The Bureau of Industry and Security on Oct. 2 announced new export controls (see 2008100013 and 2005190052) on six emerging technologies. The controls, which were agreed to by Wassenaar Arrangement members during its 2019 plenary, include:
A former U.S. official and a Senate staffer who worked closely with the Committee on Foreign Investment in the U.S. criticized the Bureau of Industry and Security’s handling of emerging and foundational technologies, saying the lengthy process is impeding the work of CFIUS. David Hanke, the former staffer and architect of the Foreign Investment Risk Review Modernization Act, called CFIUS’s reliance on BIS’s export control effort a “deeply flawed system,” while Nova Daly, the Treasury Department’s former deputy assistant secretary for investment security and policy, acknowledged the process is difficult but said BIS should move faster.
Two Iranian men were charged in a conspiracy to illegally export computer servers to Iran, the Justice Department said Sept. 28. Ebrahim Azadegan and Alireza Alvandi were charged with violating the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations when they allegedly tried to ship the servers without licenses. The servers are classified as dual-use goods under the Commerce Control List and are export controlled for anti-terrorism and national security reasons.
The Bureau of Industry and Security’s proposal to reduce the number of countries eligible for license exception Additional Permissive Reexports (APR) (see 2004270025) could damage U.S. competitiveness and lead to overly broad export restrictions, trade groups and industry said in comments released this month. If BIS follows through on the change, commenters suggested that it first limit the scope of the rule, which could potentially restrict more than 20 countries from receiving certain U.S. reexports that are controlled for national security reasons.
The Bureau of Industry and Security added, revised and made technical changes to export controls in the Export Administration Regulations (EAR) to implement changes under the 2018 Wassenaar Arrangement (see 2007220015). Per a final rule released Sept. 10, BIS revised 28 Export Control Classification Numbers, altered license exceptions for four ECCNs, made technical changes to eight ECCNs and created one new ECCN for certain masks and reticles used for sensors. The rule follows a May 2019 rule that added controls to five technologies under the 2018 Wassenaar (see 1905220051).
Export compliance is never going to be perfect, panelists said, but with constant education, companies can ensure that their mistakes only warrant warning letters, not fines. The American Association of Exporters and Importers held a panel Sept. 1 about how export compliance plays out in the real world.
The Bureau of Industry and Security released its long-awaited pre-rule for foundational technologies (see 2005190052), asking for industry feedback on the types of technologies BIS should target for potential export controls. The effort, which BIS is pursuing alongside restrictions for emerging technologies, seeks to pinpoint technologies that the agency said may warrant more strict controls.
The Commerce Department will add 11 China-based entities to its Entity List for their involvement in human rights abuses in China’s Xinjiang region, a notice released July 20 said. Nine of the entities are involved in the forced labor of Muslim minority groups and two conduct “genetic analyses” to “further the repression” of the minorities, Commerce said. The additions take effect July 22.
The Commerce Department plans to add 11 Chinese-based entities to its Entity List for their involvement in human rights abuses in China’s Xinjiang region. Nine of the entities are involved in the forced labor of Muslim minority groups and two of the entities conduct “genetic analyses” to “further the repression” of the minorities, Commerce said. The additions take effect July 22.
The Bureau of Industry and Security is considering imposing new license requirements on facial recognition software and surveillance-related items that may be used for crowd control reasons or to violate human rights. BIS said in a notice it is reviewing changes to the Commerce Control List and is seeking industry feedback about CCL items that are restricted for crime control and detection reasons. Comments are due Sept. 15.