PHILADELPHIA -- The U.S. government is working through a range of challenges when delivering export control guidance to university researchers, government officials said, including to some colleges that opt out of certain projects rather than risk violating controls. The government is also still running into challenging questions about whether its controls should apply to fundamental research, one official said.
A lack of guidance from the Bureau of Industry and Security on its recent Russia-related foreign direct product rules is creating compliance “chaos” for companies operating in the region (see 2203070039), Torres Trade Law said in an April alert. The firm said businesses have been “left to fend” for themselves “when it comes to compliance with the new FDP rules,” partly because BIS hasn’t yet published any enforcement actions or settlements for either rule.
The Bureau of Industry and Security on April 28 updated its list of Russian and Belarusian aircraft subject to export restrictions. The additions include six new planes operated by UTair. The agency in April issued temporary denial orders for Russian airlines Aeroflot, Azur Air and UTair because the airlines continued to fly without a license after their planes were added to the agency’s list of restricted aircraft last month (see 2204210043).
Anthony Rapa, a former partner at Kirkland & Ellis, joined Blank Rome as a partner in its National Security practice, the firm announced. Blank Rome said Rapa will work on "sanctions and export control-related matters in cross-border transactions, mergers and acquisitions, government investigations, and regulatory matters." Such issues under Rapa's portfolio include regulations administered under the Export Administration Regulations, the Bureau of Industry and Security and the International Traffic in Arms Regulations.
The U.S. is looking into whether Chinese semiconductor manufacturer Yangtze Memory Technologies Co. violated U.S. export controls by supplying chips to Huawei, the Financial Times reported April 27. The report said the Bureau of Industry and Security received a “credible” report by TechInsights, a semiconductor analysis firm, that Huawei is using YMTC memory chips in a new smartphone. The chips were reportedly made in February 2021, several months after the U.S. applied its foreign direct product rule to Huawei, which restricts its ability to import foreign-produced goods made with certain levels of U.S.-origin content or technology (see 2005150058).
Commerce Secretary Gina Raimondo told senators repeatedly during her testimony at a Commerce Committee hearing that the conference process for the House and Senate's China packages needs to get done as soon as possible, because other countries are offering funds to chipmakers, and companies are looking to plan new plants, because demand is so high. Raimondo said she's spoken with all the American chipmakers, and it's clear to her that if Congress doesn't act, those companies will invest in Germany, Singapore, France or Spain rather than Ohio or Arizona. Raimondo said, "They want to operate in our country, but they cannot wait. They are going to build, and if we don’t act quickly with USICA, they’ll build elsewhere."
The Bureau of Industry and Security revoked the export privileges of a Texas man after he illegally exported guns and ammunition to Mexico. Arnoldo Vidaurri was convicted March 29, 2019, after illegally exporting two Ruger LCP 380 pistols and 100 rounds of ammunition, BIS said April 20. Vidaurri was sentenced to three years in prison and a $100 fine. BIS denied his export privileges for five years from the date of conviction.
Aviastar, the Russian cargo airline made subject to a temporary denial order last week (see 2204210043), continued to illegally fly multiple U.S.-origin aircraft after the U.S. in March announced restrictions on those flights (see 2203020072), including to China, the Bureau of Industry and Security said in its April 21 order. Flights included trips from the Russian cities of Novosibirsk and Abakan to the Chinese cities of Hangzhou, Shenzhen and Zhengzhou. All the trips, which took place April 5 to April 12, required approved license applications.
The Bureau of Industry and Security on April 21 suspended the export privileges of another Russian airline for violating U.S. export controls against Russia. The agency issued a 180-day temporary denial order for Moscow-based cargo aircraft carrier Aviastar, which will limit the airline’s ability to deliver goods to Russia’s military, BIS said. Aviastar will be barred from participating in transactions with items subject to the Export Administration Regulations.
The Bureau of Industry and Security on April 21 suspended the export privileges of another Russian airline for violating U.S. export controls against Russia. The agency issued a 180-day temporary denial order for Moscow-based cargo aircraft carrier Aviastar, BIS said in an emailed news release, adding that the order will “hinder” the airline’s ability to deliver military cargo to Russia. Aviastar will be barred from participating in transactions with items subject to the Export Administration Regulations. BIS earlier this month issued temporary denial orders for Russian airlines Aeroflot, Azur Air and UTair.