The U.S. will no longer impose a presumption of denial policy for export license applications for Sudan but will still limit which export license exceptions can be used for those exports, the Bureau of Industry and Security said in a Jan. 19 guidance. The guidance, issued less than a week after BIS amended Sudan’s status to loosen certain restrictions in the Export Administration Regulations (see 2101140018), also covered how BIS will control exports of aircraft, encrypted telecommunication items and anti-terrorism controlled items.
The Trump administration told a number of Huawei suppliers that it planned to revoke their licenses to sell to the company and planned to reject “dozens” of other Huawei-related license applications, according to a Jan. 17 Reuters report. The actions impacted licenses used by Intel, Japanese chipmaker Kioxia Corp and others, the report said. Reuters said the action was taken as about 150 licenses were pending for $120 billion worth of goods and technology, which have been held up due to interagency disagreements. Another $280 billion in license applications have yet to be processed but are “likely” to be denied, the report said. The Commerce Department rejected a “flurry” of Huawei-related license applications last week, and an agency official said the pandemic has contributed to adjudication delays and a backlog of applications (see 2101150062). A Bureau of Industry and Security spokesperson said the agency continues to work with interagency partners to “apply consistently the licensing policies articulated” in the Export Administration Regulations “in a manner that protects U.S. national security and foreign policy interests.”
The Bureau of Industry and Security added one Chinese entity to its Entity List, another to its Military End User List and removed two Russian entities from the MEU List, the agency said in a final rule. BIS added China National Offshore Oil Corporation Ltd. (CNOOC) to its Entity List for its involvement with China’s militarization of the South China Sea and designated Beijing Skyrizon Aviation Industry Investment Co., Ltd. because of its ties to China’s military. The changes are effective Jan. 14.
The Bureau of Industry and Security announced new controls on technologies and activities that may be supporting foreign military-intelligence end-uses and end-users in China, Cuba, Russia, Venezuela and other “terrorist-supporting” countries. The agency also will bolster controls to prevent U.S. people from supporting weapons programs, weapons delivery systems and weapons production facilities, BIS said in an interim final rule issued Jan. 15. The changes take effect March 16. Comments are due March 1.
The Bureau of Industry and Security removed certain license restrictions for Sudan (see 2012080003) to reflect the U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015). The final rule, effective Jan. 14, will amend the Export Administration Regulations by removing anti-terrorism controls on exports to Sudan and by removing Sudan from Country Group E:1, which makes the country eligible for a 25% de minimis level, BIS said. Sudan also was added to Country Group B and will be eligible for several new license exceptions.
Jenner & Block hired Rachel Alpert, previously with Latham & Watkins, as a partner, the firm said in a news release. Alpert also previously worked in the State Department Office of the Legal Adviser. Her work “supports organizations in the oil and gas, communications, travel, and other industries on legal issues involving export controls and US sanctions laws and regulations under the International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), and Office of Foreign Assets Control (OFAC) regulations,” Jenner & Block said.
The Bureau of Industry and Security loosened its license review policy for exports of certain drones controlled under the Export Administration Regulations (see 2012150011). The move, following a similar announcement by the State Department in July (see 2007270035), will impose a case-by-case license review policy on certain unmanned aerial systems (UAS) as opposed to a review policy of presumption of denial. The change will impact drones controlled for missile technology (MT) reasons and that have a “range and payload capability equal to or greater than 300 kilometers/500 kilograms” and a “maximum true airspeed of less than 800 km/hour,” BIS said in a final rule. The agency said the case-by-case review policy will also apply to MT-controlled items for the design, development, production or use in such drones. The changes take effect Jan. 12.
The Bureau of Industry and Security amended the Chemical Weapons Convention Regulations and Export Administration Regulations to control new chemicals used in chemical weapons. The final rule, effective Jan. 7, aligns U.S. export controls with recent changes made by the multilateral Chemical Weapons Convention.
The Bureau of Industry and Security clarified and expanded the scope of export controls for certain vaccines and medical products (see 2012090006), the agency said in a final rule effective Jan. 7. The changes align U.S. export controls with decisions agreed to at the Australia Group’s 2019 plenary group. The updated controls also have implications for vaccines related to COVID-19, BIS said.
The Bureau of Industry and Security renewed its temporary export control on certain artificial intelligence software as it prepares to propose the control at multilateral control groups. The control, first issued in January 2020 (see 2001030024), placed unilateral restrictions on geospatial imagery software, adding it to the 0Y521 Temporary Export Control Classification Numbers Series. BIS extended the control for one year, effective Jan. 6, a notice said.