U.S. export controls on quantum computing and communication technologies would slow scientific progress and fail to target the most “defense-relevant applications,” the nonprofit Rand Corp. said in a recent report. The think tank said the U.S. should “not impose export controls on quantum computers or quantum communications systems at this time” or risk stifling American quantum innovation.
Jorge Orencel, of Silver Spring, Maryland, was sentenced to six months in federal prison and one year of supervised release for attempting to smuggle goods out of the U.S. without the necessary export license, the U.S. Attorney's Office for the District of Maryland said Feb. 22. Orencel, who pleaded guilty, was also ordered to pay a $5,000 fine for attempting to ship a fission chamber and five ionization chambers to a company in Hong Kong.
The Bureau of Industry and Security will look for ways to improve its administrative enforcement efforts and the voluntary self-disclosure program in the coming year, Assistant Secretary for Export Enforcement Matthew Axelrod said while speaking to the Silverado Policy Accelerator on Feb. 24. Under the administrative enforcement review, BIS will consider how often it uses its no admit/no deny resolutions to help deterrence and accountability, he said. The bureau will also review how it "calibrates" penalties and will explore additional or expanded penalties for items that harm national security even if the transaction value is low. It will also review how often, and in what cases, administrative resolutions should continue in parallel with criminal resolutions by DOJ.
The U.S. is imposing additional sanctions and new export controls following Russia's "further invasion of Ukraine," as promised by President Biden in his Feb. 22 speech (see 2202220003). The sanctions cover financial restrictions on Russian state-owned enterprises, banks, and individuals, while the export controls set restrictions on a variety of high-tech products. The new measures are part of an "unprecedented level of multilateral cooperation" according to the White House.
The Commerce and Treasury Departments announced a raft of new export controls and sanctions measures against Russia in press releases issued Feb. 24 following White House remarks by President Joe Biden. The measures include export control license requirements for a broad swath of the Commerce Control List, and the expansion of sanctions, including to entities in Belarus. The Bureau of Industry and Security also released a final rule on the export control changes, which take effect Feb. 24.
Two new export control rules from the Bureau of Industry and Security on emerging and foundational technologies are weeks away, said Matt Borman, BIS deputy assistant secretary-export administration, during the Feb. 23 meeting of the agency’s Emerging Technology Technical Advisory Committee.
The Bureau of Industry and Security’s reorganization and clarification of its foreign direct product rules this month (see 2202020021) could allow the administration to more easily use the rule to target specific Russian sectors if Russia invades Ukraine (see 2202150043), Akin Gump said in a February alert. The law firm outlined how companies can examine recent BIS changes to the FDP rule as a “guide for analyses of the scope and impact of possible” new Russia controls, and how certain changes to the Export Administration Regulations would affect various exports to Russia. Companies should examine whether their foreign-produced items contain certain levels of U.S. origin content, Akin Gump said, and whether they would have to comply with new licensing restrictions if Russia were moved to a different EAR Country Group.
President Joe Biden announced in a speech Feb. 22 that the U.S. will impose a series of sanctions on Russia for its continued aggression against Ukraine. Biden promised sanctions "far beyond what was implemented in 2014," in response to Russian recognition of the Luhansk and Donetsk republics on Feb. 21, which he called a "flagrant violation of international law." According to a Feb. 21 press call, the White House anticipated the possibility and was prepared to respond immediately. A senior administration official noted the measures were in response to "Russia’s recognition gambit" and that they are distinct from "swift and severe economic measures" prepared should Russia "further invade Ukraine."
The Bureau of Industry and Security this week revoked export privileges for five U.S. residents who illegally exported defense items or weapons ammunition to Mexico.
The United Kingdom's Office of Financial Sanctions Implementation amended entries under its Syria, Zimbabwe and Russia sanctions regimes. Amendments were made for Zimbabwe Defence Industries under the Zimbabwe list and for former Ukrainian President Viktor Yanukovych under the Russia list. Under the Syria sanctions regime, among 25 entries altered and still subject to asset freezes were those for individuals including Ali Mamluk, former head of the Syrian National Security Bureau, and Hossein Taeb, head of the Islamic Revolutionary Guard Corps Intelligence.