The Bureau of Industry and Security is considering imposing new license requirements on facial recognition software and surveillance-related items that may be used for crowd control reasons or to violate human rights. BIS said in a notice it is reviewing changes to the Commerce Control List and is seeking industry feedback about CCL items that are restricted for crime control and detection reasons. Comments are due Sept. 15.

The Commerce Department’s long-awaited proposed regulations on routed export transactions may not be issued until next year, a Census Bureau official said. Both Census and the Bureau of Industry and Security have been working closely on the rule but have struggled to pinpoint a release date. “I thought it would happen this year, but I'm going to go with probably 2021,” Kiesha Downs, chief of Census’ Foreign Trade Division’s regulations branch, said during a July 15 webinar hosted by Census. “It's just a matter of ironing out a couple more things.”

President Donald Trump’s executive order ending preferential treatment for Hong Kong details a range of sanctions authorities and export bans but includes a carve-out for certain defense exports authorized before the order was issued. The State Department’s Directorate of Defense Trade Controls issued a July 15 guidance to clarify the new restrictions and answer industry questions.

Export Compliance Daily is providing readers with some of the top stories for July 6-10 in case you missed them.

The Commerce Department published its spring 2020 regulatory agenda for the Bureau of Industry and Security. The agenda includes a new mention of a rule to control “software” for the operation of “automated nucleic acid assemblers and synthesizers” capable of designing and building “functional genetic elements from digital sequence data.” BIS said the software can be used in the production of pathogens and toxins, with the potential for those to make their way into biological weapons if export controls on the software are lacking. The notice of proposed rulemaking, part of BIS’ effort to control emerging and foundational technologies (see 2005190052), will request industry comments about how the controls might affect “legitimate commercial or scientific applications.” BIS said it aims to issue the proposed rule this month.

China announced sanctions on U.S. lawmakers and a congressional commission in response to U.S. sanctions on Chinese officials for human rights abuses in the Xinjiang region. China’s sanctions, which include travel restrictions, target Sens. Marco Rubio, R-Fla.; Ted Cruz, R-Texas; and Rep. Chris Smith, R-N.J.; U.S. Ambassador for International Religious Freedom Sam Brownback; and the Congressional-Executive Commission on China, Beijing’s Foreign Ministry said July 13. A ministry spokesperson said the U.S. has “no right and no cause to interfere” in Xinjiang and urged the U.S. to rescind its sanctions or it will issue a “further response.”

The European Union is considering countermeasures, including export restrictions, in response to Beijing’s interference in Hong Kong’s autonomy, Josep Borrell, the EU’s foreign policy chief, said during a July 13 press conference. The measures will include a “package” of EU-wide restrictions, although some member states may announce their own national measures in the “coming days,” Borrell said.

Companies affected by the Bureau of Industry and Security's recent rule on military-related exports (see 2004270027) were frustrated by the lack of a comment period before the rule was finalized and BIS’s decision not to postpone the effective date, industry officials said in interviews. Some officials said they were disappointed the new requirements were not first issued as a proposed rule, adding that smaller businesses with fewer compliance department employees have struggled to adjust.

The U.S. sanctioned a Chinese security agency and four officials for human rights abuses in the Xinjiang region. The sanctions, announced July 9 by the Treasury and State departments, came about a month after President Donald Trump signed into law a bill that authorized sanctions on Chinese officials for human rights violations against the country’s Uighur population (see 2006170064).

Trade groups are asking top Mexican politicians to change Mexico's tariff treatment of packages that are under the $117 de minimis level and informal entries. The groups, including the U.S. Chamber of Commerce, the Express Association of America and its Mexican counterpart, and the National Retail Federation, wrote the economy secretary, finance secretary and the head of Mexico's equivalent of the IRS on July 7, because of June 30 amendments to Mexico's Reglas Generales de Comercio Exterior regulations.