The U.S. issued guidance last week to address industry uncertainty and a rising number of questions about export licensing jurisdiction for goods sent under its Foreign Military Sales Program. The guidance -- which includes frequently asked questions developed by Homeland Security, CBP and the Commerce, State and Defense departments -- was issued because the agencies “continue to receive questions” about exports that were moved from the U.S. Munitions List to the Commerce Control List but are exported under FMS authority. They said exporters are “having difficulty” understanding how Commerce’s Export Administration Regulations, the State Department’s International Traffic in Arms Regulations and the FMS Program “relate to each other” for goods that have recently transitioned from the ITAR to the EAR.
Export Compliance Daily is providing readers with the top stories for May 3-7 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
A U.S. district court judge dismissed a case involving the seizure of a multimillion-dollar jet after Texas officials failed to prove the jet violated export regulations or was involved in a money-laundering scheme. Texas police seized the British Aerospace BAE 125 Series jet last year on tax evasion and money-laundering charges and suggested the owners violated the Export Administration Regulations, but a judge said police had no evidence or probable cause.
More than 50 Democrats urged the Biden administration to keep State Department export controls over 3D printed guns, saying their transfer to the Commerce Department is “profoundly dangerous” and will allow “anyone to build untraceable firearms on demand.” The lawmakers, led by Sen. Ed Markey of Massachusetts and Rep. Grace Meng of New York, urged the administration to “place strict regulatory controls” over the weapons and their technical data.
The Bureau of Industry and Security again extended the comment period on an information collection related to the North Atlantic Treaty Organization’s bidding process, a notice said. The information collection pertains to the process BIS must undergo to determine whether U.S. firms are eligible to participate in NATO’s bidding process and supply certain goods. BIS previously requested comments in January and extended the comment period in March (see 2103170024). The agency said it will extend the comment period by an additional 30 days. Comments are now due by June 9.
Commerce Secretary Gina Raimondo said she plans to heavily enforce Entity List restrictions and more aggressively tackle the agency's emerging and foundational technology export control mandate. And although the agency’s review of China policies is ongoing (see 2101250049), she again stressed that Commerce doesn’t plan to remove export restrictions from Huawei and is looking for more companies to add to the Entity List.
Export Compliance Daily is providing readers with the top stories for April 26-30 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
U.S. exporters and forwarders are still unsure how much due diligence is enough to comply with the Commerce’s Department’s recently expanded end-user and end-use restrictions, National Customs Brokers & Forwarders Association of America officials said. Although the Bureau of Industry and Security issued some guidance last year, the guidance didn't address all industry questions and was made more complicated by another set of restrictions that took effect this year, the officials said.
The top Republican on the House Foreign Affairs Committee urged Commerce Secretary Gina Raimondo to address the agency’s “incomplete” implementation of its emerging and foundational technology export control mandate when she testifies before the House this week. Raimondo -- who will testify May 6 before the House Appropriations Subcommittee on Commerce, Justice and Science -- should also address Commerce’s search for a Bureau of Industry and Security leader and outline the agency's export controls strategy to compete with China, said Rep. Michael McCaul, R-Texas.
The Bureau of Industry and Security fined a California metalworking machinery company $60,000 for illegally exporting an item to the United Arab Emirates, BIS said in an April 30 order. The company, MDA Precision LLC, knowingly violated the Export Administration Regulations when it sold a $34,000 “five-axis benchtop milling machine” to the UAE without a license. BIS said the UAE customer likely intended to transfer the machine to Iran.