The Department of Defense will now provide “security of supply arrangements” for U.S. persons seeking assistance in priority delivery from Spain involving DOD-authorized contracts, subcontracts or specific orders, said the Commerce Department’s Bureau of Industry and Security in a final rule (here). The Defense Priorities and Allocations System Regulations provides that assistance to a small list of other countries, which includes Australia, Finland, Italy, The Netherlands, Sweden and the UK. DOD only provides “security of supply” services for “an approved national defense and/or energy program,” BIS said in the rule. Once a program is approved, the Bureau of Industry and Security (or another agency to which BIS has delegated authority) may place priority ratings on certain contracts,” said BIS. “These ratings effectively expedite contractual performance to support the approved program.”
The Foreign Trade Zones Board issued the following notices for Aug. 18:
The Foreign Trade Zones Board issued the following notices for Aug. 17:
The Foreign Trade Zones Board issued the following notices for Aug. 14:
The Foreign Trade Zones Board issued the following notices for Aug. 11:
The Foreign Trade Zones Board issued the following notices for Aug. 10:
The Commerce Department's Bureau of Industry and Security denied Peter Gromacki export privileges for ten years after a U.S. district court convicted Gromacki of illegally exporting T700 carbon fiber, which is controlled by the Export Administration Regulations, to China without a BIS license (here). The agency is also denying export privileges for JEN Fibers and Performance Engineered, two companies owned and operated by Gromacki. The district court convicted Gromacki in 2013, and his denial will expire in 2023. Gromacki received a sentence of three months of imprisonment, three years of supervised release, a $300 assessment and a $5,000 criminal fine. BIS is giving Gromacki 45 days to appeal the denial order.
The Justice Department is expected “imminently” to deliver a legal opinion advising the Commerce Department’s Office of Inspector General on whether it can access business propriety information (BPI) when conducting audits of the International Trade Administration, said Commerce’s Acting Inspector General David Smith in testimony to the Senate Judiciary Committee on Aug. 5. Both the ITA and Commerce’s Office of General Counsel previously warned that access to BPI, which is confidential information, may violate the Tariff Act of 1930 and subject Commerce to “criminal litigation and penalties,” said Smith (here).
The Foreign Trade Zones Board issued the following notices for Aug. 7:
The Commerce Department is amending the Export Administration Regulations to add a Russian oil and gas field to the Entity List. The addition of the Yuzhno-Kirinskoye Field, located in the Sea of Okhotsk, further implements “U.S. sanctions on certain Russian energy projects,” said Commerce’s Bureau of Industry and Security in its final rule (here). “The U.S. Government has determined, therefore, that exports, reexports, and transfers (in-country) of all items subject to the EAR to this Russian field by any person without first obtaining a BIS license present an unacceptable risk of use in, or diversion to, the activities specified in the Russian industry sector sanctions,” said BIS. The Entity list, administered by BIS, informs the public of entities that have allegedly engaged in activities that could facilitate the spread of weapons of mass destruction. BIS requires license for exports to these entities, but the agency typically denies license requests. License exceptions for transactions with companies and individuals on the Entity List are very rare, the agency says.