The top Republican on the House Foreign Affairs Committee said the acting head of the Bureau of Industry and Security misrepresented facts in front of a congressional commission last week (see 2109080062), saying he wasn't straightforward about the agency’s “delayed and incomplete” provision of export licensing decisions to Congress. Although BIS Acting Undersecretary Jeremy Pelter told the commission that BIS has complied with all laws regarding the disclosure of licensing information to Congress, Rep. Michael McCaul said the agency hasn’t been transparent.
The U.S. government needs more resources, including better expertise, to identify emerging and foundational technologies under the Export Control Reform Act of 2018, said Kevin Wolf, the Commerce Department’s former assistant secretary for export administration. Speaking before a U.S.-China Economic and Security Review Commission hearing last week, Wolf said export controls are more “complex” now than they have been in decades, mostly due to Chinese technology acquisition efforts and the continued development of advanced technologies.
The Bureau of Industry and Security revoked export privileges for seven people for illegally exporting firearms and other defense goods without licenses, according to enforcement orders released this week.
U.S. penalties for illegal exports to China have risen dramatically this year compared with last, with about $6 million in fines handed out already, said Jeremy Pelter, the acting undersecretary for the Bureau of Industry and Security. Pelter told a bipartisan congressional commission this week that the agency during the 2021 fiscal year has issued about $1.86 million in criminal fines and more than $4 million in civil fines, skyrocketing past 2020’s penalties, which totaled about $60,000.
The Bureau of Industry and Security is seeking comments on the potential market impact of the proposed 2023 fiscal year National Defense Stockpile Annual Materials Plan, BIS said in a Sept. 9 notice. Comments will help inform the government of the “projected domestic and foreign economic effects of all acquisitions, conversions, and disposals involving the National Defense Stockpile and related material research and development projects,” BIS said. Comments are due by Oct. 12.
The Commerce Department's Bureau of Industry and Security is willing to consider ways to accelerate its emerging and foundational technology control effort but won't abandon its multilateral efforts just to publish controls more quickly, a top official told a bipartisan congressional commission on China Wednesday. Acting BIS Undersecretary Jeremy Pelter acknowledged criticism that the agency is moving too slowly on the congressionally mandated export control effort but defended the work BIS has done so far and said the agency doesn’t plan to change course.
Export Compliance Daily is providing readers with the top stories for Aug. 30 - Sept.3 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Commerce Department’s delay in issuing emerging and foundational technology controls may not be hampering U.S. foreign investment reviews as much as some lawmakers have suggested, trade lawyers said. Although the Committee on Foreign Investment in the U.S. doesn’t yet have a clear set of Commerce-defined critical technologies to target, that has not slowed down CFIUS from catching non-notified deals in critical technology sectors, the lawyers said in interviews, especially those involving semiconductors (see 2109010051).
The Bureau of Industry and Security revoked export privileges for Luis Lopez for illegally exporting firearms to Mexico, BIS said in an Aug. 30 order. Lopez was convicted Dec. 17, 2019, after illegally exporting five AK-47 semiautomatic rifles, BIS said. Lopez was sentenced to 37 months in prison and three years of supervised release, and was issued a $100 fine. BIS denied his export privileges for 10 years from the date of conviction.
The Bureau of Industry and Security recently named John Johnson the assistant director for investigative programs at the Office for Export Enforcement, a BIS spokesperson said. Johnson, who has been with OEE since 2007 and previously served as a special agent at the State Department, began his new role Aug. 1. He will oversee OEE's investigative programs.