The State Department Directorate of Defense Trade Controls has seen a decline in voluntary self-disclosures since 2013, according to an April 20 post on the EU Sanctions blog, which cited a report by the Global Investigations Review. DDTC processed just over 2,000 disclosures in 2013 but only 650 in 2019, the blog said. Since 2014, the number of self-disclosures fell by about 140 disclosures per year, the blog post said, but has remained “consistent” over the last two years. The decrease stems from the removal of certain dual-use items from the U.S. Munitions List to the Commerce Control List, the blog said.
The State Department and the Commerce Department issued notices clarifying that they are abiding by a March court order that blocked the transfer of 3D printing software from the U.S. Munitions List to the Commerce Control List (see 2003090029). Exporters of the software “must continue to treat such technical data and software as subject to control on the USML,” State said. Commerce stressed that all 3D printing-related license requests should be directed to the State Department.
The Automated Export System will add 13 new Export Control Classification Numbers to its reference table to allow exporters to report electronic export information in the wake of the transfer of export controls over firearms from the State Department to the Commerce Department (see 2001170030 and 2003090029), the Census Bureau said in a notice emailed March 11. The notice contains instructions for determining which new ECCNs are eligible for certain license types. Census also clarified that by using any of the license exceptions or “No License Required,” exporters “are certifying that the terms, provisions, and conditions described in the [Export Administration Regulations] have been met.”
Export controls over technology and software used for the 3D printing of firearms will not transition from the State Department to the Commerce Department after a Washington court granted a request to block the Trump administration from completing the transfer. The court, whose March 6 order temporarily blocked portions of a January final rule to transfer the controls, suggested the administration likely violated notice-and-comment standards and pointed to the “grave reality” the transfer might have on the proliferation of 3D printed guns. The decision stemmed from a January request (see 2001240047 and 2002070043) filed by 20 states and Washington, D.C., to urge the court to vacate the final transfer rules, which were scheduled to take effect March 9 (see 2001170030).
U.S. administration officials will meet with the European Union and Japan next month to lobby for increased scrutiny of transactions involving sensitive technologies, a top Treasury Department official said. The meetings will also feature discussions of recent U.S. reforms to foreign direct investment screening, said Thomas Feddo, Treasury’s assistant secretary of investment security, and come as the U.S. begins to implement those reforms as part of the Foreign Investment Risk Review Modernization Act (see 2001140060). Feddo spoke during a Feb. 26 event hosted by the Asia Society.
The Commerce Department Bureau of Industry and Security issued guidance Feb. 25 clarifying that the virus causing the outbreak of the coronavirus disease, SARS-CoV-2, will continue to be classified under the Export Control Classification Number EAR99, meaning export licenses are generally not required for exports of the virus. BIS said it issued the guidance in response to a report recently published by the International Committee on Taxonomy of Viruses, which classified the virus, SARS-CoV-2, as belonging to a species similar to SARS-CoV, a virus controlled under the Export Administration Regulations under ECCN 1C351.a.46. But because SARS-CoV-2 is a “genetically distinct virus,” “causes a clinically distinct disease” and the “specifics of the disease … are still being investigated,” BIS said it considers SARS-CoV-2 to be “distinct” from SARS-CoV, adding that it does not yet warrant increased controls. BIS did warn, however, that some end-users, end-uses and destination countries may require a license for exports of EAR99 items, and exporters “should continue to screen all requests in accordance” with the Export Administration Regulations.
The Commerce Department is “nowhere near” publishing an export control rule on foundational technologies and is likely not close to releasing its advance notice of proposed rulemaking, Squire Patton Boggs trade lawyer George Grammas said. Commerce management has had a draft of the ANPRM since at least mid-2019, Grammas said. “It doesn't seem to be going anywhere fast,” he said, speaking during a Feb. 20 webinar hosted by Content Enablers. “We don’t seem to be anywhere near seeing a rule on foundational technologies in the near term.”
The Bureau of Industry and Security revised the country groups for Russia and Yemen under the Export Administration Regulations (see 2001090040), BIS said in a notice. The changes increase license restrictions for both countries and are part of a larger effort within BIS that involves a “comprehensive review” of all country groups to better align with the administration's foreign policy concerns. All shipments now requiring a license as a result of this rule that were on dock for loading or aboard a carrier to a port as of Feb. 24 may proceed to their destinations under the previous eligibility, BIS said. Shipments that have not been exported, re-exported or transferred by March 25 will require a license.
As the final regulations for the Foreign Investment Risk Review Modernization Act take effect this week, FIRRMA’s definition for critical technologies remains unclear due to a lack of proposed rules by the Commerce Department on emerging and foundational technologies, trade lawyers said.
The Directorate of Defense Trade Controls issued a Jan. 23 guidance on the final rules for the transfer of gun export controls from the State Department to the Commerce Department, including a clarification on license submissions during the transition period. The guidance also clarifies how the rules and transition period affect technical assistance agreements, manufacturing license agreements, reporting requirements, commodity jurisdiction determinations and regulatory oversight responsibilities. The rules -- which were published Jan. 23 and transfer export control authority from the State Department to Commerce for a range of firearms, ammunition and other defense items -- will take effect March 9 (see 2001170030).