The Bureau of Industry and Security this week fined a Pennsylvania electronics business and its Hong Kong affiliate $5.8 million after the company voluntarily disclosed and admitted to illegally shipping controlled technology to China, including to military research institutes on the Entity List. The company, TE Connectivity Corporation, had “knowledge or reason to know” that the shipments violated U.S. export controls, BIS said, adding that its employees in China hid the true end-users and bypassed the company’s denied-party screening process.
Brian Nelson, the Treasury Department’s former undersecretary for terrorism and financial intelligence, has officially left the agency to join Vice President Kamala Harris' presidential campaign as a senior policy adviser, according to Nelson’s LinkedIn page. Nelson, who helped oversee U.S. sanctions policy, was reported last month to be making the move (see 2408020038). He was replaced by Brad Smith, director of the Office of Foreign Assets Control, on an acting basis.
U.S. Army intelligence analyst Korbein Schultz pleaded guilty Aug. 13 to conspiring to "obtain and disclose national defense information," illicitly exporting data related to defense articles to China, and conspiring to illegally export defense articles and bribery, DOJ announced. He faces a maximum of 20 years in prison for each export-related charge.
House Foreign Affairs Committee Chairman Michael McCaul, R-Texas, said Aug. 14 that the Biden administration should move more quickly to implement new Iran sanctions that Congress approved four months ago. “The only way to deter Iran and its proxies is through a clear display of strength and resolve," McCaul said in a statement.
President Joe Biden extended a national emergency that authorizes certain export control regulations, the White House said this week. Biden renewed the emergency for one year beyond Aug. 17.
The Bureau of Industry and Security on Aug. 13 completed an interagency review for an interim final rule that could place new export controls on emerging and advanced technologies in coordination with “international partners.”
The State Department this week published a final version of a rule to expand its regulatory definition of activities that don’t need a license because they don’t qualify as exports, reexports, retransfers or temporary imports. The rule, effective Sept. 16, is largely consistent with the proposed version, though the agency made changes to narrow its scope and make sure certain temporary imports will still require a license.
A new compliance note released by the Bureau of Industry and Security this week reveals the types of export violations that universities are most commonly disclosing to BIS, what led to those violations and the steps the academic institutions took to improve their compliance programs. The agency also issued a set of resources it said universities should use for compliance, including lists of risky parties maintained by both the government and outside organizations.
Bulgarian national Milan Dimitrov appeared Aug. 12 in a federal court for allegedly engaging in a scheme to violate U.S. export controls, DOJ announced. Extradited from Greece, Dimitrov is charged with conspiring with Russian citizen Ilias Sabirov and Bulgarian national Dimitar Dimitrov to procure "sensitive radiation-hardened integrated circuits" from the U.S. and export them to Russia via Bulgaria (see 2012210013).
Florida Sens. Marco Rubio and Rick Scott introduced a resolution this month opposing the removal of Cuba from the State Department’s state sponsors of terrorism list.