Commerce Secretary Gina Raimondo said she plans to heavily enforce Entity List restrictions and more aggressively tackle the agency's emerging and foundational technology export control mandate. And although the agency’s review of China policies is ongoing (see 2101250049), she again stressed that Commerce doesn’t plan to remove export restrictions from Huawei and is looking for more companies to add to the Entity List.
U.S. exporters and forwarders are still unsure how much due diligence is enough to comply with the Commerce’s Department’s recently expanded end-user and end-use restrictions, National Customs Brokers & Forwarders Association of America officials said. Although the Bureau of Industry and Security issued some guidance last year, the guidance didn't address all industry questions and was made more complicated by another set of restrictions that took effect this year, the officials said.
With the administration's desire to address root causes for migration from Central American countries, U.S. Trade Representative Katherine Tai said the free trade agreement that covers that region, and the Dominican Republic, has been “very much on my mind recently.”
The top Republican on the House Foreign Affairs Committee urged Commerce Secretary Gina Raimondo to address the agency’s “incomplete” implementation of its emerging and foundational technology export control mandate when she testifies before the House this week. Raimondo -- who will testify May 6 before the House Appropriations Subcommittee on Commerce, Justice and Science -- should also address Commerce’s search for a Bureau of Industry and Security leader and outline the agency's export controls strategy to compete with China, said Rep. Michael McCaul, R-Texas.
The Bureau of Industry and Security fined a U.S. thermal imaging camera producer more than $300,000 after it violated the Export Administration Regulations by providing false and incomplete statements in support of a commodity jurisdiction (CJ) request (see 2103040065). The company, FLIR Systems, sought a determination that one of its newly developed products was subject to the EAR rather than the State Department’s International Traffic in Arms Regulations and withheld information in order to support that determination, BIS said. Along with the fine, FLIR agreed to conduct two BIS-monitored internal audits and won’t be granted export licenses until the audits are completed and the fine is paid, BIS said in an April 29 notice.
A German software company agreed to pay more than $8 million in fines after it admitted to violating U.S. export controls and sanctions against Iran, the Justice, Treasury and Commerce departments announced April 29. The company, SAP SE, came to settlement agreements with all three agencies after it voluntarily disclosed the violations, which included illegal exports and reexports of U.S.-origin software.
Semiconductor industry officials are preparing to push for export control modernization over certain electronics on the Commerce Control List, which they say will help controls avoid unintended consequences on U.S. companies and more accurately reflect national security concerns. The effort, led by the Semiconductor Industry Association, will look to convince the Bureau of Industry and Security to update certain control parameters and definitions, and make technical changes in Category 3 of the CCL, which officials view as out of date.
The Bureau of Industry and Security extended its comment period for an information collection related to a request for appointment of a technical advisory committee, it said in a notice released April 23. The collection describes the functions and responsibilities of the Commerce Department TACs, which help advise the government on proposed revisions to export controls, licensing procedures and more. The comments, originally due March 15 (see 2101130013), are now due 30 days after the notice is posted on the Office of Information and Regulatory Affairs website.
The Census Bureau is unsure how much longer it needs to decide whether to eliminate export filing requirements for shipments to Puerto Rico, saying it is still reviewing public comments and speaking with industry officials, Puerto Rican researchers and other U.S. agencies that use the data. Perhaps most important, the agency remains unsure whether it can use alternative data sources to compensate for all the information that would no longer be collected if Census decides to nix the Electronic Export Information requirements, said Omari Wooden, a senior Census official.
While the U.S. needs a comprehensive technology strategy, it first should create new bureaucratic processes to implement that strategy or else risk uncoordinated policies with little impact, the Center for a New American Security said in an April 20 report. The report, which builds off previous research (see 2103160047) by the think tank that called for a better technology strategy to counter China, argues that current U.S. agencies and government bodies are unequipped to maximize the effectiveness of export controls and other trade policy tools.