The Directorate of Defense Trade Controls’ interim final rule (see 1912230052) to define activities that are not exports, re-exports or retransfers will significantly reduce regulatory and compliance burdens surrounding encrypted data, a law firm and export consulting firm said. In a long-awaited move, the rule will better facilitate international data storage subject to both the International Traffic in Arms Regulations and the Export Administration Regulations.
The State Department published an interim final rule that will revise the International Traffic in Arms Regulations to provide definitions for activities that are not exports, re-exports, retransfers or temporary imports, the agency said in a notice in the Federal Register. The activities include launching items into space, providing technical data to U.S. people within the U.S. or “within a single country abroad,” and moving defense items within the U.S.
An Indonesian citizen and three Indonesian companies were charged after violating U.S. export laws and sanctions against Iran, the Justice Department said in a Dec. 17 press release. Sunarko Kuntjoro and three companies -- PT MS Aero Support (PTMS), PT Kandiyasa Energi Utama (PTKEU), and PT Antasena Kreasi (PTAK) -- illegally exported U.S.-origin goods and technology to sanctioned Mahan Air, an Iranian airline, the press release said. The exports violated the International Emergency Economic Powers Act, the Iranian Transactions and Sanctions Regulations, the Export Administration Regulations and the Global Terrorism Sanctions Regulations.
The Commerce Department plans to release its first set of proposed controls on emerging technologies in six areas, including the semiconductor and artificial intelligence sectors, a top Commerce official said. The six proposed rules (see 1912130055), which may not be released until early next year, include restrictions on items in the fields of quantum technology, semiconductor design, chemicals, biotechnology, artificial intelligence and possibly 3D printing, said Matt Borman, Commerce’s deputy assistant secretary for export administration. The controls stem from an advance notice of proposed rulemaking published more than a year ago.
BOSTON -- If the Commerce Department follows through on plans to expand the limits of the Export Administration Regulations to further control foreign shipments to Huawei, it will have a “dramatic” impact on international supply chains, said Kevin Wolf, a trade lawyer with Akin Gump and Commerce’s former assistant secretary for export administration. The measures, which Commerce confirmed it was considering earlier this month (see 1912100033), include expanding the Direct Product Rule and broadening the de minimis rule to make more foreign-made goods subject to the EAR.
The Commerce Department Bureau of Industry and Security is seeking comments on an information collection used to respond to congressional and industry requests to make “foreign availability determinations” about the Export Administration Regulations, according to a notice. In the information collection, exporters are urged to submit data to “support the contention” that items controlled for national security reasons are “available-in-fact, from a non-U.S. source, in sufficient quantity and of comparable quality so as to render the control ineffective.” Comments are due Feb. 10.
Export Compliance Daily is providing readers with some of the top stories for Dec. 2-6 in case you missed them.
The Commerce Department is considering a host of expanded restrictions on foreign shipments to Huawei containing U.S. technology, said Rich Ashooh, Commerce’s assistant secretary for export administration. The agency is discussing expanding the Direct Product Rule -- which subjects certain foreign-made products containing U.S. technology to U.S. regulations -- and a broadened de minimis rule, Ashooh said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. Ashooh’s comments confirmed details in a Nov. 29 Reuters report that said the U.S. was discussing ways to restrict more foreign exports to Huawei (see 1912040014).
An Iranian businessman was sentenced to 46 months in prison for illegally exporting carbon fiber from the U.S. to Iran, the Justice Department said Nov. 14. Behzad Pourghannad worked with two others between 2008 and 2013 to export the carbon fiber to Iran from third countries using falsified documents and front companies, the agency said.
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.