The Bureau of Industry and Security this week revoked the export privileges of two people after they were convicted of smuggling weapons and ammunition from the U.S. to Mexico.
U.S. hardware supplier MaxLinear said it submitted a “comprehensive” voluntary self-disclosure to the Bureau of Industry and Security in March detailing its potential illegal exports to a Chinese foundry on the Entity List. The company, which submitted an initial notification to BIS last year (see 2211070014), has since hired outside counsel who recently completed a “privileged investigation” of the potential violation, according to its April filing with the SEC. The company also “took immediate action to remediate, including by preventing recurrence.”
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The State Department’s Directorate of Defense Trade Controls initiated more end-use checks in FY 2022 compared with FY 2021 and saw an increase in in-person site visits due to loosened COVID-19 pandemic-related travel restrictions. In its annual Blue Lantern report released this week -- which details the agency’s end-use monitoring efforts on export-controlled defense articles and services -- the agency said it began checks on 305 export authorizations or authorization requests, an uptick from the 281 checks it began in 2021 (see 2204180030).
NEW ORLEANS -- The Bureau of Industry and Security is working with CBP to try to speed up reviews of exports that may be subject to the October China chip controls (see 2210070049), said Teresa Telesco, a BIS official. Telesco, speaking April 25 during the National Customs Brokers & Forwarders Association of America’s annual conference, urged freight forwarders and other parties handling exports to take steps to make sure their semiconductor-related shipments aren’t being delayed, including by having technical information “on hand” to show CBP agents.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security should add the Commercial Aircraft Corporation of China (COMAC), a state-owned aerospace manufacturer, to its Military End-User List, Florida Sens. Marco Rubio and Rick Scott said in an April 24 letter to BIS Undersecretary Alan Estevez. The Republican lawmakers said COMAC works closely with the Aviation Industry Corporation of China (AVIC), which is already included on the Entity List and MEU list and holds a minority stake in COMAC.
Sen. Roger Wicker, R-Miss., said companies should make sure they comply with national security-related trade restrictions following the Bureau of Industry and Security's record $300 million fine against Seagate Technology for violating export controls against Huawei (see 2304190071). “Our national security interests are being threatened by Communist China, and companies need to take this situation seriously by following the law,” said Wicker, who led Senate Republicans two years ago in producing a report that urged BIS to penalize Seagate for violating the controls (see 2110260040).
The Bureau of Industry and Security this week proposed new export controls on automated peptide synthesizers that may be used to produce biological weapons (see 2304170010). Although several U.S. companies and a Chinese academy last year warned BIS against imposing new license requirements, the agency said the synthesizers qualify as emerging or foundational technologies and may need to be restricted.
The Bureau of Industry and Security on April 19 fined Seagate Technology $300 million for violating U.S. export controls against Huawei in what it said is the “largest standalone administrative penalty in BIS history.” The agency said the California-based company and its branch in Singapore sold more than 7 million export-controlled hard disk drives to Huawei in violation of the BIS foreign direct product rule.