US: Firms Given Time to Wind Down Business with COSCO Unit

Posted On: 12-12-2019

The U.S. Treasury Department has issued an almost two-month waiver providing companies that deal with COSCO units time to wind down their transactions. The waiver, issues on October 24, allows “maintenance or wind down of transactions” and is valid until December 20. This includes offloading non-Iranian crude oil involving COSCO Shipping Tanker (Dalian) Co. Ltd, according to a notice from the department’s Office of Foreign Assets Control. The Treasury Department said that the waiver applies to COSCO Shipping Tanker (Dalian) or any entity owned 50% or more by the company. The waiver does not authorize any transactions or activities with COSCO Shipping Tanker (Dalian) Seaman and Ship Management Co, Ltd. In late September, the Trump administration blacklisted a total of six Chinese companies,
among which were COSCO subsidiaries, over alleged breaches of the country’s sanctions on Iran. COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. were determined by the Secretary of State to meet the criteria for the imposition of sanctions. The sanctions apply only to the listed entities and not to these entities’ ultimate parent, COSCO Shipping Corporation Ltd. (COSCO), the authorities earlier explained. Other companies blacklisted on September 25 include Kunlun Holding Company, Kunlun Shipping Company Limited, China Concord Petroleum, and Pegasus 88 Limited.
(Credits: www.worldmaritimenews.com)