The Bureau of Industry and Security is drafting a proposed rule to revise license exception Additional Permissive Reexports, which allows certain reexports of controlled U.S. items from U.S. allies, including those listed under Country Group A:1 of the Export Administration Regulations. BIS sent the rule for interagency review Sept. 1. The agency in 2020 proposed reducing the number of countries eligible for the license exception, but trade groups and companies said the move could damage U.S. competitiveness (see 2009220037).
The U.S. shouldn’t be targeting American companies that exclude foreign applicants for job openings if those policies are meant to protect American sensitive technologies, Sen. J.D. Vance, R-Ohio, said in a letter to DOJ. Vance’s letter came after DOJ in recent enforcement actions targeted both SpaceX and General Motors for using export control laws to justify restrictive hiring practices, highlighting the risks facing companies looking to fill positions that involve export-controlled items, Barnes & Thornburg said in a recent client alert.
The Bureau of Industry and Security will now be able to renew its temporary denial orders for one year instead of the previous maximum of 180 days, the agency said in a final rule. BIS said it can now request extended renewals of TDOs if it demonstrates the parties subject to the orders -- which generally suspend them from participating in transactions subject to the Export Administration Regulations -- have “engaged in a pattern of repeated, ongoing and/or continuous apparent violations of the EAR.”
The Bureau of Industry and Security sent a final rule for interagency review that would align its export controls with changes recently made by the multilateral Missile Technology Control Regime. The final rule, sent to the Office of Information and Regulatory Affairs Aug. 25, would revise the Export Administration Regulations with MTCR decisions from 2018, 2019, 2021 and 2022. The rule also would make revisions to the eligibility of one or more license exceptions.
A bill was introduced in the House that could lead to new export controls on genetic mapping technology and sanction entities in China and elsewhere involved in certain genetic mapping efforts. The bill would specifically direct the Commerce Department to deny licenses for those exporting these items to certain countries unless the exporter can submit documentation to the government "to demonstrate by clear and convincing evidence that, if the license is approved, the technology will not be used for human rights abuses or by an entity that has engaged in human rights abuses."
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The Bureau of Industry and Security this week removed 33 entities from its Unverified List -- including Chinese technology companies and universities -- after it was able to successfully complete end-use checks. The entities include 27 based in China, two in Pakistan and one each in Indonesia, Singapore, Turkey and the United Arab Emirates. The agency also removed two Russian entities from the UVL because it placed both on the more restrictive Entity List last year.
The Bureau of Industry and Security made several changes to the Export Administration Regulations this week to align its controls with decisions made at the multilateral Nuclear Suppliers Group in 2019 and 2022. The amendments, outlined in a final rule effective Aug. 18, revised five existing Export Control Classification Numbers under the Commerce Control List to alter or clarify the scope of certain controls and make technical fixes to other ECCNs.
The Bureau of Industry and Security clarified rules surrounding two deemed export scenarios in a new advisory opinion issued in June and released publicly this week. The opinion said U.S.-based subsidiaries are allowed to release certain controlled technologies to their foreign parent companies’ employees -- when they are on temporary assignment in the U.S. -- if the American subsidiary already has an export license to ship the item to its parent company. BIS also said the U.S. subsidiary can use its export license to ship covered items to its parent company if the items were developed by employees on temporary assignment in the U.S.
The Bureau of Industry and Security last week expanded the scope of its nuclear-related export controls on China and Macau, saying the change was necessary to impose tighter license requirements on items that could “contribute to nuclear activities of concern.” The Nuclear Regulatory Commission also suspended a general license that had authorized exports of certain nuclear items for nuclear end uses in China.