The Bureau of Industry and Security’s recent increase in enforcement of anti-boycott regulations signals the agency will “continue to be active in this space,” and companies may want to review their compliance programs, Arnold & Porter said in a Nov. 28 client advisory. “It may be time for U.S. companies and their foreign subsidiaries -- especially those conducting business in or involving the Middle East region -- to establish, review, and/or update their antiboycott compliance programs,” the firm said.
The Biden administration should investigate all Chinese lidar technology companies to determine whether they should be placed on the Entity List or made subject to U.S. investment restrictions, the House Select Committee on China said in a letter this week. The lawmakers said lidar, or light detection and ranging, is being used in autonomous systems and robotics but isn’t subject to export controls, potentially allowing a loophole for Chinese companies to acquire U.S. technologies for use in lidar systems that can aid the country’s military.
The Bureau of Industry and Security sent a final rule for interagency review that will make tweaks, clarifications and corrections to its recent chip export control updates, which were released last month and placed new license requirements on additional chips and chipmaking tools, among other changes (see 2310170055). BIS sent the correction rule to the Office of Information and Regulatory Affairs Nov. 27. BIS officials have said the agency is looking to clarify several issues with the rule that exporters have raised over the past month and correct other provisions that “may not have fully hit the mark we intended” (see 2311060067 and 2311160044).
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The Bureau of Industry and Security suspended the export privileges of Samantha Coronado, an inmate at a Texas federal medical center who was convicted June 23, 2022, of smuggling 730 rounds of “CBC .50 caliber ammunition” from the U.S. to Mexico. Coronado was sentenced to 46 months of “confinement,” three years of supervised release and a $100 assessment, and BIS revoked her export privileges for seven years from the conviction date.
The Commerce Department quietly stopped approving new licenses for firearms exports to three Latin American countries months before publicly announcing a broader suspension in October for dozens of other nations.
The Commerce and Treasury departments earlier this month co-hosted a virtual “exchange” with small to mid-sized financial institutions, law enforcement and government agencies to discuss Russian attempts to evade export controls, the agencies announced Nov. 21. The exchange included officials from the Bureau of Industry and Security, the Office of Foreign Assets Control and the Financial Crimes Enforcement Network, and “exemplified the ongoing U.S. Government effort to further constrain and prevent Russia from accessing the international financial system and conduct economic activity to fund its invasion of Ukraine,” Treasury said. The effort came about a week after BIS and FinCEN issued another set of export control evasion red flags for financial services firms along with a new key term that banks and others can include in their suspicious activity reports (see 2311060055).
The Bureau of Industry and Security has completed a round of interagency review for a proposed rule that could make “enhancements” to and simplify License Exception Strategic Trade Authorization, which authorizes certain exports to trusted U.S. allies if the foreign importer certifies that they won’t reexport the item outside a list of STA countries. BIS sent the rule for interagency review Sept. 8 (see 2309110009), and the review was completed Nov. 17. The agency has said it wants more exporters to use the license exception, which could help expedite certain exports and reduce the workload for the government (see 2209280042).
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The Bureau of Industry and Security recently made available its process by which companies may begin submitting notifications for certain exports of “gray-zone” semiconductors that fall just below the new chip control parameters announced last month (see 2310170055). As part of the updated restrictions, BIS is requiring a notification under new License Exception Notified Advanced Computing (NAC), which will authorize certain exports of certain chips to China, Macau and destinations subject to a U.S. arms embargo.