The Commerce Department amended its direct product rule, increasing restrictions on foreign-made chips exported to, and made by, Huawei and its affiliates, the agency said in a May 15 interim final rule. Commerce also said it does not expect to issue another temporary general license extension for the Chinese technology company after its latest 90-day renewal expires Aug. 13.
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.
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 Automated Export System will add 13 new Export Control Classification Numbers to its reference table to allow exporters to report electronic export information in the wake of the transfer of export controls over firearms from the State Department to the Commerce Department (see 2001170030 and 2003090029), the Census Bureau said in a notice emailed March 11. The notice contains instructions for determining which new ECCNs are eligible for certain license types. Census also clarified that by using any of the license exceptions or “No License Required,” exporters “are certifying that the terms, provisions, and conditions described in the [Export Administration Regulations] have been met.”
The Commerce Department Bureau of Industry and Security issued guidance Feb. 25 clarifying that the virus causing the outbreak of the coronavirus disease, SARS-CoV-2, will continue to be classified under the Export Control Classification Number EAR99, meaning export licenses are generally not required for exports of the virus. BIS said it issued the guidance in response to a report recently published by the International Committee on Taxonomy of Viruses, which classified the virus, SARS-CoV-2, as belonging to a species similar to SARS-CoV, a virus controlled under the Export Administration Regulations under ECCN 1C351.a.46. But because SARS-CoV-2 is a “genetically distinct virus,” “causes a clinically distinct disease” and the “specifics of the disease … are still being investigated,” BIS said it considers SARS-CoV-2 to be “distinct” from SARS-CoV, adding that it does not yet warrant increased controls. BIS did warn, however, that some end-users, end-uses and destination countries may require a license for exports of EAR99 items, and exporters “should continue to screen all requests in accordance” with the Export Administration Regulations.
The Directorate of Defense Trade Controls issued a Jan. 23 guidance on the final rules for the transfer of gun export controls from the State Department to the Commerce Department, including a clarification on license submissions during the transition period. The guidance also clarifies how the rules and transition period affect technical assistance agreements, manufacturing license agreements, reporting requirements, commodity jurisdiction determinations and regulatory oversight responsibilities. The rules -- which were published Jan. 23 and transfer export control authority from the State Department to Commerce for a range of firearms, ammunition and other defense items -- will take effect March 9 (see 2001170030).
The Commerce Department released its final rule for transferring export controls of firearms, ammunition and other defense items from the State Department to Commerce. The rule revises the Export Administration Regulations to transfer items that no longer “warrant control” on the U.S. Munitions List to the Commerce Control List. The rule will be published alongside a final rule from the State Department, which details the changes made to Categories I, II and II of the USML and describes “more precisely” the items that warrant “export or temporary import control” on the USML. The rules, which have been highly anticipated by the firearms industry (see 1908130066), will be published Jan. 23 and take effect March 9.
The Commerce Department is amending the Export Administration Regulations to control exports of software designed to “automate the analysis of geospatial imagery,” Commerce said in an interim final rule. The software will be controlled under the Export Control Classification Number 0Y521 series -- a temporary holding classification that lasts for one year from the day the final rule is published. Although the agency believes it is in the U.S.’s national security interest to “immediately” control this software, Commerce is seeking comments on the interim final rule. Comments are due March 6.
The Department of Commerce published its fall 2019 regulatory agenda for the Bureau of Industry and Security. The agenda includes a new mention of its intent to potentially control certain additive manufacturing equipment, or 3D printing, used in “energetic materials” as part of BIS’s effort to restrict sales of emerging technologies (see 1911210051). The notice of proposed rulemaking aims to gather feedback from industries while “discussions are ongoing” at the Wassenaar Arrangement. BIS said it aims to issue the proposed rule in November.
The Commerce Department plans to release proposed export controls on emerging technologies within the “next few weeks” and an advance notice of proposed rulemaking on foundational technologies before the end of the year, a top Commerce official said. Matt Borman, the Commerce deputy assistant secretary for export administration, suggested Commerce has been eager to release both controls to ease concerns from U.S. trade groups and companies, which have warned the agency against overly broad, unilateral controls.