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 denied export privileges for Marjan Caby after Caby violated the Export Administration Regulations, Commerce said in a Jan. 17 order. The violations stem from a scheme involving a Miami-based company, its manager and its registered agent, whose export privileges were revoked in November for violating the EAR by illegally exporting aircraft parts and equipment to Syrian Arab Airlines (see 1911130043). Caby worked as the “internal auditor” for AW-Tronics/Arrowtronic, the company named in the order, and helped the shipments evade U.S. export controls by directing them to Bulgaria before they were eventually shipped to Syria, Commerce said. Caby’s export privileges were revoked for four years from the date of the order.
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.
The Commerce Department is close to publishing a rule that will expand its authority to block shipments of foreign made goods to Huawei, according to a Jan. 14 Reuters report. The rule would lower the U.S.-origin threshold on exports to Huawei to 10 percent, Reuters said, and expand the purview to include “non-technical goods like consumer electronics” and “non-sensitive chips.” Commerce sent the rule to the Office of Management and Budget after an interagency meeting last week, the report said. A top Commerce official recently confirmed the agency was considering a range of expanded restrictions of foreign exports to Huawei, including changes to the Direct Product Rule and a broadened de minimis level (see 1912100033).
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 should make clear who involved in the import process might be subject to the proposed procedures for how to review transactions that involve information and communications technology and services (ICTS) and are seen as a potential threat, the Express Association of America said in comments. The Commerce proposal is meant as a way for the government to oversee transactions, including importations, seen as risky (see 1911260032). Comments on the proposal were due Jan. 10 and were posted in Commerce docket 2019-0005.
The Office of Information and Regulatory Affairs began an interagency review of a final rule that would amend the country groups for Russia and Yemen under the Export Administration Regulations. OIRA received the Commerce Department rule Jan. 8.
The Commerce Department is seeking comments on an information collection related to voluntary self-disclosures of Export Administration Regulations violations, Commerce said in a Jan. 8 notice. Comments are due March 8.
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.