The Bureau of Industry and Security has begun a broad review of new export controls on surveillance technologies going to China, which may also include additions to the agency’s entity list, said acting Commerce Department Undersecretary for Industry and Security Cordell Hull. Hull called the review “comprehensive” and “in-depth,” saying it could lead to controls over advanced surveillance tools, artificial intelligence software and biometric technologies. The effort included a business advisory for companies with supply chains in China’s Xinjiang region and a request for industry feedback on the impact of controls on facial recognition software and other surveillance technology (see 2007170024). “We have put the business community on notice,” Hull told Wednesday's U.S. Commission on International Religious Freedom hearing. Hull said BIS is pleased with the impact of its export control regime, saying the restrictions hurt China’s ability to source sensitive U.S technologies. “We believe it's working. We believe our entity listings have impacted millions of dollars of items going to these entities,” Hull said. China's embassy in Washington didn't comment Thursday.
The Commerce Department's Bureau of Industry and Security is considering imposing new license requirements on facial recognition software and surveillance items that may be used by China for crowd control reasons or to violate human rights. BIS seeks feedback by Sept. 15, said Friday's Federal Register. BIS said it's interested in imposing new license requirements for facial recognition software, “other biometric systems for surveillance,” voice print identification systems and other products.
The Commerce Department's new Bureau of Industry and Security agenda touches on several technology issues, our review shows. It mentions an NPRM in BIS’ effort to control emerging and foundational technologies that will request comment about how export controls might affect “legitimate commercial or scientific applications.” BIS said it aims to issue the proposed rule this month. The agenda newly mentions a final rule to adopt new emerging technology controls agreed to at the 2019 Wassenaar plenary. The new controls will cover dual-use goods and technologies. BIS said it aims to issue the rule this month. The agenda includes a new mention of a rule to control “software” for some genetics operations that need export controls.
The Commerce Department said it's easing U.S. industry participation in telecom standards development even amid the administration's crackdown on Huawei. The department said a Bureau of Industry and Security rule says technology that wouldn't have needed a license to be disclosed to the Chinese company before its placement on the entity list "can be disclosed for the purpose of standards development in a standards development body without need for an export license." It noted U.S. work on standards setting "influences the future of 5G, autonomous vehicles, artificial intelligence" and other new tech. The general advisory opinion posted by BIS Aug. 19 is no longer in effect, Commerce said Monday. “Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations," said Information Technology Industry Council Senior Director-Policy, Asia Naomi Wilson. "We hope this measure will provide much-needed clarification and allow companies to once again compete and lead in these foundational activities that help enable the rollout of advanced technologies." Huawei didn't immediately comment.
The Commerce Department Bureau of Industry and Security is preparing to issue additional export controls over emerging technologies and is finalizing a long-awaited advance NPRM for foundational technologies, BIS officials said. The upcoming rules will include controls agreed to at the Australia Group, a multilateral export control body, said Matt Borman, Commerce deputy assistant secretary-export administration. Speaking during the first meeting of the Emerging Technology Technical Advisory Committee Tuesday, he said BIS is preparing controls on six emerging technologies agreed to during the 2019 Wassenaar Arrangement. The ANPRM, part of a broader effort that has proved “intellectually challenging” for Commerce officials, is in the “last stages of review within the bureau,” said Rich Ashooh, Commerce-assistant secretary for export administration. Commerce officials expected to release a series of emerging technology controls last year but had delays (see 2004010034). The agency’s first ETTAC meeting was delayed twice as security clearances for members took longer than expected (see 2002250041).
The Commerce Department Bureau of Industry and Security allowed more time for comments on an information collection about technology letters of explanation, until June 15, said Friday's Federal Register. The letters provide assurance to BIS and require the “consignee” to certify an export involving controlled technical data won't be released to blocked countries. BIS requested comment in February.
A Commerce Department agency plans the first meeting of its Emerging Technology Technical Advisory Committee this spring, amid delays issuing prospective members security clearances. A Bureau of Industry and Security spokesperson emailed that the agency remains “on target” to have the meeting before summer. Commerce officials originally scheduled the meeting for December, and then January, delaying it each time. ETTAC applicants are impatient, and trade lawyers have heard little information, they said in interviews last week. Adrienne Braumiller, a trade lawyer with Braumiller Law Group and member of BIS’ Regulations and Procedures TAC, has “no clear understanding” of why the process has taken so long, calling it “rather protracted and lengthy.” Doug Jacobson of Jacobson Burton heard about “numerous delays in the process” but hasn't heard why. ETTAC’s “primary focus” will be to identify emerging technologies with dual-use applications, says its charter. Those efforts will inform Commerce restricting sales of emerging technologies, which faced delays (see 1911070026). Commerce has released two sets of controls on emerging technologies without ETTAC input.
