The Bureau of Industry and Security issued a correction for its January rule that expanded export restrictions on foreign military-intelligence agencies and certain weapons-related activities (see 2101140035), it said in a notice. BIS said it revised “an incorrect instruction that would have resulted in the inadvertent deletion of two subparagraphs” of the Export Administration Regulations. The rule would have deleted language that described licensing requirements for exports of certain rocket systems and unmanned aerial vehicles. “This was a technical error and BIS did not intend to remove the existing restrictions,” the agency said.
The Bureau of Industry and Security's January rule on foreign military intelligence agencies took effect March 16 but the agency may consider revising the scope, according to a BIS spokesperson. The rule, which was issued in January under the Trump administration, was captured as part of the Biden administration’s regulatory freeze as BIS decided whether to follow through with the new export restrictions (see 2103090038). Although the restrictions took effect, an agency spokesperson said March 16 that it will continue to review feedback to determine whether the changes are “warranted.”
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The Bureau of Industry and Security is seeking comments on ways the agency can help boost the competitiveness and capacity of the U.S. semiconductor industry, according to a notice issued March 11. The comments, due April 5, will help inform the Commerce Department’s policy recommendations to the White House as part of a February executive order to address supply chain shortages of semiconductor chips (see 2102240068).
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The Bureau of Industry and Security has placed its foreign military intelligence rule (see 2101140035) on hold and may not implement the rule’s changes later this month, a BIS official said. Although the rule was published in the Federal Register in January, BIS included it in the Biden administration’s regulatory freeze because it wasn’t scheduled to take effect until March 16.
The Bureau of Industry and Security denied a New Jersey man export privileges after he illegally exported electronic components to Russia, BIS said in a March 8 order. BIS denied Alexander Brazhnikov export privileges for 15 years. Brazhnikov pleaded guilty to the charges in 2015 and was sentenced to 70 months in prison in 2016 (see 1607010044).
The Bureau of Industry and Security denied export privileges for a German aircraft maintenance company and fined it more than $50,000 for procuring U.S. parts and components for a sanctioned Iranian airline. MSI Aircraft Maintenance Services International GmbH & Co. worked with Iran’s Mahan Airways (see 2011270001) to illegally export U.S.-origin reservoir and valve assemblies, which were controlled under the Export Administration Regulations, BIS said in a March 5 order. The agency said it will waive MSI’s three-year export denial if the company pays the fine, cooperates with BIS during a three-year probationary period and doesn’t commit any more EAR violations.
Five companies said they may have violated U.S. sanctions, export controls or anti-corruption laws, according to their February Securities and Exchange Commission filings. The potential violations involved illegal exports, providing services to sanctioned territories and gift cards sent to the Chinese government.
The Bureau of Industry and Security's January rule that expanded export restrictions on foreign military intelligence agencies (see 2102190042) and other activities of U.S. companies could lead to expansive licensing requirements and place burdensome compliance obligations on U.S. companies, Akin Gump said in a March 1 letter to BIS. The law firm said it represents a client that may be affected by the rule’s broad language and urged the agency to narrow its breadth to limit impacts on legitimate business.