A newly required annual report to Congress on certain dual-use export license applications could cause exporters to be more cautious about seeking those licenses, a trade lawyer said in an interview.
The Bureau of Industry and Security is removing Chinese affiliates of Samsung and SK hynix from its Validated End-User List, making them ineligible for a general authorization that had allowed them to receive certain controlled technology for their Chinese factories.
The Bureau of Industry and Security is removing Samsung China Semiconductor Co., SK hynix Semiconductor (China) and a third SK hynix-owned semiconductor facility in Dalian from the agency’s Validated End-User List, which will make them ineligible for a general authorization that had allowed them to receive certain U.S.-controlled technology. BIS called the VEU program a “loophole” because it allows certain foreign firms to export chip manufacturing equipment and technology to China without a specific license. The final rule takes effect Dec. 31.
A new law that will require the Bureau of Industry and Security to provide Congress with annual reports on certain export licensing information could lead to more "scrutiny" over BIS licensing activity, including through congressional hearings, Akin said in a client alert this week. The firm also said it could increase congressional requests to certain exporters or give rise to more legislation "regarding the scope of controls, parties to be added" to the Entity List or the Military End User List, or "requests for revocation of licenses."
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.
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.
President Donald Trump signed into law Aug. 19 a bill that will require an annual report to Congress on certain dual-use license applications, the White House announced.
The more than $140 million U.S. penalty levied on California chip firm Cadence in July (see 2507290026) is the latest signal that companies should prepare for increasingly "aggressive" export control enforcement, especially for violators of technology controls against China, law firms said. One firm said it shows that the government expects companies to provide access to business information located in China -- even if that may violate China’s anti-foreign sanctions laws -- while another firm said it highlights the challenges companies face when determining whether a customer is a front company for a party on the Entity List.
The future effectiveness of U.S. export controls will depend on which technologies the government targets, how it collaborates with allies, and how well the U.S. is able to resource the Bureau of Industry and Security, said Navin Girishankar and Matt Borman of the Center for Strategic and International Studies.
Sen. Rick Scott, R-Fla., and House Select Committee on China Chairman John Moolenaar, R-Mich., called on the Bureau of Industry and Security Aug. 14 to return China’s Institute of Forensic Science to the BIS Entity List, citing the lab’s "continual and well-documented" human rights abuses.