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).

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 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 U.S. District Court for the District of Columbia on Sept. 10 dismissed FedEx’s lawsuit against the Bureau of Industry and Security (see 1906250030), saying the shipping company failed to show that BIS was acting outside the authority of the Export Administration Regulations. The court also disagreed with FedEx’s claims that the agency was using the EAR to apply overly burdensome liability standards on carriers and impose penalties even when carriers do not have knowledge of violations.

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.

The Bureau of Industry and Security added, revised and made technical changes to export controls in the Export Administration Regulations (EAR) to implement changes under the 2018 Wassenaar Arrangement (see 2007220015). Per a final rule released Sept. 10, BIS revised 28 Export Control Classification Numbers, altered license exceptions for four ECCNs, made technical changes to eight ECCNs and created one new ECCN for certain masks and reticles used for sensors. The rule follows a May 2019 rule that added controls to five technologies under the 2018 Wassenaar (see 1905220051).

Deutsche Bank Trust Company Americas was fined nearly $600,000 for violating the Office of Foreign Assets Control’s Ukraine-related sanctions, OFAC said in a Sept. 9 notice. OFAC said the New York bank processed payments for a sanctioned oil company in Cyprus and an investment bank on OFAC’s Specially Designated Nationals List. The violations were caused by poor due diligence and an incorrectly calibrated screening tool, OFAC said.

China is growing increasingly confrontational on trade issues and may be more willing to respond to U.S. sanctions with restrictions of its own, experts told the U.S.-China Economic and Security Review Commission Sept. 9. As China mulls retaliation against the U.S., the Trump administration should focus on areas in which it has leverage over China by continuing to push for purchases under the phase one trade deal and restrict Chinese attempts to develop advanced technologies, the experts said.

Export Compliance Daily is providing readers with the top stories for Aug. 31-Sept. 4 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.

The Trump administration is considering placing export controls on China’s top chipmaker, the latest move in a campaign of restrictions aimed at Chinese technology companies. The controls would target the Semiconductor Manufacturing International Corporation by placing it on the Commerce Department’s Entity List, Reuters said in a Sept. 4 report. The effort is being spearheaded by the Defense Department, the report said, which petitioned Commerce’s End User Committee last week to add SMIC to the Entity List.