The State Department sent a final rule for interagency review that could loosen export restrictions on certain controlled defense shipments and services for Ethiopia. The rule, sent to the Office of Information and Regulatory Affairs Aug. 17, would remove Ethiopia from the International Traffic in Arms Regulations’ list of proscribed countries. Those countries are generally subject to a license review policy of denial.
The Census Bureau Aug. 10 launched a new response code in the Automated Export System to alert filers who try to submit a shipment controlled under U.S. Munitions List Category XXI without a valid determination number. The response code, 5C2, will serve as an “informational” error message for at least 90 days, then become a “fatal” error, according to an Aug. 10 CBP CSMS message, and AES will reject the filing.
The Census Bureau is moving forward with a new data element in the Automated Export System that shippers must report when exporting items classified under U.S. Munitions List Category XXI. The agency didn’t list any public comments objecting to the change that it proposed in May (see 2305020007), which Census said will help it collect more data on Category XXI exports and defense services that are “not otherwise enumerated” under other USML categories.
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The State Department's Directorate of Defense Trade Controls recently posted a name change notice for Nitec (UK) Ltd. and waived the requirement for amendments to change approved license authorizations because of the “volume” of authorizations requiring amendments to reflect the change, DDTC said. Nitec was changed to CBE Plus Ltd. New license applications received after Sept. 3 that identify the old name “will be considered for return without action for correction.”
The State Department this week announced penalties on one person and four entities and their subsidiaries for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act. The agency in a notice said the parties transferred items subject to multilateral control lists that contribute to weapons proliferation or missile production. The State Department barred them from making certain purchases of items controlled on the U.S. Munitions List and by the Arms Export Control Act and will suspend any current export licenses used by the entities. The agency also will bar them from receiving new export licenses for any goods subject to the Export Administration Regulations. The restrictions will remain in place for two years from the July 19 effective date.
Two U.S. Navy servicemembers, Jinchao Wei and Wenheng Zhao, were arrested in California as part of two separate cases for "transmitting sensitive military information" to China, DOJ announced Aug. 3.
Fried Frank law firm last week released its 2023 International Traffic in Arms Regulations Enforcement Digest, providing a “legal and compliance practitioner's reference guide” on ITAR enforcement. The document includes an overview of recent and past ITAR penalties, including actions taken this year against American 3D printing company 3D Systems (see 2302270078) and U.S.-based telecommunications company VTA Telecom (see 2305310040). The document also includes a table of various enforcement actions, dating to 2001, grouped with the penalty issued in the case, the U.S. Munitions List Categories involved, the countries involved and the number of violations.
Despite some opposition from Democrats, the House Foreign Affairs Committee this week advanced multiple bills designed to ease technology sharing restrictions within the Australia-U.K.-U.S. (AUKUS) partnership. Two bills would create new license exceptions for certain defense exports to Australia and the U.K., and another would authorize the sale of Virginia Class submarines to Australia to help the Biden administration implement AUKUS, a deal that commits the U.S. to delivering the submarines within the next decade (see 2303130035).
The State Department appointed Timothy Betts acting deputy assistant secretary for the Directorate of Defense Trade Controls, according to DDTC’s personnel page, which was updated this month. Betts, who was previously the acting coordinator for counterterrorism and acting special envoy for the global coalition to defeat the Islamic State group, started in the new role in May, according to his LinkedIn page. Betts is the latest official to take over after the departure of Mike Miller in December, who left to become the deputy director of the Defense Security Cooperation Agency (see 2212120004). Miller had been temporarily replaced by Catherine Hamilton, DDTC’s licensing director. An agency spokesperson at the time said the “position will rotate among DDTC directorates office directors until a new permanent deputy assistant secretary is formally selected and announced."