No short-term action should be expected on sanctions, export controls or foreign investment scrutiny, as President Joe Biden takes over U.S. trade policy following President Donald Trump's thorough shake-up of traditional policy, lawyers said on a Thompson Hine webinar Jan. 19. The Trump administration made significant policy changes in all three of these areas, and it appears Biden will shy away from any immediate course reversal due to a stated desire to focus initially on domestic concerns and to use Trump measures as a leverage point in future negotiations, lawyer David Schwartz of Thompson Hine said. The only difference the lawyers predict for the Biden administration will be in the general approach to these issues, with a special emphasis on a more measured tone, they said. For instance, while the sanctions themselves may stay in place, Biden will shift from dubbing the White House's approach to Iran as a “maximum pressure” campaign to one that applies “compliance pressure,” Schwartz said. He also predicts a more measured use of the Specially Designated Nationals and Blocked Persons List to promote multilateral cooperation.
The Bureau of Industry and Security on Jan. 19 updated its guidance for exports to military-end users and for end-uses in China, Russia and Venezuela (see 2006290045). BIS said it amended one frequently asked question concerning exports to national police. The agency recently amended the Export Administration Regulations to add a military end-user list, which consists of entities subject to export licensing requirements (see 2012220027).
The Trump administration told a number of Huawei suppliers that it planned to revoke their licenses to sell to the company and planned to reject “dozens” of other Huawei-related license applications, according to a Jan. 17 Reuters report. The actions impacted licenses used by Intel, Japanese chipmaker Kioxia Corp and others, the report said. Reuters said the action was taken as about 150 licenses were pending for $120 billion worth of goods and technology, which have been held up due to interagency disagreements. Another $280 billion in license applications have yet to be processed but are “likely” to be denied, the report said. The Commerce Department rejected a “flurry” of Huawei-related license applications last week, and an agency official said the pandemic has contributed to adjudication delays and a backlog of applications (see 2101150062). A Bureau of Industry and Security spokesperson said the agency continues to work with interagency partners to “apply consistently the licensing policies articulated” in the Export Administration Regulations “in a manner that protects U.S. national security and foreign policy interests.”
The Office of Information and Regulatory Affairs Jan. 12 completed a review of an interim final Bureau of Industry and Security rule that will expand certain end-use and end-user controls, and controls on “specific activities of U.S. Persons.” OIRA received the rule Dec. 14.
The United Kingdom’s Export Control Joint Unit on Jan. 8 updated its legislation and licensing guidance to consolidate all notices for exporters that affect the end of the U.K.’s transition period after its break with the European Union. The documents include guidance on exporting dual-use items, firearms, civil nuclear material and military items.
The European Commission on Jan. 7 updated a document authorizing certain dual-use export control authorities to European Union member states. The document lists national authorities “empowered in the member states” that can grant export licenses, block the transit of “non-community dual-use items” and grant authorizations for “the provision of brokering services.”
The Office of Information and Regulatory Affairs on Dec. 23 completed a review of a final Bureau of Industry and Security rule that will implement more export controls agreed to at the 2019 Wassenaar Arrangement plenary. BIS published the first set of controls from the plenary in October (see 2010020042) but has since experienced rulemaking delays (see 2012080046). OIRA received the rule Dec. 11 (see 2012140009).
The United Kingdom updated and revised more than 50 open general export licenses to reflect changes to legislation that will take effect when the U.K. officially leaves the European Union Jan. 1, a Dec. 23 press release said. Nine of the licenses were revised as a result of the EU recently updating its dual-use export control list (see 2012160019). The license updates will take effect 11 p.m. U.K. time on Dec. 31.
The United Kingdom’s Export Control Joint Unit on Dec. 24 published a general license authorizing the provision of certain “technical assistance, financial services and funds, and brokering services” for energy-related goods. The general license, which will be available 11 p.m. U.K. time Dec. 31, applies only to energy-related goods not for use in Russia. Activities related to goods for use in Russia require an individual license, the U.K. said.
The Office of Information and Regulatory Affairs on Dec. 21 completed its review of a final Bureau of Industry and Security rule concerning Sudan. The rule, received by OIRA Dec. 3 (see 2012080003), would revise the Export Administration Regulations to reflect the U.S.'s rescission of Sudan’s designation as a state sponsor of terrorism (see 2012170015).