The Bureau of Industry and Security this week officially released its enforcement order, charging letter and settlement agreement involving Unicat Catalyst Technologies, the Texas-based industrial equipment supplier that recently was assessed millions of dollars in combined penalties by BIS, DOJ and the Office of Foreign Assets Control for allegedly violating export control and sanctions laws (see 2506170047).
As the Bureau of Industry and Security asks for more funding from Congress to improve its enforcement and technological capabilities, the agency could benefit from more information about controlled exports leaving third countries, said Matt Borman, a former senior BIS official. He also stressed the importance of the U.S. carefully calibrating any new export controls, and said its current semiconductors restrictions have successfully slowed China from producing the most advanced chips.
Senate Foreign Relations Committee Chairman Jim Risch, R-Idaho, said June 17 that he expects the Australia-U.K.-U.S. (AUKUS) partnership will demonstrate its worth in the Defense Department’s recently announced review of the security initiative.
A Bureau of Industry and Security move to adopt a 50% rule for parties on the Entity List would expand the list to cover thousands of new subsidiaries in nearly 100 jurisdictions, risk intelligence firm Kharon said this week. While Russia and China would account for most of the subsidiaries, Kharon said the list could cover hundreds more in the EU, the U.S., the U.K., Singapore, Switzerland, Japan, Canada, Australia and India. "Almost none" of those subsidiaries ever have appeared on a government-run restricted party list, it said.
A Texas-based industrial equipment supplier and its former CEO were fined millions of dollars for intentionally violating sanctions and export control laws, but the U.S. declined to prosecute its parent company after the firm voluntarily disclosed the violations and cooperated closely with DOJ’s investigation.
Taiwan added more than 600 companies to its list of those subject to stringent export license requirements, including major Chinese technology companies Huawei and SMIC.
Despite the Trump administration easing certain sanctions against Syria, companies should still be carrying out careful due diligence and should be aware of other legal risks they could face before doing any business in the country, industry advisers said this week.
David Peters, President Donald Trump’s nominee to be assistant secretary of commerce for export enforcement (see 2504300061), said June 12 that he would “aggressively” enforce U.S. export controls to ensure sensitive American technology doesn’t end up in the hands of adversaries.
The Bureau of Industry and Security should consider working with companies to help them carry out extra due diligence for certain chip exports and should introduce a notification requirement for exports of advanced AI chips, researchers said in a new report last week. Those and other recommendations could help BIS better prevent illegal chip smuggling, they said.
The Bureau of Industry and Security is seeking public comments on an information collection for the agency’s surveys and assessments of U.S. industrial sectors and technologies. The survey data provides "needed information to benchmark industry performance and raise awareness of diminishing manufacturing capabilities,” BIS said in a Federal Register notice. Comments are due Aug. 12.