After years of asking for U.S. defense export control reform, Australia is hopeful that change is finally imminent, said Arthur Sinodinos, Australia’s former ambassador to the U.S. before leaving the role earlier this year. Sinodinos, who said he helped oversee the creation of the Australia-U.K.-U.S. (AUKUS) partnership, said he believes Congress will soon pass pending legislation to reduce technology sharing restrictions, and Australia is pushing for “as big an exemption as possible.”
The State and Commerce departments are frequently seeing illegal exports of controlled items, including technical data, by companies that aren’t classifying their products correctly and may not realize they need a license.
The Bureau of Industry and Security on Oct. 27 announced an immediate 90-day suspension of new export licenses for certain firearms, components and ammunition while it reviews its firearms policies to determine whether any permanent changes are “warranted.” During the next 90 days, the agency said it will not issue any new licenses for those exports to non-government end users worldwide, apart from Ukraine, Israel or a nation listed in Country Group A:1.
American, Australian and British officials were pressed this week about why they haven’t sought to include other close allies -- including Canada, Japan or South Korea -- in an ongoing effort to reduce burdensome U.S. defense export control requirements. Speaking during a summit of government and defense industry representatives from more than 25 countries, the officials said reducing restrictions as part of the Australia-U.K.-U.S. (AUKUS) partnership has proven complicated, and the nations aren’t yet ready to expand the group.
The U.S. and the EU in recent months may have had a breakthrough tracking export-controlled goods being illegally diverted through third countries to Russia, senior sanctions officials said this week. They also said the U.S., the EU and other Group of 7 nations are preparing to take new “legal action” against parties transporting Russian oil using shadow fleets in violation of the price cap.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security revoked the export privileges of a Georgia resident after she admitted to trying to illegally export about $25,000 worth of optical sighting devices from the U.S. to China. As part of a settlement agreement, Dina Zhu of Lawrenceville, Georgia, will be barred from participating in any transaction subject to the Export Administration Regulations for one year from Oct. 20, but she won’t face a fine.
The U.S. government has informed American chip designer Nvidia that several of its products are subject to the new export controls unveiled by the Bureau of Industry and Security last week despite BIS saying the rules wouldn’t take effect until next month.
Denmark has seen a spike in dual-use exports over the past year to countries suspected of being diversion points for export-controlled goods to Russia, including Tajikistan, Armenia and Georgia, said Frederik Broch-Lips, head of export controls and sanctions with the Danish Business Authority. The agency hasn’t been able to confirm all of those shipments are being illegally sent to Russian end-users, he said, adding that better sanctions enforcement may be needed across Europe.
Multinational companies with operations in China are becoming increasingly concerned about facing retaliatory measures from Beijing for complying with Western sanctions, said Erika Trujillo, co-founder of SEIA, a compliance risk management firm. She noted that some businesses have begun to split their trade compliance efforts between a Western-focused team and a Chinese team to protect their Chinese employees and operations from potential penalties.