The Bureau of Industry and Security officially released a new regulation to introduce a 50% ownership threshold rule for parties on the Entity List and Military End-User List. The interim final rule, released and effective Sept. 29, will impose the same export license requirements as the parent company for any affiliate owned 50% or more by a party on the Entity List or Military End User List, similar to how sanctions are applied under the Office of Foreign Asset Control's 50% rule. The rule includes a 60-day temporary general license that “permits certain export, reexport, and transfer (in-country) transactions involving non-listed 50-percent or more owned foreign affiliates of parties on the Entity List or Military End-User List.” BIS is accepting public comments on the changes by Oct. 30.
The Bureau of Industry and Security has drafted and is preparing to soon publish an interim final rule that will introduce a 50% rule for parties on the Entity List and Military End-User List, according to a copy of the rule seen by Export Compliance Daily. The rule would impose the same export license requirements as the parent company for any affiliate owned 50% or more by an entity on those two lists, and it includes a 60-day temporary general license to authorize certain transactions with some non-listed entities before the new restrictions apply.
The U.K. this week published two new guidance documents that track exceptions and previous amendments to its Russia sanctions regime. The guidance allows users to search through a list of all Russia sanctions exceptions that the U.K. has introduced, as well as a list of the "statutory instruments" that have made changes to those sanctions and descriptions of the changes made.
China on Sept. 25 added three U.S. companies to its Unreliable Entity List for arms sales to Taiwan and three others to its Export Control List because they “endanger” Chinese national security, the Ministry of Commerce said.
Rep. Eugene Vindman, D-Va., and Delegate James Moylan, R-Guam, introduced a bill this month that would require the executive branch to report to Congress annually on China’s semiconductor manufacturing capabilities, including whether U.S. and allied export controls are curbing the development of that equipment.
Officials from the U.K. and Bermuda issued a joint statement this week committing to boost cooperation on sanctions, and the U.K. agreed to provide Bermuda with up to 300,000 pounds, or about $400,000, this year "for new initiatives to enhance Bermudian sanctions capacity and capability."
The U.K. this week sanctioned a British band and its label for counterterrorism reasons after they were found guilty of terrorism-related charges. The country sanctioned the musical group Embers of an Empire and its production company, Rampage Productions, for "promoting and encouraging terrorism via its dissemination of music whose content promotes and encourages terrorism." The U.K. also said they have "made funds available" to parties "involved in terrorism."
The Office of Foreign Assets Control this week sanctioned five people and one entity for helping North Korea's government generate revenue for its weapons and missile programs, including through weapons sales to the Myanmar military.
U.S. export controls on chips are working and should be maintained, not swapped in a trade deal as part of a “grand bargain” between the Trump administration and Beijing (see 2507150013 and 2508010002), said Rush Doshi, former National Security Council official during the Biden administration.
India's Directorate General of Foreign Trade on Sept. 23 announced its plans to update export controls under its special chemicals, organisms, materials, equipment and technologies (SCOMET) scheme to reflect recent changes made by multilateral export control regimes. The changes include new or revised controls for certain categories of emerging technologies under Category 7, including systems, equipment and components; test, inspection and production equipment; materials; software; and technology. The major changes begin on Page 182 of the updated SCOMET list. India said they will take effect 30 days after Sept. 23.