The Bureau of Industry and Security on April 2 renewed the temporary denial order for Russian air cargo carrier Aviastar for one year after finding it continues to violate U.S. export controls. The agency said the airline has continued to illegally operate aircraft subject to the Export Administration Regulations, including for flights within Russia and between Russia and China.
Banks are facing rising pressure from regulators to catch red flags that may signal export control evasion, lawyers and industry officials said this week. As that pressure mounts, they said many financial institutions still struggle to understand how much and what type of due diligence is needed to catch customers that may be violating export controls.
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The Bureau of Industry and Security completed nearly a quarter of its end-use checks with a “less than favorable outcome” in FY 2023, a Commerce Department official said, meaning the agency couldn’t verify those end-users as a reliable recipient of U.S.-origin export-controlled goods.
A Bureau of Industry and Security rule released last week (see 2403290060) that updated and corrected portions of the agency’s October semiconductor export controls (see 2310170055) also added a new license exception and offered clarifications to export guidance issued by BIS over the last year. The changes take effect April 4, and comments are due by April 29.
A new list published last week by the Bureau of Industry and Security names more than 150 entities that have asked companies to boycott goods from certain countries. BIS hopes the list helps “raise awareness” among companies, financial institutions, freight forwarders and others about where boycott requests may come from, allowing them to better comply with the agency’s anti-boycott regulations, said Matthew Axelrod, the BIS assistant secretary for export enforcement.
The Bureau of Industry and Security is expecting to soon finalize its proposed rule on License Exception Strategic Trade Authorization and is close to publishing new U.S. persons controls to restrict activities that support foreign military, security or intelligence agencies, said Thea Kendler, the agency’s assistant secretary for export administration.
The Census Bureau is hoping to publish a notice seeking public comments on its long-awaited routed export control rule before the upcoming presidential election, a Commerce Department official said this week.
The Bureau of Industry and Security is looking to expand its validated end-user program, which it hopes will allow more U.S. exporters to sell products to credible foreign customers without having to first apply for a license, said Thea Kendler, the agency’s assistant secretary for export administration.
The Bureau of Industry and Security last week published an updated freight forwarder guidance, outlining forwarders’ compliance responsibilities, the red flags they should be monitoring and a set of best practices they should follow when they’re involved in an export. The agency also issued a new version of its “Don’t Let This Happen to You” document, which includes new summaries and case examples of recent export control investigations.