Export Compliance Daily is providing readers with the top stories for Oct. 18-22 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Commerce Department needs to address several “urgent shortcomings” in its export control policies toward China (see 2110180016) and impose stricter export restrictions and license denials for sensitive goods and suppliers of Chinese military companies, a group of Republican lawmakers said in a letter to Secretary Gina Raimondo. The 17 Republicans, all members of the House’s China Task Force, also said the Bureau of Industry and Security should commit to a timeline for releasing more emerging and foundational technology controls and issue “appropriate” restrictions on fundamental research and open-source technology platforms.
The Bureau of Industry and Security approved more than a combined $100 billion worth of export licenses for shipments to Huawei and Chinese top chipmaker SMIC from November 9, 2020, through April 20, 2021, according to documents released Oct. 21 by the House Foreign Affairs Committee. BIS said it approved 113 licenses for Huawei -- about 70% of the total license applications it received -- for more than $61 billion worth of goods during that time period. The agency also approved 188 licenses for SMIC -- about 90% of the total it received -- for more than $41 billion worth of exports.
A multinational semiconductor company may have violated U.S. export controls when it transacted with two Chinese technology companies on the Entity List, according to its October Securities and Exchange Commission filing. Arteris, which is headquartered in California, said it maintained a business “relationship” with HiSilicon Technologies Co. and Chongxin Bada Technology Development Co., Ltd., which may have resulted in “inadvertent” violations of the Export Administration Regulations. The Bureau of Industry and Security added HiSilicon to the Entity List in 2019 as an affiliate of Huawei (see 1905160072) and added Bada in 2020 (see 2008260038).
A new bill with bipartisan support would authorize more U.S. sanctions against those responsible for the military coup and subsequent human rights abuses in Myanmar. The Burma Unified through Rigorous Military Accountability Act of 2021 also would require the State Department to designate an official to coordinate U.S. sanctions against Myanmar and push for more multilateral sanctions among allies.
The export control jurisdiction for exports of deuterium for non-nuclear end-uses will transfer from the Nuclear Regulatory Commission to the Bureau of Industry and Security, BIS said in notice. While those exports will be controlled under the Export Administration Regulations, BIS stressed that deuterium exports intended for nuclear end-uses will still be subject to the NRC’s export licensing jurisdiction. BIS has been considering the change, which will take effect Dec. 6, since at least June (see 2109240011).
The Biden administration plans to revisit its phase one trade deal with China and will continue closely scrutinizing Chinese investments that seek to acquire sensitive U.S. technologies, senior officials said this week. The officials, speaking about the U.S.’s monthslong review of its China trade relationship, said China hasn’t met its phase one purchase commitments and stressed that all of its trade tools “are on the table” as they look to enforce the deal.
The Bureau of Industry and Security fined a Texas semiconductor component manufacturer nearly $500,000 for illegally exporting controlled wafers to Russia via Bulgaria (see 2012210013), the agency said in a Sept. 28 order. The company, Silicon Space Technology Corporation, which began doing business as Vorago Technologies in 2015, worked with a Russian engineering firm to export “rad-hard 16MB Static Random-Access Memory (SRAM) wafers,” which were controlled under the Export Administration Regulations for spacecraft and related components.
The U.S. plans to prioritize discussions on export controls and investment screening tools during the first meeting of the U.S.-European Union Trade and Technology Council this week (see 2109130025), senior administration officials said. The two sides plan to release a set of shared trade and technology commitments after the Sept. 29 meeting in Pittsburgh, which should hint at closer collaboration on various trade restrictions, one official said, particularly involving semiconductors.
Rep. Michael McCaul, R-Texas, recently offered several amendments to the 2022 National Defense Authorization Act, including provisions relating to export control statistics, the Entity List and sanctions.