The Treasury Department is putting eight more military bases under the jurisdiction of the Committee on Foreign Investment in the U.S. after proposing the additions in May (see 2305040052). The expansion, effective Sept. 22, includes the Grand Forks Air Force Base in North Dakota that was the subject of a controversial CFIUS decision last year (see 2212150035, 2212290023 and 2208310066) as well as bases in Texas, California, South Dakota, Iowa and Arizona. CFIUS will be able to intervene in certain land purchases by foreign buyers if they are near any of those sensitive military bases.
British semiconductor company Arm, in its initial U.S. public offering this week, said it’s facing uncertainty from U.S. and U.K. export controls and doesn’t expect to receive an export license to ship certain high performance processor cores to China. The company also said it’s expecting to see slower growth in its China sales revenue due to several factors, including various government-imposed “trade and national security policies.”
The Bureau of Industry and Security this week removed 33 entities from its Unverified List -- including Chinese technology companies and universities -- after it was able to successfully complete end-use checks. The entities include 27 based in China, two in Pakistan and one each in Indonesia, Singapore, Turkey and the United Arab Emirates. The agency also removed two Russian entities from the UVL because it placed both on the more restrictive Entity List last year.
Republicans last week urged the Biden administration against meeting with Beijing to discuss semiconductor export controls, saying the U.S. should not negotiate its policies with China and should instead enact tougher restrictions. They specifically asked Commerce Secretary Gina Raimondo, who is considering a trip to China, to pledge that the U.S. plans to increase its export restrictions against the country.
The Bureau of Industry and Security on Aug. 17 released a correction to its final rule last week that expanded the scope of its nuclear-related export controls on China and Macau (see 2308110019). BIS said there was an "inadvertent error in one of the regulatory instructions for that rule," and the notice issued by BIS this week "corrects that inadvertent error."
The Bureau of Industry and Security made several changes to the Export Administration Regulations this week to align its controls with decisions made at the multilateral Nuclear Suppliers Group in 2019 and 2022. The amendments, outlined in a final rule effective Aug. 18, revised five existing Export Control Classification Numbers under the Commerce Control List to alter or clarify the scope of certain controls and make technical fixes to other ECCNs.
The Bureau of Industry and Security is extending its public comment period for an information collection involving its “simple network application process” and “multipurpose application form.” The process and form allows exporters to submit license applications, commodity classification requests, encryption review requests and other “notifications” to BIS. Comments were previously due Aug. 11 (see 2306090018), but the agency is allowing for another 30 days.
The Bureau of Industry and Security clarified rules surrounding two deemed export scenarios in a new advisory opinion issued in June and released publicly this week. The opinion said U.S.-based subsidiaries are allowed to release certain controlled technologies to their foreign parent companies’ employees -- when they are on temporary assignment in the U.S. -- if the American subsidiary already has an export license to ship the item to its parent company. BIS also said the U.S. subsidiary can use its export license to ship covered items to its parent company if the items were developed by employees on temporary assignment in the U.S.
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Compliance departments need to be increasingly “creative” to catch goods or transactions that may be tied to Russian sanctions evasion, an industry official and former Treasury Department official said this week, especially as the U.S. and its allies ramp up enforcement. They also said compliance is growing more complex, particularly for financial institutions, which must meet expanding government expectations outlined in joint alerts recently published by the Commerce and Treasury departments.