The U.S. and Canada this week announced an initiative to strengthen collaboration on Russia-related export controls. In a joint statement, the Bureau of Industry and Security and the Canada Border Services Agency said they will share more trade information to stop Russia from acquiring sensitive technologies, including through coordinated pre- and post-shipment verifications and audits. The two countries will also work more closely on inspections of exports, seizures and export control investigations.
The State Department’s recent fine of a U.S. electro-optics equipment manufacturer (see 2202010058) highlighted a range of key takeaways for defense exporters, including the importance of the commodity jurisdiction process and recordkeeping, Torres Trade Law said in a June alert. The consent agreement also underscored the benefits of voluntarily disclosing violations, the firm said, which can significantly mitigate penalties.
The Bureau of Industry and Security June 6 charged Russian oligarch Roman Abramovich with violating U.S. export controls by exporting U.S.-origin aircraft to Russia without the required licenses (see 2202240069). BIS said Abramovich’s planes flew to and from Russia in March, days after the agency announced new export controls on Russia-related aircraft.
Senior Commerce Department officials traveled to Brussels last week to discuss with the EU ways they can increase coordination on Russia export control enforcement, the agency said June 2. Deputy Secretary Don Graves and Matthew Axelrod, the Bureau of Industry and Security's top export enforcement official, met with several EU officials to build on the “excellent cooperation” under the Trade and Technology Council and “ensure that the enhanced Russia controls are enforced effectively,” Commerce said. The two sides hope to speak “regularly” about export enforcement issues, expand information sharing and support each other’s investigations. They agreed to hold another round of talks this week.
The Bureau of Industry and Security made several changes, corrections and clarifications to its export regulations and added a host of new Russian and Belarusian entities to its Entity List, it said in notices. One change adds a license requirement for certain medicine and food shipments to the two countries, and another change allows BIS to publicize export enforcement charging letters before a case is resolved.
The Bureau of Industry and Security extended the public comment period by an additional 30 days for an information collection related to its export license application process. BIS originally requested comments by May 24 (see 2203240002).
The Bureau of Industry and Security is adding 71 entities to its Entity List for supporting Russia’s military or for trying to illegally acquire U.S.-origin goods. The additions include 70 entities based in Russia and one based in Belarus, BIS said, and 66 of them are now subject to BIS’ Russia/Belarus foreign direct product rule. All the entities will require a license for all items subject to the Export Administration Regulations. No license exceptions will be available, and BIS will review applications under a policy of denial. Exports of certain food and medicine will be reviewed on a case-by-case basis, the agency said. The additions, which will be published in the Federal Register June 6, take effect June 2.
The Bureau of Industry and Security this week issued an editorial correction for a Russia-related entry on the Entity List. The change fixes the entry for Kaliningradnefteprodukt OOO.
The Bureau of Industry and Security soon will introduce a congressional notification requirement for certain firearm exports, the agency said in a final rule. The change, effective July 18, will add a new section to the Export Administration Regulations that will require congressional reporting for certain semiautomatic firearms shipments valued at $4 million or more and destined to certain countries. The requirement will apply to certain guns whose export control authority was transferred from the State Department to the Commerce Department in 2020 (see 2001170030).
The Bureau of Industry and Security completed an interagency review for a final rule that would make corrections and clarifications to the agency’s Russia and Belarus export controls. The Office of Information and Regulatory Affairs received the rule May 13 (see 2205160005) and completed the review May 26.