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.
The Bureau of Industry and Security added four entities to the Entity List last week after the agency said they illegally supplied U.S. items and parts to Russia or Venezuela. The companies, which have locations in Costa Rica, Ecuador, India, Panama, Spain, Russia and Venezuela, either supplied U.S.-origin integrated circuits to Russia’s defense sector or helped the Nicolas Maduro-led regime in Venezuela illegally acquire export-controlled aircraft parts.
The Bureau of Industry and Security is preparing to release another new set of Russia-related export controls next month, which could include potential additions to the Entity List, said Matthew Borman, the agency’s deputy assistant secretary for export administration.
The Bureau of Industry and Security this week removed a Chinese scientific institute from the Entity List that the agency had originally added in 2020 for ties to human rights abuses in Xinjiang (see 2005220058). The move, outlined in a final rule effective Nov. 16, removed the Ministry of Public Security’s Institute of Forensic Science of China from the list.
The Bureau of Industry and Security is working to convince more countries to place export controls on advanced semiconductors and chipmaking equipment destined to China, but the agency couldn’t afford to delay its most recent chip controls as other nations mulled them over, said Thea Kendler, BIS assistant secretary for export administration. While the agency prefers to implement its chip controls and other restrictions alongside allies, “we will not hesitate to act unilaterally to protect U.S. national security,” Kendler said.
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As the Bureau of Industry and Security adds new export controls on emerging technologies, it should also remove outdated restrictions on items that may no longer warrant licensing requirements, such as life jackets and fire extinguishers, the Center for Strategic and International Studies said in a report. The think tank also urged BIS to shrink the Entity List to only entities that pose the most serious national security threats and consider giving preferential licensing treatment to a broader set of countries, including Vietnam and Moldova.
Congress should order a review of U.S. semiconductor export controls against China and ask the administration to create a public database of entities connected to China’s military, which would help U.S. companies with their compliance practices, a congressional commission said this week. The bipartisan commission also said Congress should explore the idea of a single export licensing system to streamline export requirements overseen by both the Commerce and State departments.