The Bureau of Industry and Security will issue new export controls on certain cybersecurity items and create a new license exception for those exports, BIS said in an interim final rule released Oct. 20. The rule, which will align U.S. cybersecurity restrictions with controls previously agreed to at the multilateral Wassenaar Arrangement, will establish more restrictions on certain items that can be used for “malicious cyber activities” by imposing a license requirement for shipments to certain countries, BIS said. The changes take effect Jan. 19, and BIS will accept public comments until Dec. 6.
RANCHO MIRAGE, California -- The Commerce Department and CBP will soon deploy a new feature in the Automated Export System to automatically warn filers if they are exporting a controlled item without a license, a BIS official said. The agencies hope to launch the feature -- which should help exporters, freight forwarders and carriers better conduct due diligence -- in the next few months, said Richard Sylvestri, a senior export administration analyst in the Bureau of Industry and Security's Western Regional Office.
The Bureau of Industry and Security fined a Texas semiconductor component manufacturer nearly $500,000 for illegally exporting controlled wafers to Russia via Bulgaria (see 2012210013), the agency said in a Sept. 28 order. The company, Silicon Space Technology Corporation, which began doing business as Vorago Technologies in 2015, worked with a Russian engineering firm to export “rad-hard 16MB Static Random-Access Memory (SRAM) wafers,” which were controlled under the Export Administration Regulations for spacecraft and related components.
The Bureau of Industry and Security issued Sept. 17 guidance on export control information related to radiation hardened integrated circuits. The guidance includes a frequently asked question about whether certain integrated circuits are considered to be “rated as radiation hardened” under Export Control Classification Number 3A001.a.1 or meet or exceed the characteristics in ECCN 9A515.d or e. Another FAQ addresses how the classification of “standard fabrication process technologies” are impacted if they don’t meet certain required standards in the Export Administration Regulations. The final FAQ addresses whether the U.S. government, in developing plans to “prevent the release of controlled technology during the lifecycle of an acquisition,” can rely on “industry technology control plans for programs using onshore foundries for integrated circuit production.”
The Bureau of Industry and Security this week sent a final rule for interagency review that would expand export controls on certain biological equipment software. The rule, received by the Office of Information and Regulatory Affairs Sept. 13, would amend the Commerce Control List by adding a new Export Control Classification Number to control software “for the operation of automated nucleic acid assemblers and synthesizers” that are “capable of designing and building functional genetic elements from digital sequence data.”
The Bureau of Industry and Security released a final rule to make technical corrections and clarifications (see 2108110010) to a 2020 rule that transferred export control jurisdiction over certain firearms from the State Department to the Commerce Department. The rule, released Aug. 18 and effective Sept. 20, introduced changes to make the requirements “easier to understand” and “interpreted consistently,” BIS said.
The Bureau of Industry and Security added five Chinese companies to the Entity List for their involvement in the government’s human rights abuses against Muslim minority groups in the Xinjiang region, the agency said in a final rule. For each of the entities, BIS will impose a license requirement for all items subject to the Export Administration Regulations. The final rule takes effect June 24.
The Bureau of Industry and Security will on June 24 add five Chinese companies to the Entity List for their involvement in the government’s human rights abuses against Muslim minority groups in the Xinjiang region. For each of the entities, BIS will impose a license requirement for all items subject to the Export Administration Regulations. Items classified under several Export Control Classification Numbers will be subject to a case-by-case review policy, but all other exports will be subject to a presumption of denial. No license exceptions will be available.
The Bureau of Industry and Security revised the Commerce Control List and the Export Administration Regulations to implement changes made during the 2019 Wassenaar Arrangement plenary, the agency said in a final rule released March 26. Along with revising various Export Control Classification Numbers and correcting language in the EAR, the rule eliminated certain reporting requirements for encryption items, which BIS expects to “reduce the regulatory burden” for U.S. exporters. The changes take effect March 29.
Apple last week introduced a new ethics and compliance webpage, featuring a detailed outline of its trade compliance policies surrounding export controls and sanctions. A table of all Apple products provides their respective Export Control Classification Numbers and which destinations are blocked from receiving Apple products. The company said all its products qualify as mass market products and are subject to the Export Administration Regulations but are not controlled as dual-use goods by the Wassenaar Arrangement. Apple said some of its goods may be eligible for the Office of Foreign Assets Control’s Iranian General License No. D1 and Bureau of Industry and Security license exceptions related to Cuba. OFAC fined Apple about $465,000 in November 2019 after the company hosted, sold and helped transfer software applications and content belonging to a sanctioned company (see 1911250064).