The Office of Information and Regulatory Affairs on Sept. 30 completed an interagency review for a proposed Bureau of Industry and Security rule (see 2007210033) to control “software” for the operation of certain “automated nucleic acid assemblers and synthesizers.” BIS will request comments on the proposed export controls, which fall under the agency’s effort to control emerging technologies. OIRA received the rule July 20. On its spring agenda, BIS said the software can be used to produce pathogens and toxins that potentially can be used in biological weapons (see 2007140027).
The administration should increase export controls and sanctions pressure on China, place more scrutiny on Chinese foreign direct investment and push for the modernization of multilateral export regimes, the House’s Republican-led China Task Force said in a Sept. 30 report. It urged the administration to act quickly, saying China and other U.S. “adversaries” are flouting international export control laws and undermining U.S. technology industries.
Export Compliance Daily is providing readers with the top stories for Sept. 21-25 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The Commerce Department informed some U.S. chip companies they need export licenses before shipping certain items to Semiconductor Manufacturing International Corporation, China’s largest semiconductor maker, according to two people familiar with the situation. Commerce sent the information in a letter to companies last week, the people said, which effectively placed export controls on shipments to the Chinese company.
CBP and other export enforcement agencies are increasing detentions of shipments to China and Hong Kong due to a series of recently imposed export restrictions announced by the Trump administration, trade lawyer Doug Jacobson said. Jacobson said he has noticed a “dramatic increase” in detentions and seizures, and said he is spending “a lot of time” working with agencies to provide information on clients’ shipments.
Intel was granted U.S. export licenses to supply certain products to Huawei, an Intel spokesperson said in a Sept. 23 email. Intel received the licenses despite increased U.S. restrictions against the Chinese technology company, including the Bureau of Industry and Security's August revisions to the foreign direct product rule that were intended to block Huawei’s ability to access U.S. technology (see 2008170029). The Intel spokesperson declined to provide more details on the licenses. A BIS spokesperson said the agency does not comment on licensing issues.
The Bureau of Industry and Security revoked Walid Chehade’s export privileges after he was convicted of illegally exporting guns and gun parts to Lebanon, a Sept. 21 order said. Chehade, of Westlake, Ohio, was convicted May 8, 2019, and sentenced to time served, a $5,000 fine and one year of supervised release. BIS revoked Chehade’s export privileges for seven years from the date of conviction, which means until May 8, 2026.
Export Compliance Daily is providing readers with the top stories for Sept. 14-18 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security’s proposal to reduce the number of countries eligible for license exception Additional Permissive Reexports (APR) (see 2004270025) could damage U.S. competitiveness and lead to overly broad export restrictions, trade groups and industry said in comments released this month. If BIS follows through on the change, commenters suggested that it first limit the scope of the rule, which could potentially restrict more than 20 countries from receiving certain U.S. reexports that are controlled for national security reasons.
The Bureau of Industry and Security added 47 entities and individuals to its Entity List for “acting contrary” to U.S. national security and foreign policy interests. The additions include entities in Canada, China, Hong Kong, Iran, Malaysia, Oman, Pakistan, Thailand, Turkey, the United Arab Emirates and the United Kingdom. Designations were for a range of illegal procurement activities, including sending nuclear-related items and other products to Iran. BIS will also correct four existing entries under China.