Exports to Hong Kong remain eligible for post-departure filings in the Automated Export System despite recent changes to Hong Kong’s export control status, the National Customs Brokers & Forwarders Association of America said in a Jan. 25 email to industry. NCBFAA said it confirmed with the Census Bureau that the agency will permit the filings, which are available for certain exporters that joined the post-departure filing program before it was closed to new participants. Census recently issued guidance clarifying its reporting requirements for exports to Hong Kong (see 2012300040), despite a December Bureau of Industry and Security rule that removed Hong Kong as a separate destination under the Export Administration Regulations (see 2012220053). A Census spokesperson confirmed that Hong Kong exports will remain eligible for post-departure filings.
The Bureau of Industry and Security is working on several new proposed rules for emerging technologies and is still sifting through industry comments on potential controls for surveillance technologies, the agency said in its 2020 report to Congress this month. Along with its work on emerging technologies last year, the agency said it nearly doubled its civil penalties from 2019, processed about 3,000 more export license applications, and met with a range of trading partners and multilateral export regimes to discuss improvements to export controls.
A 60-day freeze on pending rules, announced by the White House on Jan. 20, will temporarily halt the Bureau of Industry and Security push for new controls on technologies and activities that may be supporting foreign military-intelligence end-uses and end-users in China, Cuba, Russia, Venezuela and other “terrorist-supporting” countries. The changes were to take effect March 16 (see 2101140035). If the Biden administration decides the rule is in line with their enforcement priorities, the rule could go forward later this year.
The Bureau of Industry and Security on Jan. 19 updated its guidance for exports to military-end users and for end-uses in China, Russia and Venezuela (see 2006290045). BIS said it amended one frequently asked question concerning exports to national police. The agency recently amended the Export Administration Regulations to add a military end-user list, which consists of entities subject to export licensing requirements (see 2012220027).
The U.S. will no longer impose a presumption of denial policy for export license applications for Sudan but will still limit which export license exceptions can be used for those exports, the Bureau of Industry and Security said in a Jan. 19 guidance. The guidance, issued less than a week after BIS amended Sudan’s status to loosen certain restrictions in the Export Administration Regulations (see 2101140018), also covered how BIS will control exports of aircraft, encrypted telecommunication items and anti-terrorism controlled items.
The Trump administration told a number of Huawei suppliers that it planned to revoke their licenses to sell to the company and planned to reject “dozens” of other Huawei-related license applications, according to a Jan. 17 Reuters report. The actions impacted licenses used by Intel, Japanese chipmaker Kioxia Corp and others, the report said. Reuters said the action was taken as about 150 licenses were pending for $120 billion worth of goods and technology, which have been held up due to interagency disagreements. Another $280 billion in license applications have yet to be processed but are “likely” to be denied, the report said. The Commerce Department rejected a “flurry” of Huawei-related license applications last week, and an agency official said the pandemic has contributed to adjudication delays and a backlog of applications (see 2101150062). A Bureau of Industry and Security spokesperson said the agency continues to work with interagency partners to “apply consistently the licensing policies articulated” in the Export Administration Regulations “in a manner that protects U.S. national security and foreign policy interests.”
The Bureau of Industry and Security is experiencing significant delays to its Huawei licensing decisions due to telework rules and the COVID-19 pandemic, a BIS official said. Communication between agencies has been hampered, the official said, leading to lengthy license adjudications and a backlog of applications.
The Bureau of Industry and Security added one Chinese entity to its Entity List, another to its Military End User List and removed two Russian entities from the MEU List, the agency said in a final rule. BIS added China National Offshore Oil Corporation Ltd. (CNOOC) to its Entity List for its involvement with China’s militarization of the South China Sea and designated Beijing Skyrizon Aviation Industry Investment Co., Ltd. because of its ties to China’s military. The changes are effective Jan. 14.
The Bureau of Industry and Security announced new controls on technologies and activities that may be supporting foreign military-intelligence end-uses and end-users in China, Cuba, Russia, Venezuela and other “terrorist-supporting” countries. The agency also will bolster controls to prevent U.S. people from supporting weapons programs, weapons delivery systems and weapons production facilities, BIS said in an interim final rule issued Jan. 15. The changes take effect March 16. Comments are due March 1.
The Bureau of Industry and Security removed certain license restrictions for Sudan (see 2012080003) to reflect the U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015). The final rule, effective Jan. 14, will amend the Export Administration Regulations by removing anti-terrorism controls on exports to Sudan and by removing Sudan from Country Group E:1, which makes the country eligible for a 25% de minimis level, BIS said. Sudan also was added to Country Group B and will be eligible for several new license exceptions.