The U.S. announced new export controls against Nicaragua this week in response to human rights abuses by the country's government and its support for Russia’s invasion of Ukraine. The measures, outlined in two final rules effective March 15, will put in place stronger Commerce Department export licensing requirements for Nicaragua and add the country to a list of nations maintained by the State Department that generally don’t receive license approvals for controlled defense items.

Although entities on the Treasury and Defense departments’ Chinese military company lists aren't necessarily subject to export controls, it's still very risky to do certain business with them, former Bureau of Industry and Security officials said this week. They said they would advise companies to treat those listed entities as prohibited Chinese military end-users unless they can prove otherwise.

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The Federal Maritime Commission is preparing for another uptick in enforcement and is expecting a range of rulemakings to be finalized during or before FY 2025, including a new charge complaint process, a new container data collection effort and a new electronic court case management system. The commission previewed those updates as part of a $48.4 million congressional funding request released this week for FY 2025 -- about a $5 million increase from the $43.7 million it requested the previous year (see 2303200063).

A new rule released by the Bureau of Industry and Security clarifies certain export controls on radiation hardened integrated circuits -- including computer and telecommunications equipment using those circuits -- and expands the availability for a license exception that can be used to export certain microelectronics under contracts with the U.S. government.

DOJ officials said they have seen a rise in voluntary self-disclosures in recent months, including for possible violations of export controls and sanctions. They also stressed that the agency is continuing to double down on its enforcement resources, including by hiring more prosecutors and starting a new whistleblower initiative to better incentivize tips about corporate wrongdoing.

Governments could eventually require companies to monitor their sensitive semiconductor equipment shipments by using location tracking features, which could help industry better conduct due diligence and improve government export enforcement, said Chris Miller, an expert on semiconductor technology policy and history.

U.S. sanctions and export control agencies this week warned foreign companies about the risks they may face for poor compliance with U.S. trade rules, saying the government can pursue civil and criminal penalties against businesses for a range of transactions that take place outside U.S. borders. The new “tri-seal compliance note” published by DOJ, the Commerce Department and the Treasury Department includes a list of activities that most commonly place foreign firms at risk, outlines how U.S. export licensing requirements can apply to shipments through third countries, and summarizes recent enforcement actions taken by all three agencies to punish violators.

The Group of 7 should expand membership and use the forum to create a new multilateral export control regime for critical and emerging technologies, which could help replace the outdated Wassenaar Arrangement, said Emily Benson, a trade and technology policy expert. She said G7 nations are open to the idea, although she believes the U.S. hasn’t yet decided on the best path forward.

The European Council and Parliament reached a deal on a new set of rules to ban imports suspected of being made with forced labor, including how the ban will be enforced and how the bloc will investigate and penalize violations.