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.
The Bureau of Industry and Security revoked export privileges for two people for illegal exports to Mexico and one person for illegally providing financial services to Iran, BIS said in April 30 orders.
The Bureau of Industry and Security fined a U.S. thermal imaging camera producer more than $300,000 after it violated the Export Administration Regulations by providing false and incomplete statements in support of a commodity jurisdiction (CJ) request (see 2103040065). The company, FLIR Systems, sought a determination that one of its newly developed products was subject to the EAR rather than the State Department’s International Traffic in Arms Regulations and withheld information in order to support that determination, BIS said. Along with the fine, FLIR agreed to conduct two BIS-monitored internal audits and won’t be granted export licenses until the audits are completed and the fine is paid, BIS said in an April 29 notice.
The Bureau of Industry and Security will hold its annual conference virtually in September, the agency announced this week. The Sept. 2 meeting will be a “full day virtual experience” from 8:30 a.m. to 5:30 p.m. featuring keynote speakers, information sessions and live question-and-answer periods with BIS and other agency officials. The agenda will include sessions on changes to BIS military end-user and end-use restrictions, the expansion of the foreign direct product rule, and emerging and foundational technologies.
A German software company agreed to pay more than $8 million in fines after it admitted to violating U.S. export controls and sanctions against Iran, the Justice, Treasury and Commerce departments announced April 29. The company, SAP SE, came to settlement agreements with all three agencies after it voluntarily disclosed the violations, which included illegal exports and reexports of U.S.-origin software.
Semiconductor industry officials are preparing to push for export control modernization over certain electronics on the Commerce Control List, which they say will help controls avoid unintended consequences on U.S. companies and more accurately reflect national security concerns. The effort, led by the Semiconductor Industry Association, will look to convince the Bureau of Industry and Security to update certain control parameters and definitions, and make technical changes in Category 3 of the CCL, which officials view as out of date.
The Bureau of Industry and Security is looking for candidates for its seven Technical Advisory Committees, the agency said in an April 27 notice. BIS said it will choose candidates from firms producing a “broad range of items currently controlled for national security, nonproliferation, foreign policy, and short supply reasons or that are proposed for such controls,” and will look to balance its TAC membership with officials from large and small firms. TAC members serve terms of “not more than four consecutive years” and must obtain “secret-level clearances” before they’re appointed. Applicants should send a resume to Yvette.Springer@bis.doc.gov by Sept. 30.
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