The Bureau of Industry and Security issued a temporary denial order for Russian airline Ural Airlines after it violated U.S. export controls by flying multiple aircraft to Russia, BIS said. Under the order, Ural Airlines’ export privileges will be revoked for at least 180 days.
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.
New advanced computing and chip export controls against China (see 2210070049) represent an “unprecedented degree” of U.S. intervention to preserve technology leadership and could deal a major blow to China’s semiconductor industry, the Center for Strategic and International Studies said in a report last week. But there are several “lingering gaps” in the new policy that the Bureau of Industry and Security should “swiftly” address if it hopes to make the rules as effective as possible, the report said, including adding more companies to the Entity List, making sure the restrictions are adopted by allies and ensuring the agency is properly staffed.
The State Department’s Directorate of Defense Trade Controls is working on a range of technology improvements for its website and applications, including a new Part 130 decision tool and a voluntary disclosure application, said Frances Moore, DDTC’s deputy chief information officer. The agency also is working to revamp its website and is coordinating with the Bureau of Industry and Security on a new system to more efficiently share data.
The Bureau of Industry and Security received more than 150 questions ahead of its Oct. 13 public briefing on its new China-related export controls (see 2210070049) and plans to issue guidance for the restrictions on a rolling basis, senior BIS official Thea Kendler said during the briefing. She said guidance will include frequently asked questions that the agency will look to continually update on a “rolling” basis. “Let me assure you that we understand the need for speed in issuing FAQs,” Kendler said.
The Commerce Department is close to completing its work on a national export strategy, said Grant Harris, the International Trade Administration's assistant secretary for industry and analysis. Harris said he hopes the administration releases the strategy, which will outline efforts to increase foreign market access for U.S. manufacturers, farmers, carmakers and other industries (see 2104220033), in the “coming months.”
The State Department announced penalties on one person and three 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 Oct. 3 effective date.
The Bureau of Industry and Security is "undertaking a vigorous outreach effort" to educate companies on the broad China-related export controls announced last week (see 2210070049) and plans to issue guidance soon, a Commerce Department spokesperson said Oct. 12. That guidance will likely take the form of frequently asked questions, the spokesperson said. The agency is also hoping its Oct. 13 public briefing helps answer some industry questions.
The Biden administration wants to improve the effectiveness of multilateral export controls and is building toward the creation of an outbound investment screening regime, the White House said in its national security strategy published this week. Along with a range of domestic and foreign policy issues, the long-awaited strategy outlines the administration’s approach to trade and emerging technologies and its efforts to outcompete in its rivalry with China and continue to sanction Russia.
Some exporters are still facing penalties for minor errors made in Automated Export System filings despite efforts by CBP and the Census Bureau to rein in those fines. Omari Wooden, Census’ assistant division chief for trade outreach and regulations, said those penalties, often referred to as “parking ticket violations,” have been an “ongoing issue” with CBP.
The Bureau of Industry and Security added 31 Chinese entities to its Unverified List last week, including Yangtze Memory Technologies Co., a semiconductor firm that U.S. lawmakers for months have urged BIS to add to the more restrictive Entity List. The final rule, which took effect Oct. 7, also removed nine other entities from the UVL and included new guidance on what types of criteria and activities may lead to the transfer of UVL entries to the Entity List.