The Bureau of Industry and Security released a final rule Oct. 5 to prevent its publicly disclosing classified national security information during a court battle. The rule said BIS can submit classified information in private -- or “ex parte and in camera” -- to courts reviewing an agency action under Export Administration Regulations. “By providing such information ex parte and in camera to a reviewing court,” the rule said, “BIS can limit access to the information and prevent public disclosure of the information during the course of litigation.”
The Bureau of Industry and Security imposed a license requirement on certain exports of water cannon systems and revised its licensing policy for crime control (CC) items. The moves will place more oversight on exports that have potential to be used for human rights violations, BIS said in final rules released Oct. 5. Both rules take effect Oct. 6.
The Bureau of Industry and Security on Oct. 2 announced new export controls (see 2008100013 and 2005190052) on six emerging technologies. The controls, which were agreed to by Wassenaar Arrangement members during its 2019 plenary, include:
A former U.S. official and a Senate staffer who worked closely with the Committee on Foreign Investment in the U.S. criticized the Bureau of Industry and Security’s handling of emerging and foundational technologies, saying the lengthy process is impeding the work of CFIUS. David Hanke, the former staffer and architect of the Foreign Investment Risk Review Modernization Act, called CFIUS’s reliance on BIS’s export control effort a “deeply flawed system,” while Nova Daly, the Treasury Department’s former deputy assistant secretary for investment security and policy, acknowledged the process is difficult but said BIS should move faster.
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.
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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.