Although the Bureau of Industry and Security last month said it doesn’t have a draft rule in place to increase export licensing requirements for Huawei, exporters would be wise to still expect a tightening of restrictions against the Chinese telecommunications company, industry officials said this week. They also didn’t rule out BIS soon increasing export controls against China in other ways, including by potentially adding more items to the scope of its military end-use and end-user (MEU) rule requirements.
The Bureau of Industry and Security recently revoked export privileges for seven people after they illegally exported or tried to export controlled items, including military equipment, firearms and ammunition.
A ramping up of U.S. export enforcement efforts is causing companies to revisit their compliance practices, particularly as the Bureau of Industry and Security conducts more outreach to exporters, said Alan Enslen, a trade lawyer with Womble Bond. He said companies are more frequently auditing their export compliance programs amid a number of signs that the Biden administration is increasing scrutiny on potential export violations, including a multi-agency memo issued in March that Enslen said was a “shot across the bow” for U.S. exporters.
The Bureau of Industry and Security recently suspended the export privileges of Thomas Harris, an inmate at a Louisiana federal prison, after he was convicted March 1, 2022, for smuggling firearms from the U.S. to Saint Lucia. BIS said Harris was sentenced to 46 months “confinement,” three years of supervised release and a $1,500 assessment. The agency suspended Harris’ export privileges for 10 years from the conviction date.
The Bureau of Industry and Security added 43 entities to the Entity List this week, including companies conducting various activities that either support China’s military or allow the government to “carry out human rights abuses.” Other entities were added for supporting Pakistan’s ballistic missile program or other weapons capabilities.
The Bureau of Industry and Security is seeking public comments on an information collection involving its “simple network application process” and “multipurpose application form.” The process and form allows exporters to submit license applications, commodity classification requests, encryption review requests and other “notifications” to BIS. Comments are due Aug. 11.
The Bureau of Industry and Security last week suspended export privileges of Aratos Group, a collection of defense and technology companies in the Netherlands and Greece, and its owner for procuring goods for Russian intelligence services in violation of U.S. export controls. BIS also renewed a temporary denial order against three people and two companies also involved in a Russian sanctions evasion scheme.
The Bureau of Industry and Security added 43 entities in China, Kenya, Laos, Malaysia, Pakistan, Singapore, South Africa, Thailand, the United Arab Emirates and the U.K. to the Entity List for either supporting China’s military, supporting the government's human rights abuses or supporting Pakistan’s weapons capabilities. The additions, outlined in a final rule effective June 12, impose license requirements for all items subject to the Export Administration Regulations. The agency also removed one entity from the list.
The Bureau of Industry and Security again renewed the temporary denial order for Belavia Belarusian Airlines, Belarus' state-owned national airline. BIS first suspended the export privileges of the airline last June (see 2206160015) and again in December 2212150054), barring it from participating in transactions with items subject to the Export Administration Regulations. The agency renewed the denial order for another 180 days on June 7 after finding Belavia continues to illegally operate aircraft subject to the EAR, including for flights between Russia, Belarus, Georgia, Turkey and the United Arab Emirates.
The Bureau of Industry and Security on June 7 withdrew a final rule from interagency review that could have expanded its nuclear nonproliferation export controls, according to the Office of Information and Regulatory Affairs. BIS had sent the rule for review June 5 (see 2306060015). A BIS spokesperson didn’t comment.