The Bureau of Industry and Security needs to better enforce its foreign direct product (FDP) rule, which is not adequately stopping Huawei and other Chinese companies from acquiring certain sensitive U.S.-produced technology, eight Republican senators said in a Nov. 15 letter to Commerce Secretary Gina Raimondo. The senators said Commerce’s “lax enforcement” of the rule has encouraged other technology firms to sell to companies on the Entity List, said the lawmakers, who all serve on the Senate Committee on Commerce, Science and Transportation.
The Census Bureau hasn’t yet decided whether to eliminate export filing requirements for shipments to Puerto Rico and the U.S. Virgin Islands, despite struggling to find a legitimate, alternative data source for those filings. A Census official suggested in September the agency was unlikely to move forward with a rulemaking to eliminate the requirements because no alternative data source had been found (see 2109140037), and said a final decision on the rule would be made within days. But two months later, it’s still under review, a Census spokesperson said Nov. 15.
Dali Bagrou, of Alpharetta, Georgia, and owner of World Mining and Oil Supply, was sentenced to 51 months in prison accompanied by three years of supervised release for his role in a scheme to evade U.S. national security laws, the U.S. Attorney's Office for the Southern District of Georgia said. World Mining was sentenced to five years' probation.
The Commerce Department should tread carefully when imposing new export controls, foreign investment restrictions and limits on standards collaboration, which may jeopardize the U.S.’s position in global information and communications technology supply chains, U.S. companies and trade groups told the agency this month. Some of those regulatory restrictions are already having chilling effects on U.S. competitiveness, they said, as foreign firms and countries can quickly fill voids in overseas markets and leadership positions in global standards bodies.
The Biden administration is still working through a sweeping review of its arms transfer policies, which is expected to place more of an emphasis on human rights concerns while helping to remove foreign barriers to U.S. defense exporters, said Tim Betts, a senior State Department official. He said the agency is in the middle of an “intensive” interagency process and “wide ranging” discussions with industry and Congress to determine how best to revise its conventional arms transfer policies, which could represent a more cautious approach compared with the previous administration.
The Bureau of Industry and Security added four technology companies in Israel, Russia and Singapore to the Entity List for “acting contrary” to U.S. foreign policy and national security through “malicious cyber activities,” BIS said in a notice released Nov. 3. The companies either operate or supply technologies in the cyberintelligence and information security sectors and will be subject to a license review policy of presumption of denial for all items subject to the Export Administration Regulations. No license exceptions will be available for controlled exports to the four companies. The additions are effective Nov. 4.
The Bureau of Industry and Security will add four entities in Israel, Russia, and Singapore to the Entity List for "malicious cyber activities" that are contrary to U.S. foreign policy and national security, BIS said in a notice. The two Israeli companies supply malicious spyware to foreign governments, and the companies in Russia and Singapore “traffic in cyber exploits” that threaten the “privacy and security of individuals and organizations worldwide.” BIS will impose a license review policy of presumption of denial for all items subject to the Export Administration Regulations. The Commerce Department said the Entity List additions are part of a government-wide effort to "stem the proliferation of digital tools used for repression." The additions take effect Nov. 4.
A U.S.-based technology company “likely” violated U.S. export controls against Huawei for more than a year but hasn't yet faced penalties by the Bureau of Industry and Security, Republican staff on the Senate Commerce Committee said Oct. 26. The committee’s minority staff said Seagate Technology likely continued shipping hard disk drives to Huawei after BIS amended its foreign direct product rule last year, which imposed controls on goods that are the direct product of certain technology or software subject to the Export Administration Regulations (see 2005150058 and 2008170029).
Peter Sotis of Delray Beach, Florida, and Emilie Voissem of Sunrise, Florida, were convicted of participating in an illegal export scheme to ship rebreather diving equipment to Libya, the Department of Justice said. Rebreathers, which have dual civilian and military applications, are included on the Commerce Control List and require an export license from the Commerce Department's Bureau of Industry and Security. Sotis and Voissem did not acquire this license when they attempted to ship the rebreathers to Libya in 2016, despite being told by a Commerce special agent that a license was required.
The Commerce Department needs to address several “urgent shortcomings” in its export control policies toward China (see 2110180016) and impose stricter export restrictions and license denials for sensitive goods and suppliers of Chinese military companies, a group of Republican lawmakers said in a letter to Secretary Gina Raimondo. The 17 Republicans, all members of the House’s China Task Force, also said the Bureau of Industry and Security should commit to a timeline for releasing more emerging and foundational technology controls and issue “appropriate” restrictions on fundamental research and open-source technology platforms.