The Bureau of Industry and Security added 13 Chinese entities to the Entity List that are involved in developing advanced computing semiconductors that may be used for activities that threaten U.S. national security, the agency announced this week. Each of the entities will be subject to license requirements for all items subject to the Export Administration Regulations, including BIS foreign direct product rule restrictions. Licenses will be reviewed under a presumption of denial.

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.

Logistics companies, especially those based in China, should closely examine their U.S. export control risks, particularly after the Commerce Department added a range of Chinese logistics firms to the Entity List earlier this month for their involvement in microelectronics exports to Russia (see 2310060044), major Asian law firm King & Wood Mallesons said in a client alert last week.

The Bureau of Industry and Security this week will officially extend authorizations for South Korean semiconductor companies Samsung and SK Hynix to allow them to continue supplying certain controlled chip equipment to their Chinese factories. The move -- which formalizes authorizations that have applied to both companies since the agency issued its China chip rule Oct. 7, 2022 -- underscores the importance of the Korean chip industry to global semiconductor supply, BIS officials said.

The Bureau of Industry and Security is amending the Commerce Control List to implement changes agreed to during the 2022 Wassenaar Arrangement plenary, the agency said in an interim final rule released this week. The rule, effective Oct. 18, includes control parameter changes and editorial revisions to more than 50 Export Control Classification Numbers across Categories 1-10 of the CCL. BIS also is seeking public comments on a change that would restrict the use of License Exception STA (Strategic Trade Authorization) for certain countries when exporting technology used to develop certain supersonic aero gas turbine engine components.

The Census Bureau this week published a blog post to provide guidance for Automated Export System users trying to determine how to report the Ultimate Consignee in their Electronic Export Information. Census said ultimate consignee reporting becomes “more complicated” when the known end user and the Ultimate Consignee are two different entities and they reside in two different countries.

The Bureau of Industry and Security recently renewed temporary denial orders for Russian airline Ural Airlines (see 2304110018) for one year and Russian cargo carrier Aviastar (see 2304180012) for six months after the agency said both continue to “act in blatant disregard” for U.S. export controls. BIS said Ural has continued to illegally operate aircraft on flights between Russia and Tajikistan and Kyrgyzstan, and Aviastar has operated flights between China and Russia. The TDOs bar the airlines from participating in transactions with items subject to the Export Administration Regulations.

If the Treasury Department doesn't clarify the due-diligence steps that will be required of dealmakers under the agency’s upcoming outbound investment prohibitions, the Biden administration risks chilling a broad range of U.S ventures in China and incentivizing foreign companies to seek funds elsewhere, law firms and industry associations said in comments to the agency.

The Bureau of Industry and Security added 49 entities, mostly from China, to the Entity List for shipping microelectronics to Russian consignees connected to the country’s defense sector. The entities are semiconductor companies, technology businesses, logistics companies and others, and also include companies based in Estonia, Finland, Germany, India, Turkey, the United Arab Emirates and the U.K.

The Bureau of Industry and Security added 49 entities from China, Estonia, Finland, Germany, India, Turkey, the United Arab Emirates and the U.K. to its Entity List for providing support to Russia’s military or to its defense industrial base. The entities, outlined in a final rule effective Oct. 6, are subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a policy of denial.