The Department of Justice this week announced new initiatives to “strengthen” its enforcement of corporate crime, which could have wide-ranging effects on cases involving export controls, sanctions and foreign bribery violations. The initiatives were presented by Deputy Attorney General Lisa Monaco as “changes” to the agency’s enforcement policies, including how DOJ will calculate mitigation when assessing penalties, how it will weigh past misconduct for unrelated violations and how it will use independent monitors to ensure compliance with settlement agreements.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The Bureau of Industry and Security plans to implement more emerging technology controls during this fiscal year, Karen Nies-Vogel, BIS’s director of the Office of Exporter Services, said, speaking briefly during an Oct. 28 meeting of the Emerging Technology Technical Advisory Committee. Nies-Vogel said the agency has so far issued 38 emerging technology controls and is “looking forward” to implementing more in the coming months and “years to come.”
Shippers were caught off guard by a new surcharge announced this week by the Los Angeles and Long Beach ports that could exacerbate unfair detention and demurrage fees, members of the Federal Maritime Commission’s Shipper Advisory Committee said. The ports announced a surcharge to ocean carriers for containers that dwell at terminals, a fee that will likely be passed on to shippers, members said during the committee’s inaugural meeting Oct. 27 (see 2109100008 and 2110140001).
Although the Bureau of Industry and Security's new export controls on cybersecurity items are intended to restrict only malicious exports, they could place wide-ranging compliance burdens on the entire cybersecurity sector, law firms said. Technology companies and others operating in the sector still have time to convince BIS to narrow the scope of the rule, which takes effect in January but contains several “ambiguities,” firms said.
A U.S.-based technology company “likely” violated U.S. export controls against Huawei for more than a year but hasn't yet faced penalties by the Bureau of Industry and Security, Republican staff on the Senate Commerce Committee said Oct. 26. The committee’s minority staff said Seagate Technology likely continued shipping hard disk drives to Huawei after BIS amended its foreign direct product rule last year, which imposed controls on goods that are the direct product of certain technology or software subject to the Export Administration Regulations (see 2005150058 and 2008170029).
The Commerce Department needs to address several “urgent shortcomings” in its export control policies toward China (see 2110180016) and impose stricter export restrictions and license denials for sensitive goods and suppliers of Chinese military companies, a group of Republican lawmakers said in a letter to Secretary Gina Raimondo. The 17 Republicans, all members of the House’s China Task Force, also said the Bureau of Industry and Security should commit to a timeline for releasing more emerging and foundational technology controls and issue “appropriate” restrictions on fundamental research and open-source technology platforms.
The Bureau of Industry and Security is seeking feedback on potential export controls for brain-computer interface (BCI) technologies, which may be added to the Commerce Control List as an emerging technology and face new restrictions and license requirements. The agency is specifically seeking comments on whether feasible and effective controls can be imposed on BCI technologies, which include “neural-controlled interfaces, mind-machine interfaces, direct neural interfaces and brain-machine interfaces,” according to an advance notice of proposed rulemaking. Comments are due Dec. 10.
The Treasury Department expects to issue more crypto-related sanctions and allocate more resources to better target the digital assets of cybercriminals, Treasury Deputy Secretary Wally Adeyemo said. Speaking during a Center for a New American Security Event event last week, Adeyemo also said the agency is placing a high priority on multilateral designations and is hoping to better understand trading partners’ concerns about U.S. secondary sanctions.
The Department of Justice may issue severe penalties in the future for foreign hacking that violates U.S. export controls despite the “lenient” deferred prosecution agreement it announced in September (see 2109150031), national security lawyers said. Companies shouldn't expect that case to signal the start of a trend of minor penalties for hacking, the lawyers said, and should be especially cautious before providing cyber services to foreign governments.
Export controls may prevent some hurdles in the investment and development of emerging quantum computing technologies, the Government Accountability Office said in an Oct. 19 report. Controls may limit some U.S. trade, prevent U.S. quantum technology companies from collaborating with other countries and deter U.S. firms from employing highly skilled foreign workers, the GAO said.