U.S. export controls on clean technology goods to China would likely be “ineffective” and could backfire on American businesses trying to develop the next generation of green energy products, a researcher for a major European think tank said in a new report this month. The report argues that solar panels, wind turbines, electric vehicle batteries and other green technologies don’t warrant new controls because they have “no dual-use or human-rights applications,” and restrictions could further strain the already fraught U.S.-China relationship.
The State Department on March 22 completed a round of interagency review for a proposed rule that could make changes to registration fees under the International Traffic in Arms Regulations. The agency had sent the rule to the Office of Information and Regulatory Affairs Oct. 17 (see 2310190005). An agency official last year said the Directorate of Defense Trade Controls was preparing to soon propose changes to those fees (see 2310120063).
The State Department’s Directorate of Defense Trade Controls published new guidance this week to clarify how and when joint ventures must be included on registration statements. The new frequently asked questions cover companies subject to the International Traffic in Arms Regulations and that are governed by a joint venture agreement.
The State Department’s Directorate of Defense Trade Controls will again change the export control threshold for certain high-energy storage capacitors to remove license requirements from capacitors that are widely commercially available and no longer provide military or intelligence advantages. The change, outlined in a final rule published March 25 and effective April 24, decontrols certain capacitors with a voltage rating of 500 volts or less.
The U.S. announced new export controls against Nicaragua this week in response to human rights abuses by the country's government and its support for Russia’s invasion of Ukraine. The measures, outlined in two final rules effective March 15, will put in place stronger Commerce Department export licensing requirements for Nicaragua and add the country to a list of nations maintained by the State Department that generally don’t receive license approvals for controlled defense items.
Preparations continue for a jury trial set for April 1 in a criminal arms smuggling case involving the constitutionality of "specially designed" provisions in U.S. export controls (U.S. v. Quadrant Magnetics, LLC, W.D. Ky. # 3:22-CR-88-DJH).
The State Department this week announced penalties on two people and three entities and their subsidiaries for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act. The agency in a notice said the parties transferred items subject to multilateral control lists that contribute to weapons proliferation or missile production. The State Department barred them from making certain purchases of items controlled on the U.S. Munitions List and by the Arms Export Control Act and will suspend any current export licenses. The agency also will bar them from receiving new export licenses for any goods subject to the Export Administration Regulations. The restrictions will remain in place for two years from the Feb. 27 effective date.
The U.S. is hoping to use export controls to better place restrictions around transfers of sensitive technology information, said Bonnie Jenkins, the State Department’s undersecretary for arms control and international security. Jenkins, who is leading the agency’s effort to implement the AUKUS trilateral security partnership between Australia, the U.S. and the U.K., said the three countries need to be diligent about stopping “information getting out.”
The State Department fined Boeing $51 million after the company allegedly violated a range of U.S. export controls, including license requirements for exports to China and Russia. The violations, which Boeing voluntarily disclosed, included illegal exports to foreign employees and contractors working in more than 15 countries; a trade compliance specialist fabricating an export license to illegally ship defense items abroad; and violations of the terms and conditions of other export licenses, among other things.
The State Department fined Boeing $51 million after the company allegedly violated a range of U.S. export controls, in the largest stand-alone civil fine by the Directorate of Defense Trade Controls in years. The violations, which mostly occurred before 2020, included illegal exports to foreign employees and contractors working in more than 15 countries; a trade compliance specialist fabricating an export license to illegally ship defense items abroad; and violations of the terms and conditions of other export licenses. Boeing voluntarily disclosed the violations between 2017 and 2022.