The Bureau of Industry and Security is extending the public comment deadlines for two information collections involving export activities. One involves the government’s Competitive Enhancement Needs Assessment Survey Program, under which the BIS Office of Technology Evaluation surveys businesses to determine which “government competitive enhancement, procurement opportunity and business diversification programs would benefit their competitive position in the marketplace.” The other involves Form BIS-4023P, which companies must submit to participate in the NATO International Competitive Bidding process under the NATO Security Investment Program. Comments were previously requested in March, but the agency is allowing for another 30 days.
A U.S. digital assets company and a European aerospace firm recently disclosed in financial statements that they're under investigation for possible violations of sanctions or export control laws, while an American entertainment company revealed it submitted a sanctions disclosure to the U.S. government.
The Bureau of Industry and Security is extending the public comment period for an information collection relating to offset agreements worth more than $5 million for sales of weapons systems or defense articles to foreign countries or companies (see 2402150023). BIS said it defines offsets as “compensation practices required as a condition of purchase in either government-to-government or commercial sales of defense articles.” The agency is allowing for another 30 days of comments.
The Bureau of Industry and Security is extending the public comment period for an information collection relating to statements required under certain exports by the ultimate consignee and purchaser (see 2403220011). The collection involves Form BIS-711, which provides information on the foreign importer receiving U.S. technology, describes how the technology will be used and “provides assurances” that the technology will not be used in violation of the Export Administration Regulations. BIS is allowing for an additional 30 days of comments.
A new U.S. rule expected this month could expand restrictions on foreign exports of certain chip equipment to China but exclude chipmakers in the Netherlands, Japan and South Korea, Reuters reported July 31.
Companies should expect the Treasury Department to aggressively penalize violators of its upcoming outbound investment prohibitions relatively soon after those rules are finalized, lawyers with Kirkland & Ellis said this week. They also said American chip companies and other technology firms are considering inserting new outbound investment-related warranties in their contracts and may start pulling out of existing investment deals that could soon be captured by the new prohibitions.
The Bureau of Industry and Security has completed hiring leaders as part of a restructuring of its export administration offices, the agency announced July 30. The latest hire, Julia Khersonsky, a former State Department foreign affairs officer, joined the Bureau of Industry and Security this month as the agency’s first deputy assistant secretary for strategic trade, where she will oversee the offices of National Security and Technology Transfer Controls, Nonproliferation and Treaty Compliance, and Exporter Services. BIS earlier this year appointed longtime BIS officials Matt Borman to be the agency’s new principal deputy assistant secretary and Eric Longnecker to be its new deputy assistant secretary for technology security (see 2405070005). BIS announced its internal restructuring plans at its annual conference in March.
Senate Minority Whip John Thune, R-S.D., urged Senate Majority Leader Chuck Schumer, D-N.Y., last week to schedule Senate floor consideration of the FY 2025 National Defense Authorization Act (NDAA) “in the very near future.”
The Office of Foreign Assets Control this week sanctioned five people and seven entities across mainland China, Hong Kong and Iran for helping to provide key parts to Iran’s missile and drone programs. OFAC said they procure accelerometers, gyroscopes and other components that “serve as key inputs” for Iranian weapons programs, which that country uses to produce drones for Russia and its “proxies” in the Middle East.
The U.S. should start designating Chinese banks under a December executive order that authorizes secondary sanctions on foreign financial institutions that help facilitate Russia-related transactions, a group advocating for democracy in Hong Kong said in a new report this month.