Export controls over technology and software used for the 3D printing of firearms will not transition from the State Department to the Commerce Department after a Washington court granted a request to block the Trump administration from completing the transfer. The court, whose March 6 order temporarily blocked portions of a January final rule to transfer the controls, suggested the administration likely violated notice-and-comment standards and pointed to the “grave reality” the transfer might have on the proliferation of 3D printed guns. The decision stemmed from a January request (see 2001240047 and 2002070043) filed by 20 states and Washington, D.C., to urge the court to vacate the final transfer rules, which were scheduled to take effect March 9 (see 2001170030).
The Directorate of Defense Trade Controls rescheduled its in-house seminar scheduled for April 8 to April 29, the agency said March 4. The notice said this is due to scheduling conflicts. The agency also said it is extending registration for the seminar by one week. Availability remains “first come, first served.” Questions should be directed to DDTCInHouseSeminars@state.gov.
The Directorate of Defense Trade Controls’ Defense Export Control and Compliance System will be unavailable March 4 from 6 a.m. to 8 a.m. EST for system maintenance, the DDTC said March 3. The DDTC urged users to ensure “work in progress is saved” before the scheduled downtime. The DECCS launched Feb. 18 (see 2002190025).
Export Compliance Daily is providing readers with some of the top stories for Feb. 24-28 in case you missed them.
The Directorate of Defense Trade Controls released a recording of its Feb. 13 Defense Export Control and Compliance System webinar (see 2002070048), covering corporate administrators, user management, access groups, self service. The registration and licensing applications for DECCS launched Feb. 18 (see 2002190025).
Companies should ensure their data is fully encrypted with no access by third parties before using the new encryption carve-out in the upcoming amendments to the International Traffic in Arms Regulations, according to a cybersecurity compliance expert and a trade lawyer. Although they lauded the ITAR for recognizing that some technology, such as encryption, can protect transfers of export controlled data, both said complying fully with the carve-out may be complicated. “There is a wrong way to do the end-to-end encryption, so you need to be very careful when applying it,” said Alex Major, a cybersecurity and trade lawyer with McCarter & English, speaking during a Feb. 27 webinar hosted by the Massachusetts Export Center.
A lawsuit filed by 20 states to block the transfer of export controls over firearms from the State Department to the Commerce Department is unfounded, the State Department said, adding that the states don’t understand the International Traffic in Arms Regulations and the Export Administration Regulations. The “plaintiffs are simply wrong,” the State Department said in a Feb. 24 court filing. “Several basic misunderstandings about how the respective regimes operate negate the Plaintiffs’ claims and any basis for preliminary injunctive relief.”
U.S. administration officials will meet with the European Union and Japan next month to lobby for increased scrutiny of transactions involving sensitive technologies, a top Treasury Department official said. The meetings will also feature discussions of recent U.S. reforms to foreign direct investment screening, said Thomas Feddo, Treasury’s assistant secretary of investment security, and come as the U.S. begins to implement those reforms as part of the Foreign Investment Risk Review Modernization Act (see 2001140060). Feddo spoke during a Feb. 26 event hosted by the Asia Society.
The Directorate of Defense Trade Controls issued guidance for its December interim final rule that will revise the International Traffic in Arms Regulations to provide definitions for activities that are not exports, re-exports, retransfers or temporary imports (see 1912230052). The Feb. 20 “summary handout” previews changes to the rule, details implications for industry and summarizes which activities will not be considered controlled events. The rule will significantly reduce regulatory and compliance burdens surrounding encrypted data (see 1912300024).
The Directorate of Defense Trade Controls on Feb. 19 issued two frequently asked questions that provide guidance on U.S. people exporting defense services abroad. The FAQs clarify guidance for exporters who “believe they may be currently furnishing defense services without authorization,” DDTC said.