The Office of Information and Regulatory Affairs on Sept. 30 completed an interagency review for a proposed Bureau of Industry and Security rule (see 2007210033) to control “software” for the operation of certain “automated nucleic acid assemblers and synthesizers.” BIS will request comments on the proposed export controls, which fall under the agency’s effort to control emerging technologies. OIRA received the rule July 20. On its spring agenda, BIS said the software can be used to produce pathogens and toxins that potentially can be used in biological weapons (see 2007140027).
The State Department will temporarily remove export restrictions on nonlethal defense goods and services to Cyprus, the agency said in a temporary final rule released Sept. 25. The move will suspend restrictions for one year on exports, reexports, retransfers and temporary imports of certain defense goods if the end user is the Cyprus government, a “request” is made by or on behalf of the Cyprus government and no “credible” human rights concerns are involved with the shipment. The State Department said it will suspend the restrictions, which includes amending the International Traffic in Arms Regulations, because Cyprus is cooperating with the U.S. on anti-money laundering revisions and has taken steps to deny Russian military vessels access to ports for servicing. The restrictions will be lifted Oct. 1 and will expire Sept. 30, 2021, unless extended.
The Bureau of Industry and Security scheduled a meeting of the Materials and Equipment Technical Advisory Committee for Sept. 17 at 10 a.m., it said in a notice. The Regulations and Procedures Technical Advisory Committee will meet at 10 a.m. on Sept. 15, BIS said in another notice. Both meetings are via teleconference.
The Bureau of Industry and Security is seeking public input “on the effectiveness of its licensing procedures as defined in the Export Administration Regulations for the export of agricultural commodities to Cuba,” it said in a notice released Sept. 2. The comments will be used as part of the BIS biennial report to Congress, it said. Comments are due Oct. 5.
The State Department will implement a temporary waiver “of the policy of denial on the export, reexport, retransfer, and temporary import of non-lethal defense articles and defense services destined for or originating in the Republic of Cyprus,” the Directorate of Defense Trade Controls said in a Sept. 2 notice. The DDTC will temporarily amend the International Traffic in Arms regulations on Oct. 1 to allow for the waiver, which is a result of a State Department determination under the FY 2020 National Defense Authorization Act, it said. The U.S. policy won't change for “lethal defense articles and defense services destined for or originating” in Cyprus, it said.
The State Department seeks comments on its collections of information related to requests to change the end-user, end-use or destination of hardware, it said in a notice released Sept. 1. The requests, submitted via Defense Directorate of Trade Controls Form DS-6004, are used to seek DDTC approval prior to any sale, transfer, transshipment or disposal, whether permanent or temporary, of classified or unclassified defense articles to any end user, end use or destination other than as stated on a license or other approval. State expects 1,563 respondents will each take an hour to complete the form. Comments are due Nov. 2. After considering comments, State will submit the information collection to the Office of Management and Budget for reapproval.
A U.S. website infrastructure company said the Commerce Department determined not to penalize it after the company submitted a voluntary disclosure about potential export control and filing violations. Cloudflare, based in California, submitted disclosures last year (see 1909120065) to the Bureau of Industry and Security and the Census Bureau for making “incorrect” electronic export information statements and for allowing the export or “download of certain software prior to making required filings.” The company, in an Aug. 10 Securities and Exchange Commission filing, said its disclosures were “completed with no penalties” by Census in November and BIS in June.
Research and global security analytics firm Kharon this month produced a white paper on the Commerce Department’s new military end-use and end-user regulations. The paper provides an overview of the regulations, China’s civil-military fusion efforts and considerations for companies that now need to employ enhanced due diligence to comply with the regulations. The paper reviews challenges in determining whether a Chinese company is affiliated with the government or the military.
The Office of Information and Regulatory Affairs on Aug. 24 completed its interagency review of a Bureau of Industry and Security pre-rule to pinpoint potential controls for foundational technologies. OIRA began its review Aug. 3 (see 2008040008). The long-awaited rule (see 2005190052 and 1911050052) is expected to ask for industry feedback on what types of existing, widely available technologies BIS should consider for controls.
The Commerce Department’s increased restrictions on exports to Huawei (see 2008170029) will cause “significant disruption” to the U.S. semiconductor industry, the Semiconductor Industry association said Aug. 17. Although SIA is “still reviewing the rule,” CEO John Neuffer called the restrictions “broad” and said they significantly expanded on changes made to the foreign direct product rule in May (see 2005150058). “We are surprised and concerned by the administration’s sudden shift from its prior support of a more narrow approach intended to achieve stated national security goals while limiting harm to U.S. companies,” Neuffer said. “We reiterate our view that sales of non-sensitive, commercial products to China drive semiconductor research and innovation here in the U.S., which is critical to America’s economic strength and national security.” Commerce did not comment.