The Bureau of Industry and Security this week suspended the export privileges of three people for illegally shipping items to China and Mexico.
The Bureau of Industry and Security’s export application submission system will be unavailable beginning March 31 at 9 p.m. EDT and lasting through April 3 at 6 a.m. EDT for “planned maintenance,” the agency said in an alert on its homepage this week. The BIS Simplified Network Application Process – Redesign system (SNAP-R) “will not be accessible” during this time.
The EU and the U.K. are stepping up Russia sanctions enforcement, mirroring U.S. efforts to increase prosecutions and designations of companies helping Moscow evade trade restrictions, two Europe-based lawyers said this week. They said European countries are increasingly taking steps to expand the extraterritorial reach of their sanctions authorities, warning companies to make sure they’re conducting careful due diligence.
The Bureau of Industry and Security this week suspended the export privileges of Texas resident Obed Rafael Cuevas-Serratos for illegally exporting ammunition from the U.S. to Mexico. Cuevas-Serratos was convicted Aug. 3, 2021, for smuggling about 13,000 rounds of 7.62 mm ammunition and was sentenced to 30 months of “confinement,” three years of supervised release and a $100 assessment. BIS suspended Cuevas-Serratos’ export privileges for nine years from the conviction date.
The Bureau of Industry and Security this week added 11 entities in China, Myanmar, Nicaragua and Russia to the Entity List for various activities that have contributed to human rights abuses, the agency said in a final rule effective March 28. The entities include procurement firms, a police entity and technology and electronics companies, including several subsidiaries of Chinese surveillance company Hikvision, which was added to the Entity List in 2019 (see 2205090014).
The Bureau of Industry and Security added 11 entities in China, Myanmar, Nicaragua and Russia to the Entity List for various activities that have contributed to human rights abuses, the agency said in a final rule effective March 28. The entities include technology and electronics companies, among them multiple subsidiaries of Chinese surveillance company Hikvision, which was added to the Entity List in 2019 (see 2205090014). The entities will face a license requirement for all items subject to the Export Administration Regulations, and BIS will review license applications under a presumption of denial. BIS also amended the EAR to “explicitly confirm” that protecting human rights worldwide is a “basis” for adding entities to the Entity List.
A Washington, D.C., court last week rejected a Russian citizen’s bid to dismiss government accusations that he misled investors about his company’s “key” space technology and several U.S. “adverse national security determinations” against the company. The ruling came after the Securities and Exchange Commission said Mikhail Kokorich, former CEO of space industry startup Momentus, made several “misrepresentations, false statements, and material omissions” in merger discussions with another firm, failing to disclose that the Commerce Department had rejected at least one of his company's export license applications and planned to deny another (SEC v. Mikhail Kokorich, D.D.C. # 21-1869).
The Bureau of Industry and Society’s export enforcement arm is ramping up outreaches to exporters amid a rise in new restrictions against Russia and China, said Christopher Grigg, a former DOJ official. Grigg, now a lawyer with Nixon Peabody, said the agency’s Office of Export Enforcement is contacting more companies to specifically vet their record-keeping procedures.
The Bureau of Industry and Security this week suspended the export privileges of nine people, after eight of them were convicted of illegally exporting guns and ammunition, and one person was convicted of illegally smuggling pumps and engines.
The Census Bureau is still deciding whether to introduce a country of origin reporting requirement in the Automated Export System despite receiving mostly opposing comments on the proposal, with trade groups saying the change could lead to costly compliance challenges (see 2203160026 and 2301230008). Gerry Horner, chief of the agency’s trade regulations branch, said the division should be meeting with upper management “very soon” to decide on the best path forward.