The Bureau of Industry and Security on Oct. 28 updated its guidance on the Foreign-Produced Direct Product Rule to further clarify situations when goods are subject to the FDP rule and require a license. The guidance, which includes a set of frequently asked questions (see 2012210044), now includes new FAQ No. 4 under the "supply chain" subheading, which starts on page four and continues onto page five, a BIS spokesperson said.
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.”
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.
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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 House Foreign Affairs Committee's release of export licensing information for Huawei and China’s chipmaker SMIC (see 2110210073) may not present an accurate picture of licensing approvals and may mislead industry, the Commerce Department said Oct. 22. Although the agency approved more than a combined $100 billion worth of export licenses for shipments to Huawei and SMIC from November 2020 through April, the statistics didn’t reflect pending applications set to be denied, which would have significantly lowered the percentage of approved applications for both companies.
The Bureau of Industry and Security completed an interagency review of a pre-rule that would propose new export controls on certain brain-computer interface (BCI) technologies. The rule, which was sent to the Office of Information and Regulatory Affairs Oct. 5 (see 2110060006) and completed Oct. 19, will seek to determine whether BCI items are emerging technologies and whether effective controls can be put in place. BIS plans to ask for public comments in the pre-rule.
The Bureau of Industry and Security is accepting questions and comments ahead of the first U.S.-European Union joint outreach event on dual-use export controls under the U.S.-EU Trade and Technology Council. The virtual event, scheduled for Oct. 27 (see 2110190020), will allow members of industry, academia and the public to review and discuss “principles and areas for export control cooperation” along with U.S. and EU officials. BIS is accepting comments through TTCExportControls@bis.doc.gov.