The Bureau of Industry and Security's January rule that expanded export restrictions on foreign military intelligence agencies (see 2102190042) and other activities of U.S. companies could lead to expansive licensing requirements and place burdensome compliance obligations on U.S. companies, Akin Gump said in a March 1 letter to BIS. The law firm said it represents a client that may be affected by the rule’s broad language and urged the agency to narrow its breadth to limit impacts on legitimate business.

The Bureau of Industry and Security issued new restrictions on exports to Myanmar and added four entities to the Entity List in response to the country’s military-led coup last month (see 2102110020). The restrictions, which take effect March 8, increase controls on certain “sensitive” items, remove certain license exceptions, impose a more strict licensing policy and subject Myanmar to BIS’s military end-use and end-user restrictions (see 2012220027), according to a final rule released March 4.

The Office of Information and Regulatory Affairs on March 2 completed its review of a final Bureau of Industry and Security rule that will implement sanctions and export restrictions against Myanmar (see 2102170005). OIRA received the rule Feb. 23 (see 2102240007).

The Bureau of Industry and Security outlined its licensing policy for the 14 additions to the Entity List announced earlier this week (see 2103020067) and made several corrections to the list, a final rule released March 2 said. BIS will impose a license requirement for all items subject to the Export Administration Regulations that are destined to the 14 Russian, German and Swiss entities, the rule said. The license requirement will also apply if any of the entities acts as a “purchaser, intermediate consignee, ultimate consignee, or end-user,” BIS added, and no license exceptions will be available. All exports and reexports that now require a license as a result of the Entity List additions but were aboard a carrier to a port as of March 4 may proceed to their destinations under the previous eligibility, BIS said.

The U.S. needs to modernize its approach to export controls and expand disclosure requirements for foreign investment screening to maintain its technology dominance over China, a U.S. national security commission said in a report this week. The commission called current U.S. export controls outdated, urged the Commerce Department to more quickly control emerging and foundational technologies, and said the Committee on Foreign Investment in the U.S. should review a broader set of transactions to protect sensitive technologies.

The Bureau of Industry and Security recently expanded its commodity classification request process to include the Department of Defense, which is expected to slightly increase processing times and potentially require more thorough submissions of classification requests, an agency official said. The Defense Department began participating in the process late last year as part of BIS’s implementation of the 2018 Export Control Reform Act, said John Varesi, an official in BIS’s Sensors and Aviation Division. ECRA “required that there would be an interagency effort in terms of the commodity classifications,” Varesi said during a March 2 Sensors and Instrumentation Technical Advisory Committee meeting. “This is basically the implementation of that requirement.”

The U.S. sanctioned a host of Russian officials and agencies, will add 14 entities to the Entity List and will increase restrictions on exports of military-related goods to Russia in response to the poisoning and imprisonment of Russian opposition leader Alexei Navalny. The increased export controls will also remove certain license exceptions for shipments to Russia and will impose stricter license review policies for certain sensitive goods, the State Department said March 2.

Apple last week introduced a new ethics and compliance webpage, featuring a detailed outline of its trade compliance policies surrounding export controls and sanctions. A table of all Apple products provides their respective Export Control Classification Numbers and which destinations are blocked from receiving Apple products. The company said all its products qualify as mass market products and are subject to the Export Administration Regulations but are not controlled as dual-use goods by the Wassenaar Arrangement. Apple said some of its goods may be eligible for the Office of Foreign Assets Control’s Iranian General License No. D1 and Bureau of Industry and Security license exceptions related to Cuba. OFAC fined Apple about $465,000 in November 2019 after the company hosted, sold and helped transfer software applications and content belonging to a sanctioned company (see 1911250064).

The Commerce Department on Feb. 26 announced three new staffing appointments to the Bureau of Industry and Security. Steven Emme, a former Akin Gump trade counsel, was named chief of staff; Sahar Hafeez, a former Pillsbury Winthrop trade lawyer, was named senior adviser to the BIS undersecretary; and Feras Sleiman, a former policy adviser to Sen. Elizabeth Warren, D-Mass., was named BIS's congressional affairs specialist.

The State Department is expected to follow through with a rule that would permanently revise the International Traffic in Arms Regulations to allow employees involved in ITAR-related activity to work remotely. The rule, crafted under the Trump administration, was sent for interagency review in December but was withdrawn in January as part of the Biden administration's regulatory freeze on the previous administration’s pending regulations (see 2101210013).