President Joe Biden this week signed the first executive order to give specific presidential direction to how the U.S. conducts foreign direct investment reviews, a move officials hope will sharpen the country's focus on sensitive technologies, personal data and other national security-related issues.
The Bureau of Industry and Security this week announced a host of measures to expand its export restrictions against Russia and Belarus, including an expansion of its Russian industry sector sanctions to add new export controls on lower-level items. The agency also expanded its military and military intelligence end-user controls, applied its Russian-Belarusian MEU foreign direct product rule to additional entities, added additional dollar value exclusion thresholds for certain luxury goods exports and more.
The State Department is prioritizing work on several new rules to amend the International Traffic in Arms Regulations, including updates to multiple U.S. Munitions List categories and revisions to the agency’s exempted technologies list (ETL), an agency official said this week.
While the Biden administration hasn't yet decided whether to establish an outbound investment screening regime, officials believe more investment screening could help fill certain gaps in semiconductor-related export controls, said Peter Harrell, a National Security Council official. Harrell said an outbound regime also could provide the U.S. with more information about global semiconductor investments, which could be useful as the U.S. seeks to stop China from acquiring advanced chip equipment.
The Federal Maritime Commission will soon seek public comments on the set of factors it should consider when determining whether an ocean carrier is violating shipping regulations by refusing vessel space to shippers. The effort, outlined in a notice of proposed rulemaking required by the Ocean Shipping Reform Act, also seeks to define certain “unreasonable” conduct by ocean carriers, specifically their “unreasonable refusal to deal or negotiate with respect to vessel space accommodation,” FMC said. The commission will accept comments up to 30 days after the notice is published in the Federal Register.
After several years of delays, Commerce Department officials said industry may soon see progress on the agency’s long-awaited routed export rule. Although the rule is unlikely to be published this year, officials this week said they are hoping to prioritize the effort in the coming months, which could include major changes to the process around assigning filing responsibilities to forwarders and address information sharing among parties in routed export transactions (see 2006020049).
The Bureau of Industry and Security is seeking public comments on potential export controls over certain instruments for the automated synthesis of peptides, the agency said in an advance notice of proposed rulemaking this week. The agency, which has been drafting the ANPRM since at least June (see 2206270007 and 2208290019), said automated peptide synthesizers may warrant export restrictions as foundational or emerging technologies because of their potential impact on American national security. Comments are due Oct. 28.
New multilateral export controls on certain electronic computer-aided design (ECAD) software won’t have an immediate effect on semiconductor companies and are unlikely to cause wide concern in the short term, industry officials said. The controls, announced by the Bureau of Industry and Security Aug. 15 (see 2208120038) and effective in October, seek to restrict an emerging technology that may not be commercially available for at least two years, although officials say it remains unclear what exactly the restrictions will cover.
California-based Arteris, a multinational semiconductor company, said it received a warning letter from the Bureau of Industry and Security after it disclosed potential export control violations (see 2110130040). The company was given the warning earlier this year after BIS decided “not to refer this matter for criminal or administrative prosecution,” Arteris said in an August SEC filing.
The Federal Maritime Commission should issue an emergency order requiring carriers and terminal operators to share more information on cargo availability with shippers and other carriers, more than a dozen motor carriers and logistics companies said. The companies, most of which move freight at the Port of New York and New Jersey, said inadequate information sharing has created an emergency that is hurting their operations and restricting cargo from moving efficiently.