The U.S. and its allies should establish a new multilateral export control system to prevent sensitive technologies from being sent to dangerous end-users, including those in China, said Rich Ashooh, a former senior U.S. export control official. Ashooh applauded American efforts so far and said it shouldn’t abandon the existing multilateral control regimes, but he said a more formal system is needed.
Jeannette Chu, a former Bureau of Industry and Security official, joined the National Foreign Trade Council as vice president for national security policy, the NFTC announced Feb. 6. Chu will lead a new effort by the NFTC on national security and global competitiveness by serving as the council’s “lead strategist, expert and advocate on policies surrounding export controls, sanctions, investment screening, critical infrastructure” and more. Chu previously served as a senior policy adviser at BIS and as the senior export control attache at the U.S. embassy in Beijing. She was most recently senior managing director and head of the export controls and trade sanctions team at PricewaterhouseCoopers.
A “scam artist” has been circulating a “fake and fraudulent” request for quotation (RFQ) from the Bureau of Industry and Security, Nagesh Rao, BIS chief information officer, said in a Feb. 4 LinkedIn post. The post includes a link to the Fake RFQ, which has “successfully conned small businesses in fulfilling this order,” Rao said. The order includes a quote request from BIS for computers.
DOJ’s new corporate enforcement policies substantially increase compliance incentives and may lead to more voluntary self-disclosures, law firms said. But they also said much of the new policy will depend on how DOJ implements the changes, and it remains unclear how much of a downstream impact the revisions will have on export control and sanctions cases handled by other agencies.
The Bureau of Industry and Security suspended the export privileges of an Illinois resident for illegally exporting controlled equipment to Pakistan, the agency said in an order last week. BIS said Obaidullah Syed was convicted May 17, 2022, of conspiring to export computers, computer systems and “associated equipment” from the U.S. to the Pakistan Atomic Energy Commission without a Commerce Department license (see 2205200033). Syed was sentenced to one year and one day in prison, one year and one day of supervised release, a $100 assessment and a forfeiture of $247,000. BIS suspended Syed’s export privileges for 10 years from the conviction date.
Rep. Michael McCaul, R-Texas, chair of the House Foreign Affairs Committee, announced the committee's leaders last week, including Vice Chair Ann Wagner, R-Mo. McCaul said he looks forward to working with them and committee Democrats “to pass meaningful legislation that prioritizes national security and strengthens our relationships with key allies, while conducting vital oversight of the Biden administration.” One oversight effort will include a review of the Bureau of Industry and Security’s export control licensing decisions and policies (see 2210030068, 2301190055 and 2301300052).
A Miami-based company violated U.S. export regulations when it illegally shipped red dot scopes to Austria and Switzerland, the Bureau of Industry and Security said in Feb. 2 order. The company, Dotphins, entered into a settlement agreement with BIS that will require it to complete compliance training.
The Bureau of Industry and Security will hold a two-day conference this month to help it better understand emerging brain computer interface (BCI) technology as it considers potential export controls. The public conference, which will be both in person and virtual Feb. 16-17, comes a little more than a year after the agency requested public comments on potential BCI export restrictions (see 2110250011).
The Bureau of Industry and Security this week suspended the export privileges of six people for illegally exporting defense items -- from guns and ammunition to night-vision goggles -- to Hong Kong, Iran, Mexico and Ukraine.
New U.S. chip export controls are among the most complex export regulatory provisions ever published and have caused significant uncertainty in the semiconductor industry, trade groups and technology firms told the Bureau of Industry and Security in comments that were due this week. More than 40 companies, trade associations, law firms and others asked BIS to revise parts of the regulations or offer more guidance to avoid hurting U.S. competitiveness, with some saying the new controls may force foreign companies to stop using U.S.-origin items altogether rather than deal with the added compliance obligations.