Taiwan Semiconductor Manufacturing Company may face a fine of up to $1 billion or more if the Commerce Department determines it violated U.S. export control laws against Huawei, Reuters reported April 8. The Bureau of Industry and Security has reportedly been investigating the chip company after one of its chips was found in a Huawei product (see 2411120011 and 2410230019), and Reuters said Commerce could reach a $1 billion penalty because export control regulations allow the agency to issue a fine of up to twice the value of transactions that violate the rules. Reuters said it "could not determine how the Trump administration will proceed with TSMC or when the matter would be resolved."
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security this week added 30 parties to its boycott requester list, a list of entities that have asked other companies to boycott goods from certain countries in violation of the Export Administration Regulations. It also removed 18 parties after they certified that they "stopped making boycott-related requests in transactions with U.S. persons," BIS said.
The Bureau of Industry and Security this week revoked the export privileges of a Kenya-based company and two people for trying to illegally export airplane parts from the U.S. to Russia, including by lying to American freight forwarders and other businesses about where the parts would be sent. It also warned that the company and people are continuing to try to illegally buy export controlled parts from American businesses.
The Bureau of Industry and Security on March 31 renewed the temporary denial order for Russian air cargo carrier Aviastar for one year after finding it continues to violate U.S. export controls. The agency said the airline has continued to illegally operate aircraft subject to the Export Administration Regulations, including for flights within Russia and between Russia and India.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
Four Democratic lawmakers said this week that the Bureau of Industry and Security’s plans to pull back from traditional export control dialogues with allies, including the U.S.-EU Trade and Technology Council, will reduce international collaboration and make it harder to keep sensitive technology out of the hands of China.
The Bureau of Industry and Security’s recent semiconductor-related export controls could place large burdens not only on exporters but also on BIS enforcement, which will face a host of challenges trying to track whether certain countries have filled their allocated chip quotas, researchers said.
The Bureau of Industry and Security is ending its work in the U.S.-EU Trade and Technology Council as part of a broader effort to pull back from traditional export control dialogues with allies, Jeffrey Kessler, the head of BIS, said in a closed-door meeting with agency officials last week. Kessler also said the agency plans to significantly increase export enforcement against China, warned about possible staffing cuts, urged officials to tamp down on conversations with industry, and said it’s unclear whether existing export controls against Russia will be maintained.
Longtime Bureau of Industry and Security officials Hillary Hess, Sheila Quarterman and Carlos Monroy soon will retire from the agency, multiple people familiar with the matter said.