The Bureau of Industry and Security sent a final rule for interagency review that would introduce a congressional notification requirement for certain weapons exports. The rule, sent to the Office of Information and Regulatory Affairs May 17, would require notifications for certain semiautomatic firearms exports under the Export Administration Regulations.
The Bureau of Industry and Security completed an interagency review of a proposed rule that could place new export controls on certain “marine toxins.” The rule, sent for review March 21 (see 2203220005) and completed May 16, proposes changes to the Commerce Control List to reflect revisions recently made at the multilateral Australia Group.
Companies should expect the Commerce Department to add more entities to the Entity List for aiding Russia amid its war in Ukraine, said Thea Kendler, the agency’s assistant secretary for export administration. Commerce has so far added more than 100 entities to the list for supporting the Russian and Belarusian militaries (see 2204040006). Kendler, speaking during a May 12 Materials and Equipment Technical Advisory Committee meeting, said the agency is looking at entities in both Russia and Belarus "that may be contributing to the military industrial complex."
The Commerce Department is working with allies to create a new multilateral export control enforcement coordination mechanism to better tighten gaps in global export control regimes, said Matthew Axelrod, the agency’s lead export enforcement official. Axelrod said more enforcement cooperation can strengthen the effectiveness of the controls, particularly for Russia-related restrictions.
The U.S., the EU and the other G-7 members on May 9 announced a series of new sanctions and restrictions on Russia, including a ban on providing certain business management services to the country and a commitment to phase out imports of Russian oil. New U.S. restrictions include broader export controls and sanctions targeting Russian banking executives, a weapons manufacturer and state-owned media.
The U.S. expanded export controls on Russia to cover a broader range of “commercial and industrial operations,” including wood products and construction machinery, the Commerce Department said. The new controls make more items on the Export Administration Regulations subject to “stringent” licensing restrictions for export to Russia, the Bureau of Industry and Security said in a final rule that includes the specific Schedule B numbers and Harmonized Tariff Schedule codes of the newly restricted items. Commerce said the items previously didn’t require a license for “most exports” to Russia.
Peter Quinter, former customs and international trade attorney at GrayRobinson, joined Gunster as the leader of its Customs and International Trade Law Group, Quinter said in a post on his LinkedIn account. Quinter advises on issues involving investigations by the Commerce Department's Bureau of Industry and Security, the Treasury's Office of Foreign Assets Control and the State Department's Directorate of Defense Trade Controls. Before entering private practice, Quinter served as counsel at the Southeast Regional Headquarters of the U.S. Customs Service.
The State Department is “finalizing” discussions with several trading partners on its new open general license concept for certain defense exports, senior agency official Mike Miller. The concept, which could begin as a pilot program, would allow U.S. exports to certain U.S. trading partners without having to apply for a specific license (see 2109290056).
Commerce Secretary Gina Raimondo told senators repeatedly during her testimony at a Commerce Committee hearing that the conference process for the House and Senate's China packages needs to get done as soon as possible, because other countries are offering funds to chipmakers, and companies are looking to plan new plants, because demand is so high. Raimondo said she's spoken with all the American chipmakers, and it's clear to her that if Congress doesn't act, those companies will invest in Germany, Singapore, France or Spain rather than Ohio or Arizona. Raimondo said, "They want to operate in our country, but they cannot wait. They are going to build, and if we don’t act quickly with USICA, they’ll build elsewhere."
The Bureau of Industry and Security on April 21 suspended the export privileges of another Russian airline for violating U.S. export controls against Russia. The agency issued a 180-day temporary denial order for Moscow-based cargo aircraft carrier Aviastar, which will limit the airline’s ability to deliver goods to Russia’s military, BIS said. Aviastar will be barred from participating in transactions with items subject to the Export Administration Regulations.