The U.S. and the EU should focus export control efforts under the Trade and Technology Council (see 2205160033) around end-use and end-user controls, rather than on a technology’s “capabilities,” industry told the EU in comments released May 31. Trade groups also said the U.S. and the EU should better harmonize their restrictions around “intangible” transfers, which have been implemented differently and have caused confusion among companies.
Commissioner Rebeccca Dye of the Federal Maritime Commission this week released the final report stemming from a two-year investigation of the effects of the COVID-19 pandemic on the international ocean freight delivery system, which includes a dozen new recommendations to address supply chain and maritime logistics issues. The report, previewed by Dye last month (see 2205180056), has recommendations for mandatory FMC compliance officers, a clearer process for returning containers and a new investigation into carrier charges assessed through tariffs.
The Bureau of Industry and Security soon will introduce a congressional notification requirement for certain firearm exports, the agency said in a final rule. The change, effective July 18, will add a new section to the Export Administration Regulations that will require congressional reporting for certain semiautomatic firearms shipments valued at $4 million or more and destined to certain countries. The requirement will apply to certain guns whose export control authority was transferred from the State Department to the Commerce Department in 2020 (see 2001170030).
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 May 27. 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 3.
Increasing Chinese investments in U.S. agriculture could reduce China’s need for American exports and give Beijing “undue leverage over U.S. supply chains,” the U.S.-China Economic and Security Review Commission said in a report last week. The U.S. may need to rethink or improve how it uses the Committee on Foreign Investment in the U.S. to better catch those investments, the commission said, which may be harming U.S. economic and national security.
The Treasury Department’s decision to end an exemption for certain Russia-related debt payments will cause the Russian government to default, the White House said last week. Treasury announced May 24 it would allow the license to expire, ending transactions necessary for dealings in debt or equity with Russia’s Bank for Development and Foreign Economic Affairs Vnesheconombank, Bank Otkritie Financial, Sovcombank, Sberbank of Russia and VTB Bank (see 2205240054).
The U.S. plans to build on and improve its export controls and investment screening measures to keep China from acquiring sensitive technologies, Secretary of State Antony Blinken said. Blinken, in a speech outlining the Biden administration’s China policy, also urged industry to reassess whether the price of doing business in China is worth the benefits and to work with the administration to push back against Beijing's unfair market practices.
The European Commission this week announced two new proposals to harmonize how member states penalize sanctions violations and to modernize the EU’s recovery rules for sanctioned assets. The measures will help the EU better target and punish sanctions evaders, said Vera Jourova, the commission’s vice president for values and transparency. “The violation of EU sanctions is a serious crime and must come with serious consequences,” Jourova said. “We need EU-wide rules to establish that.”
Bureau of Industry and Security Undersecretary Alan Estevez said his top long-term priority is building a new multilateral export control regime, and he urged industry to continue considering diversifying away from China and Russia. He also said BIS is working hard to control emerging and foundational technologies and welcomes more input from industry, academia and think tanks.
The Bureau of Industry and Security this week finalized its new controls on cybersecurity items, making several changes to the rule’s language and addressing some questions from the public comment period. The changes include revisions to the definition of “government end user” and other actions to “clarify the scope of controls,” BIS said in a final rule effective May 26.