Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The State Department sent a rule for interagency review that would finalize its April proposal to exempt Australia and the U.K. from certain International Traffic in Arms Regulations licensing requirements as part of the AUKUS partnership (see 2404300050). The interim final rule was sent to the Office of Information and Regulatory Affairs July 19. At least one industry group criticized the proposed rule for not removing enough barriers to defense trade among the three countries (see 2406030056).
The State Department’s recently published spring 2024 regulatory agenda mentions several rules that could update defense export controls under the International Traffic in Arms Regulations, including one that would update ITAR language surrounding defense services and another to revise controls for certain circuit boards and semiconductors.
The U.S. District Court for the Western District of Kentucky on July 9 denied a U.S. defense manufacturer's motion to dismiss allegations that it criminally smuggled weapons by selling drawings of a rare earth permanent magnet used in F/A-18 Super Hornets to China (U.S. v. Quadrant Magnetics, LLC, W.D. Ky. # 3:22-CR-88-DJH).
The Commerce Department’s spring 2024 regulatory agenda for the Bureau of Industry and Security features a range of upcoming rules that could update and expand U.S. export control regulations, including new controls on the activities of U.S. persons in support of foreign military and intelligence agencies, revised regulatory language to address “diversion concerns,” new multilateral restrictions on emerging technologies and broader license requirements for Pakistan.
House Foreign Affairs Committee Chairman Michael McCaul, R-Texas, said July 11 he has told Indian leaders to stop buying new Russian military equipment or risk losing his support for U.S. arms exports to the South Asian country.
Jessica Lewis, who leads the State Department’s Bureau of Political-Military Affairs, will leave the government this month, Secretary of State Antony Blinken announced July 9. Lewis worked on a range of defense trade issues during her three years with the State Department, including the Biden administration's revamped arms transfer policies (see 2302230049 and 2111040056) and its efforts to harmonize defense export controls with Australia and the U.K. as part of the AUKUS partnership (see 2305240061 and 2309270007). Blinken said Lewis is returning "to private life."
The State Department announced three-year debarments this week against 16 people convicted of violating U.S. export control laws. All 16 are “generally ineligible” to participate in activity controlled by the International Traffic in Arms Regulations for three years following their dates of conviction. At the end of that period, they must apply to be reinstated from their debarment before engaging in ITAR activities.
The State Department sent an interim final rule for interagency review that would make “targeted revisions” to items on the U.S. Munitions List. The rule, sent to the Office of Information and Regulatory Affairs June 21, would revise and exclude USML entries that no longer warrant inclusion and add entries for critical and emerging technologies that warrant more strict export licensing requirements. The rule “also seeks to limit the items categorized” in USML Category XXI (Articles, Technical Data, and Defense Services Not Otherwise Enumerated) by “updating the appropriate USML paragraph,” the agency said.
The State Department recently launched an informal, voluntary network for the Australia-U.K.-U.S. (AUKUS) security partnership to share information with stakeholders who are outside the traditional defense industry, an agency official said June 21.