The Commerce Department hasn’t been able to move forward on its routed export rule because it is awaiting confirmation of political appointees in the Bureau of Industry and Security, according to a document recently posted by CBP. The rule, which has seen several delays, involves “critical issues that need attention” from BIS appointees, the document said. President Joe Biden recently nominated Alan Estevez to lead BIS (see 2107130004) and Thea Kendler to be assistant secretary for export administration (see 2107280063), but neither has had a confirmation hearing scheduled.
Several Republican lawmakers criticized the Biden administration this week for reportedly (see 2108250018) granting export licenses for companies to ship hundreds of millions of dollars worth of auto chips to Huawei. The licenses reportedly were approved within the past several months and authorized only exports of auto chips, which are viewed as less sensitive than other types of semiconductor-related items.
The State Department and the Office of Foreign Assets Control recently announced a series of sanctions against Russia, including import restrictions on firearms and the designation of entities and individuals connected the poisoning of Russian opposition figure Aleksey Navalny. Coming on the one-year anniversary of Navalny’s poisoning with Novichok nerve agent, the new sanctions are being carried out “in concert” with the United Kingdom, State said.
Several U.S. and multinational companies recently disclosed potential U.S. sanctions violations or updated previous disclosures. The cases involve a destruction of evidence in a sanctions investigation, potentially illegal transactions with Iran, a gaming software company and others.
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 fined a U.S. semiconductor manufacturer $469,060 for working with others to export chip-making equipment to Chinese companies on the U.S. Entity List, BIS said in an Aug. 16 order. The company, California-based Dynatex International, violated the Export Administration Regulations because it didn’t obtain the required BIS license before shipping the equipment. Although BIS said Dynatex knew it was shipping items to blacklisted companies, the agency substantially reduced the fine as part of a settlement agreement.
Mi-Yong Kim, former chair of the Operating Committee for Export Administration at the Commerce Department's Bureau of Industry and Security, joined Bass Berry as counsel in its Washington, D.C.-based International Trade Practice, the firm announced Aug. 10. Kim worked at Commerce for over 18 years, nearly 10 of them as a senior attorney with the Office of Chief Counsel for Industry and Security. Kim will work on national security issues, including matters involving the Export Administration Regulations, the International Traffic in Arms Regulations and the Committee on Foreign Investment in the U.S., the firm said.
The Biden administration should continue to increase Chinese trade restrictions but has done a good job pressuring the country so far, said Nazak Nikakhtar, a former acting head of the Bureau of Industry and Security during the Trump administration. Nikakhtar recently told Nikkei Asia she and others were initially “nervous” that President Joe Biden would ease some restrictions but has been pleased to see a continuation of many of the same export control measures begun under President Donald Trump.
Sen. Roger Wicker, R-Miss., the top Republican on the Senate Commerce Committee, is asking the Bureau of Industry and Security for information on Huawei export licenses. Wicker said BIS recently held an “informal briefing” with Wicker’s staff in which they withheld certain licensing information “based on confidentiality concerns,” but Wicker believes the information should have been provided. “The information requested neither focused on any particular company's compliance nor could have resulted in a breach of confidentiality for a company under investigation,” the senator said in an Aug. 11 letter to BIS.
The Bureau of Industry and Security and the Office of Foreign Assets Control issued a fact sheet this week highlighting the various exemptions and authorizations available for companies, people and exporters providing telecommunications goods and services to Cuba. The five-page guidance covers OFAC general licenses and BIS license exceptions and comes as the Biden administration tries to increase sanctions pressure on the Cuban government for its crackdown on pro-democracy protests in recent weeks (see 2107300063).