The State Department’s Directorate of Defense Trade Controls on Feb. 17 released its notifications to Congress of recently proposed export licenses. The 34 notifications, from July through September, feature arms sales to numerous countries including the United Kingdom, Israel, Australia, Canada, Germany, Italy and Pakistan.
The State Department approved a potential military sale to Jordan worth about $60 million, the Defense Security Cooperation Agency said Feb. 11. The sale includes an “F-16 Air Combat Training Center” and related equipment. The principal contractor will be Lockheed Martin Rotary & Mission Systems.
The Semiconductor Industry Association wants the new administration to include substantial funding for semiconductor manufacturing and research via grants and tax credits in its economic recovery plan. In a Feb. 11 letter to President Joe Biden, SIA said its competitors worldwide have an unfair advantage due to incentives and subsidies provided by their governments. SIA said the U.S. took a step in the right direction when it passed the Creating Helpful Incentives to Produce Semiconductors for America Act, or CHIPS for America Act, in the 2021 defense bill, but it said more is needed. “Semiconductors are critical to the U.S. economy, American technology leadership, and our national security,” the letter said. “They enable the technologies needed to realize your Build Back Better goals, including smarter and safer transportation, greater broadband access, cleaner energy, and a more efficient energy grid, while also providing high-paying jobs for Americans and strengthening our advanced manufacturing base.”
The State Department's Defense Security Cooperation Agency approved potential military sales to Chile and the North Atlantic Treaty Organization, DSCA said Feb. 5. The sale to Chile includes $85 million worth of “Standard Missile-2 (SM-2) Block IIIA Missiles” and related equipment. The principal contractor will be Raytheon Missiles and Defense. The sale to NATO’s Communications and Information Agency includes about $65 million for “UHF SATCOM Radio Systems” and related equipment. Collins Aerospace will be the prime contractor.
The Biden administration announced a slew of appointments to the Office of the U.S. Trade Representative that do not require Senate confirmation, allowing the agency to get its agenda underway as U.S. trade representative nominee Katherine Tai awaits a hearing and a floor vote.
One of the largest impacts felt from the drastic change in mandate and reach of the Committee on Foreign Investment in the U.S. in the last few years is how lawyers, business people and investors are viewing the committee. Speaking at a Capitol Forum webinar on Feb. 4, three CFIUS industry experts highlighted how far more resources are being exerted on CFIUS compliance measures than at any time since its inception. This is largely due to the Foreign Investment Risk Review Modernization Act of 2018, which greatly overhauled CFIUS's responsibilities, including introducing certain mandatory filings for certain foreign transactions (see 1910310053).
The National Customs Brokers & Forwarders Association of America issued several tips for industry dealing with unfair detention and demurrage fees. In a Feb. 1 email to industry, the group said shippers and traders should try to work out a “satisfactory arrangement” with the billing party and should reference the Federal Maritime Commission’s guidance on fees (see 2009140045 and 2011170041). If a “reasonable solution” can’t be reached, the NCBFAA recommends reaching out to FMC’s Office of Consumer Affairs and Dispute Resolution Services and sending a report to the FMC, which is reviewing the COVID-19 pandemic's impact on ocean transportation (see 2012180038 and 2011200024). The group also recommends bringing a formal case before the FMC if fees climb higher than six figures.
The Bureau of Industry and Security last week published an updated version of its senior management team. BIS now lists Jeremy Pelter as acting undersecretary; G. Nagesh Rao as acting chief information officer; and Opher Shweiki as acting chief counsel.
The U.S. placed a temporary freeze on certain pending arms sales made under the State Department’s Foreign Military Sales and Direct Commercial Sales programs, according to a Jan. 27 Reuters report. The review includes a freeze on arms sales to Saudi Arabia, according to The Wall Street Journal, which added that the new administration is also “scrutinizing” recent purchases made by the United Arab Emirates. The State Department didn’t comment.
The Commerce Department on Jan. 25 announced 17 appointees to lead within the agency under the Joe Biden administration. The initial list includes Christopher Hoff, deputy assistant secretary for services at the International Trade Administration; Meghan Maury, a senior adviser at the Census Bureau; and Feras Sleiman, a congressional affairs specialist at the Bureau of Industry and Security.