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 issued a notice this week describing the new export restrictions and other sanctions it imposed against Russia in May after determining the country used chemical weapons in violation of international law (see 2405010072). The agency certified to Congress under the Chemical and Biological Weapons Control and Warfare Elimination Act that Russia has used the weapons, and the agency’s certification places restrictions on U.S. Munitions List exports to Russia, arms sales, exports of “national security-sensitive” goods and technology, and more, according to a Federal Register notice released June 6. The notice also outlines several exemptions to the restrictions, including for certain exports necessary for “safety of flight,” certain deemed exports to Russian nationals and exports involving government space cooperation. The agency said the measures will “be implemented by the responsible departments and agencies” and will remain in effect for at least one year.
A June 3 blog post by Defense Trade Solutions, a consultant used by the U.S. defense industry, outlines the licensing and recordkeeping requirements, along with a set of best practices, for brokers involved in exporting defense articles and services.
The State Department’s Directorate of Defense Trade Controls released its annual report to Congress on certain defense exports controlled on the U.S. Munitions List. The report, released June 3, details the aggregate value and quantity of defense items and services authorized to each foreign country and international organization during FY 2023.
The State Department’s proposed rule exempting Australia and the U.K. from International Traffic in Arms Regulations under the Australia-U.K.-U.S. (AUKUS) security partnership is too restrictive and should be revised to remove barriers to defense trade among the three countries, the Aerospace Industries Association (AIA) told the agency last week.
The State Department should expand a carve-out in the U.S. Munitions List to make it easier for U.S. companies to export spacecraft that refuel other ships in space, said Orbit Fab, a company that develops in-space refueling systems. Orbit Fab said the existing exemption may be outdated, and an update could better support “U.S. and allied nations efforts in space.”
The State Department this week announced penalties on three people and two entities and their subsidiaries for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act.
The U.S. government should combine its various export control and sanctions lists into two distinct lists, which could allow the government to better implement trade restrictions and improve industry compliance, a congressional commission heard this week. The commission also discussed whether U.S. export control agencies should have to release more information about their licensing decisions, with one witness saying more transparency would increase business certainty, while another said it would discourage candor between the government and exporters.
The State Department’s Defense Export Control and Compliance System registration and licensing applications will be unavailable to users 5 p.m. to 7 p.m. EDT May 23 for scheduled system maintenance. Users should ensure any work in progress is saved before the downtime period.
Australian export compliance officers are wary about a new proposed International Traffic in Arms Regulation exemption for defense trade with the U.S., which is causing some compliance confusion and could lead to a host of “operational challenges” for companies subject to trade regulations, said Eva Galfi, a consultant for International Trade Advisors in Australia. She said the new exemption, along with a similar rule by the Commerce Department to reduce certain license requirements for exports to Australia and the U.K., may also increase the risk of large fines for violations.