The Organisation for Economic Cooperation and Development's Inclusive Framework aims to reach an agreement on a multilateral taxation framework for the digitised economy by the end of 2020. However, US Trade Representative Robert Lighthizer recently confirmed that the United States has withdrawn its participation from the digital tax talks. The United States' withdrawal is a step towards new tariffs on imports from countries that apply their own digital services tax.
In four new FAQs, the Office of Foreign Assets Control has provided a few surprises in its clarifications of the sector-based sanctions contained in Iran-Related Executive Order (EO) 13902. The new FAQs confirm earlier guidance and provide detailed but mostly unremarkable definitions of the four sectors of the Iranian economy, as well as the goods and services used in connection with those sectors, that are targeted by EO 13902 and the meanings of the terms 'knowingly' and 'significant'.
The Department of Commerce and the Bureau of Industry and Security recently revised an arcane export control rule that imposes US export controls on foreign-origin products that are a direct product of certain US technologies. Although the two new categories of foreign direct product are far broader than the old one, new foreign direct products require a licence only when they are exported or re-exported to entities on a new special subset of the Entity List, which includes Huawei, HiSilicon and other Huawei affiliates.
A new executive order has formalised Team Telecom, a previously ad hoc committee which for many years has reviewed applications for Federal Communications Commission (FCC) authorisations involving non-US parties, typically for US-international telecoms service or submarine cable landings. The committee has the primary responsibility of reviewing applications for FCC authorisations which involve foreign ownership to identify national security or law enforcement risks.
Through an array of legislative and administrative measures, the government has made significant strides in recent years to limit, and perhaps end altogether, the proliferation of Chinese-origin telecoms technology in US infrastructure. While some of the legislation is company agnostic, Chinese telecoms giant Huawei, which remains on the Department of Commerce, Bureau of Industry and Security's Entity List, is a primary target.