Industry should expect the Bureau of Industry and Security's increased activity around export controls to continue, including more additions to the Entity List and the “refinement” of export controls for Hong Kong, said Tim Mooney, a BIS senior export policy analyst.

The Bureau of Industry and Security is preparing industry guidance for its August restrictions on Huawei, including changes to the foreign direct product rule (see 2008170029), Deputy Assistant Secretary of Commerce for Export Administration Matt Borman said. He said BIS will issue a series of frequently asked questions similar to its “fairly extensive” FAQs issued in June for new licensing restrictions for military-related exports (see 2006290045). Borman did not say when they will be released.

The U.S. needs a clearer approach to its export control regime and should coordinate more closely with allies to counter China’s technological rise, Sen. Mark Warner, D-Va., said, adding that the U.S. needs to better communicate to industry about the risks of doing business with China and its government-sponsored human rights abuses.

The Census Bureau issued its advance notice of proposed rulemaking on removing filing requirements for shipments between the U.S. and Puerto Rico and the U.S. Virgin Islands (see 2009150045 and 2006030043). The agency is seeking comments on the impact of no longer requiring Electronic Export Information filings for those shipments, which the Puerto Rican government and other international traders have requested for “many years,” Census said in a notice released Sept. 16. Comments are due Nov. 16.

The 10% tariffs on Canadian non-alloyed unwrought aluminum will be refunded back to Sept. 1, and the tariffs won't return unless Canadian exporters exceed either 70,000 tons or 83,000 tons in that category (see 2009150040), the Office of the U.S. Trade Representative said on Sept. 15. The office said the limits start at 83,000 for the current month, then go to 70,000, then back to 83,000, then back to 70,000 for December. USTR did not say the tariffs would definitely return if Canadian exporters exceed these numbers by at least 5%, and suggested that if Canadian exporters reduced the next month's shipments by the same amount of the overage, that would satisfy USTR.

The Bureau of Industry and Security and the Census Bureau recently completed rules related to export controls and Electronic Export Information filing requirements, but they have not yet been published due to delays at the Federal Register office, officials said. A final rule from BIS will implement export control decisions stemming from the 2019 Wassenaar Arrangement plenary, including new restrictions on emerging technologies (see 2008100013). An advance notice of proposed rulemaking from Census will seek comments on removing certain EEI filing requirements for shipments to Puerto Rico and the U.S. Virgin Islands (see 2008110017 and 2006030043).

Export Compliance Daily is providing readers with the top stories for Sept. 8-11 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.

The Treasury Department issued its final rule to modify mandatory declaration requirements for certain transactions involving critical technologies and made several revisions in response to industry comments. The changes include technical revisions and clarifications related to exemptions and the timing of determining whether a party must submit a declaration.

The Federal Maritime Commission said its May rule on detention and demurrage charges (see 2004290037) is helping to reduce unfair penalties imposed by carriers, but industry said the fees are continuing and the FMC’s guidance is not being followed. The rule “at first seemed to be a great victory,” said Rich Roche, vice president of international transportation at Mohawk Global Logistics, speaking during a virtual conference hosted by the National Customs Brokers & Forwarders Association of America Sept. 14. But Roche, who is also the chair for the NCBFAA’s Non-Vessel Operating Common Carrier Subcommittee, said some carriers increased their demurrage and detention fees the same week the rule was finalized.

The Bureau of Industry and Security should impose targeted export controls on specific facial recognition software but take care not to restrict the entire technology category, some of which can be used for benign purposes, IBM said. While some technologies are “clear use-cases that must be off limits” for export, such as artificial intelligence-powered software used for mass surveillance and human rights abuses, other technologies are safe for everyday uses, the company said.