Some companies are concerned about the possibility of the Commerce Department issuing major export control actions during the COVID-19 pandemic, which they say will compound economic hardships caused by the mitigation response to the highly contagious disease. In interviews, industry officials said they are unsure about their ability to manage sweeping regulatory changes even as they acknowledge that a moratorium on export control actions is unlikely.

Export license applications may be delayed during the COVID-19 pandemic as the Commerce Department prioritizes COVID-19-related applications, a top Commerce official said. Not all government agencies have remote access to Commerce’s unclassified system for license applications, which is also causing longer processing times, said Matt Borman, Commerce’s deputy assistant secretary for export administration.

American Express violated U.S. sanctions when it processed about $35,000 worth of transactions for a designated person in 2015, the Treasury’s Office of Foreign Assets Control said April 30. OFAC issued a “finding of violation” for American Express Travel Related Services Company but did not impose a fine.

The COVID-19 pandemic is causing “significant disruption” for the Wassenaar Arrangement, leading to the cancelation of at least one meeting and creating uncertainty about whether the group can remotely vote on new export controls, two Commerce Department officials said. Wassenaar was forced to cancel its April Experts Group meeting -- which normally addresses issues related to its lists of controlled items -- and is unsure if global travel restrictions will force cancellations of future meetings in June and its annual plenary session in December.

The Federal Maritime Commission will adopt a final rule to give industry guidance on how it assesses the “reasonableness” of detention and demurrage charges, the agency said on April 28. The rule has garnered new attention due to charges caused by COVID-19-related shipping delays (see 2003190041) and is meant to give industry clarity on how FMC will consider whether detention and demurrage policies incentivize the movement of cargo or whether they are unjustified. The rule will become effective upon its publication in the Federal Register.

The Commerce Department has drafted a regulation that will address the ability of U.S. companies to participate in 5G standards setting bodies involving Huawei, a top Commerce official said. The rule is still being discussed within Commerce and has not yet been cleared for interagency review, Matt Borman, Commerce’s deputy assistant secretary for export administration, said during an April 29 Information Systems Technical Advisory Committee meeting.

Export Compliance Daily is providing readers with some of the top stories for April 20-24 in case you missed them.

The Treasury Department announced fees for filing certain transactions with the Committee on Foreign Investment in the U.S., according to a notice. The interim rule, which will apply to formal written voluntary notices filed with CFIUS and not transactions submitted through declarations, establishes a range of possible fees, depending on the value of the transaction, with $300,000 being the highest fee. The rule takes effect May 1, but Treasury is accepting public comments through June 1. The agency also issued a fact sheet and a guidance for paying filing fees.

The Commerce Department Bureau of Industry and Security is working on guidance to help industry comply with the expanded licensing requirements for exports to China announced earlier this week (see 2004270027). The guidance will address new restrictions on exports intended for military users and uses, said Matt Borman, Commerce deputy assistant secretary for export administration. The rule expands the definition for military end-use and will cover military end-users in China, placing more of a compliance burden on industry.

The Commerce Department amended the Export Administration Regulations to expand licensing requirements for exports, re-exports and transfers of items intended for military uses in China, Russia and Venezuela, according to a notice. The rule expands the licensing requirements for exports to China to include military end-users as well as military end-uses, broadens the list of items subject to the licensing requirement and review policy, and expands the definition for military end-use. The rule also “creates a new reason for control” and review policy for certain exports to the three countries, and added new Electronic Export Information filing requirements.