The Bureau of Industry and Security is adding 26 entities to the Entity List for illegally supplying aircraft parts, drone components, electronic items and other products to Iran, and the agency is adding three addresses to the list for links to an Iranian procurement network. Nineteen of the new entries are based in China, nine are in Turkey and one is in the United Arab Emirates, BIS said in a final rule released and effective Oct. 8. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial.
A new message on the Bureau of Industry and Security's website alerts exporters that the agency is prioritizing reviews of urgent license applications during the government shutdown, and it provides instructions on how to request expedited reviews.
Applied Materials, the largest American semiconductor equipment supplier, is projecting hundreds of millions of dollars in losses to its China-related revenue because of the Bureau of Industry and Security's new Affiliates Rule.
Exporters shouldn't expect a grace period from enforcement under the Bureau of Industry and Security's new 50% rule, but the agency likely is first looking for intentional violators as opposed to exporters who made good-faith efforts to comply, industry lawyers and advisers said in interviews.
Although the Bureau of Industry and Security in FAQs this week suggested its new 50% rule applies only to ownership and not the control that a parent company may have over an affiliate, that doesn’t mean U.S. exporters should ignore an Entity Listed company’s controlling influence over an unlisted company, said Mike Huneke, a trade lawyer with Morgan Lewis.
The Bureau of Industry and Security on Sept. 30 again renewed the temporary denial order for Russia's Ural Airlines, saying it has continued to illegally operate flights within Russia and to and from Tajikistan and Kyrgyzstan. The order, first issued in October 2022 (see 2210170009) and renewed multiple times, bars the airline from participating in transactions with items subject to the Export Administration Regulations. The order was renewed for one year.
Senate Banking Committee member Mark Warner, D-Va., urged the Bureau of Industry and Security on Sept. 30 to consider placing export controls on open-source technologies that could benefit China.
House Foreign Affairs Europe Subcommittee Chairman Keith Self, R-Texas, unveiled a bill Sept. 30 to codify a new interim final rule that will place subsidiaries on the Bureau of Industry and Security’s Entity List or Military End-User List if they are owned 50% or more by companies on those lists.
The Bureau of Industry and Security this week fined British Virgin Islands-based company Hallewell Ventures and its owner, Albert Avdolyan, $374,474 for violating sanctions against Russia. BIS said Hallewell illegally reexported a Bombardier Global 7500 jet from the Maldives to Russia without a license.
A Canada-headquartered biotechnology company agreed to pay the Bureau of Industry and Security $685,051 after admitting to illegally exporting water quality testing and analytical instruments to Iran. BIS said the company knew the shipments violated U.S. export controls, adding that it worked to “conceal” the destination of the exports by falsely listing a United Arab Emirates freight forwarder as the ultimate consignee, undervalued the items to avoid UAE customs scrutiny, and left out references to Iran in the invoice.