Although Australia, the U.K. and the U.S. have taken steps to ease defense trade restrictions, companies are still being cautious because progress around AUKUS appears to have stalled, researchers and U.K. lawmakers said this week. They also said it’s still too early for the three nations to invite other countries to join, adding that they need to first prove that the concept works among themselves.
The Bureau of Industry and Security is adding 32 entities to the Entity List for either circumventing export controls on China, supplying controlled items to Russia, evading BIS end-use checks or other activities that BIS said breached U.S. export rules. The additions include 23 entities located in China, along with others based in India, Singapore, Taiwan, Turkey and the United Arab Emirates, the agency said in a final rule released and effective Sept. 12. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial or policy of denial.
Although the Bureau of Industry and Security published a rule last month to ease certain export controls on Syria (see 2508280029), it also “retained significant parts” of its long-standing restrictions against the country, which could create new compliance challenges for some exporters, Troutman Pepper said in a client alert.
The Commerce Department’s spring 2025 regulatory agenda for the Bureau of Industry and Security features more than 20 new rulemakings that could introduce new or update existing export controls, including restrictions over advanced AI chips, emerging technologies, Russia-related controls and other revisions to the Export Administration Regulations.
The Census Bureau is creating new License Code C78 in the Automated Export System for filers to use when shipping goods under License Exception Syria Peace and Prosperity, which the Bureau of Industry and Security announced last week (see 2508280029). The license exception authorizes exports and reexports to Syria of all items designated under the Export Administration Regulations as EAR99.
The Bureau of Industry and Security will ease export controls on Syria Sept. 2 by creating a new license exception for the country, making it eligible for a broader set of existing exceptions and revising current BIS license review policies for Syria to “be more favorable.”
The Bureau of Industry and Security released a final rule Aug. 28 that will ease export controls on Syria by making the country eligible for more license exceptions and revising current BIS license review policies for Syria to “be more favorable.” The rule, effective Sept. 2, will also create a new License Exception Syria Peace and Prosperity, which will authorize exports and reexports to Syria of items designated under the Export Administration Regulations as EAR99.
The State Department is finalizing changes from a January rule that will add and remove items on the U.S. Munitions List and clarify the control scope of others. It said some new items should be subject to export controls under the International Traffic in Arms Regulations, while others “no longer warrant inclusion” or will soon be moved to the Commerce Department’s Commerce Control List. The agency will also create a new license exemption for underwater drones and tweak other portions of the January rule, but it declined to make multiple changes requested by exporters.
A U.S. business owner allegedly exported gun parts and accessories to Russia illegally by routing them through Kazakhstan and mislabeling the shipments to evade authorities, DOJ said last week. Maxim Larin, a Florida resident who owns multiple U.S.-based firearms supply companies, illegally worked with a person in Russia to evade export restrictions and ship items controlled under both the Export Administration Regulations and International Traffic in Arms Regulations, the agency said.
Dual U.S. and Russian national Vadim Yermolenko was sentenced to 30 months in prison, and ordered to forfeit $75,547, for his role in a scheme to illegally export controlled dual-use and military items to Russia as part of a Moscow-led sanctions evasion scheme. He pleaded guilty in November to conspiracy to violate the Export Control Reform Act, commit bank fraud and defraud the U.S. (see 2411010047).