California-based electronic design automation firm Cadence will pay more than $140 million in combined civil fines, criminal penalties and forfeitures after the U.S. said it violated export controls against China. The company pleaded guilty to illegally exporting EDA hardware, software and semiconductor design intellectual property technology to Chinese entities, including a university and company on the Entity List.
Cadence, a California-based electronic design automation firm, will pay more than $140 million in combined civil fines, criminal penalties and forfeitures to resolve allegations that it illegally exported technology to Chinese entities, DOJ and the Bureau of Industry and Security announced July 28. The company pleaded guilty to illegally exporting EDA hardware, software and semiconductor design intellectual property technology to the National University of Defense Technology, a university added to the Commerce Department's Entity List for its ties to the Chinese military, DOJ said.
A senior State Department official declined to say this week whether the Trump administration is considering withdrawing from the Australia-U.K.-U.S. (AUKUS) security partnership, but she said the administration is generally in favor of the partnership.
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The Bureau of Industry and Security’s latest export control enforcement action against a semiconductor firm shows the agency may be preparing to target companies that flout its high probability standard, a trade lawyer and industry consultant said.
The Bureau of Industry and Security is working on a new interim final rule that could make "revisions" to the Export Administration Regulations. The agency sent the rule for interagency review July 10. BIS didn't release more information.
The Bureau of Industry and Security recently updated its website to allow users to search through the Commerce Control List’s Export Control Classification Numbers by keywords. Users can search keywords across all ECCNs or within just one CCL category.
The Bureau of Industry and Security is progressing on a final rule that would relax certain export controls on Syria. BIS sent the rule for interagency review June 8, about a month after an agency official confirmed that BIS planned to lift some controls over the country (see 2506100052). President Donald Trump on June 30 authorized the "relaxation" of Syria-related export controls, specifically with respect to items on the Commerce Control List (see 2506300055).
Companies should expect the Bureau of Industry and Security to continue a steady pace of penalties against export violators, particularly for cases involving semiconductors and other advanced technologies, said Gregory Dunlap, the former special agent in charge of the agency’s Los Angeles field office. And if Congress grants the agency’s request for more funding, Dunlap said, BIS could soon have the resources to more quickly carry out investigations and probe a greater number of exporters.
The U.S. should take several steps to reduce red tape and streamline arms sales and technology transfers to close trading partners, including more frequently reviewing the jurisdiction of export-controlled items and combining reviews of weapons requests from allies, researchers said in a new report.