Export Compliance Daily is providing readers with some of the top stories for Feb. 18-21 in case you missed them.
The Commerce Department plans to hold the first meeting of its Emerging Technology Technical Advisory Committee this spring amid several delays in issuing prospective members their security clearances. A Bureau of Industry and Security spokesperson said the agency remains “on target” to hold the meeting before the summer despite Commerce officials originally scheduling the meeting for December, and then January, before pushing it back each time (see 2001290032).
The Commerce Department is “nowhere near” publishing an export control rule on foundational technologies and is likely not close to releasing its advance notice of proposed rulemaking, Squire Patton Boggs trade lawyer George Grammas said. Commerce management has had a draft of the ANPRM since at least mid-2019, Grammas said. “It doesn't seem to be going anywhere fast,” he said, speaking during a Feb. 20 webinar hosted by Content Enablers. “We don’t seem to be anywhere near seeing a rule on foundational technologies in the near term.”
The Bureau of Industry and Security revised the country groups for Russia and Yemen under the Export Administration Regulations (see 2001090040), BIS said in a notice. The changes increase license restrictions for both countries and are part of a larger effort within BIS that involves a “comprehensive review” of all country groups to better align with the administration's foreign policy concerns. All shipments now requiring a license as a result of this rule that were on dock for loading or aboard a carrier to a port as of Feb. 24 may proceed to their destinations under the previous eligibility, BIS said. Shipments that have not been exported, re-exported or transferred by March 25 will require a license.
Foreign Investment Risk Review Modernization Act (FIRRMA) implementation is in its early days, with new rules taking effect on Feb. 13 (see 2002110042), but it's generally assumed the number of transactions coming under Committee on Foreign Investment in the U.S. (CFIUS) jurisdiction will quadruple, said David Plotinsky, DOJ National Security Division principal deputy chief, at a Federal Communications Bar Association event Feb. 19. He said the number of telecom deals subject to CFIUS also likely will quadruple, though there's less concern about deals on “the pipes” of telecom than on data. CFIUS experts said prospective deals now have to take CFIUS issues and possible mitigation steps into consideration early in the planning.
The Commerce Department Bureau of Industry and Security asked for an 8% boost in funding for the 2021 fiscal year to increase export control compliance and enforcement, bolster initiatives to counter China, and to better identify emerging and foundational technologies. BIS’s request for a $10 million budget increase, submitted to Congress last week, comes as the agency plans to roll out a series of export controls on sensitive technologies (see 1912160032), which will increase its involvement in the Trump administration's effort to sustain the U.S.'s technological advantage over China. BIS specifically asked for just over $1 million and five new positions to help it control emerging and foundational technologies and enforce those controls.
The Commerce Department Bureau of Industry and Security is seeking comments on the impact of the Chemical Weapons Convention on “commercial activities” during 2019, BIS said in a notice. BIS said it is soliciting comments to help it prepare for its annual certification to Congress about whether “legitimate commercial activities” of chemical, biotechnology and pharmaceutical firms are banned by the CWC. Comments are due March 16.
Kuwait Airways Corp. was fined $700,000 as part of a settlement agreement with the Commerce Department after the corporation violated the Export Administration Regulations through antiboycott violations, Commerce said in an order released this month. The company, based in New Jersey, committed 14 violations of the EAR when it complied with an “unsanctioned foreign boycott” by refusing to accept passengers with Israeli passports. Commerce said it will suspend $100,000 of the fine if Kuwait Airways does not commit another violation of the Export Control Reform Act or of the EAR within the next three years, if it pays the remainder of the fine on time, and if it complies with the terms of the settlement. If the airline does not comply with the settlement, BIS may revoke the airline’s export privileges for one year and revoke the corporation’s current export licenses and exceptions.
Export Compliance Daily is providing readers with some of the top stories for Feb. 3-7 in case you missed them.
Export Compliance Daily is providing readers with some of the top stories for Jan. 27-31 in case you missed them.