Alan Estevez started this week as undersecretary of the Bureau of Industry and Security (see 2204010006), the agency said in an April 19 emailed news release. Estevez “brings an exceptional record of federal leadership and experience navigating some of the most complex national security challenges of the past three decades,” Commerce Secretary Gina Raimondo said in a statement. She said Estevez will bring “invaluable assets” as the agency continues to penalize Russia and focuses on “winning the long-term strategic competition with China” and “ensuring the advancement of U.S. technological leadership.”
The State Department’s Directorate of Defense Trade Controls was able to close significantly more end-use checks in 2021 compared with 2020 despite some continued travel restrictions caused by the COVID-19 pandemic. In its annual Blue Lantern report released this month -- which details the agency’s end-use monitoring efforts on controlled defense articles and services -- DDTC said it closed checks on 256 export licenses or applications during fiscal year 2021, an increase of more than 38% from FY 2020.
The Bureau of Industry and Security needs to “answer to Congress immediately” if U.S. software company Synopsys was able to illegally export semiconductor design software to blacklisted Chinese companies, Rep. Michael McCaul, R-Texas, said. McCaul -- referencing a report this week that said BIS is investigating Synopsys for potentially transferring technology to China’s HiSilicon and Semiconductor Manufacturing International Corporation (see 2204140057) -- said the agency needs to do a better job of preventing illegal exports on the front end.
The U.S. should redouble efforts to control emerging and foundational technologies, establish a new outbound investment screening regime and create a new multilateral export control forum with close allies, said Emily Kilcrease, an economic statecraft expert with the Center for a New American Security. A new multilateral regime could be challenging to stand up, Kilcrease said, but is “imperative” to prevent proliferation of sensitive technologies to adversaries, including China and Russia.
The Commerce Department is investigating U.S. software company Synopsys for possibly violating U.S. export controls against China, Bloomberg reported April 13. Commerce is looking into whether Synopsys, the world’s leading supplier of semiconductor design software, worked with Chinese affiliates to provide chip designs and software to Huawei Technologies’ HiSilicon unit for manufacture at Semiconductor Manufacturing International Corporation, the report said. Both companies are subject to Entity List licensing restrictions.
The Bureau of Industry and Security added 10 more planes to its list of restricted aircraft, including seven planes owned by Belavia, the first Belarusian airline added to the list, the agency said April 14. The agency also added two additional planes owned by Utair and one aircraft owned by Aeroflot. BIS said it will impose penalties and/or jail time or revoke export privileges for any company or person who violates the Export Administration Regulations by providing “any form of service” to the listed aircraft without a required BIS license.
Russia’s war on Ukraine has greatly accelerated U.S. and EU collaboration on export controls, officials said, even surpassing some of the short-term goals of the Trade and Technology Council formed last year. Because of the highly coordinated controls, officials from both sides speak frequently and are able to discuss a range of shared export control issues, the officials said, including enforcement, licensing and the future of multilateral regimes.
The Bureau of Industry and Security added 10 more planes to its list of restricted aircraft, including planes owned by Aeroflot, Utair and Belavia, the first Belarusian airline added to the list. The agency also updated tail numbers for 32 planes and authorized two aircraft to leave Russia. The agency said it will impose penalties and/or jail time or revoke export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the listed aircraft without a required BIS license.
Although the Bureau of Industry and Security hasn’t yet announced any enforcement actions against lessors or financers of restricted Russian aircraft, those parties still face significant compliance risks, Katten said in an April 8 alert.
The Bureau of Industry and Security on April 8 removed several planes from its list of restricted Russian aircraft after they were “authorized to leave Russia,” an agency spokesperson said. The aircraft belong to AirBridgeCargo, Atran, Azur Air and Royal Flight. BIS last week issued temporary denial orders for three Russian airlines but said it is accepting authorization requests from aircraft owners to continue to fly the planes once they’re out of Russia and Russian control (see 2204070012).