Export license applications may be delayed during the COVID-19 pandemic as the Commerce Department prioritizes COVID-19-related applications, a top Commerce official said. Not all government agencies have remote access to Commerce’s unclassified system for license applications, which is also causing longer processing times, said Matt Borman, Commerce’s deputy assistant secretary for export administration.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
American Express violated U.S. sanctions when it processed about $35,000 worth of transactions for a designated person in 2015, the Treasury’s Office of Foreign Assets Control said April 30. OFAC issued a “finding of violation” for American Express Travel Related Services Company but did not impose a fine.
The COVID-19 pandemic is causing “significant disruption” for the Wassenaar Arrangement, leading to the cancelation of at least one meeting and creating uncertainty about whether the group can remotely vote on new export controls, two Commerce Department officials said. Wassenaar was forced to cancel its April Experts Group meeting -- which normally addresses issues related to its lists of controlled items -- and is unsure if global travel restrictions will force cancellations of future meetings in June and its annual plenary session in December.
The Commerce Department has drafted a regulation that will address the ability of U.S. companies to participate in 5G standards setting bodies involving Huawei, a top Commerce official said. The rule is still being discussed within Commerce and has not yet been cleared for interagency review, Matt Borman, Commerce’s deputy assistant secretary for export administration, said during an April 29 Information Systems Technical Advisory Committee meeting.
The Commerce Department Bureau of Industry and Security is working on guidance to help industry comply with the expanded licensing requirements for exports to China announced earlier this week (see 2004270027). The guidance will address new restrictions on exports intended for military users and uses, said Matt Borman, Commerce deputy assistant secretary for export administration. The rule expands the definition for military end-use and will cover military end-users in China, placing more of a compliance burden on industry.
The Treasury Department announced fees for filing certain transactions with the Committee on Foreign Investment in the U.S., according to a notice. The interim rule, which will apply to formal written voluntary notices filed with CFIUS and not transactions submitted through declarations, establishes a range of possible fees, depending on the value of the transaction, with $300,000 being the highest fee. The rule takes effect May 1, but Treasury is accepting public comments through June 1. The agency also issued a fact sheet and a guidance for paying filing fees.
CBP issued frequently asked questions about exports of personal protective equipment, detailing how exporters submit letters of attestation; how exporters will be notified of held shipments; the resolution process on disagreements surrounding restricted shipments; and more, according to an April 27 CMS message. The guidance comes about one week after the Federal Emergency Management Agency issued 10 exemptions for exports of PPE (see 2004200019). FEMA expects to issue most determinations on PPE shipments within two days (see 2004210022).
The Commerce Department eliminated its license exception for civil end-users (CIV) in an effort to cut exports to countries pursuing civil-military fusion (see 1904260018), the agency said in a notice. The change, which was expected for nearly a year (see 1907180037), will remove authorizations to export certain controlled items to most civil end-users for civil end-uses in Country Group D:1. The change takes effect June 29.
The Commerce Department is considering restricting the number of destination countries that are authorized to receive certain U.S. re-exports that are controlled for national security reasons, the agency said in a notice. The proposed rule would amend the license exception for Additional Permissive Reexports (APR) by removing nations in Country Group D:1, including China, from being eligible to receive those re-exports, Commerce said. The rule would remove APR license eligibility from more than 20 countries. Comments are due June 29.
The Commerce Department amended the Export Administration Regulations to expand licensing requirements for exports, re-exports and transfers of items intended for military uses in China, Russia and Venezuela, according to a notice. The rule expands the licensing requirements for exports to China to include military end-users as well as military end-uses, broadens the list of items subject to the licensing requirement and review policy, and expands the definition for military end-use. The rule also “creates a new reason for control” and review policy for certain exports to the three countries, and added new Electronic Export Information filing requirements.