The Office of Foreign Assets Control sanctioned four people and two companies for providing “critical support” to Iran’s Islamic Revolutionary Guard Corps’ unmanned aerial vehicle programs, the agency said Oct. 29. The designations target Iran-based Kimia Part Sivan Co. (KIPAS) and Oje Parvaz Mado Nafar Co. (Mado) for helping to bolster Iran’s UAV capabilities. OFAC also sanctioned Mohammad Ebrahim Zargar Tehrani, who helps KIPAS source its components from foreign companies; Yousef Aboutalebi, managing director for Mado; IRGC Brig. Gen. Abdollah Mehrabi, who is chairman of Mado; and IRGC Brig. Gen. Saeed Aghajani, who oversees the IRGC’s aerospace and UAV operations.
The State Department amended the International Traffic in Arms Regulations to reflect the sanctions imposed against Ethiopia and Eritrea last month (see 2109170036 and (see 2109200006). The agency revised the ITAR to “codify” that the U.S. will adopt a policy of denial for export licenses for defense articles and services to certain end-users in those countries, according to a notice. The policy of denial applies to defense exports to or for “armed forces, police, intelligence, or other internal security forces” for both Ethiopia and Eritrea. The agency also revised the ITAR to make certain technical and administrative changes to reflect the new policy. The changes are effective Nov. 1.
The Bureau of Industry and Security on Oct. 28 updated its guidance on the Foreign-Produced Direct Product Rule to further clarify situations when goods are subject to the FDP rule and require a license. The guidance, which includes a set of frequently asked questions (see 2012210044), now includes new FAQ No. 4 under the "supply chain" subheading, which starts on page four and continues onto page five, a BIS spokesperson said.
“Very few” of the Chinese military’s artificial intelligence equipment suppliers face specific U.S. export controls, allowing China’s defense industry access to a range of sensitive U.S. technologies, Georgetown’s Center for Security and Emerging Technology said in an October report. The absence of specific export restrictions over AI suppliers highlights significant “gaps” in U.S. export control policies, the report said, and could lead to “lapses in due diligence” by U.S. exporters.
The U.S. should continue to impose export controls on advanced semiconductor manufacturing equipment and machinery but be careful about restricting sales of finished semiconductor products to China, Chinese economics and technology policy experts said. Controls on finished products may risk hurting U.S. semiconductor exporters and would not stop China from importing those goods elsewhere, they said.
Exports from the European Union have been lifted by "effective implementation and enforcement of EU trade agreements and international trade rules," the European Commission said Oct. 27, touting over $6.3 billion in additions to EU exports since 2020. The number derives from the commission's first report on implementation and enforcement of its trade agreements that covers four areas: "(1) Making full use of the opportunities provided by EU trade agreements; (2) Supporting the uptake of trade agreements by small businesses; (3) Addressing trade barriers; (4) Enforcing trade commitments through dispute settlement."
The State Department’s Directorate of Defense Trade Controls is seeking public comments on six proposed information collections related to defense exports, according to a notice released Oct. 28. Comments are due Dec. 1. The information collections are:
The Office of Foreign Assets Control on Oct. 28 sanctioned two Lebanese businessmen and a member of Lebanon's parliament whose actions have “contributed to the breakdown of good governance and the rule of law” in the country. The sanctions target businessmen Jihad al-Arab and Dany Khoury as well as lawmaker Jamil Sayyed.
The Bureau of Industry and Security plans to implement more emerging technology controls during this fiscal year, Karen Nies-Vogel, BIS’s director of the Office of Exporter Services, said, speaking briefly during an Oct. 28 meeting of the Emerging Technology Technical Advisory Committee. Nies-Vogel said the agency has so far issued 38 emerging technology controls and is “looking forward” to implementing more in the coming months and “years to come.”
The Department of Justice this week announced new initiatives to “strengthen” its enforcement of corporate crime, which could have wide-ranging effects on cases involving export controls, sanctions and foreign bribery violations. The initiatives were presented by Deputy Attorney General Lisa Monaco as “changes” to the agency’s enforcement policies, including how DOJ will calculate mitigation when assessing penalties, how it will weigh past misconduct for unrelated violations and how it will use independent monitors to ensure compliance with settlement agreements.