The U.S. needs to increase funding to support “collaborative, pre-competitive R&D” in the semiconductor industry and offer “incentives” for boosting domestic production, the Information Technology and Innovation Foundation reported Sept. 17. It should invite participation of semiconductor enterprises “headquartered in like-minded nations,” ITIF said. The increasing cost, complexity and scale required to innovate and manufacture semiconductors “means that no single nation or enterprise can go it alone,” it said. “In the face of challenges from China, allied cooperation in semiconductors is critical.” China views the semiconductor sector as the linchpin of its digital development and “broadest-scale economic growth plans,” ITIF said. It has shown it’s willing to use “every tool at its disposal in its efforts to develop a world-class semiconductor industry,” it said.
The Federal Register is experiencing delays publishing complex agency rules due to the COVID-19 pandemic and an “unusually” large number of documents submitted this year, said Katerina Horska, legal affairs and policy director for the Office of the Federal Register. Horska said the Federal Register typically publishes rules within three days of receiving them, but some “can take more than a month.”
The Treasury Department’s Financial Crimes Enforcement Network is seeking comments on potential changes to regulations on anti-money laundering programs, a notice released Sept. 16 said. The changes would require financial institutions to establish an “effective and reasonably designed” anti-money laundering program and would specify how that is defined. FinCEN said those types of programs assess and manage risks “as informed by a financial institution’s risk assessment” and anti-money laundering priorities “to be issued” by FinCEN. The changes would also outline reporting requirements for “information with a high degree of usefulness to government authorities.” The agency said the effort is intended to “modernize” its regulatory regime to address the “evolving threats of illicit finance.” Comments are due Nov. 16.
The Bureau of Industry and Security is seeking comments on an information collection related to the Defense Production Act, BIS said in a notice released Sept. 15. The collection is related to the DPA's authority with regard to performance of contracts and orders “supporting national defense and emergency preparedness program requirements.” Comments are due Nov. 16.
The State Department’s Directorate of Defense Trade Controls released on Sept. 15 its notifications to Congress of recently proposed export licenses. The 19 notifications, ranging from January through May, feature arms sales to numerous countries including the United Kingdom, Israel, Australia, Canada and Italy.
The U.S. Department of Agriculture will begin accepting applications for relief payments from fishing industries impacted by Chinese retaliatory tariffs, USDA said in a notice released Sept. 9. The application period will run from Sept. 14 through Dec. 14 and will provide aid to “eligible U.S. commercial fishermen” that have suffered from a “loss of exports.” The USDA is also seeking comments on the notice, which details who is eligible for the payments and outlines the application process. Comments are due Nov. 13. The notice stems from a June order from President Donald Trump directing the administration to study the impacts of Chinese tariffs on U.S. seafood exports, including lobster (see 2006260012).
The State Department approved potential military sales to France and Spain worth nearly $600 million combined, the Defense Security Cooperation Agency said Sept. 2. Under the proposed sales, France would get four AE-2100D Turbo Prop engines and two “Multifunctional, Information Distribution System-Low Volume Terminal Block Upgrade Two” worth about $350 million. Lockheed Martin, Rolls-Royce, General Electric Aviation System, Raytheon and Viasat are the principal contractors. The sale to Spain includes 100 “IM-120C-7/8 Advanced Medium Range Air-to-Air Missiles” and related equipment for $248.5 million. Raytheon Missiles and Defense is the prime contractor.
Hiring for positions that involve export controls requires a careful balancing act of adhering to export control and anti-discrimination laws, Sheppard Mullin said in a blog post. “Anti-discrimination laws prohibit unlawful citizenship status restrictions when hiring, and U.S. export controls prohibit disclosing controlled information to foreign nationals without authorization,” lawyers at the firm said. Together, these laws “limit acceptable job descriptions and hiring practices.” The lawyers pointed to a recent Justice Department settlement (see 2007280016) with a law firm and a staffing company as demonstrative of the issues involved. Job postings that require export control authorization shouldn't restrict applicants to only U.S. citizens or other similar requirements, it said. A more cautious job posting would include something to the effect of “candidate has capacity to comply with the federally mandated requirements of U.S. export control laws,” it said.
The Export-Import Bank of the U.S. did not finance any dual-use exports during the 2019 fiscal year and financed only one such export the previous year, the Government Accountability Office reported Aug. 27. The GAO noted that the Ex-Im Bank successfully monitored the end use of the lone dual-use export during the 2018 fiscal year, which included two satellites for the Mexican government. The bank “received all documents” from Mexico on time and determined the Mexican government was “in compliance with the bank’s dual-use policy.”
The Defense Department on Aug. 28 released another list of Chinese companies with ties to the country’s military, potentially requiring increased due diligence measures for U.S. companies doing business with them. The list includes companies on the Commerce Department’s Entity List and others not yet subject to U.S. restrictions. The entities may also fall under the scope of an April Commerce rule that increased licensing requirements for exports to military end-users or for end-uses in China (see 2004270027). The Defense Department issued a similar list in June (see 2006250024).