The Office of Foreign Assets Control issued guidance on its Sudan program and Darfur sanctions and removed and revised Sudan-related FAQs. The guidance, issued Aug. 11, clarifies that U.S. people and companies are no longer subject to OFAC’s Sudanese Sanctions Regulations but may be designated under the agency’s Darfur sanctions or captured by Commerce Department export controls.
The Bureau of Industry and Security has begun a broad review of new export controls on surveillance technologies going to China, which may also include additions to the agency’s Entity List, Acting Commerce Undersecretary for Industry and Security Cordell Hull said. Hull called the review “comprehensive” and “in-depth,” saying it could lead to controls over advanced surveillance tools, artificial intelligence software and biometric technologies.
The Census Bureau published a July 21 blog post about U.S.-Puerto Rico shipping regulations, detailing when exporters must file Electronic Export Information in the Automated Export System. The post covers filing requirements for shipping routes that include the mainland U.S., Puerto Rico and a foreign country. The Commerce Department is working on an advance notice of proposed rulemaking to remove certain EEI filing requirements for exporters shipping goods to Puerto Rico (see 2006030043).
The Bureau of Industry and Security is considering imposing new license requirements on facial recognition software and surveillance-related items that may be used for crowd control reasons or to violate human rights. BIS said in a notice it is reviewing changes to the Commerce Control List and is seeking industry feedback about CCL items that are restricted for crime control and detection reasons. Comments are due Sept. 15.
The Commerce Department’s long-awaited proposed regulations on routed export transactions may not be issued until next year, a Census Bureau official said. Both Census and the Bureau of Industry and Security have been working closely on the rule but have struggled to pinpoint a release date. “I thought it would happen this year, but I'm going to go with probably 2021,” Kiesha Downs, chief of Census’ Foreign Trade Division’s regulations branch, said during a July 15 webinar hosted by Census. “It's just a matter of ironing out a couple more things.”
The Commerce Department published its spring 2020 regulatory agenda for the Bureau of Industry and Security. The agenda includes a new mention of a rule to control “software” for the operation of “automated nucleic acid assemblers and synthesizers” capable of designing and building “functional genetic elements from digital sequence data.” BIS said the software can be used in the production of pathogens and toxins, with the potential for those to make their way into biological weapons if export controls on the software are lacking. The notice of proposed rulemaking, part of BIS’ effort to control emerging and foundational technologies (see 2005190052), will request industry comments about how the controls might affect “legitimate commercial or scientific applications.” BIS said it aims to issue the proposed rule this month.
Rich Ashooh, the Commerce Department’s assistant secretary for export administration, submitted his resignation and will officially leave the agency July 16, a Commerce spokesperson said. The spokesperson declined to comment on the reasons for Ashooh’s departure. Ashooh’s resignation was first reported by Reuters.
Industry should expect the Bureau of Industry and Security to dedicate significant resources to enforcing its new export restrictions on shipments to military end-users and end-uses, export control experts said. Although the rule (see 2004270027), which took effect June 29, increased license restrictions for shipments to China, Russia and Venezuela, companies should expect increased enforcement and monitoring specifically for exports to China as the Trump administration hardens its stance on countering China’s civil-military fusion efforts, the experts said.
The Trump administration issued an advisory for companies doing business with China’s Xinjiang region, which could expose companies to sanctions, export controls and forced labor risks. In a 19-page guidance issued July 1, the departments of State, Commerce, the Treasury and Homeland Security describe supply chain risks and possible sanctions exposure for companies trading with the region, and includes suggested due diligence practices. The guidance comes less than a month after President Donald Trump authorized sanctions against Chinese officials for human rights violations against the country’s Uighur population in the Xinjiang region (see 2006170064).
The Commerce Department will officially amend the Export Administration Regulations June 18 to allow U.S. companies to more easily participate in standards setting bodies in which Huawei is a member, the agency said in a notice. Commerce, which previously announced details of the measure (see 2006150062), is seeking comments on the revision, which will allow the release of certain technology to Huawei and its affiliates on the Entity List if that release is in the context of a standards-setting body and not for commercial purposes. Comments are due Aug. 17.