House lawmakers submitted a host of proposed export control- and sanctions-related amendments as part of the FY 2024 National Defense Authorization Act, including measures that could ease defense technology sharing restrictions, harmonize the Entity List with certain U.S. sanctions and investment restrictions and place new export control requirements on items destined to China and Iran. Other amendments could lead to new sanctions on Chinese technology companies and government officials, add the USDA to the Committee on Foreign Investment in the U.S., establish a new sanctions coordination office in the State Department and more.
A new rule change by the Bureau of Industry and Security will subject a broader range of chemical mixtures to declaration requirements, including for export or import. The revisions, outlined in a final rule that takes effect July 3, lowers the concentration threshold level at which mixtures containing certain controlled chemicals are subject to the declaration requirements. The change brings the U.S. Chemical Weapons Convention Regulations “into further alignment” with guidelines adopted by the Organization for the Prohibition of Chemical Weapons in 2009, which established the lower concentration threshold limit for certain chemicals.
The State Department’s Directorate of Defense Trade Controls added a new “Renewal Fee Details” function to its online application system, the agency recently announced. The new function will allow certain users of the Defense Export Control and Compliance System to view their registration expiration date, license period start and end dates, their number of licenses and more information “consolidated into the new Renewal Fee Details window.” Users will also be able to download a .csv file “of all licenses considered when calculating the renewal fee charged by DDTC,” along with other new functionalities. Questions should be directed to PM_DDTCProjectteam@state.gov.
The Department of Defense recently released a new set of recommendations designed to speed up military goods exports under its Foreign Military Sales program, an initiative long requested by defense companies. DOD said the recommendations highlight “key FMS pressure points” and are aimed at “breaking historical inefficiencies in the United States' transfer of defense articles and services to foreign allies and partners.”
The State Department announced debarments against 10 people convicted of violating U.S. export control laws. The debarments, which will be imposed starting June 15, target Maria Guadalupe Almendarez, Murat Bukey (see 2303220054), Kevin Jerome Cassidy, Usama Darwich Hamade (see 2007210014), Andrew Scott Pierson, Ihor Radionov, Joe Sery (see 2206100018), Arif Ugur (see 2212150082), Tian Min Wu (see 2212020039) and Hany Veletanlic (see 2001300016). All 10 are “generally ineligible” to participate in activity controlled by the International Traffic in Arms Regulations for three years following their dates of convictions. At the end of that period, they must apply to be reinstated from their debarment before engaging in ITAR activities.
China leads in a range of technologies that will be “highly relevant” to technology sharing capabilities under the Australia-U.K.-U.S. (AUKUS) security partnership, including hypersonics, electronic warfare and autonomous underwater vehicles, the Australian Strategic Policy Institute said this week. ASPI, which released the data as part of an update to its critical technology tracker, which ranks leaders in various advanced technologies, said AUKUS related critical technologies “are a two-horse race between China and the US,” but China holds a "convincing" lead in 19 of the 23 technologies newly evaluated by the think tank and "has built the foundations to position itself as the world’s leading science and technology superpower."
The State Department’s recently announced debarment of VTA Telecom (see 2305310040) highlights how cooperation with the government can lead to lower penalties, Miller & Chevalier said in a June 6 client alert. Although the Directorate of Defense Trade Controls didn’t “award credit” for VTA's disclosure, it did credit it for cooperating with DDTC’s investigation, which led to a debarment but no fine, the firm said. DDTC could have imposed a maximum $7.2 million penalty against the company.
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The Bureau of Industry and Security again renewed the temporary denial order (TDO) for three U.S. companies for their involvement in illegally exported technical drawings and blueprints to China (see 2206080068) after continuing to find evidence of additional potential export violations. The order, originally issued June 8, 2022, before being renewed in December (see 2212080007), was renewed for another 180 days on June 1, BIS said.
The State Department’s Directorate of Defense Trade Controls and the Census Bureau will hold a June 15 “refresher” webinar on using the Defense Export Control and Compliance System, the agencies announced this week. The webinar will feature a “deep dive into key Registration topics and functionality” and cover “upcoming updates that users can expect to the Registration application.” It will also include a question-and-answer period.