The Bureau of Industry and Security will issue new export controls on certain cybersecurity items and create a new license exception for those exports, according to an interim final rule. The rule will establish more restrictions on items that can be used for “malicious cyber activities” by imposing a license requirement for shipments to certain countries, BIS said. The changes, which take effect Jan. 19, will align U.S. cybersecurity restrictions with controls previously agreed to at the multilateral Wassenaar Arrangement. BIS is also seeking public comments on the changes by Dec. 6.
The Bureau of Industry and Security is seeking public comments on an information collection relating to transfers of export licenses, it said. Export licenses can be transferred under “certain circumstances,” the agency said, such as company mergers or takeovers that “necessitate the transfer of an active export license from one party to another.” Comments are due Dec. 20.
Weak U.S. export controls and licensing policies may have contributed to China's reported development of nuclear-capable hypersonic missiles, Rep. Michael McCaul, R-Texas, said Oct. 18. McCaul said he warned the Commerce Department to place stricter controls on China’s Phytium Technologies -- a company “contributing” to the country’s hypersonic weapons program -- by applying the foreign direct product rule (see 2104150040).
The Bureau of Industry and Security completed interagency review of an interim final rule that could make changes to the Commerce Control List for certain cybersecurity items. The rule, received by the Office of Information and Regulatory Affairs in September (see 2109200005) and completed Oct. 14, would build upon a proposed rule published by BIS in 2015 that was intended to gather feedback on new Wassenaar Arrangement controls on some cybersecurity items.
RANCHO MIRAGE, California -- The Commerce Department and CBP will soon deploy a new feature in the Automated Export System to automatically warn filers if they are exporting a controlled item without a license, a BIS official said. The agencies hope to launch the feature -- which should help exporters, freight forwarders and carriers better conduct due diligence -- in the next few months, said Richard Sylvestri, a senior export administration analyst in the Bureau of Industry and Security's Western Regional Office.
The Bureau of Industry and Security will hold a virtual forum Oct. 29 to gather recommendations to “strengthen the resiliency of critical supply chains supporting the U.S. information and communications technology (ICT) industrial base that are at risk of disruption, strain, compromise, or elimination,” the agency said. The meeting is part of the effort launched by the February 2021 executive order on ICT supply chains. Requests to attend are due by 5 p.m. EDT on Oct. 27.
A multinational semiconductor company may have violated U.S. export controls when it transacted with two Chinese technology companies on the Entity List, according to its October Securities and Exchange Commission filing. Arteris, which is headquartered in California, said it maintained a business “relationship” with HiSilicon Technologies Co. and Chongxin Bada Technology Development Co., Ltd., which may have resulted in “inadvertent” violations of the Export Administration Regulations. The Bureau of Industry and Security added HiSilicon to the Entity List in 2019 as an affiliate of Huawei (see 1905160072) and added Bada in 2020 (see 2008260038).
The Bureau of Industry and Security is seeking feedback for its annual conference next year to determine whether to hold it virtually, in person or as a hybrid of the two, and whether participants would be willing to pay a higher fee. The agency said it “strives to keep its conference and seminar fees as low as possible” but expects an increase in 2022. Completed voluntary questionnaires are due by Oct. 19.
The Bureau of Industry and Security fined a U.S.-based telecommunications company $1.87 million for illegally exporting goods to Vietnam, BIS said in an Oct. 12 order. California-based VTA Telecom, a subsidiary of a Vietnamese state-owned telecom company, included false statements in its export applications to hide the true end-uses for the exports, BIS said.
P. Lee Smith, former acting assistant secretary for export enforcement at the Commerce Department's Bureau of Industry and Security, has joined Baker Donelson as of counsel and will lead the firm's Washington, D.C.-based International Trade and National Security practice, it announced.