Two new export control rules from the Bureau of Industry and Security on emerging and foundational technologies are weeks away, said Matt Borman, BIS deputy assistant secretary-export administration, during the Feb. 23 meeting of the agency’s Emerging Technology Technical Advisory Committee.
The Commerce and Treasury Departments announced a raft of new export controls and sanctions measures against Russia in press releases issued Feb. 24 following White House remarks by President Joe Biden. The measures include export control license requirements for a broad swath of the Commerce Control List, and the expansion of sanctions, including to entities in Belarus. The Bureau of Industry and Security also released a final rule on the export control changes, which take effect Feb. 24.
The Bureau of Industry and Security’s reorganization and clarification of its foreign direct product rules this month (see 2202020021) could allow the administration to more easily use the rule to target specific Russian sectors if Russia invades Ukraine (see 2202150043), Akin Gump said in a February alert. The law firm outlined how companies can examine recent BIS changes to the FDP rule as a “guide for analyses of the scope and impact of possible” new Russia controls, and how certain changes to the Export Administration Regulations would affect various exports to Russia. Companies should examine whether their foreign-produced items contain certain levels of U.S. origin content, Akin Gump said, and whether they would have to comply with new licensing restrictions if Russia were moved to a different EAR Country Group.
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The Bureau of Industry and Security this week revoked export privileges for five U.S. residents who illegally exported defense items or weapons ammunition to Mexico.
The Commerce Department should add more Chinese companies to the Entity List, better restrict China’s government organizations and target the country with unilateral controls when appropriate, China Tech Threat said this week. The organization, which is run by Strand Consult and advocates for stronger export controls on China, said Commerce should add China semiconductor companies Yangtze Memory Technologies and Changxin Memory Technologies to the Entity List and tailor export controls to better target Chinese “pseudo-government organizations.” Commerce should also “prioritize” unilateral controls on American semiconductor manufacturing equipment by employing a “control-now-cooperate-later” approach, China Tech Threat said.
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Although many companies could be affected by a potential expansion of the U.S. foreign direct product rule if Russia invades Ukraine, the U.S., the United Kingdom and Canada can also deploy other export restrictions that could have significant compliance implications, Baker McKenzie lawyers said. Those controls could range from more strict licensing policies to a complete trade embargo on certain Russian annexed territories.
The Bureau of Industry and Security added seven entities to the Entity List for nuclear and nonproliferation reasons, including one company in China, five in Pakistan and one in the United Arab Emirates, BIS said. The additions take effect Feb. 14.
BIS is preparing to “soon” issue another set of export controls that will cover both emerging and foundational technologies, said Matt Borman, the Bureau of Industry and Security’s deputy assistant secretary of export administration. The controls, briefly mentioned by a senior BIS official last month (see 2201280045), would represent the first set of formal export restrictions over foundational technologies since Congress passed the Export Control Reform Act in 2018.