USA advisory: Russian import and export bans and China tariff update
As countries worldwide continue to implement new restrictions on Russian trade, individuals, companies and financial institutions in response to the Russian government invading Ukraine, the United States is amongst those having imposed additional sanctions (both import, export and financial) on Russia including a recent import ban on seafood, alcoholic beverages and non-industrial diamonds as well as an export ban on certain luxury goods.
The export control measures will also cut off more than half of Russia’s high-tech imports, further adding to the financial pressures felt by the country as a result of all ten of Russia’s largest financial institutions having been sanctioned, including the blocking of institutions holding nearly 80% of Russian banking sector assets. The USA has joined entities such as the UK, EU, Australia in being one of 30 countries representing well over half the world’s economy that have announced sanctions and export controls targeting Russia.
This is in addition to the restrictions put in place by the USA against Russian individuals, as well as the prohibition of any new investment in any sector of the Russian Federation economy, and the sanction on the exportation, reexportation, sale, or supply of US Dollars to the Government of the Russian Federation or any person located in the Russian Federation.
Meanwhile, the tariff on Chinese-origin goods, first implemented in July 2018, is due to expire in July of 2022 unless action is taken by the United States Trade Representative (“USTR”). It is expected that the USTR will attempt to renew these tariffs, meaning that goods imported from China, whether directly or through a third country, would continue to be subject to duties as imposed by the US government.
If you have any questions on US customs or supply chain management, please contact our dedicated Woodland team here.