The Commerce Department drafted a rule that would restrict U.S. exports to 89 Chinese and 28 Russian companies with military ties, Reuters reported Nov. 22. The rule, which includes several Chinese aerospace companies such as the Commercial Aircraft Corp. of China Ltd. (COMAC) and the Aviation Industry Corporation of China (AVIC), would build off an April rule that increased license requirements for exports to military end-users and for end-uses in China, Russia and Venezuela, (see 2004270027). The rule contains a list that identifies Chinese and Russian companies that the U.S. considers military end-users, the report said, which require licenses to buy a range of U.S. goods and technologies. If the rule is issued, those licenses will be “more likely to be denied than granted,” Reuters said.

The Federal Maritime Commission will begin investigating whether ocean carriers are violating regulations on detention and demurrage fees, container returns and container availability for U.S. exports, the agency said Nov. 20. The investigation, which will be led by FMC Commissioner Rebecca Dye, will look at ocean carriers operating in alliances at the Port of Long Beach, the Port of Los Angeles and the Port of New York and New Jersey to determine if their unfair fees and container practices are “amplifying the negative effect of bottlenecks” at the ports.

U.S. sanctions under the Trump administration have at times been imposed recklessly, which could permanently alienate allies and lead to less effective sanctions programs, according to a November Atlantic Council report. But the trend can be corrected under the incoming Joe Biden administration, the report said, which should be more patient with its sanctions use, provide a clear “endgame” and strategy for its sanctions programs, and work closer with allies to pressure dangerous actors.

Cordell Hull, who has led the Bureau of Industry and Security for the last year (see 1911180040), will resign next month ahead of the incoming Joe Biden administration. His last day will be Dec. 4, a BIS spokesperson said. “I am proud of what we have achieved on important issues of national security at BIS and I have decided to look for the next challenge in the private sector,” Hull said in a Nov. 19 statement. “I am grateful to Secretary [Wilbur] Ross for giving me this opportunity to serve.”

The U.S. needs to work closer with allies on export controls and foreign investment screening to counter China, a Republican House member and two former Trump administration officials said. They said the U.S.’s current unilateral approach to trade restrictions is not working and could cede U.S. technology leadership to China.

The U.S. and other governments need to substantially increase outreach with industry before continuing to pursue export controls over emerging technologies, experts said. Although the U.S. and other governments do some outreach work, future controls will be ineffective and difficult to comply with without more industry input, they said. “It’s [like] trying to change a tire while we’re driving down the road,” said Scott Jones, a senior adviser at the Strategic Trade Research Institute, speaking during a Nov. 17 webinar hosted by STRI. “Going forward, it fundamentally has to be much more collaborative.’

More than 40 trade groups urged the Federal Maritime Commission to suspend certain detention and demurrage charges they say are being unfairly imposed by ocean carriers and marine terminals, saying the charges violate guidelines issued by the FMC in May (see 2004290037). The groups said their members have paid more than $150 million in “unreasonable” fees at the ports of Los Angeles and Long Beach and the Port of New York and New Jersey due to “massive congestion created by record setting volumes” and a shortage of labor and available chassis.

Export Compliance Daily is providing readers with the top stories for Nov. 9-13 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.

The Bureau of Industry and Security amended and clarified provisions in the Export Administration Regulations to promote compliance and better enforce the Export Control Reform Act. BIS also amended other EAR provisions related to licenses, denial orders and civil penalty payments. The changes, outlined in a final rule issued Nov. 17, take effect Nov. 18.

The Trump administration is considering imposing new export controls and sanctions against China in the coming weeks, a senior administration official said. The moves are meant to further cement Trump’s China policies under the incoming Joe Biden administration, the official said, which may find the measures difficult to reverse.