim delivered remarks at the Department of Justice on April 29, 2024, marking the one-year anniversary of the launch of the Timber Interdiction Membership Board and Enforcement Resources Working Group.

Enforce and Protect Act (EAPA)’s Final Rule

On April 17, 2024, the Enforce and Protect Act (EAPA)’s Final Rule takes effect. EAPA establishes procedures for an “ interested party” to submit an allegation that an importer is evading its payment of antidumping and countervailing (AD/CVD) duties.  

Treasury's Nelson on Chinese Money Laundering

In testimony before the U.S. Senate Caucus on International Narcotics Control last week, Under Secretary for Terrorism and Financial Intelligence Brian Nelson Before the U.S. Senate Caucus on International Narcotics Control directed lawmakers attention to Chinese money laundering organizations (CMLOs). CMLOs offer several advantages for illicit actors. These money launderers are insular, decentralized, and rely on interpersonal relationships among the Chinese diaspora to conduct business, making them difficult for law enforcement to penetrate.

Transparent Battery Supply Chain Bill

Bipartisan legislation (HR 8187) introduced last week would improve transparency in the current battery supply chain by creating an Energy Department program to support the development, implementation and adoption of digital identification systems.
On the calendar
Agriculture Secretary Tom Vilsack announced yesterday that he has named Malikha Daniels as Senior Policy Advisor for the Foreign Agricultural Service.
The US Export-Import Bank signed two new Memoranda of Understanding yesterday, one with Nigeria and the other with Mastercard. The Nigerian MOU is "to encourage collaboration and identify projects that enhance economic prosperity between Nigeria and the United States,"according to EXIM.  The Mastercard MoU is "to encourage collaboration opportunities in support of small businesses."
Thursday, The Commerce Department announced its preliminarily determination that aluminum extrusion producers and exporters in in fourteen countries are selling their product in the US at less than fair value. In 2022, the U.S. imported 57 million tons of aluminum extrusions worth about US$3.19 billion from 15 countries, according to U.S. Department of Commerce statistics. The United States imported 110,000 tons worth US$660 million from Mexico, the largest exporter of aluminum extrusions to the United States.
Despite repeated requests to increase the World Trade Organization’s budget during 2022 and 2023, Director-General Ngozi Okonjo-Iweala says that “the organization will have a budgetary surplus of CHF 4.8 million (close to USD 5 million)”, an increase that prompted her to seek “stepping up our recruitment to hire the very best staff.” The DG has embarked on reforming the Secretariat based on a McKinsey and Company report. The reform process generated considerable controversy in the organization, said several people familiar with the reform-related developments.
Responding to reports the company has secretly funded research at US universities through an independent foundation, new chairman of the House Select Committee on China Rep. John Moolenaar (R-Mich) is taking aim at Chinese telecoms giant Huawei. The research funding is a way for China to steal US innovations, the chairman said.  The Administration should suspend all export licenses to Huawei and consider other steps such as placing the company on the Specifically Designated National list, he stated.

ATF Firearms Export Form 9 Revision

The Justice Depaertment's Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) will be submitting for review and approval revisions to the form filed for approval to permanently export NFA firearms registered in the National Firearms Registration and Transfer Record

DoE Clarifies Foreign Entity of Concern for EV Credits

The Energy Department has published their interpretation of the statutory definition of “foreign entity of concern” (FEOC) in the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law (BIL), which applies to multiple programs related to the battery supply chain. In this final interpretive rule, DOE responds to public comments, clarifying the term “foreign entity of concern” by providing interpretations of the following key terms: “government of a foreign country;” “foreign entity;” “subject to the jurisdiction;” and “owned by, controlled by, or subject to the direction.”

China Chip Ban Rule Published

The Department of Defense published proposed rules prohibiting the acquisition of semiconductor parts and services manufactured by certain Chinese manufacturing concerns. DoD, GSA, and NASA are considering amending the Federal Acquisition Regulation (FAR) to implement paragraphs (a), (b), and (h) in section 5949 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 that prohibits executive agencies from procuring or obtaining certain products and services that include covered semiconductor products or services effective December 23, 2027.

Census AES Revision to Type C33 (No License Required) FOR AUKUS

REVISION TO LICENSE TYPE C33 No License Required (NLR) to reflect “600 series” items are eligible for this license type when exported to Australia and the United Kingdom. An update has been made to AES to reflect that NLR shipments of 600-series and 9x515 ECCNs (except .y paragraph) can be shipped only to Australia, Canada, and the United Kingdom.