BOSTON -- If the Commerce Department follows through on plans to expand the limits of the Export Administration Regulations to further control foreign shipments to Huawei, it will have a “dramatic” impact on international supply chains, said Kevin Wolf, a trade lawyer with Akin Gump and Commerce’s former assistant secretary for export administration. The measures, which Commerce confirmed it was considering earlier this month (see 1912100033), include expanding the Direct Product Rule and broadening the de minimis rule to make more foreign-made goods subject to the EAR.
The Commerce Department Bureau of Industry and Security is seeking comments on an information collection used to respond to congressional and industry requests to make “foreign availability determinations” about the Export Administration Regulations, according to a notice. In the information collection, exporters are urged to submit data to “support the contention” that items controlled for national security reasons are “available-in-fact, from a non-U.S. source, in sufficient quantity and of comparable quality so as to render the control ineffective.” Comments are due Feb. 10.
The Commerce Department Bureau of Industry and Security is seeking comments on an information collection related to requests for participation in foreign boycotts against countries friendly to the U.S., according to a notice. BIS analyzes the information to “note changing trends” and decide on actions to take to prevent participation in “foreign restrictive trade practices and boycotts.” Comments are due Feb. 10, 2020.
U.S. companies are encountering issues when trying to return faulty products to parties on the Entity List, members said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. The problem occurs after companies legally import goods -- which later turn out to be defective -- from an Entity List party, the members said. The goods are not able to be easily exported for return, they said.
The Commerce Department Bureau of Industry and Security's upcoming set of proposed rules on emerging technologies may not be published until early next year, another sign of the delay that has plagued the rules since Commerce first announced them more than a year ago. Commerce has three emerging technology rule proposals in “various stages of clearance,” Hillary Hess, director of the BIS Regulatory Policy Division, said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. The agency hopes to publish one proposal before the end of the year, Hess said, but urged committee members to take any prediction with “at least a handful of salt.”
The Commerce Department Bureau of Industry and Security is seeking comments on procedures under which parties can request to be removed from Commerce’s Entity List and Unverified List, according to a Dec. 10 notice in the Federal Register. The information collection also includes procedures for requesting a “modification” to an entry on either list, BIS said. Comments are due Feb. 10, 2020.
The Commerce Department is seeking comments on proposed revisions relating to the Automated Export System, the Census Bureau said in a notice. The revisions include provisions for the “early release of preliminary steel mill import statistics” and plans by both Census and the Bureau of Industry and Security to draft a notice of proposed rulemaking to clarify the responsibilities of parties in routed and standard export transactions (see 1907100053). Census said it is “working with BIS to receive concurrence in order to publish the NPRM." Census also said the two agencies aim to publish the NPRMs “around the same time” to “allow the trade community an opportunity to review the proposed requirements as they relate to both filing and licensing responsibilities.” Census said its draft rule “has received concurrence” from the State Department and the Department of Homeland Security. Comments are due by Feb. 7, 2020.
An Iranian businessman was sentenced to 46 months in prison for illegally exporting carbon fiber from the U.S. to Iran, the Justice Department said Nov. 14. Behzad Pourghannad worked with two others between 2008 and 2013 to export the carbon fiber to Iran from third countries using falsified documents and front companies, the agency said.
A Lebanese energy equipment company was fined $368,000 by the Bureau of Industry and Security after it illegally reexported generators to Syria, according to a settlement agreement signed Nov. 27. Ghaddar Machinery allegedly committed 20 violations of the Export Administration Regulations from 2014 to 2016, totaling about $730,000 worth of exports, BIS said. Ghaddar agreed to pay the penalty in five installments through November 2021. Failure to make the payments could result in more penalties, according to the settlement agreement, including a two-year denial of export privileges.
The Commerce Department Bureau of Industry and Security made three technical corrections to its November notice that added 22 entities to its Entity List (see 1911120025). The corrections add dates and change the wording of entries for Pakistan and the United Arab Emirates.