The Bureau of Industry and Security this week added eight companies to its Unverified List after it was unable to verify the “legitimacy and reliability” of the entities through end-use checks, including their ability to responsibly receive controlled U.S. exports. It also removed two companies from the list after BIS said it was able to successfully conduct end-use checks.
New export compliance guidance issued by the Bureau of Industry and Security outlines the agency’s due diligence expectations for financial institutions and warns that companies that “self-blind” to red flags could face penalties.
The State Department’s Directorate of Defense Trade Controls recently updated its list of commodity jurisdiction (CJ) determinations, which DDTC issues after receiving requests from industry to determine whether a commodity or service is covered by the U.S. Munitions List. The table includes several new CJ determinations issued in September, including certain subassemblies for tactical unmanned aerial vehicles, which DDTC classified as USML Category VIII(f); an item that allows helicopters to carry sling loads and serves as “a conduit for electric actuation of remote hooks and other electrically operated equipment,” which it classified under the Export Administration Regulations as EAR99; and a digital fuel gauge that it classified as USML Category VIII(h)(1).
The Bureau of Industry and Security on Oct. 4 again renewed the temporary denial order for Russian airline Ural Airlines, saying it has continued to illegally operate aircraft on flights within Russia and to and from Tajikistan and Kyrgyzstan. The order, first issued in October 2022 (see 2210170009) and renewed twice (see 2310100017), bars the airline from participating in transactions with items subject to the Export Administration Regulations.
The U.S. is increasingly expecting companies to monitor government guidance as well as export violations committed by others, and to use those cases as “lessons learned” to improve their own compliance programs, lawyers said this week.
The Bureau of Industry and Security this week published the second quarterly update of its new boycott requester list, a list of entities that have asked other companies to boycott goods from certain countries in violation of the Export Administration Regulations.
LONDON -- Officials at a defense industry conference last week were complimentary of defense export control reforms recently announced by the U.S., Australia and the U.K., but they also said the three governments can do more to incentivize companies to make use of the reforms.
The Bureau of Industry and Security reached a $151,875 settlement with Quantum Corp., a California-based data storage and management company, after it allegedly committed 45 violations of the antiboycott provisions of the Export Administration Regulations.
The Bureau of Industry and Security fined First Call International, a Texas-based provider of defense and aerospace items, after the company modified a document to make it appear like it was complying with U.S. export control regulations. BIS also said the business illegally exported military aircraft parts to Malaysia and South Korea.
The Bureau of Industry and Security is expanding its Validated End User program to include a new export authorization for data centers, which could allow certain preapproved data facilities to more quickly obtain advanced semiconductors and other U.S.-controlled items with artificial intelligence uses.