The Bureau of Industry and Security sent a proposed rule for interagency review that could place new export controls on certain “marine toxins.” The rule, sent for review March 21, proposes changes to the Commerce Control List to reflect revisions recently made at the Australia Group, a multilateral export control group for chemical and biological weapons. If approved by the interagency, the proposed rule will request public comments on the control changes.
The Bureau of Industry and Security on March 17 issued three frequently asked questions to address matters surrounding the savings clauses in export control rules for Russia and Belarus (see 2202240069 and 2203020072). The FAQs clarify which activities and transactions are captured by the clauses, provide details around the effective dates of the clauses, and clarify whether the clauses would cover an order when the ultimate consignee is a warehouse or distributor.
The Bureau of Industry and Security last week released a list of commercial and private aircraft that have violated U.S. export controls by flying into Russia and which require a license for “any form of service.” The agency said it will impose penalties, jail time or loss of export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the aircraft without a required BIS license.
The Census Bureau issued March 15 guidance on recent changes to the Automated Export System that accommodate new export controls on cybersecurity items (see 2110200036). AES now includes license code 64 for newly created License Exception Authorized Cybersecurity Exports, which authorizes exports of certain cybersecurity items. The guidance includes information on how to use the new license code and which Export Control Classification Numbers, modes of transportation and Export Information Codes are eligible. The license exception, which the Bureau of Industry and Security announced in October along with new export controls for certain cybersecurity items, took effect March 7 (see 2201110025).
As the U.S. continues to tighten Russia export controls (see 2203110056), more companies may ask customers to sign end-use statements as a way to document their due diligence, said Marwa Hassoun, a trade lawyer with ArentFox Schiff. Businesses must also make sure they are taking certain minimum compliance steps to comply with U.S. sanctions, said ArentFox Schiff sanctions lawyer Matthew Tuchband, including more regular screening of restricted party lists.
The Bureau of Industry and Security issued a list of about 100 commercial and private aircraft that have violated U.S. export controls by flying into Russia, including planes operated by the country’s main airline operators and one owned by a Russian oligarch. BIS said it will impose penalties, jail time or revoke export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the aircraft without a required BIS license. The list includes planes owned by Russian airlines Aeroflot, AirBridgeCargo and Utair and Russian businessman Roman Abramovich.
The Bureau of Industry and Security's Office of Export Enforcement detained two speedboats destined to Russia earlier this month, an agency spokesperson said March 16. The boats, worth a combined $150,000, were detained at the Port of Charleston on March 2 before they could be exported to a large distributor of yachts and boats in Russia, the spokesperson said. The agency released a picture of one of the boats, saying the exporter failed to obtain an export license. BIS said the shipment was subject to new Russian export restrictions that took effect last month (see 2202240069).
The Bureau of Industry and Security has started a large-scale industry outreach effort to ensure companies understand compliance requirements under the new Russian export controls, including direct talks with U.S. and foreign businesses and work on new guidance. The effort, previewed by BIS officials this week, underscores the significant export control and regulatory undertaking by the agency since late February, which has resulted in hundreds of pages of new Russian and Belarusian export restrictions.
The Bureau of Industry and Security recently launched a landing page for its export control actions against Russia, including relevant fact sheets and guidance. The page also includes agency contact information for industry, a link to request a formal advisory opinion and a list of related regulations and "legal resources." BIS warned that it has imposed controls on a "range of items" subject to the Export Administration Regulations that didn't "previously require export licenses when destined for Russia" and plans to update the page as more restrictions are announced.
Ahead of a meeting with Chinese officials, U.S. national security adviser Jake Sullivan publicly warned China that it will face severe penalties if it helps Russia evade Western sanctions. The Biden administration is “watching closely” to see whether Beijing provides Moscow with “material support or economic support,” Sullivan told CNN March 13, which could give Russia an economic lifeline as it faces crippling financial restrictions from Europe, the U.S. and many of its trading partners.