The Bureau of Industry and Security will make several “conforming and clarifying” changes to the Export Administration Regulations to fix and update country and destination references, remove “obsolete” references, correct inadvertent errors and make other minor revisions.
The Biden administration, which announced in August 2023 that it would develop restrictions on outbound investment in China (see 2308090066), expects to finalize the new regulations by the end of calendar year 2024, Commerce Secretary Gina Raimondo said May 8.
The Bureau of Industry and Security added 37 Chinese entities to the Entity List for trying to acquire export controlled items for China’s military or quantum technology efforts, helping to ship controlled items to Russia, or for supporting China’s “High Altitude Balloon” program. The additions, outlined in a final rule that was released and took effect May 9, include technology companies, manufacturing firms, research institutions and others. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial.
The Bureau of Industry and Security named Eric Longnecker, former head of the agency’s Office of Strategic Industries and Economic Security, the new deputy assistant secretary for technology security, he announced on LinkedIn. Longnecker, who has worked at BIS for nearly 20 years, announced his new role May 6.
A bipartisan group of four House members introduced a bill last week they said would close an export control loophole that has allowed China to access advanced U.S. computing chips remotely.
The Bureau of Industry and Security this week issued a correction to its April interim final rule that reduced license requirements for exports to Australia and the U.K. as part of the Australia-U.K.-U.S. partnership (see 2404180035). The correction fixes a footnote in the rule to add “greater specificity” for the Export Control Classification Numbers mentioned “so only portions of those 0x5zz ECCNs” that were previously controlled for national security or regional stability reasons for the destinations of Australia and the U.K. “will continue to require a license to Australia and the United Kingdom based on the license requirements specified in this footnote.” The changes took effect May 6.
Sen. Bill Hagerty, R-Tenn., and Rep. Mark Green, R-Tenn., announced separate legislative proposals last week that would block the Bureau of Industry and Security’s new interim final rule restricting firearms exports.
Companies should expect the U.S. to soon expand the statute of limitations for certain export control violations to align with a similar extension for sanctions violations, a law firm said.
The Census Bureau recently updated the Automated Export System to revise the types of exports to Australia and the U.K. that can be filed with License Code C33 (No License Required). The update reflects export control changes made last month by the Bureau of Industry and Security, which reduced certain licensing requirements for shipments to Australia and the U.K. as part of the AUKUS partnership (see 2404180035).
Aggressive new U.S. export controls on advanced computing chips and the equipment to manufacture them are having unintended side effects and may be causing more harm than good for Western companies, a Brussels-based think-tank said.