A California-based semiconductor and telecommunications technology company recently received a warning letter from the Bureau of Industry and Security after it voluntarily disclosed possible export violations. The company, Credo, said it “inadvertently provided three evaluation boards of nominal value” to two customers without required export licenses. Credo submitted a final voluntary self-disclosure to BIS in June and received a warning letter in September with no penalties, according to a January Securities & Exchange Commission filing. Credo didn’t say where the customers were located but said it sells its products in Asia, including in markets where “multiple” companies have been added to the Commerce Department’s Entity List or the military end-user list. The company said it’s “in the process” of improving its export compliance policies and procedures but believes it “remedied the deficiencies that resulted in the apparent violations through additional training, system enhancements and enhanced export controls.”
The Commerce Department should publish a list of controlled emerging and foundational technologies 90 days after the Senate confirmation of its Bureau of Industry and Security leader, China Tech Threat's Future of BIS said. Strand Consult operates China Tech Threat, which advocates for stronger export controls on China. Despite congressional pressure (see 2111170064), BIS has repeatedly said it doesn’t plan to publish an exhaustive list of controlled emerging and foundational technologies but rather will issue controls on a continuous basis. A BIS spokesperson didn’t comment.
The U.S. and the European Union should better align their export license exceptions, export controls and policies to avoid “unnecessary friction on trade” between the two sides, particularly surrounding chip equipment, the Semiconductor Industry Association said. The group said American semiconductor companies depend on overseas markets in Europe, and regulatory harmonization could help to “level playing fields with respect to export controls, particularly their scope, application, and enforcement.”
The Bureau of Industry and Security revoked export privileges for an Idaho resident after the person tried to illegally export firearms from the U.S., BIS said Jan. 20. Khaldoun Hejazi was convicted March 2, 2020, of exporting defense articles on the U.S. Munitions List, which violated the Arms Export Controls Act. Hejazi was sentenced to 30 months in prison and three years of supervised release, fined $30,000 and assessed $100. BIS denied Hejazi’s export privileges for five years from the date of conviction.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The U.S. and the European Union should use the Trade and Technology Council to address a host of export control harmonization issues to help ease export compliance challenges for American and European companies, the Information Technology Industry Council said. ITI -- which represents many of the world’s largest technology companies, including Apple, Amazon, Google and Intel -- said an increasing number of export regulations and restrictions are placing too heavy a burden on industry and could impede global innovation.
The Bureau of Industry and Security is seeking comments on an information collection relating to offset agreements worth more than $5 million for sales of weapons systems or defense articles to foreign countries or companies. BIS said it defines offsets as “compensation practices required as a condition of purchase in either government-to-government or commercial sales of defense articles.” Comments on the information collection are due March 15.
The Bureau of Industry and Security this week revoked export privileges for four residents of Texas who illegally exported defense items or weapons ammunition to Mexico.
The Bureau of Industry and Security is seeking comments on an information collection related to declarations to the Chemical Weapons Convention, according to a notice. BIS said each CWC member must make “initial and annual declarations on certain facilities” that produce, import or export certain toxic chemicals and their precursors. Facilities subject to inspection by the Organization for the Prohibition of Chemical Weapons must also submit certain information. Comments are due March 14.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.