As the final regulations for the Foreign Investment Risk Review Modernization Act take effect this week, FIRRMA’s definition for critical technologies remains unclear due to a lack of proposed rules by the Commerce Department on emerging and foundational technologies, trade lawyers said.
The Directorate of Defense Trade Controls issued a Jan. 23 guidance on the final rules for the transfer of gun export controls from the State Department to the Commerce Department, including a clarification on license submissions during the transition period. The guidance also clarifies how the rules and transition period affect technical assistance agreements, manufacturing license agreements, reporting requirements, commodity jurisdiction determinations and regulatory oversight responsibilities. The rules -- which were published Jan. 23 and transfer export control authority from the State Department to Commerce for a range of firearms, ammunition and other defense items -- will take effect March 9 (see 2001170030).
The Commerce Department released its final rule for transferring export controls of firearms, ammunition and other defense items from the State Department to Commerce. The rule revises the Export Administration Regulations to transfer items that no longer “warrant control” on the U.S. Munitions List to the Commerce Control List. The rule will be published alongside a final rule from the State Department, which details the changes made to Categories I, II and II of the USML and describes “more precisely” the items that warrant “export or temporary import control” on the USML. The rules, which have been highly anticipated by the firearms industry (see 1908130066), will be published Jan. 23 and take effect March 9.
GunUniversity.com posted a copy of a document that it says is the Commerce Department’s final rule for the transfer of export controls of firearms, ammunition and defense items from the State Department to Commerce. In a Jan. 14 post, the website said the rule will be published this week. The National Shooting Sports Foundation also expected the rule to be published this week (see 2001140043) and has called it the top concern of the gun industry (see 1908130066). Sen. Bob Menendez, D-N.J., has said he will block any attempt to transfer the controls from the U.S. Munitions List to the Commerce Control List unless the administration abides by certain requests, including informing the Senate of certain licensed exports (see 1912160057). Commerce did not comment on the document’s authenticity.
New rules for the transfer of export controls over firearms and ammunition from the State Department to the Commerce Department are expected this week, according to the National Shooting Sports Foundation. In a newsletter emailed Jan. 13, the NSSF said the rules, which will transfer controls over firearms, guns, ammunition and other defense items from the U.S. Munitions List to the Commerce Control List, will take effect 45 days after they are published this week.
The Commerce Department is amending the Export Administration Regulations to control exports of software designed to “automate the analysis of geospatial imagery,” Commerce said in an interim final rule. The software will be controlled under the Export Control Classification Number 0Y521 series -- a temporary holding classification that lasts for one year from the day the final rule is published. Although the agency believes it is in the U.S.’s national security interest to “immediately” control this software, Commerce is seeking comments on the interim final rule. Comments are due March 6.
A Lebanese energy equipment company was fined $368,000 by the Bureau of Industry and Security after it illegally reexported generators to Syria, according to a settlement agreement signed Nov. 27. Ghaddar Machinery allegedly committed 20 violations of the Export Administration Regulations from 2014 to 2016, totaling about $730,000 worth of exports, BIS said. Ghaddar agreed to pay the penalty in five installments through November 2021. Failure to make the payments could result in more penalties, according to the settlement agreement, including a two-year denial of export privileges.
The Department of Commerce published its fall 2019 regulatory agenda for the Bureau of Industry and Security. The agenda includes a new mention of its intent to potentially control certain additive manufacturing equipment, or 3D printing, used in “energetic materials” as part of BIS’s effort to restrict sales of emerging technologies (see 1911210051). The notice of proposed rulemaking aims to gather feedback from industries while “discussions are ongoing” at the Wassenaar Arrangement. BIS said it aims to issue the proposed rule in November.
The Commerce Department will likely seek multilateral support for upcoming export controls on additive manufacturing of metals, said Sean Ghannadian, a Bureau of Industry and Security official and part of Commerce’s Wassenaar Arrangement group. Commerce is also moving toward controlling certain ceramic coating technologies as part of the agency’s effort to identify and restrict sales of emerging technologies (see 1911200045), Ghannadian said.
The Bureau of Industry and Security updated its Entity List by adding 22 entities, updating one entry and removing three entries, BIS said. The added entities include freight forwarding and logistics companies and a medical instrument supplier.