The Commerce Department plans to respond to Sen. Robert Menendez, D-N.J., about his letter last week urging the agency to reject an export license application for firearms to Azerbaijan (see 2302030029), a Commerce spokesperson said. The spokesperson declined to say whether the agency is considering approving the license but said applications are generally also reviewed by the Defense and State departments to “ensure that potential exports are consistent with national security and foreign policy interests which include, among other considerations, human rights concerns.” This review “continually assesses proposed end users of firearms exports through public and classified information, utilizes a variety of tools to monitor exports, and has a robust administrative and criminal enforcement program to impose penalties for violations of export control requirements for firearms exports,” the spokesperson said.
Major shipping line Mediterranean Shipping Co. must explain to the Federal Maritime Commission by Feb. 28 why it shouldn’t be required to pay a refund to SOFi Paper Products for allegedly violating U.S. shipping regulations, the FMC said Feb. 3. The FMC said MSC never provided “justification” to SOFi stemming from a $1,000 “congestion surcharge” levied against SOFi in July.
The U.S. should “acknowledge” the national security risks associated with outbound investments into China, said Nathaniel Fick, the first ambassador at large of the State Department’s recently established Bureau of Cyberspace and Digital Policy. Fick, speaking during a Feb. 2 event hosted by the German Marshall Fund, suggested he’s expecting government action around outbound investments soon.
Despite national security concerns, technology sharing with Chinese academic institutions can continue to reap benefits, said Meia Nouwens, a senior fellow at the International Institute for Strategic Studies. But Nouwens, speaking during a Jan. 26 U.S.-China Economic and Security Review Commission hearing, said academics and technology executives "lack clarity" around what work they can and should be collaborating on with Chinese colleagues. Universities and industry need more government guidance on what's allowed, she said.
Military weapons sales between the U.S. and foreign governments rose to almost $51.9 billion in FY 2022, a nearly 50% increase from FY 2021, Defense News said in a Jan. 25 report. The report, which cites State Department data, attributes the sharp increase to European countries buying more weapons to arm themselves in the wake of Russia’s invasion of Ukraine. The report also said FY 2022 direct commercial sales -- from industry contractors to governments -- rose to $153.7 billion, from $103.4 billion the previous fiscal year.
The Federal Maritime Commission should dismiss a complaint alleging U.S.-based Omni Logistics violated shipping regulations when it failed to include required information on demurrage invoices for more than 200 containers (see 2212020027), the company told the FMC this week. The complaint by Thompson Pipe Group Pressure, a U.S. supplier of construction equipment and services, “utterly fails to provide any factual detail” about how Omni violated the regulations violations, Omni said. The company also said FMC lacks jurisdiction over the dispute and the complaint alleges violations of the Ocean Shipping Reform Act despite the alleged violations occurring before OSRA was enacted.
The White House this week released its final report on “standing up a national research infrastructure” for artificial intelligence. The report, written by the National Artificial Intelligence Research Resource (NAIRR) Task Force, provides an “implementation plan” to “strengthen and democratize the U.S. AI innovation ecosystem in a way that protects privacy, civil rights, and civil liberties.” Among several recommendations in the report, the task force said the NAIRR should have an “independent Operating Entity that manages the day-to-day operations” of the NAIRR. That operating entity should help promote U.S. AI outreach and collaboration with other countries while also complying with “relevant export controls,” the report said.
Despite urging from industry, the Federal Maritime Commission won’t issue an emergency order requiring carriers and terminal operators to share new cargo information with shippers. The FMC conducted a “careful review of market conditions” and public comments but “found circumstances currently do not warrant invoking temporary emergency authority, and the commission will not be issuing an emergency order at this time,” Tara Nielsen, counsel for the FMC’s office of managing director, said during a Jan. 25 FMC meeting.
The U.S.-China Economic and Security Review Commission earlier this month issued an updated table of Chinese companies listed on the Nasdaq, the New York Stock Exchange and the NYSE American. As of Jan. 9, 252 Chinese companies worth a "total market capitalization" of $1.03 trillion were listed on those U.S. exchanges. That valuation is an increase from the commission's last update from September, when it reported 262 Chinese companies were listed with a total market capitalization of $775.6 billion (see 2210050007). The increase is partially due to a "recent rally in Chinese stocks after U.S. regulators suspended the threat of a trading prohibition under the Holding Foreign Companies Accountable Act."
Annual encryption self-classification reports and semi-annual sales reports for certain encryption items are due to the Bureau of Industry and Security by Feb. 1, Thompson Hine said in a reminder to clients last week. The self-classification report covers less sensitive items under the BIS License Exception ENC, and must provide information on encryption commodities, software and components exported during the previous calendar year. For the upcoming semi-annual sales report deadline, BIS requires information on exports that occurred between July 1 and Dec. 31 of the previous year.