The Commerce Department plans to issue an advance notice of proposed rulemaking for export controls of foundational technologies in the coming weeks, Commerce officials said. The notice will be published “quite soon” and in “weeks, not months,” said Rich Ashooh, Commerce's assistant secretary for export administration, speaking at a June 4 Bureau of Industry and Security Regulations and Procedures Technical Advisory Committee meeting. Hillary Hess, director of Commerce’s regulatory policy division, was more reserved in her prediction, saying she is unsure exactly when the notice will be released but assuring the committee it is the next export-related notice that BIS plans to publish. “It is in the process now,” Hess said at the meeting. “We’re trying to prepare it.”
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
China is investigating complaints from U.S. exporters about Chinese customs clearances, including accusations of slower processing, increased inspections and inexplicable delays in licensing approval, China’s Vice Minister of Commerce Wang Shouwen said during a June 2 press conference. Wang said he did not know if the complaints were about “a real or specific situation,” according to an unofficial translation of his comments, but some U.S. exporters allege the moves are another step in China’s 2018 threat to take retaliatory measures against the U.S. that extend beyond tariff hikes (see 1905290041).
China opened an investigation into FedEx after it said the shipping company “failed to deliver” packages to certain addresses in China, state-media reported June 1. China suspects FedEx of “undermining the legitimate rights and interests of Chinese clients,” the report said, damaging the rights and interests of FedEx’s clients and violating industry laws.
China is finding ways other than tariff increases to retaliate against U.S. exporters, further damaging the U.S.’s struggling agricultural export sector, panelists said during a Washington International Trade Association discussion on U.S.-China trade. The expected retaliation from China -- along with stalled trade negotiations and the increased difficulty of accessing China’s markets -- could lead to crippling, long-term consequences for some U.S. exporters, the panelists said.
The Department of State published its spring 2019 regulatory agenda. The agenda includes a new mention of a proposal to amend the International Traffic in Arms Regulations to include definitions for "activities that are not exports, re-exports, or retransfers." The activities include "launching items into space; providing technical data to U.S. persons within the United States or within a single country abroad; and moving a defense article between the states, possessions, and territories of" the U.S., State said. The proposal also "removes from ITAR licensing requirements the electronic transmission and storage of unclassified technical data via foreign communications infrastructure when the data is secured sufficiently to prevent access by foreign persons." Under the proposal, State would also amend the ITAR to create definitions for “access information” and revise definitions of release to include “the improper provision of access information to foreign persons.” State is aiming to issue the proposal in September, it said.
The agenda also includes a rule that would revise Categories I, II and III of the U.S. Munitions List to include items that gives the U.S. a “critical military or intelligence advantage or otherwise warrant control at the highest level.” The rule states that exports of “commercially available firearms and ammunition,” removed from Category I and III, will continue to be controlled under the Bureau of Industry and Security’s Commerce Control List. State said the transition from the Munitions List to the CCL “will result in a net reduction in regulatory burden for the affected manufacturing and export community.” State aims to issue the rule in May 2019, it said.
The House Foreign Affairs Committee advanced three bipartisan measures calling for sanctions against countries it said are involved in corruption, human rights abuses and trade that harms U.S. national security. The measures, advanced on May 22, called for sanctions on countries in the Northern Triangle, Georgia and Turkey.
The Department of Commerce published its spring 2019 regulatory agenda for the Bureau of Industry and Security. The agenda continues to mention an upcoming a long-awaited proposed rulemaking involving parties’ responsibilities under the Export Administration Regulations in a routed export transaction, saying the proposal will be published in May 2019. Sharron Cook, a senior policy export analyst for BIS, said in April the rule change will help solve some of the bigger frustrations with the current regulations faced by export forwarders (see 1904170064). BIS is aiming to issue the proposal in May, it said.
The Trump administration's decision to examine emerging technologies as candidates for export controls could cost U.S. businesses tens of billions of dollars and threaten thousands of jobs, the Information Technology and Innovation Foundation said in a new report. If substantial export controls are enacted, the report warns, firms “could lose $14.1 [billion] to $56.3 billion in export sales over five years, with missed export opportunities threatening from 18,000 to 74,000 jobs.”
The Commerce Department's Bureau of Industry and Security is issuing a general license temporarily allowing certain transactions with Huawei and 68 of its affiliates without new licensing requirements set by their recent addition to the Entity List. The general license is scheduled for publication in the May 22 Federal Register, and will remain in effect from May 20 through Aug. 19.
The Commerce Department on May 16 added Huawei Technologies to the Bureau of Industry and Security’s Entity List, eliciting strong reaction from Huawei and China over the move that may have substantial effects on U.S. exporters. In a notice in the Federal Register, BIS said it is imposing license requirements on Huawei and its 68 non-U.S. affiliates for all items subject to the Export Administration Regulations with a license review policy of presumption of denial. The Federal Register notice is scheduled for May 21 publication, but the changes take effect May 16. All shipments aboard carriers as of May 16 may proceed to their destinations under previous license conditions.