The Bureau of Industry and Security fined a Singapore-based electronics and software distributor more than $3 million and suspended its export privileges for violating the Export Administration Regulations, which included illegal exports to China and Iran, according to a Jan. 29 order. BIS said Avnet Asia Pte., Ltd. committed 53 EAR violations over several years when it sold export-controlled electronic components totaling more than $1 million. The Justice Department also charged Chinese national Cheng Bo, a former Avnet Asia employee, for participating in a conspiracy to violate U.S. export laws.
More foreign investors are opting to submit a filing with the Committee on Foreign Investment in the U.S. out of an abundance of caution, even when there is no mandatory filing requirement, George Grammas, a trade lawyer with Squire Patton, said. Grammas said “sophisticated” investors are especially likely to file before the investment is complete, particularly as CFIUS continues a trend of reviewing years-old investments.
The Bureau of Industry and Security issued orders temporarily denying export privileges for three people involved in illegal exports. Irma Lizette Trevizo was convicted April 30, 2019, of conspiring to smuggle firearms and ammunition from the U.S. to Mexico, BIS said in a Jan. 25 order. Trevizo was sentenced to two years in prison, two years of supervised release and a $100 fine. BIS denied Trevizo’s export privileges for 10 years from the date of her conviction.
The Bureau of Industry and Security fined a California business owner $540,000 and suspended his export privileges after he allegedly caused false information to be submitted on controlled exports to Russia, BIS said Jan. 27. The agency said Julian Demurjian, who owned CIS Project, violated the Export Administration Regulations when he provided false values for exports of telecommunication equipment controlled for national security, encryption and anti-terrorism reasons.
Electronics industry association SEMI called for industry input on a review of Trump administration export control policies, in a Jan. 25 letter to secretary of commerce nominee Gina Raimondo. The trade group said the prior administration made drastic changes to export control regulations without allowing enough industry input, and said the new administration should formally hear industry concerns.
FTI Consulting recently hired Thomas Andrukonis, previously director of the Bureau of Industry and Security Export Management and Compliance Division, a post on LinkedIn by Matt Bell, FTI's Export Controls and Sanctions practice leader, said.
The Commerce Department on Jan. 25 announced 17 appointees to lead within the agency under the Joe Biden administration. The initial list includes Christopher Hoff, deputy assistant secretary for services at the International Trade Administration; Meghan Maury, a senior adviser at the Census Bureau; and Feras Sleiman, a congressional affairs specialist at the Bureau of Industry and Security.
Exports to Hong Kong remain eligible for post-departure filings in the Automated Export System despite recent changes to Hong Kong’s export control status, the National Customs Brokers & Forwarders Association of America said in a Jan. 25 email to industry. NCBFAA said it confirmed with the Census Bureau that the agency will permit the filings, which are available for certain exporters that joined the post-departure filing program before it was closed to new participants. Census recently issued guidance clarifying its reporting requirements for exports to Hong Kong (see 2012300040), despite a December Bureau of Industry and Security rule that removed Hong Kong as a separate destination under the Export Administration Regulations (see 2012220053). A Census spokesperson confirmed that Hong Kong exports will remain eligible for post-departure filings.
The Bureau of Industry and Security is working on several new proposed rules for emerging technologies and is still sifting through industry comments on potential controls for surveillance technologies, the agency said in its 2020 report to Congress this month. Along with its work on emerging technologies last year, the agency said it nearly doubled its civil penalties from 2019, processed about 3,000 more export license applications, and met with a range of trading partners and multilateral export regimes to discuss improvements to export controls.
A 60-day freeze on pending rules, announced by the White House on Jan. 20, will temporarily halt the Bureau of Industry and Security push for new controls on technologies and activities that may be supporting foreign military-intelligence end-uses and end-users in China, Cuba, Russia, Venezuela and other “terrorist-supporting” countries. The changes were to take effect March 16 (see 2101140035). If the Biden administration decides the rule is in line with their enforcement priorities, the rule could go forward later this year.