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.
The Bureau of Industry and Security, which is seeking a major budget increase in FY 2026 (see 2505020030), would use the funding boost to add hundreds of employees to enhance its compliance and enforcement capabilities, agency head Jeffrey Kessler said June 12.
The U.S. and China reached an agreement for Beijing to rein in export curbs on critical minerals, and for the U.S. to "provide to China what was agreed to," President Donald Trump said June 11, offering few details about the substance of the deal.
The Commerce Department is still waiting to issue its long-awaited proposed rule on routed exports despite making progress on the effort in recent months, said Omari Wooden, assistant division chief for trade outreach and regulations at the Census Bureau.