Qualcomm supports “targeted and rule-based export controls” as one of several long-term federal policy recommendations for curing the semiconductor shortage, the chipmaker told the Bureau of Industry and Security in comments posted Nov. 10. Washington should “control emerging technologies,” consistent with the 2018 Export Control Reform Act, by imposing targeted and rule-based export controls and avoid disrupting semiconductor supply, especially in legacy node chipsets,” Qualcomm said. “Unilateral controls would only hinder Qualcomm and other U.S. companies from selling in foreign markets, undermining their R&D investments and disadvantaging them against their foreign competitors.” Some international rivals already have “both the technology capability and funding to develop global leadership in these areas,” it said. Submissions to BIS were due Nov. 8 for the agency's September request for information as it prepares a report to the White House on the chip shortage and semiconductor supply chain issues (see 2109230018).
The Bureau of Industry and Security on Nov. 12 issued a new 16-page guidance on its recently issued export controls on certain cybersecurity items, which take effect Jan. 19 (see 2110200036). The guidance includes 29 frequently asked questions on how the items will be controlled, how BIS defines certain control terms, when licenses are required for cybersecurity exports and more. The FAQs also define the term “government end-user” under new License Exception Authorized Cybersecurity Exports (ACE), and list situations when a license requirement is triggered for cybersecurity exports, when universities may need a license for teaching and training, and when certain carve-outs apply.
The Bureau of Industry and Security extended the comment period for an information collection involving the Chemical Weapons Convention provisions in the Export Administration Regulations (see 2107200010), the agency said in a notice. The information collection describes U.S. reporting obligations and information on certain end-use certificates. BIS said it will allow an additional 30 days of public comments. Comments are due by Dec. 13.
The Bureau of Industry and Security revoked export privileges for Manuel Valencia-Hermosillo for illegally exporting ammunition and magazines to Mexico, BIS said in a Nov. 9 order. The agency said Valencia-Hermosillo violated the Arms Export Control Act when he shipped 11,000 rounds of Wolf 7.62 X 39mm ammunition, 100 Palmetto State Armory 5.56 rifle magazines and 100 Korean 7.62 X 39 rifle magazines, all of which were controlled under the U.S. Munitions List. Valencia-Hermosillo was convicted Oct. 13, 2017, and sentenced to 15 months in prison, three years of supervised release and a $100 fine. BIS denied Valencia-Hermosillo’s export privileges for seven years from the date of conviction.
The Bureau of Industry and Security on Nov. 8 revoked export privileges for four people after they illegally exported a range of military-related items, including weapons parts, ammunition and technical data for defense items. Hersel Lincoln McKenzie was convicted Jan. 8, 2020, after illegally exporting 7.62 x 39 mm ammunition to Mexico, BIS said. McKenzie was sentenced to one year and one day in prison and a $100 fine. BIS denied McKenzie’s export privileges for five years from the date of conviction.
The Bureau of Industry and Security fined a Pennsylvania-based scientific equipment manufacturer $80,000 for illegally exporting goods to Huawei and HiSilicon Technologies in 2019, according to a Nov. 8 enforcement order. The company, SP Industries, exported more than $170,000 worth of goods to the Chinese technology companies just after they were added to the Entity List (see 1905160072).
Yanjun Xu, a Chinese national and intelligence officer, was convicted by jury of conspiring and attempting to carry out economic espionage and trade secret theft, the Department of Justice said Nov. 5. Xu served as the deputy division director of the Sixth Bureau of the Jiangsu Province Ministry of State Security, and is the first Chinese intelligence officer to be extradited to the U.S. to stand trial, DOJ said. Xu faces two counts of attempting to commit economic espionage, each of which carries a maximum penalty of 15 years in prison and a $5 million fine, along with one count of conspiracy to commit trade secret theft and two counts of attempted trade secret theft, each of which carries a maximum sentence of 10 years in prison and a $250,000 fine.
The Commerce Department should tread carefully when imposing new export controls, foreign investment restrictions and limits on standards collaboration, which may jeopardize the U.S.’s position in global information and communications technology supply chains, U.S. companies and trade groups told the agency this month. Some of those regulatory restrictions are already having chilling effects on U.S. competitiveness, they said, as foreign firms and countries can quickly fill voids in overseas markets and leadership positions in global standards bodies.
The Biden administration is still working through a sweeping review of its arms transfer policies, which is expected to place more of an emphasis on human rights concerns while helping to remove foreign barriers to U.S. defense exporters, said Tim Betts, a senior State Department official. He said the agency is in the middle of an “intensive” interagency process and “wide ranging” discussions with industry and Congress to determine how best to revise its conventional arms transfer policies, which could represent a more cautious approach compared with the previous administration.
The Bureau of Industry and Security added four technology companies in Israel, Russia and Singapore to the Entity List for “acting contrary” to U.S. foreign policy and national security through “malicious cyber activities,” BIS said in a notice released Nov. 3. The companies either operate or supply technologies in the cyberintelligence and information security sectors and will be subject to a license review policy of presumption of denial for all items subject to the Export Administration Regulations. No license exceptions will be available for controlled exports to the four companies. The additions are effective Nov. 4.