Senate Commerce Committee Chairman Roger Wicker, R-Miss., told reporters Thursday he reached a deal to allow the chamber to pass the Secure and Trusted Communications Networks Act (HR-4998) by unanimous consent (UC) after the upcoming Presidents Day recess. The House-passed bill would allocate at least $1 billion to help U.S. communications providers remove from their networks Chinese equipment determined to threaten national security. Meanwhile, Huawei faces 16 DOJ charges it violated the Racketeer Influenced and Corrupt Organizations Act and stole trade secrets from six U.S. companies (see 2002130030).
The Commerce Department doesn’t have a timeline for releasing its next set of controls on emerging technologies and its advance NPRM for foundational technologies, despite expectations from top officials both would be published before 2020 (see 1912110040), a Bureau of Industry and Security official said Tuesday. “I would have thought that they would be out earlier,” said Hillary Hess, director of BIS’ regulatory policy division, at a Sensors and Instrumentation Technical Advisory Committee meeting. “I think everybody would like to see them come out, but I’m not sure how long it’s going to take. I’m having trouble getting a bead on it myself.” Interagency working groups are reviewing the proposed emerging technology controls, which include potential restrictions on exports of artificial intelligence and robotics items, Hess said. Although BIS published a January interim final rule that placed export controls on geospatial imagery software, that rule stemmed from existing export administration regulations process in place since 2012, Hess said. “None of [the working group] rules have been published yet.” Hess said the ANPRM for foundational technologies is in internal review.
Senate Majority Leader Mitch McConnell, R-Ky., set a Monday cloture vote on the FY 2020 National Defense Authorization Act (S-1790), which includes language targeting Chinese telecom equipment manufacturers Huawei and ZTE. The House approved the measure Wednesday 377-48. The House and Senate Armed Services committees released the conference text earlier this week after months of work to blend (see 1907220053) the Senate and House-passed (HR-2500) measures. The conference NDAA includes a modified version of House-side anti-Huawei language originally sought by Rep. Mike Gallagher, R-Wis., that would modify conditions for the Commerce Department to lift the Bureau of Industry and Security’s addition of Huawei to its entity list (see 1906190054). It would require Huawei to prove it “sufficiently resolved or settled” supply chain security issues that led to its inclusion on the BIS entity list (see 1905160081). Commerce has since approved export licenses (see 1911210027) for U.S. companies to have their products included in Huawei's equipment. The bill also includes Gallagher’s proposal to direct the president to report to Congress on ZTE's compliance with a 2018 agreement that lifted Commerce's ban on U.S. companies selling telecom software and equipment to ZTE (see 1807130048). The measure includes a Senate-cleared proposal from Intelligence Committee Chairman Richard Burr, R-N.C., and Vice Chairman Mark Warner, D-Va., that would require the director of national intelligence report the extent “global and regional adoption” of foreign-made 5G technology affects U.S. national security. The study would look at how the nation's “strategy to reduce foreign influence and political pressure in international standard-setting bodies” could help mitigate the threat. The NDAA includes language from the Authenticating Local Emergencies and Real Threats (Alert) Act, which would give the federal government sole authority to issue missile threat alerts and preempt state and local governments' role (see 1802070052). Senate Communications Subcommittee ranking member Brian Schatz, D-Hawaii, filed the bill in response to the January 2018 false missile emergency alert in Hawaii (see 1801160054). NDAA conferees agreed to remove Senate-cleared language telling DOD to work with the FCC and NTIA to establish a spectrum sharing R&D program. House Commerce Committee ranking member Greg Walden, R-Ore., and others raised concerns about the language because they believe it could undermine NTIA’s role in making spectrum allocation decisions for the federal government (see 1909180048). The conference text also doesn’t include House-cleared language from the 911 Supporting Accurate Views of Emergency Services (Saves) Act. HR-1629/S-1015 would change the federal government's classification of public safety call-takers and dispatchers to "protective service occupations" (see 1904050054).