Exporters should require their customers to sign written compliance certifications if the shipment involves items that fall under one of nine high-priority Harmonized System codes and the customer is in a country outside of the U.S.-led global export controls coalition, the Bureau of Industry and Security said. Although these customer certifications or end-user statements are not mandated by law, BIS said it’s recommending that companies begin using the certifications if they aren’t already, saying in a new best practices guidance that these statements will help prevent diversion of controlled items to Russia.
Licensing work at sanctions and export control agencies likely will grind to a near halt in the event of a federal government shutdown Oct. 1, though enforcement activities at the Bureau of Industry and Security, Directorate of Defense Trade Controls and Office of Foreign Assets Control will continue -- if previous shutdowns are any guide.
LONDON -- The Bureau of Industry and Security hopes to publish the final version of its Oct. 7 China chip controls in October, said Liz Abraham, senior adviser for international policy at BIS.
The Bureau of Industry and Security again renewed temporary denial orders for three Russian airlines accused of violating U.S. export controls against Russia. BIS first suspended the export privileges of Aeroflot, Azur Air and UTair in April 2022, barring the airlines from participating in transactions with items subject to the Export Administration Regulations (see 2204070010), and renewed their denial orders for 180 days from October (see 2210040008) and again from March (see 2303300013). BIS said all three airlines continue to "act in blatant disregard for U.S. export controls" by continuing to operate aircraft subject to the EAR. The orders include a table of recent flights operated by each airline.
The Bureau of Industry and Security recently completed rounds of interagency reviews for two final rules that could align its controls with multilateral export control bodies. The first, completed Sept. 20, would align its regulations with certain changes made by the multilateral Australia Group. The second, completed Sept. 26, would align the agency's export controls with changes recently made by the multilateral Missile Technology Control Regime. The Australia Group rule (see 2308280013) and the MTCR rule were both sent to the Office of Information and Regulatory Affairs Aug. 25 (see 2308280014).
China condemned the Treasury Department's additions of 28 entities, including various Chinese entities, on the Entity List for their acts violating U.S. national security. The U.S. "abuses unilateral sanctions" to undercut international trade rules, hinder normal trade exchanges and curb the "legitimate rights and interests of Chinese companies," the Ministry of Commerce said, according to an unofficial translation.
Members of a new export enforcement partnership recently formed by the Five Eyes countries released new guidance Sept. 26 for industry and academia on countering evasion of export controls and sanctions on Russia.
The Bureau of Industry and Security added 28 entities to the Entity List this week for various reasons, all falling under the umbrella of “acting contrary to the national security or foreign policy interests of the United States.” The final rule, effective Sept. 27, adds entities in China, Finland, Germany, Oman, Pakistan, Russia and the United Arab Emirates. It also modifies entries for two entities and removes a Military End User List entity.
The Bureau of Industry and Security added 28 entities from China, Finland, Germany, Oman, Pakistan, Russia and the United Arab Emirates to the Entity List for various actions "contrary to the national security or foreign policy interests of the United States.” The additions, outlined in a final rule effective Sept. 27, are now covered by license requirements for all items subject to the Export Administration Regulations, which carry varying license application review policies. BIS also modified two existing entries on the Entity List under the destinations of China and Pakistan. and removed an entity from the Military-End User List under the destination of China.
The Bureau of Industry and Security needs more resources to investigate export control violations, Commerce Secretary Gina Raimondo said this week. She also said a potential government shutdown would be “crushing” for the agency’s enforcement efforts and work on semiconductor export regulations.