New rules from the Commerce and State departments could lead to a range of new restrictions on U.S. support for certain foreign military intelligence and security services, increasing export licensing requirements for activities that could give U.S. adversaries a “critical military or intelligence advantage.”
The Bureau of Industry and Security is expanding its export controls to make more items subject to license requirements under its Iran foreign direct product rule, increasing its Iran-related restrictions under the Export Administration Regulations. The final rule, which was released July 24 but took effect July 23, implements certain provisions in the wide-ranging national security bill President Joe Biden signed into law in April (see 2404240043).
The Commerce Department’s spring 2024 regulatory agenda for the Bureau of Industry and Security features a range of upcoming rules that could update and expand U.S. export control regulations, including new controls on the activities of U.S. persons in support of foreign military and intelligence agencies, revised regulatory language to address “diversion concerns,” new multilateral restrictions on emerging technologies and broader license requirements for Pakistan.
A Hallandale, Florida, resident was charged on July 2 with smuggling controlled goods into Russia from the U.S. Kirill Gordei, president of Florida-based freight forwarding company Apelsin Logistics, faces three counts -- conspiracy to commit offenses against the U.S., smuggling goods from the U.S. and exporting a spectrometer, a controlled item, unlawfully -- DOJ announced. A Belarus citizen and U.S. permanent resident, Gordei faces maximums of five, 10 and 20 years in prison for the charges, respectively.
Indiana University will avoid a fine but must meet several government-imposed export compliance commitments after it illegally exported genetically modified fruit flies carrying a controlled toxin, the Bureau of Industry and Security announced this week. The school voluntarily disclosed the illegal exports and admitted to 42 violations of the Export Administration Regulations, BIS said, which helped IU avoid a monetary penalty.
The Bureau of Industry and Security issued two temporary denial orders last week as part of the Biden administration's latest package of Russia-related sanctions and export controls (see 2406120036), targeting companies and people in the United Arab Emirates, Russia, Hong Kong, the British Virgin Islands, Turkey and Indonesia for sending export controlled items to Russia.
The Bureau of Industry and Security is drafting an interim final rule that could introduce a new “Plurilateral Consensus Coalition” country group into the Export Administration Regulations. The rule, sent to the Office of Information and Regulatory Affairs June 11, would make additions and revisions to the Commerce Control List and put in place a new License Exception Plurilateral Consensus Coalition (PCC) for certain exports to countries in the coalition.
The Bureau of Industry and Security's April rule to reduce certain export license requirements for Australia and the U.K. should incorporate some minor changes to clarify what types of exports are covered, the Aerospace Industries Association said in comments to the agency. AIA also asked BIS to clarify whether the new rules will include a transition period and to make sure the changes will be reflected in export filing requirements.
The U.S. government should combine its various export control and sanctions lists into two distinct lists, which could allow the government to better implement trade restrictions and improve industry compliance, a congressional commission heard this week. The commission also discussed whether U.S. export control agencies should have to release more information about their licensing decisions, with one witness saying more transparency would increase business certainty, while another said it would discourage candor between the government and exporters.
The Bureau of Industry and Security this week issued a correction to its April interim final rule that reduced license requirements for exports to Australia and the U.K. as part of the Australia-U.K.-U.S. partnership (see 2404180035). The correction fixes a footnote in the rule to add “greater specificity” for the Export Control Classification Numbers mentioned “so only portions of those 0x5zz ECCNs” that were previously controlled for national security or regional stability reasons for the destinations of Australia and the U.K. “will continue to require a license to Australia and the United Kingdom based on the license requirements specified in this footnote.” The changes took effect May 6.