The Census Bureau won't follow through with a rule to eliminate some export reporting requirements for shipments to Puerto Rico and the U.S. Virgin Islands (see 2009160033 and 2112140052), saying it couldn’t find an alternative data source to replace the information that would no longer have been submitted by exporters. The decision, released Feb. 3, came after months of both interagency and public discussions, including heavy lobbying from parts of the U.S. shipping industry, which argued the requirements were costly, burdensome and unfair.
The House will consider multiple sanctions and export control amendments submitted as part of its China competition bill (see 2201310064), including one that could adjust the Commerce Department's export control authority, several that could require more scrutiny on Chinese foreign investments and at least two that could lead to new China sanctions.
The Bureau of Industry and Security is hoping to expand the number of officers it sends overseas and increase collaboration with other investigative agencies, partly to help with a larger workload and a rise in new export control evasion trends. Agents said BIS has seen a steady increase in work since the enactment of the Export Control Reform Act of 2018, which has been made more complex by the rise in cryptocurrency schemes, increasingly sophisticated uses of front companies and ransomware attacks.
Saber Fakih of the United Kingdom pleaded guilty in the U.S. District Court for the District of Columbia to illegally exporting and attempting to export an industrial microwave system (IMS) and counter-drone system to Iran, the Department of Justice said. Fakih also admitted conspiring with Bader Fakih of Canada; Altaf Faquih from the United Arab Emirates; and Alireza Taghavi of Iran. Fakih's actions violated the International Emergency Economic Powers Act and Iranian Transactions and Sanctions Regulation, DOJ said Jan. 27.
The Commerce Department’s National Institute of Standards and Technology is extending the comment period for a study on investment, supply chain and marketplace trends in eight emerging technology areas, the agency said in a notice. NIST is specifically seeking feedback to help guide the development of artificial intelligence, the internet of things in manufacturing, quantum computing, blockchain technology, new and advanced materials, unmanned delivery services, IOT and 3D printing. The comments, originally due Jan. 31 but now due Feb. 15, will help inform a NIST report to Congress on those emerging technologies. The Bureau of Industry and Security is studying each of these areas for potential export controls as part of its emerging and foundational technology effort under the Export Control Reform Act (see 2110280040).
The Commerce Department’s Bureau of Economic Analysis is conducting a mandatory survey on U.S. direct investment abroad to help measure the impact of the investments on the American and foreign economies, the agency said Jan. 27. BEA will contact entities that are required to respond to the survey, and a report from each entity covering its fiscal year ending during the previous calendar year is due by May 31. U.S. lawmakers are considering a new screening regime to better scrutinize outbound investments (see 2201140038).
The Bureau of Industry and Security should update its export controls surrounding infrared technologies to allow U.S. companies to better compete with foreign firms, said Mike Muench, CEO of Seek Thermal, a thermal imaging company. Muench, speaking during a Jan. 25 meeting of the Commerce Department’s Sensors and Instrumentation Technical Advisory Committee, said BIS hasn’t “significantly” updated its infrared technology controls since 2005, when the infrared sector was dramatically different. “That was several generations ago, relatively speaking, in the technology space,” Muench said. “We really believe it's time for us to address some of these changes to allow U.S. firms to be more competitive.”
A California-based semiconductor and telecommunications technology company recently received a warning letter from the Bureau of Industry and Security after it voluntarily disclosed possible export violations. The company, Credo, said it “inadvertently provided three evaluation boards of nominal value” to two customers without required export licenses. Credo submitted a final voluntary self-disclosure to BIS in June and received a warning letter in September with no penalties, according to a January Securities & Exchange Commission filing. Credo didn’t say where the customers were located but said it sells its products in Asia, including in markets where “multiple” companies have been added to the Commerce Department’s Entity List or the military end-user list. The company said it’s “in the process” of improving its export compliance policies and procedures but believes it “remedied the deficiencies that resulted in the apparent violations through additional training, system enhancements and enhanced export controls.”
The Commerce Department should publish a list of controlled emerging and foundational technologies 90 days after the Senate confirmation of its Bureau of Industry and Security leader, China Tech Threat's Future of BIS said. Strand Consult operates China Tech Threat, which advocates for stronger export controls on China. Despite congressional pressure (see 2111170064), BIS has repeatedly said it doesn’t plan to publish an exhaustive list of controlled emerging and foundational technologies but rather will issue controls on a continuous basis. A BIS spokesperson didn’t comment.
The Census Bureau will make several changes to the Automated Export System to accommodate the Commerce Department’s new Authorized Cybersecurity Exports (ACE) license exception, Census said in a Jan. 7 email. Among the changes, the agency will add new Export Control Classification Numbers 4A005 and 4D004 and will create new License Code C64 for the ACE exception.