Although the Bureau of Industry and Security’s new cybersecurity controls are an improvement over the restrictions proposed in 2015, the agency should still take several steps to ensure they don’t impede U.S. technology companies and inhibit information sharing in the cybersecurity sector, industry said this month. But at least one commenter said BIS should strengthen the controls by restricting a broader set of technologies and require more due diligence steps for exporters.
The U.S this week imposed an arms embargo and new, broad export restrictions on Cambodia in response to government corruption and human rights abuses. The restrictions, released Dec. 8 by the Commerce and the State departments and effective Dec. 9, will apply more stringent controls on a range of dual-use and military-related exports to the country (see 2112020015).
The Commerce Department will soon launch a new feature to automatically warn filers if they are exporting a controlled item without a license, an improvement the agency hopes leads to better due diligence among exporters. The agency will deploy the Automated Export System feature Jan. 13, 2022, the Census Bureau said in a Dec. 6 email to industry. The announcement has been expected since October (see 2110180027). The new feature will alert exporters that incorrectly list License Requirement NLR (No License Required) for shipments that require a license under the Export Administration Regulations. The message will appear with the response code 66Q and will serve as a warning message to filers for the first six months after the Jan. 13 effective date, Census said. After the six-month period, the agency will upgrade the warning to a “fatal” error, which will block the exporter from moving forward with the filing. Exporters having difficulties with the error message or reporting their information correctly but still receiving the message should email the Bureau of Industry and Security at ECDOEXS@bis.doc.gov, Census said. Exporters should ask about the Export Control Classification Number associated with their export and any other “additional licensing authorization that may be required,” Census said.
The Commerce and State departments completed interagency reviews of final rules that would revise export controls for goods destined to Cambodia. Commerce’s rule would revise certain restrictions for Cambodia under the Export Administration Regulations, while the State Department would add Cambodia to its list of proscribed countries in the International Traffic in Arms Regulations. Both agencies sent their respective rules for interagency review Nov. 16 (see 2111170014) and completed them Dec. 1.
The Bureau of Industry and Security added 27 entities to the Entity List for illegally selling technology to China, North Korea and other sanctioned countries, for supporting China’s military modernization efforts or for contributing to Pakistan’s nuclear and missile programs, the agency said Nov. 24. The Entity List additions include a range of laboratories and companies operating in the semiconductor, microelectronics and machinery sectors in China, Japan, Pakistan and Singapore, including several major Chinese chip companies.
The Bureau of Industry and Security will add 27 entities to the Entity List for illegally selling technology to sanctioned countries, for supporting China’s military modernization efforts or for contributing to Pakistan’s nuclear and missile programs. The Entity List additions include laboratories and companies operating in the semiconductor, microelectronics and machinery sectors located in China, Japan, Pakistan and Singapore, and are partly aimed at preventing U.S. emerging technologies from being used for China's quantum computing efforts, the Commerce Department said. The agency will also add one entity to its military end-user list under Russia.
The Commerce Department again renewed a temporary export denial order for Mahan Airways because the airline continues to violate the order and the Export Administration Regulations, according to a Nov. 17 notice. The Iranian airline has been on the banned list since 2008. The latest renewal is for 180 days from Nov. 17.
The Commerce Department and the State Department are considering final rules that would revise export controls for goods destined to Cambodia. Under its final rule, Commerce’s Bureau of Industry and Security would revise certain restrictions for Cambodia under the Export Administration Regulations, while the State Department would add Cambodia to its list of proscribed countries in the International Traffic in Arms Regulations. Both agencies sent their respective rules for interagency review Nov. 16.
The Bureau of Industry and Security extended the comment period for an information collection involving the Chemical Weapons Convention provisions in the Export Administration Regulations (see 2107200010), the agency said in a notice. The information collection describes U.S. reporting obligations and information on certain end-use certificates. BIS said it will allow an additional 30 days of public comments. Comments are due by Dec. 13.
The Bureau of Industry and Security fined a Pennsylvania-based scientific equipment manufacturer $80,000 for illegally exporting goods to Huawei and HiSilicon Technologies in 2019, according to a Nov. 8 enforcement order. The company, SP Industries, exported more than $170,000 worth of goods to the Chinese technology companies just after they were added to the Entity List (see 1905160072).