If the Bureau of Industry and Security’s new undersecretary doesn’t quickly prove he can make progress on export controls for foundational technologies, Congress should consider moving the authority to a different agency, said Derek Scissors, a China economics expert with the American Enterprise Institute. Although lawmakers have previously threatened to revoke BIS’s authority under the Export Control Reform Act (see 2111170064 and 2110250035), Scissors said they should wait to first hear whether newly confirmed undersecretary Alan Estevez has a plan to speed up the agency, which has been criticized for moving too slowly on the controls.
After the Bureau of Industry and Security added 120 entities to its Entity List last week for supporting the Russian and Belarusian militaries (see 2204010080), senior BIS official Thea Kendler said the U.S. won’t “hesitate” to impose more export restrictions.
The Bureau of Industry and Security is seeking public comments on an information collection for the agency’s surveys and assessments of U.S. industrial sectors and technologies. The survey data provides "needed information to benchmark industry performance and raise awareness of diminishing manufacturing capabilities,” BIS said. Comments are due June 3.
The Senate confirmed Alan Estevez to be the next undersecretary of the Bureau of Industry and Security March 31, marking the end of a monthslong nomination process and giving BIS its first confirmed leader in more than five years (see 2104070026 and 2107130004). Estevez will take over BIS at a critical time for the agency, which in recent weeks has been tasked with crafting and implementing hundreds of pages of new export control regulations to penalize Russia for its war in Ukraine.
The Bureau of Industry and Security this week revoked export privileges for five people after they illegally exported defense items or weapons ammunition.
The Bureau of Industry and Security is adding 120 entities to its Entity List for supporting the Russian and Belarusian militaries, the agency said in a final rule. The additions include military end-users in Russia and Belarus, along with others that have tried to send export-controlled items to Russia’s military, BIS said. The parties will be subject to a “highly restrictive” policy of denial for all items subject to the Export Administration Regulations, the agency said, and no license exceptions will be available. The additions, which will be published in the Federal Register April 7, take effect April 1.
U.S. export controls against Russia have proven to be effective more quickly than expected, said Thea Kendler, the Bureau of Industry and Security's assistant secretary for export administration. While the U.S. restrictions have hit key Russian industrial and defense inputs, Kendler said a major reason behind their success has been the substantial buy-in from allies in Europe and Asia.
The Bureau of Industry and Security on March 30 added 73 new aircraft to its list of planes that have violated U.S. export controls by flying into Russia, including several aircraft owned by Russian cargo carriers. The list includes new planes owned by AirBridgeCargo, which calls itself Russia's largest cargo airline; Atran, a Moscow-based cargo airline; and other commercial or private aircraft owned by Aeroflot, Alrosa, Azur Air, Nordstar, Nordwind, Pegasfly, Pobeda, Rossiya, Royal Flight, S7 Airlines and Utair.
The U.S. can take several steps to increase its export control pressure against Russia, including expanding certain restrictions to capture a wider range of end-users in Russia beyond the military, said Matt Borman, a senior official at the Bureau of Industry and Security. Borman also stressed that Chinese companies on the Entity List still have much to lose if they aid Russia, including a complete ban from U.S. exports, financing and other services.
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