The Bureau of Industry and Security added five Chinese companies to the Entity List for their involvement in the government’s human rights abuses against Muslim minority groups in the Xinjiang region, the agency said in a final rule. For each of the entities, BIS will impose a license requirement for all items subject to the Export Administration Regulations. The final rule takes effect June 24.
The Bureau of Industry and Security will on June 24 add five Chinese companies to the Entity List for their involvement in the government’s human rights abuses against Muslim minority groups in the Xinjiang region. For each of the entities, BIS will impose a license requirement for all items subject to the Export Administration Regulations. Items classified under several Export Control Classification Numbers will be subject to a case-by-case review policy, but all other exports will be subject to a presumption of denial. No license exceptions will be available.
The Bureau of Industry and Security fined a Portland-based forwarding company $20,000 after the company illegally exported rifle scopes to the United Arab Emirates and China. The company, USGoBuy, LLC, exported more than $1,200 worth of scopes controlled for crime control reasons without their required licenses, BIS said in a June 17 order. Along with the penalties, USGoBuy also agreed to conduct an external audit of its export compliance program.
Republican lawmakers again threatened to remove export control responsibilities from the Commerce Department if it doesn’t move faster to issue restrictions over emerging and foundational technologies, doubling down on criticism levied at agency officials for months. The latest threat, sent in a June 15 letter to Commerce Secretary Gina Raimondo and signed by 10 Republican senators, highlights the tension between an agency that wants to avoid rushing into overbroad controls that could harm U.S. companies and lawmakers who say Commerce is neglecting a congressional mandate to restrict sensitive exports to China.
The Bureau of Industry and Security removed a company from the Entity List after receiving a removal request, the agency said in a notice released June 15. BIS removed Satori Corp., listed under the destinations of France and the United Arab Emirates, after the interagency End-User Review Committee received “information” that warranted its removal. The change is effective June 16. Satori was initially added to the Entity list in December (see 2012180039).
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Following reports that China is continuing to buy U.S.-made DNA equipment despite U.S. export restrictions, Rep. Michael McCaul, R-Texas, said the Bureau of Industry and Security needs to strengthen its controls.
The Commerce Department published its spring 2021 regulatory agenda for the Bureau of Industry and Security, including two new mentions of emerging technology rules and new export controls on certain camera systems.
The Commerce Department is working with a police agency in rural Texas to help investigate illegally exported goods, an unorthodox relationship that has sparked concern among industry lawyers and led to disputed seizures.
As President Joe Biden searches for a leader for the Bureau of Industry and Security, the agency should prioritize candidates who are familiar with export control regulations and who can effectively manage the agency’s licensing process, two technology experts said. But others said Biden should choose a candidate with strong knowledge of the challenges imposed by China to help lead U.S. technology policy through an era of intense competition.