The Bureau of Industry and Security is still “developing” a rule that will expand the agency’s restrictions on certain activities that support foreign military, security or intelligence services, Hillary Hess, the agency’s regulatory policy director, said during a Sept. 12 Regulations and Procedures Technical Advisory Committee meeting. The rule, hailed by one lawmaker as the “largest expansion of presidential export control authority in several years,” will implement a provision in the FY 2023 defense spending bill that will allow BIS to expand its U.S. persons controls to capture certain sensitive services to foreign intelligence agencies (see 2212210032).
The Bureau of Industry and Security’s top export enforcement official this week urged customs brokers, forwarders and non-vessel operating common carriers to be more proactive in export compliance even though they may not always have the “primary” responsibility for ensuring goods comply with U.S. export licensing restrictions. Matthew Axelrod, the BIS assistant secretary for export enforcement, said those service providers should take steps to ensure they have maximum visibility into their clients and the goods they are shipping.
The Bureau of Industry and Security last week suspended the export privileges of one person for illegally exporting dual-use technology to Libya and three others for illegally exporting weapons to Mexico or Ecuador.
A new House bill introduced last week could help facilitate exports of “high-performance” computers and other equipment to India. The Technology Exports to India Act, introduced by Reps. Gregory Meeks, D-N.Y., and Andy Barr, R-Ky., would remove certain restrictions on the sale of U.S. digital computers and electronic assemblies to India, the lawmakers said. The bill comes as the U.S. tries to convince India to rescind its recently announced import restrictions on computers and various electronics (see 2308170028).
The Bureau of Industry and Security is drafting a proposed rule that could make “enhancements” to and simplify License Exception Strategic Trade Authorization, which authorizes certain exports to trusted U.S. allies if the foreign importer certifies that they won’t reexport the item outside a list of STA countries. BIS sent the rule for interagency review Sept. 8. The agency has said it wants more exporters to use the license exception, which could help expedite certain exports and reduce workload for the government (see 2209280042).
Suspicious activity reports recently filed with the U.S. government show nearly $1 billion worth of transactions over the last year may have had ties to Russia-related export control evasion, the Financial Crimes Enforcement Network said in a new report analyzing SAR trend data. The report -- issued as part of a joint effort between FinCen and the Bureau of Industry and Security to collect more leads for export enforcement agents -- highlights several evasion trends being reported by banks and other financial institutions, including what types of goods are most commonly being sought by sanctions evaders and which foreign countries those transactions most frequently involve.
Pratt & Whitney Component Solutions has settled with the Bureau of Industry and Security and will pay $48,750 to resolve violations of the agency’s antiboycott regulations, according to a Sept. 6 order. BIS said that the settlement stemmed from Pratt & Whitney's failure to timely report multiple requests to engage in restrictive trade practices and furtherance of an unsanctioned foreign boycott.
The Bureau of Industry and Security is drafting a proposed rule to revise license exception Additional Permissive Reexports, which allows certain reexports of controlled U.S. items from U.S. allies, including those listed under Country Group A:1 of the Export Administration Regulations. BIS sent the rule for interagency review Sept. 1. The agency in 2020 proposed reducing the number of countries eligible for the license exception, but trade groups and companies said the move could damage U.S. competitiveness (see 2009220037).
The Bureau of Industry and Security is seeking comments on the potential market impact of the proposed FY 2025 National Defense Stockpile Annual Materials Plan, the agency said in a Sept. 1 notice. Comments will help inform the government of the “projected domestic and foreign economic effects of all acquisitions, conversions, and disposals involving the National Defense Stockpile,” BIS said. Comments are due Oct. 5.
The Bureau of Industry and Security issued a temporary denial order last week against three people and four companies for their involvement in a scheme to illegally procure more than $225,000 worth of U.S. electronics components for Russia’s military. One of the individuals, Russian-German national Arthur Petrov, was arrested Aug. 26 in Cyprus and charged by DOJ with violating export controls and smuggling controlled goods from the U.S.