The U.S. Chamber of Commerce laid out its priorities for trade in 2020, and most of them were well-known in 2019: getting USMCA passed; ending steel and aluminum tariffs; negotiating comprehensive trade agreements with Japan, the European Union and the United Kingdom. But lesser-known priorities are: ensuring that new regulations on foreign ownership of American firms are focused on national security issues, and arguing for a balanced approach in the regulations from the Export Control Reform Act of 2018 that protect “national security without unduly hindering legitimate commerce.” The Chamber also said Jan. 9 that it wants Congress to approve “permanent normal trade relations with Kazakhstan and its graduation from the Jackson-Vanik amendment to the Trade Act of 1974.”
Companies should be mindful of complying with U.S. export controls when exhibiting products at air or trade shows, which could lead to export violations due to increased inspections from U.S. Customs officials, according to a Jan. 8 post from Wilmarth & Associates. Companies should ensure that military and defense-related products or parts are not taken with company employees to the shows without first receiving a license from the State or Commerce department, the post said. Companies must also review technical data or technology that may be provided to foreign people or companies during the trade shows to ensure it does not require a license. U.S. Customs inspectors and agents “have an increased awareness” of trade shows held for the aerospace and defense industry, the post said, and “there is an increased scrutiny of export documents and interviewing of returning travelers.”
The United Kingdom officially updated its list of dual-use items subject to export controls (see 1912310021), the Department for International Trade said in a Jan. 8 notice. The DIT said it will soon update and republish any affected open general export licenses. The amended list of export controlled items was the result of agreements recently made by international export regimes. All items on the list require an export license by the U.K.'s Export Control Joint Unit.
The Trump administration successfully persuaded the Dutch government to not renew an export license for a Dutch chip manufacturer, which was poised to sell the technology to China, according to a Jan. 6 Reuters report. The administration “mounted an extensive campaign” to block the sale, which included lobbying from Secretary of State Mike Pompeo and White House officials, who shared “classified intelligence” with the Netherlands’ prime minister, Reuters said. The campaign began in 2018 after the Netherlands granted an export license to ASML, a semiconductor equipment company, to sell “its most advanced machine” to a Chinese customer.
The Commerce Department Bureau of Industry and Security's upcoming proposed rules on emerging technologies will be narrow, impacting only specific slices of technologies, according to a Dec. 17 Reuters report. Commerce is finalizing proposed rules on quantum diluted refrigerators, a rule regulating 3D printing for explosives, “Gate-All-Around Field Effect transistor technology” (GAAFET) and two rules restricting sales of chemicals used to make Russian nerve agent Novichok and “single-use chambers for chemical reactions,” Reuters said. A Commerce rule for GAAFET is in the proposed rule stage, according to a recent Office of Information and Regulatory Affairs notice. A top Commerce official recently pinpointed six categories in which the agency plans to propose the rules (see 1912160032), and BIS officials have said for months the rules will be narrow (see 1912160006, 1911200045 and 1906280057).
The Commerce Department Bureau of Industry and Security's New England field offices are adding agents and increasing prosecutions and investigations, according to William Higgins, a special agent in charge of BIS’s Office of Export Enforcement. Higgins said the changes are particularly reflected in the OEE’s Boston office, which plans to increase staff to 14 agents before 2020. “There has been a sea change in the last few years, especially in the Boston area,” Higgins said, speaking during a Dec. 13 event hosted by the Massachusetts Export Center. “We’re increasing the amount of agents we have significantly.”
Member nations adopted “a number of” new export controls at the Wassenaar Arrangement’s plenary session earlier this month, with a focus on “proliferation-sensitive exports,” according to a Dec. 6 statement released by the plenary chair. They also updated a 2007 guidance for exports of small arms and light weapons and amended a guidance for export controls on the disposal of surplus or demilitarized military equipment. The member states also released a summary of the changes made to multilateral export controls of dual-use goods and technologies. A 243-page report describes the list of dual-use goods and technologies discussed during the meetings.
The Commerce Department Bureau of Industry and Security is seeking comments on procedures under which parties can request to be removed from Commerce’s Entity List and Unverified List, according to a Dec. 10 notice in the Federal Register. The information collection also includes procedures for requesting a “modification” to an entry on either list, BIS said. Comments are due Feb. 10, 2020.
The Department of Commerce denied Oguzhan Aydin export privileges after he was convicted of violating the International Emergency Economic Powers Act, Commerce said in a notice. Aydin illegally exported a “General Electric CF6-50c2” engine with the intent to supply the engine to Iran’s Mahan Airways, which also faces an export denial order (see 1912050032). Aydin shipped the engine through Turkey before it reached Iran, Commerce said. Aydin was convicted Aug. 3, 2016, and sentenced to about nine months in prison, three years of supervised release and a $100 fine. He was also added to the State Department’s Debarred List, the notice said. Commerce revoked Aydin’s export privileges for 10 years from his date of conviction.
The Commerce Department denied Paul Stuart Brunt export privileges after he was convicted of violating the Arms Export Control Act, Commerce said in a notice. Brunt illegally exported firearms controlled under the U.S. Munitions List to Turkey and Iraq, the notice said. He was convicted March 1, 2019, and sentenced to three years of probation, required to perform 200 hours of community service and fined $20,000, the agency said. Commerce revoked Brunt’s export privileges for 10 years from his date of conviction.