The U.S. District Court for the District of Columbia on Sept. 10 dismissed FedEx’s June 24 lawsuit against the Bureau of Industry and Security, saying the company failed to show that BIS was acting outside the authority of the Export Administration Regulations. The court also disagreed with FedEx’s claims that the agency was using the EAR to apply overly burdensome liability standards on carriers and impose penalties even when carriers do not have knowledge of violations.
The Bureau of Industry and Security plans to add 60 entities to the Entity List, including 24 entities for helping the Chinese military build artificial islands in the South China Sea. BIS will also designate entities in France, Hong Kong, Indonesia, Malaysia, Oman, Pakistan, Russia, Switzerland and the United Arab Emirates for a range of activities, including illegal exports to Iran, submitting false information to BIS, contributing to Russian biological weapons programs and more.
The Bureau of Industry and Security released its long-awaited pre-rule for foundational technologies and asked industry to comment on the types of technologies BIS should target for potential controls. BIS is specifically looking for feedback on a definition for foundational technologies, criteria for identifying them, how the controls might impact their development and the potential benefits of end-use or end-user based controls as opposed to technology-based controls.
The Bureau of Industry and Security added 38 Huawei affiliates to the Entity List and refined a May amendment to its foreign direct product rule, further restricting Huawei’s access to U.S. technology. BIS said the direct product rule will now also apply to transactions where U.S. software or technology is “the basis” for a foreign-made item produced or purchased by Huawei, or when a Huawei entity is “a party to such a transaction.” Secretary of State Michael Pompeo said Huawei "has continuously tried to evade" the previous changes to the foreign direct product rule.
Canada released a list of products that could be subject to countermeasures in response to the re-imposition of U.S. tariffs on some Canadian aluminum exports. "Canada intends to impose surtaxes against imports of aluminum and aluminum-containing products from the U.S., representing a proportionate amount of Canadian aluminum products affected by the U.S. tariffs," it said.
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.
President Trump said he signed an executive order that ends Hong Kong’s preferential trade treatment and increases export restrictions on sensitive technologies. Trump also said he signed the Hong Kong Autonomy Act, which authorizes sanctions against Chinese authorities and foreign banks associated with passing Hong Kong’s so-called national security law.
The Commerce Department announced a new rule that it said will help U.S. companies participate in international standard-setting bodies where Huawei is a member. Under the rule, companies will no longer need an export license to disclose technology to Huawei if that disclosure is for the “purpose of standards development in a standards-development body,” Commerce said in a June 15 press release. In addition, companies may only disclose technology to Huawei if that technology would not have required an export license before Huawei’s placement on the agency’s Entity List last year.
The Office of the U.S. Representative posted the final implementing regulations of the U.S.-Mexico-Canada Agreement, covering the interpretation, application, and administration of rules of origin, textiles, and customs and trade facilitation.
The Bureau of Industry and Security will officially add 33 companies and government agencies to the Entity List on June 5 for their roles in proliferation activities and aiding human rights abuses in China’s Xinjiang province, BIS said in two Federal Register notices. The notices formalize the previously announced additions.