Export Compliance Daily is providing readers with some of the top stories for May 20-24 in case they were missed.
The Department of Commerce published its spring 2019 regulatory agenda for the Bureau of Industry and Security. The agenda continues to mention an upcoming a long-awaited proposed rulemaking involving parties’ responsibilities under the Export Administration Regulations in a routed export transaction, saying the proposal will be published in May 2019. Sharron Cook, a senior policy export analyst for BIS, said in April the rule change will help solve some of the bigger frustrations with the current regulations faced by export forwarders (see 1904170064). BIS is aiming to issue the proposal in May, it said.
Foreign manufacturers need to be aware that their products may be covered by the Commerce Department's Bureau of Industry and Security's listing of telecommunications equipment manufacturer Huawei on the Entity List, even if they aren't manufactured in the U.S., according to an alert by law firm Sheppard Mullin. U.S. export controls on Huawei and its affiliates may apply to a substantial scope of foreign goods that contain more than 25 percent U.S.-origin content. Under the BIS de minimis rule, products are subject to the Export Administration Regulations -- and consequently new license requirements for Huawei -- if more than one-fourth of the product is composed of U.S.-origin content that is also controlled under the EAR, except for “EAR99 items” or products that do not require a license, the alert said.
The Commerce Department’s Bureau of Industry and Security is adding five new national security-related technologies to the Export Administration Regulations’ Commerce Control List, according to a notice in the Federal Register. The additions stem from changes made to the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies agreed to during the 2018 Plenary meeting, the notice said. The changes add “recently developed or developing technologies” that are “essential” to U.S. national security: “discrete microwave transistors,” “continuity of operation software,” “post-quantum cryptography,” “underwater transducers designed to operate as hydrophones” and “air-launch platforms.” The notice is scheduled for publication and the changes take effect on May 23.
The Commerce Department’s Bureau of Industry and Security is amending the Export Administration Regulations (EAR) to remove Venezuela from Country Group B and add it to Country Groups D:1-4, which “lists countries of national security concern” and adds new licensing requirements while restricting the use of certain license exceptions for exports. The changes take effect May 24.
Export Compliance Daily is providing readers with some of the top stories for May 13-17 in case they were missed.
The Trump administration's decision to examine emerging technologies as candidates for export controls could cost U.S. businesses tens of billions of dollars and threaten thousands of jobs, the Information Technology and Innovation Foundation said in a new report. If substantial export controls are enacted, the report warns, firms “could lose $14.1 [billion] to $56.3 billion in export sales over five years, with missed export opportunities threatening from 18,000 to 74,000 jobs.”
The Commerce Department on May 16 added Huawei Technologies to the Bureau of Industry and Security’s Entity List, eliciting strong reaction from Huawei and China over the move that may have substantial effects on U.S. exporters. In a notice in the Federal Register, BIS said it is imposing license requirements on Huawei and its 68 non-U.S. affiliates for all items subject to the Export Administration Regulations with a license review policy of presumption of denial. The Federal Register notice is scheduled for May 21 publication, but the changes take effect May 16. All shipments aboard carriers as of May 16 may proceed to their destinations under previous license conditions.
The Commerce Department's Bureau of Industry and Security is looking for new members for its seven Technical Advisory Committees, the agency said in a notice. The TACs "advise the Department of Commerce on the technical parameters for export controls applicable to dual-use items (commodities, software, and technology) and on the administration of those controls." Six of the TACs are focused on the technical parameters of export controls, and the seventh is focused on the regulations and procedures, BIS said. The members are chosen by the Commerce secretary and must obtain secret-level clearances, it said. Nominations are due by June 15 and should go to Yvette.Springer@bis.doc.gov.
The Commerce Department's Bureau of Industry and Security added 12 foreign entities or persons to BIS’s Entity List, according to a May 13 notice, including several entities in China. BIS said the additions include four entities with locations in China and Hong Kong, along with two other entities in China and one Pakistani entity and five entities or individuals in the United Arab Emirates. Each is now subject to specific license requirements “for the export, reexport, and/or in-country transfer of controlled items,” BIS said. The 12 "have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests," the agency said in a separate notice.