The Bureau of Industry and Security is seeking comments on how the Chemical Weapons Convention affected certain U.S. “commercial activities” this year, the agency said in a notice released Nov. 30. BIS plans to use the comments as it prepares its annual certification to Congress on whether CWC regulations on Schedule 1 chemicals harm “legitimate commercial activities and interests of chemical, biotechnology, and pharmaceutical firms.” Comments are due Dec. 31.
The Bureau of Industry and Security expects to roll out a more multilateral approach to export controls under the Joe Biden administration but does not expect any major changes to its China policies or Entity List decisions, a senior Commerce Department official said. The official pointed to the strong bipartisan support among lawmakers for Chinese sanctions and export controls, which likely will continue under a new administration. “I don't see that going away. I think the Hill is engaged. I think at least from what President-elect Biden has announced with his Cabinet, these are folks who are familiar with the national security issues,” the official, who declined to be named in order to speak candidly about BIS, said in an interview last week. “So I don't expect a lot of substantive change.”
The Office of Information and Regulatory Affairs on Nov. 20 completed a review for a final Bureau of Industry and Security rule that will revise country groups for Ukraine, Mexico and Cyprus under the Export Administration Regulations. OIRA received the rule June 25.
The Office of Information and Regulatory Affairs began a review of a final Bureau of Industry and Security rule that would change the license review policy for exports of certain drones. The rule, received by OIRA Nov. 20, would change the review policy for exports of unmanned aerial systems to reflect the U.S. July decision to loosen restrictions over those exports (see 2007270035).
Cordell Hull, who has led the Bureau of Industry and Security for the last year (see 1911180040), will resign next month ahead of the incoming Joe Biden administration. His last day will be Dec. 4, a BIS spokesperson said. “I am proud of what we have achieved on important issues of national security at BIS and I have decided to look for the next challenge in the private sector,” Hull said in a Nov. 19 statement. “I am grateful to Secretary [Wilbur] Ross for giving me this opportunity to serve.”
The U.S. needs to work closer with allies on export controls and foreign investment screening to counter China, a Republican House member and two former Trump administration officials said. They said the U.S.’s current unilateral approach to trade restrictions is not working and could cede U.S. technology leadership to China.
The Office of Information and Regulatory Affairs began a review of a final rule from the Bureau of Industry and Security that would clarify the scope of certain export restrictions to reflect decisions made at the June 2019 Australia Group plenary meeting. The rule would amend the scope of Export Control Classification Number 1C991, which covers vaccines, immunotoxins, medical products, and diagnostic and food testing kits. OIRA received the rule Nov. 16.
The U.S. and other governments need to substantially increase outreach with industry before continuing to pursue export controls over emerging technologies, experts said. Although the U.S. and other governments do some outreach work, future controls will be ineffective and difficult to comply with without more industry input, they said. “It’s [like] trying to change a tire while we’re driving down the road,” said Scott Jones, a senior adviser at the Strategic Trade Research Institute, speaking during a Nov. 17 webinar hosted by STRI. “Going forward, it fundamentally has to be much more collaborative.’
The Bureau of Industry and Security amended and clarified provisions in the Export Administration Regulations to promote compliance and better enforce the Export Control Reform Act. BIS also amended other EAR provisions related to licenses, denial orders and civil penalty payments. The changes, outlined in a final rule issued Nov. 17, take effect Nov. 18.
Corey Stewart, a trade lawyer and supporter of President Donald Trump who lost a 2018 Senate race in Virginia, was named to a “newly created” senior position in the Commerce Department to oversee export regulations, Reuters said in a Nov. 16 report. Stewart will hold the post of principal deputy assistant secretary for export administration, Reuters said, which is above the post of Matthew Borman, the deputy assistant secretary for export administration. Stewart is being brought in to help “push through hardline policies on China” before the Joe Biden administration takes over, the report said. Stewart is expected to serve in the role until the end of the Trump administration on Jan. 20, 2021. The Commerce Department and its Bureau of Industry and Security did not immediately comment. The announcement came about four months after Rich Ashooh, former Commerce assistant secretary for export administration, resigned in July (see 2007020027).