The Bureau of Industry and Security made several changes to the Export Administration Regulations this week to align its controls with decisions made at the multilateral Nuclear Suppliers Group in 2019 and 2022. The amendments, outlined in a final rule effective Aug. 18, revised five existing Export Control Classification Numbers under the Commerce Control List to alter or clarify the scope of certain controls and make technical fixes to other ECCNs.

American building materials supplier Construction Specialties Inc. (CS) reached a $660,594 settlement with the Office of Foreign Assets Control this week for allegedly violating sanctions against Iran. OFAC said the company’s United Arab Emirates subsidiary, Construction Specialties Middle East (CSME), illegally reexported more than $1 million worth of construction materials to Iran and falsified trade documents to hide their destination.

The Bureau of Industry and Security clarified rules surrounding two deemed export scenarios in a new advisory opinion issued in June and released publicly this week. The opinion said U.S.-based subsidiaries are allowed to release certain controlled technologies to their foreign parent companies’ employees -- when they are on temporary assignment in the U.S. -- if the American subsidiary already has an export license to ship the item to its parent company. BIS also said the U.S. subsidiary can use its export license to ship covered items to its parent company if the items were developed by employees on temporary assignment in the U.S.

Compliance departments need to be increasingly “creative” to catch goods or transactions that may be tied to Russian sanctions evasion, an industry official and former Treasury Department official said this week, especially as the U.S. and its allies ramp up enforcement. They also said compliance is growing more complex, particularly for financial institutions, which must meet expanding government expectations outlined in joint alerts recently published by the Commerce and Treasury departments.

The U.S. may run into challenges enforcing aspects of its new outbound investment restrictions on China, especially for intercompany transfers and investments, Sarah Bauerle Danzman, a former State Department official, said during a webinar hosted by the Center for a New American Security last week. She said investors will likely need more guidance on the issue whenever the Treasury Department releases regulations for the regime.

The Bureau of Industry and Security last week expanded the scope of its nuclear-related export controls on China and Macau, saying the change was necessary to impose tighter license requirements on items that could “contribute to nuclear activities of concern.” The Nuclear Regulatory Commission also suspended a general license that had authorized exports of certain nuclear items for nuclear end uses in China.

Lawmakers, business groups and think tanks gave a mixed bag of immediate feedback on the Biden administration’s executive order restricting outbound investments in China, with some applauding the government’s initial, cautious approach, and others expressing frustration that the restrictions don’t go far enough.

The Census Bureau is moving forward with a new data element in the Automated Export System that shippers must report when exporting items classified under U.S. Munitions List Category XXI. The agency didn’t list any public comments objecting to the change that it proposed in May (see 2305020007), which Census said will help it collect more data on Category XXI exports and defense services that are “not otherwise enumerated” under other USML categories.

The Biden administration this week unveiled its plans for a new outbound investment screening regime, which will restrict investments in three advanced technology sectors in China and set notification requirements for other sensitive outbound investments. The new screening regime, outlined in an executive order signed Aug. 9 by President Joe Biden, will come into force after the Treasury Department writes regulations. The agency is soliciting public comments on how it should implement the program, set certain definitions, impose due diligence requirements and more as part of an advance notice of proposed rulemaking released along with the order.

CBP plans to form a “dedicated” outbound oversight office after the Office of Inspector General said the agency's existing infrastructure may be causing it to miss inspections of illegal exports.