The Bureau of Industry and Security's upcoming shift in its administrative enforcement policies could signal a more aggressive posture toward cracking down on illegal exports and may change how companies voluntarily disclose violations, a former BIS agent said. But some lawyers say the policies could represent a minor shift, and it may be too early to tell how they will affect compliance decisions.
The Bureau of Industry and Security last week suspended the export privileges of another Russian airline and identified a new plane likely violating U.S. export controls. The agency issued a 180-day temporary denial order for Rossiya Airlines, which blocks Rossiya’s ability to participate in transactions subject to the Export Administration Regulations. The U.K. also sanctioned the airline last week (see 2205190011).
The Bureau of Industry and Security is proposing new unilateral export controls on four dual-use biological toxins that can be weaponized to kill people or animals, “degrade equipment” or damage the environment, the agency said in a rule released May 20. Controls would apply to the marine toxins brevetoxin, gonyautoxin, nodularin and palytoxin, BIS said, all of which can be “exploited for biological weapons purposes.” The agency said it won’t categorize the toxins or their technologies as emerging or foundational technologies, and doesn't plan to continue to differentiate between the two categories going forward.
The Bureau of Industry and Security on May 20 suspended the export privileges of another Russian airline for violating U.S. export controls against Russia. The agency issued a 180-day temporary denial order for Rossiya Airlines, BIS said in an emailed news release, adding that the order “terminates” Rossiya’s ability to participate in transactions subject to the Export Administration Regulations. The agency also identified other aircraft that are likely violating U.S. export controls, including another plane owned by Russian oligarch Roman Abramovich.
The Bureau of Industry and Security sent a final rule for interagency review that would introduce a congressional notification requirement for certain weapons exports. The rule, sent to the Office of Information and Regulatory Affairs May 17, would require notifications for certain semiautomatic firearms exports under the Export Administration Regulations.
The Bureau of Industry and Security completed an interagency review of a proposed rule that could place new export controls on certain “marine toxins.” The rule, sent for review March 21 (see 2203220005) and completed May 16, proposes changes to the Commerce Control List to reflect revisions recently made at the multilateral Australia Group.
The Bureau of Industry and Security recently sent a final rule for interagency review 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.
The Bureau of Industry and Security is considering several major changes to its administrative enforcement authorities, including publicizing its charging letters before cases are resolved and increasing penalty amounts for export violations. The agency may also limit its use of no admit/no deny settlements, which allow companies to avoid admitting explicit wrongdoing.
The Bureau of Industry and Security on May 13 opened registration for its annual export controls conference, with this year's theme of "Building a Network of Global Cooperation." The agency released information on the agenda, including what topics will be discussed. The conference will be held June 29 - July 1 in-person at the Marriott Marquis in Washington, D.C. Some portions of it also will be available virtually.
Companies need to stay on top of their compliance because significant escalation of Russia-related sanctions is possible, KPMG experts said. The "dramatic increase in the use of sanctions and other controls" over the past two months will likely continue to expand in complexity, said Jason Rhoades, KPMG senior manager-trade and customs services, during a May 11 webinar. Because Russian behavior toward Ukraine has not changed, "we expect [the use of sanctions] to continue to grow," Rhoades said. "There is significant room still out there for [sanctions] escalation."