The Commerce Department drafted a rule that would restrict U.S. exports to 89 Chinese and 28 Russian companies with military ties, Reuters reported Nov. 22. The rule, which includes several Chinese aerospace companies such as the Commercial Aircraft Corp. of China Ltd. (COMAC) and the Aviation Industry Corporation of China (AVIC), would build off an April rule that increased license requirements for exports to military end-users and for end-uses in China, Russia and Venezuela, (see 2004270027). The rule contains a list that identifies Chinese and Russian companies that the U.S. considers military end-users, the report said, which require licenses to buy a range of U.S. goods and technologies. If the rule is issued, those licenses will be “more likely to be denied than granted,” Reuters said.
Cordell Hull, who has led the Bureau of Industry and Security for the last year (see 1911180040), will resign next month ahead of the incoming Joe Biden administration. His last day will be Dec. 4, a BIS spokesperson said. “I am proud of what we have achieved on important issues of national security at BIS and I have decided to look for the next challenge in the private sector,” Hull said in a Nov. 19 statement. “I am grateful to Secretary [Wilbur] Ross for giving me this opportunity to serve.”
The U.S. needs to work closer with allies on export controls and foreign investment screening to counter China, a Republican House member and two former Trump administration officials said. They said the U.S.’s current unilateral approach to trade restrictions is not working and could cede U.S. technology leadership to China.
The U.S. and other governments need to substantially increase outreach with industry before continuing to pursue export controls over emerging technologies, experts said. Although the U.S. and other governments do some outreach work, future controls will be ineffective and difficult to comply with without more industry input, they said. “It’s [like] trying to change a tire while we’re driving down the road,” said Scott Jones, a senior adviser at the Strategic Trade Research Institute, speaking during a Nov. 17 webinar hosted by STRI. “Going forward, it fundamentally has to be much more collaborative.’
Export Compliance Daily is providing readers with the top stories for Nov. 9-13 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 amended and clarified provisions in the Export Administration Regulations to promote compliance and better enforce the Export Control Reform Act. BIS also amended other EAR provisions related to licenses, denial orders and civil penalty payments. The changes, outlined in a final rule issued Nov. 17, take effect Nov. 18.
The Bureau of Industry and Security withdrew a proposed rule from the Office of Information and Regulatory Affairs related to its strategic trade authorization (STA) license exception. The rule, which was received by OIRA Aug. 27 (see 2008280022) and withdrawn Nov. 12, would have clarified the “availability” and expanded restrictions on availability of the license exception under the Export Administration Regulations. A BIS spokesperson said the agency is still considering proposing the rule. “The rule was withdrawn for further informal interagency consultation,” the spokesperson said.
More than 20 industry groups urged the Bureau of Industry and Security to be cautious as it considers controls over foundational technologies (see 2008260045), saying the wrong approach could stifle innovation, damage U.S. competitiveness and lead to costly shifts in global supply chains. The groups said any new controls should only be imposed after a calculated process with significant input from industry, and should include license exceptions and exclusions.
Export Compliance Daily is providing readers with the top stories for Nov. 2-6 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 extended the comment period for an information collection related to foreign importer certificates, end-user certificates, delivery verification certificates and firearms entry clearance requirements, a notice released Nov. 9 said. BIS said it wants more feedback on its collection for import and end-user certificates -- which are “obtained by the foreign importer and transmitted to the U.S. exporter” -- and delivery verification for BIS-controlled items. The agency is also seeking feedback on its information collection for firearms clearance requirements, which have changed due to the recent transfer of certain firearms controls from the State Department. “The Department of Commerce controls the [Commerce Control List] and must now take over this collection of information,” BIS said. The “entry clearance requirements for temporary imports will specify the [Export Administration Regulations] procedures for temporary imports and subsequent exports.” Comments are due Dec. 10.