The Bureau of Industry and Security plans to add 47 entities 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. BIS designated the entities for a range of illegal procurement and nuclear-related activities, including sending nuclear-related items and other products to Iran. BIS will also correct four existing entries under China.
Industry should expect the Bureau of Industry and Security's increased activity around export controls to continue, including more additions to the Entity List and the “refinement” of export controls for Hong Kong, said Tim Mooney, a BIS senior export policy analyst.
The Bureau of Industry and Security is preparing industry guidance for its August restrictions on Huawei, including changes to the foreign direct product rule (see 2008170029), Deputy Assistant Secretary of Commerce for Export Administration Matt Borman said. He said BIS will issue a series of frequently asked questions similar to its “fairly extensive” FAQs issued in June for new licensing restrictions for military-related exports (see 2006290045). Borman did not say when they will be released.
The Bureau of Industry and Security is seeking comments on an information collection related to the Defense Production Act, BIS said in a notice released Sept. 15. The collection is related to the DPA's authority with regard to performance of contracts and orders “supporting national defense and emergency preparedness program requirements.” Comments are due Nov. 16.
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The Bureau of Industry and Security and the Census Bureau recently completed rules related to export controls and Electronic Export Information filing requirements, but they have not yet been published due to delays at the Federal Register office, officials said. A final rule from BIS will implement export control decisions stemming from the 2019 Wassenaar Arrangement plenary, including new restrictions on emerging technologies (see 2008100013). An advance notice of proposed rulemaking from Census will seek comments on removing certain EEI filing requirements for shipments to Puerto Rico and the U.S. Virgin Islands (see 2008110017 and 2006030043).
FedEx is considering appealing a Sept. 10 federal court decision (see 2009110038) that dismissed the shipping company’s lawsuit against the Bureau of Industry and Security, a FedEx spokesperson said. The company, which told the U.S. District Court for the District of Columbia that BIS was acting outside the authority of the Export Administration Regulations and was applying overly burdensome liability standards on carriers, said it still believes its arguments are valid. “FedEx respectfully disagrees with the court’s decision and is disappointed by this ruling,” the spokesperson said in a Sept. 11 statement, adding that the company is “considering our legal options, including appeal.”
The U.S. District Court for the District of Columbia on Sept. 10 dismissed FedEx’s lawsuit against the Bureau of Industry and Security (see 1906250030), saying the shipping company failed to show that BIS was acting outside the authority of the Export Administration Regulations. The court also disagreed with FedEx’s claims that the agency was using the EAR to apply overly burdensome liability standards on carriers and impose penalties even when carriers do not have knowledge of violations.
The Bureau of Industry and Security should impose targeted export controls on specific facial recognition software but take care not to restrict the entire technology category, some of which can be used for benign purposes, IBM said. While some technologies are “clear use-cases that must be off limits” for export, such as artificial intelligence-powered software used for mass surveillance and human rights abuses, other technologies are safe for everyday uses, the company said.
The U.S. District Court for the District of Columbia on Sept. 10 dismissed FedEx’s June 24 lawsuit against the Bureau of Industry and Security, saying the company failed to show that BIS was acting outside the authority of the Export Administration Regulations. The court also disagreed with FedEx’s claims that the agency was using the EAR to apply overly burdensome liability standards on carriers and impose penalties even when carriers do not have knowledge of violations.