As the Bureau of Industry and Security adds new export controls on emerging technologies, it should also remove outdated restrictions on items that may no longer warrant licensing requirements, such as life jackets and fire extinguishers, the Center for Strategic and International Studies said in a report. The think tank also urged BIS to shrink the Entity List to only entities that pose the most serious national security threats and consider giving preferential licensing treatment to a broader set of countries, including Vietnam and Moldova.
A U.S. semiconductor company and a Canadian electronics component manufacturer are locked in a legal battle that could have implications for the export compliance responsibilities of sellers and buyers, particularly within the chip industry.
The Bureau of Industry and Security issued a temporary denial order on Nov. 7 against seven people and three companies for orchestrating a scheme to illegally export millions of dollars worth of export-controlled dual-use electronics to Russia. BIS said the U.S.-origin items were bought by Russian procurement agents and transshipped through other countries before being delivered to Russian companies with ties to the country’s military.
A Commerce Department decision last week to suspend new export licenses for certain firearms, parts and ammunition caught the industry by surprise and has caused confusion about what types of shipments will be impacted. The announcement came after an uptick in license processing times in recent months, an industry lawyer said, and could lead to a surge in purchases of U.S. firearms by foreign customers that fear the suspension could be a harbinger of permanent change.
The Bureau of Industry and Security on Oct. 27 announced an immediate 90-day suspension of new export licenses for certain firearms, components and ammunition while it reviews its firearms policies to determine whether any permanent changes are “warranted.” During the next 90 days, the agency said it will not issue any new licenses for those exports to non-government end users worldwide, apart from Ukraine, Israel or a nation listed in Country Group A:1.
The Bureau of Industry and Security on Oct. 27 announced an immediate 90-day suspension of new export licenses for certain firearms, components and ammunition while it reviews its firearms policies to determine whether any permanent changes are “warranted.” During the next 90 days, the agency said it will not issue any new licenses for those exports to non-government end users worldwide, apart from Ukraine, Israel or a nation listed in Country Group A:1.
The Bureau of Industry and Security revoked the export privileges of a Georgia resident after she admitted to trying to illegally export about $25,000 worth of optical sighting devices from the U.S. to China. As part of a settlement agreement, Dina Zhu of Lawrenceville, Georgia, will be barred from participating in any transaction subject to the Export Administration Regulations for one year from Oct. 20, but she won’t face a fine.
The U.S. updated chip export controls announced this week will affect a number of chips marketed by Nvidia, the American semiconductor firm confirmed this week. Nvidia said it will face new license requirements for any of its integrated circuits exceeding certain performance thresholds -- including its A100, A800, H100, H800, L40, L40S and RTX 4090 -- along with any existing system that incorporates one or more of those integrated circuits, including potentially future products developed by the company.
The Russian invasion of Ukraine changed export compliance dramatically, said Howard Mendelsohn, chief client officer for Kharon, "where the onus is on industry like it’s never been before to sort of find a way to be proactive." Mendelsohn, whose firm provides risk intelligence to businesses, spoke at an OCR Services trade compliance conference Oct. 17 in Bethesda, Maryland, outside Washington, D.C. He said exporters have to be proactive on blocking reports and applying for licenses, and importers have to find another supplier.
The Bureau of Industry and Security this week released a range of updates to its Oct. 7, 2022, China chip controls, unveiling two rules that will impose new license requirements on additional chips and chipmaking tools, make revisions to its U.S. persons restrictions, expand licensing requirements for exports of certain chipmaking items to U.S. arms-embargoed countries, create a new notification requirement and introduce other measures to address export control circumvention risks.