U.S. agencies are prioritizing Israel-related exports and military sales as that country seeks more defense and dual-use equipment in the ongoing war in the region.
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.
American, Australian and British officials were pressed this week about why they haven’t sought to include other close allies -- including Canada, Japan or South Korea -- in an ongoing effort to reduce burdensome U.S. defense export control requirements. Speaking during a summit of government and defense industry representatives from more than 25 countries, the officials said reducing restrictions as part of the Australia-U.K.-U.S. (AUKUS) partnership has proven complicated, and the nations aren’t yet ready to expand the group.
The U.S. and the EU in recent months may have had a breakthrough tracking export-controlled goods being illegally diverted through third countries to Russia, senior sanctions officials said this week. They also said the U.S., the EU and other Group of 7 nations are preparing to take new “legal action” against parties transporting Russian oil using shadow fleets in violation of the price cap.
The U.S. government has informed American chip designer Nvidia that several of its products are subject to the new export controls unveiled by the Bureau of Industry and Security last week despite BIS saying the rules wouldn’t take effect until next month.
The Bureau of Industry and Security revoked the export privileges of a Georgia resident after she admitted to trying to illegally export about $25,000 worth of optical sighting devices from the U.S. to China. As part of a settlement agreement, Dina Zhu of Lawrenceville, Georgia, will be barred from participating in any transaction subject to the Export Administration Regulations for one year from Oct. 20, but she won’t face a fine.
Denmark has seen a spike in dual-use exports over the past year to countries suspected of being diversion points for export-controlled goods to Russia, including Tajikistan, Armenia and Georgia, said Frederik Broch-Lips, head of export controls and sanctions with the Danish Business Authority. The agency hasn’t been able to confirm all of those shipments are being illegally sent to Russian end-users, he said, adding that better sanctions enforcement may be needed across Europe.
Multinational companies with operations in China are becoming increasingly concerned about facing retaliatory measures from Beijing for complying with Western sanctions, said Erika Trujillo, co-founder of SEIA, a compliance risk management firm. She noted that some businesses have begun to split their trade compliance efforts between a Western-focused team and a Chinese team to protect their Chinese employees and operations from potential penalties.
Although Dutch semiconductor equipment company ASML doesn’t expect the new U.S. export controls on China to have a “material effect” on the firm's financial outlook for 2023, it's preparing for the new rules to restrict more sales of its chipmaking equipment.
The U.S. last week removed sanctions from the son of a convicted war criminal about six months after he, his sister and mother sued the Treasury Department for taking too long to adjudicate their delisting requests.
The European Commission last week said it plans to propose new foreign direct investment screening regulations by January, adding that it wants to “make better use of existing tools” to screen investments that may pose national security risks.