The Bureau of Industry and Security this week published two public comments it received on a May rule that proposed unilateral export controls on four dual-use biological toxins (see 2205200017). One comment, from Raytheon BBN, addresses the “feasibility of regulating access” to nodularin, brevetoxin, palytoxin and gonyautoxin, the four toxins that BIS said can be weaponized to kill people or animals, “degrade equipment” or damage the environment. The second comment, from Bill Root, a frequent public commenter during the agency’s technical advisory committee meetings, includes recommendations for revisions to the rule. Root also said the controls must be accompanied by “major changes” to the State Department’s International Traffic in Arms Regulations and “the regulations of other affected U.S. agencies.”
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The Bureau of Industry and Security should harmonize the Entity List with other lists across various agencies to better capture foreign companies that should be subject to strict trade restrictions, lawmakers told BIS Undersecretary Alan Estevez this week. Others said BIS has failed to blacklist Chinese military companies that deserve placement on the Entity List, allowing the Chinese government to continue to buy sensitive American technologies.
The Bureau of Industry and Security recently revoked export privileges for a New Jersey woman for illegal exports to Iran. BIS said Joyce Marie Eliabachus was convicted Oct. 7, 2020 (see 2010070026), after she worked with others to directly or indirectly ship U.S. aircraft components to Iran, including to Mahan Air, the country’s sanctioned airline (see 2008210041). Eliabachus was sentenced to 18 months in prison, one year of supervised release and a $100 fine. BIS denied Eliabachus’ export privileges for 10 years from the date of conviction.
The Biden administration should reverse a 2020 rule that transferred export controls over certain defense items from the State Department to the Commerce Department (see 2001170030), said Sen. Elizabeth Warren, D-Mass. She said the transfer has allowed the U.S. to approve more weapons sales overseas, contributing to violent crime and corruption.
The Bureau of Industry and Security is conducting a review of the types of semiconductors and chipmaking equipment that can be exported to China to determine whether it needs to tighten those restrictions, BIS Undersecretary Alan Estevez said, speaking during a Senate Banking Committee hearing last week. He said the agency is considering tightening the “cut-off point” of semiconductors that are subject to strict export licensing requirements.
A potential provision in the bipartisan China package (see 2207120049) that would create an outbound investment screening mechanism received more opposition (see 2206280051 and 2201140038) this week, including from lawmakers on the Senate Banking Committee and former U.S. investment screening officials. While opponents of the provision say some form of outbound screening may eventually be necessary to further restrict sensitive technology transfers to China, they also said the current wording is too broad and leaves too many questions unanswered.
Customers and borrowers of financial institutions may start to receive more requests from banks about their export control compliance practices due to a recently issued joint alert by the Treasury and Commerce departments, Crowell & Moring said July 13. The alert also has other implications for customers of certain financial institutions, the firm said, and could hurt their ability to receive lenient penalties from a voluntary disclosure.
The Bureau of Industry and Security recently revoked export privileges for four people after they illegally exported defense items or weapons ammunition.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.