The Bureau of Industry and Security has drafted new guidance for its October rule that expanded certain China-related chip controls (see 2210070049) and hopes to release it soon, said Thea Kendler, the agency’s assistant secretary for export administration. Kendler, speaking during a virtual conference hosted by the Massachusetts Export Center last week, also touched on the rule’s expiring temporary general license and urged industry to submit feedback on the new restrictions before the deadline this week.
The U.S. should double down on its resources, oversight and enforcement to prevent Russia from acquiring semiconductors and other dual-use goods used to power its war against Ukraine, the Silverado Policy Accelerator said in a report this week. If the broad Western export controls against Russia aren’t followed up with strict enforcement, the think tank said, Moscow will continue to find ways to import chips, including from China.
The Bureau of Industry and Security suspended the export privileges of two people for illegally exporting guns and ammunition.
Annual encryption self-classification reports and semi-annual sales reports for certain encryption items are due to the Bureau of Industry and Security by Feb. 1, Thompson Hine said in a reminder to clients last week. The self-classification report covers less sensitive items under the BIS License Exception ENC, and must provide information on encryption commodities, software and components exported during the previous calendar year. For the upcoming semi-annual sales report deadline, BIS requires information on exports that occurred between July 1 and Dec. 31 of the previous year.
The Bureau of Industry and Security is extending the public comment period for an information collection related to “miscellaneous licensing responsibilities and enforcement” (see 2211090013). The collection describes 10 miscellaneous activities associated with exporting controlled goods, including the exchanging of documents among parties in a transaction to “ensure that each party understands its obligations under U.S. law,” BIS said. Other activities involve writing export control statements on shipping documents or reporting “unforeseen changes in shipping and disposition of exported commodities.” The BIS Office of Export Enforcement and CBP need these activities to document export transactions, enforce export regulations and protect U.S. national security, BIS said. The agency is allowing for an additional 30 days of public comments. Comments had been due Jan. 9.
The top Republican on the House Foreign Affairs Committee said the Commerce Department hasn’t yet provided “acceptable responses” to oversight questions about the agency’s technology export controls. In a letter sent last week to Commerce, Rep. Michael McCaul, R-Texas, said the House committee may “use the authorities available to it to enforce these requests as necessary, including through compulsory process.”
U.S. and Japanese officials this week said they are hopeful the two countries will soon align their semiconductor export controls against China, adding to optimism within the Commerce Department that U.S. allies will eventually agree on the chip restrictions. The U.S. and Japan have made “progress” during recent talks, Japanese Ambassador Koji Tomita said, adding that they could reach more concrete results shortly.
Dutch officials continued to say the country isn't yet fully on board with recent U.S. chip export controls against China (see 2212080012), saying the Netherlands won’t succumb to American peer pressure. Prime Minister Mark Rutte, ahead of a Jan. 17 meeting with President Joe Biden, said the country is working methodically through potential new restrictions.
The Bureau of Industry and Security this week updated its October chip controls on China to also extend the restrictions to Macau. BIS said Macau -- as a special administrative region of China -- presents a “risk of diversion” of export controlled items and should be subject to the same license requirements introduced by BIS’ October rule, which was intended to restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors (see 2210070049).
Robert Slack has joined Fenwick & West as a partner in its Washington, D.C.-based regulatory practice, the firm announced. Slack's practice focuses on economic sanctions, export controls and other trade compliance issues. He represents clients before the Office of Foreign Assets Control, the Commerce Department's Bureau of Industry and Security, the State Department Directorate of Defense Trade Controls and the Energy Department's National Nuclear Security Administration, the firm said. He is a former partner in Kelley Drye's trade and national security practice.