The U.S. should create a new multilateral export control regime to counter China’s unfair industrial policies and misuse of sensitive technologies, said Mark Dallas, an associate professor at Union College in New York and a fellow with the Council on Foreign Relations. A new regime would create a “unified, clear and multilateral voice” around export controls and would reduce “commercial tensions” between the U.S. and its allies through better information sharing and enforcement.
The Bureau of Industry and Security last week charged a Montana resident and his two companies with violating U.S. export controls after BIS said he tried to ship controlled items knowing they would be used in Iran. Kenneth Scott and his companies, Scott Communication and Mission Communications, also made false or misleading statements to agents, failed to file Electronic Export Information and didn’t maintain the required export records, BIS said.
The Bureau of Industry and Security is seeking public comments by Aug. 8 on an information collection related to its export control seminars. The collection deals with voluntary surveys submitted to BIS for its seminars, which helps give the agency feedback on how it can improve its “course offerings to meet the needs of the exporting community.”
After receiving criticism this week for its lack of progress in a possible investigation of illegal exports to Huawei, a Bureau of Industry and Security spokesperson said the agency is “committed to fully investigating any allegation” of violations of the foreign direct product rule, including illegal shipments to the Chinese technology giant. The agency has come under criticism for not yet penalizing Seagate Technologies for potentially illegally exporting goods to Huawei (see 2206070011).
The Bureau of Industry and Security June 8 issued a temporary denial order for three U.S. companies for their involvement in illegally exported technical drawings and blueprints to China. BIS said it suspended the export privileges for Quicksilver Manufacturing, Rapid Cut and U.S. Prototype for 180 days after they illegally exported materials used to 3D print satellite, rocket and defense-related prototypes, which are subject to strict export controls because of their “sensitivity and importance to U.S. national security,” BIS said.
The U.S. District Court for the Southern District of New York granted the U.S. a warrant to seize a Boeing 787-8 aircraft and Gulfstream G650ER aircraft owned by sanctioned Russian billionaire Roman Abramovich, DOJ announced June 6. The district court said the airplanes are subject to seizure and forfeiture based on probable cause of violating the Export Control Reform Act and recent Russia sanctions imposed following the country's invasion of Ukraine (see 2206060038).
The Bureau of Industry and Security by now should have penalized Seagate Technologies for illegally exporting goods to Huawei, James Mulvenon, a China technology and military expert, wrote in a June 6 post for the Lawfare blog. Mulvenon said BIS’s “inaction” has emboldened other companies to export similar shipments and is indicative of a larger enforcement issue at BIS surrounding its foreign direct product rule for Huawei.
The U.S. and Canada this week announced an initiative to strengthen collaboration on Russia-related export controls. In a joint statement, the Bureau of Industry and Security and the Canada Border Services Agency said they will share more trade information to stop Russia from acquiring sensitive technologies, including through coordinated pre- and post-shipment verifications and audits. The two countries will also work more closely on inspections of exports, seizures and export control investigations.
The State Department’s recent fine of a U.S. electro-optics equipment manufacturer (see 2202010058) highlighted a range of key takeaways for defense exporters, including the importance of the commodity jurisdiction process and recordkeeping, Torres Trade Law said in a June alert. The consent agreement also underscored the benefits of voluntarily disclosing violations, the firm said, which can significantly mitigate penalties.
The Bureau of Industry and Security June 6 charged Russian oligarch Roman Abramovich with violating U.S. export controls by exporting U.S.-origin aircraft to Russia without the required licenses (see 2202240069). BIS said Abramovich’s planes flew to and from Russia in March, days after the agency announced new export controls on Russia-related aircraft.