The Census Bureau is considering a new pilot program that could test the elimination of some export reporting requirements for shipments to Puerto Rico, said Omari Wooden, Census’ assistant division chief for trade outreach and regulations. Officials have so far crafted two proposals that are being discussed “internally,” Wooden said, and would first seek public comment before implementing a potential pilot.
The Bureau of Industry and Security hasn’t given up on a rule to clarify how U.S. companies can participate in standards-setting bodies that have members designated on the Entity List, a senior BIS official said this week. Despite yearslong clamoring for the clarification from technology associations and companies, the rule is facing a lengthy internal review process not only from other agencies but also from different bureaus within the Commerce Department, said Hillary Hess, BIS’s regulatory policy director.
Bureau of Industry and Security Undersecretary Alan Estevez this week again stressed the importance of building a new multilateral export control regime, saying that’s one of his priorities as he begins his tenure at BIS. The U.S. and its allies need a new regime “for the 21st century,” Estevez said, specifically one that isn’t only limited to dual-use technologies. “We need to work with our partners on that,” hr said during a June 14 virtual conference hosted by the Center for a New American Security. “We have a great coalition and great momentum, and I intend to do that.”
The Bureau of Industry and Security is considering revising its voluntary self-disclosure review process to focus on “more serious” disclosures, said Matthew Axelrod, BIS’s top enforcement official. Axelrod, speaking during a June 14 Regulations and Procedures Technical Advisory Committee meeting, said the change could better dedicate the agency’s time to VSDs that warrant more attention.
The Los Angeles and Long Beach ports again postponed by a week a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced June 10. The ports had planned to begin imposing the fee in November 2021 but have postponed it each week since. The latest extension delays the effective date until June 17.
The U.S. should create a new multilateral export control regime to counter China’s unfair industrial policies and misuse of sensitive technologies, said Mark Dallas, an associate professor at Union College in New York and a fellow with the Council on Foreign Relations. A new regime would create a “unified, clear and multilateral voice” around export controls and would reduce “commercial tensions” between the U.S. and its allies through better information sharing and enforcement.
U.S. sanctions and export controls are having a “severe” impact on Russia even though Moscow has continued its war in Ukraine, said Erik Woodhouse, a senior sanctions official with the State Department. Woodhouse said the U.S. is hoping the restrictions eventually force Russia to reverse course and expects the impacts to grow over time.
The Bureau of Industry and Security last week charged a Montana resident and his two companies with violating U.S. export controls after BIS said he tried to ship controlled items knowing they would be used in Iran. Kenneth Scott and his companies, Scott Communication and Mission Communications, also made false or misleading statements to agents, failed to file Electronic Export Information and didn’t maintain the required export records, BIS said.
The Federal Maritime Commission this week approved a $2 million settlement agreement with Hapag-Lloyd for alleged shipping violations involving the company’s detention and demurrage practices. Hapag-Lloyd also agreed to take several steps to improve its billing practices, including posting an updated tariff policy to its website, conducting a “training session” on the FMC’s detention and demurrage rule for all employees involved in billing, and publishing on its website a “complete list of locations that it has authorized to accept empty Hapag-Lloyd containers.”
Lawyers are continuing to see an uptick in outreaches by the Committee on Foreign Investment in the U.S. related to non-notified deals, especially if they involve Chinese investors. Carl Valenstein, a CFIUS lawyer with Morgan Lewis, said some of his clients in the life sciences sector, even though they weren’t working with critical technologies, have recently been contacted by CFIUS.