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.
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.
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.
The Bureau of Industry and Security last week revoked export privileges of one person for illegally exporting diving technology equipment from the U.S. and four people for illegally exporting firearms and ammunition.
The Bureau of Industry and Security last week expanded the scope of its nuclear-related export controls on China and Macau, saying the change was necessary to impose tighter license requirements on items that could “contribute to nuclear activities of concern.” The Nuclear Regulatory Commission also suspended a general license that had authorized exports of certain nuclear items for nuclear end uses in China.
The Bureau of Industry and Security concluded a round of interagency review for a final rule that could expand nuclear nonproliferation export controls on China and Macau. BIS sent the rule for review July 24 (see 2307260008), and the Office of Information and Regulatory Affairs said it was sent back Aug. 7 with some changes.
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 chose not to penalize U.S. hardware supplier MaxLinear after it voluntarily disclosed potential export control violations, the company said in a recent SEC filing. MaxLinear said it received a warning letter from BIS June 8 and was informed by BIS that the agency “closed out its review of our voluntary self-disclosure without monetary or other penalties.” MaxLinear disclosed the potential violation last year when it said it may have breached U.S. export licensing requirements by selling to a Chinese foundry on the Entity List (see 2211070014 and 2305020008).
Investors in Mississippi's public employees' retirement system sued Seagate Technology Holdings for deceiving its investors and causing them to buy Seagate stock at "artificially inflated prices" related to its conduct in illegally exporting hard disk drives to China. (Public Employees' Retirement System of Mississippi v. Seagate Technology Holdings, N.D. Cal. # 3:23-03711).
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.