The Bureau of Industry and Security by now should have penalized Seagate Technologies for illegally exporting goods to Huawei, James Mulvenon, a China technology and military expert, wrote in a June 6 post for the Lawfare blog. Mulvenon said BIS’s “inaction” has emboldened other companies to export similar shipments and is indicative of a larger enforcement issue at BIS surrounding its foreign direct product rule for Huawei.
The U.S. and Canada this week announced an initiative to strengthen collaboration on Russia-related export controls. In a joint statement, the Bureau of Industry and Security and the Canada Border Services Agency said they will share more trade information to stop Russia from acquiring sensitive technologies, including through coordinated pre- and post-shipment verifications and audits. The two countries will also work more closely on inspections of exports, seizures and export control investigations.
A recent increase in U.S. sanctions against ransomware actors has helped to slow the effectiveness of cyberattackers and limit their profits, witnesses told the Senate Committee on Homeland Security and Governmental Affairs June 7. But the U.S. can do more to counter ransomware activity, they said, including working closer with allies to track ransomware payments and collecting better information from industry.
The EU and Taiwan held a trade and investment dialogue last week, which included talks about boosting cooperation in export controls, sanctions and foreign investment screening. The two sides also hope to “deepen their cooperation” in the semiconductor industry and want to improve market access for EU agricultural products in Taiwan, the EU said.
The Office of Foreign Assets Control published a new frequently asked question and updated two other FAQs related to its Russia sanctions. New FAQ 1055 clarifies how and whether Russia-related investment restrictions apply to the lending of funds or the purchasing of an equity interest in entities located outside Russia.
The Office of Foreign Assets Control designated two officials in Bosnia and Herzegovina: Marinko Cavara, president of the Federation of Bosnia and Herzegovina, and Alen Seranic, minister of health and social welfare for the Republika Srpska. The two have threatened the stability of the region by undermining the Dayton Peace Accords and democratic processes or institutions, OFAC said in a June 6 news release.
China’s new export controls law may apply to a broader range of items than just dual-use goods, Baker McKenzie said in a June alert. In draft regulations released earlier this year (see 2204270040), China included a provision that will allow it to also restrict exports of non dual-use goods, which could include artificial-intelligence or integrated-circuit design technologies “that are currently regulated under a separate legacy technology import and export control regime,” the firm said.
The State Department’s recent fine of a U.S. electro-optics equipment manufacturer (see 2202010058) highlighted a range of key takeaways for defense exporters, including the importance of the commodity jurisdiction process and recordkeeping, Torres Trade Law said in a June alert. The consent agreement also underscored the benefits of voluntarily disclosing violations, the firm said, which can significantly mitigate penalties.
The Bureau of Industry and Security June 6 charged Russian oligarch Roman Abramovich with violating U.S. export controls by exporting U.S.-origin aircraft to Russia without the required licenses (see 2202240069). BIS said Abramovich’s planes flew to and from Russia in March, days after the agency announced new export controls on Russia-related aircraft.
The EU officially imposed its sixth sanctions package on Russia following its invasion of Ukraine, the European Council announced June 3. The package includes a phased ban on the "purchase, import or transfer" of crude oil and certain petroleum goods from Russia to the EU. The prohibition will take six months for crude oil and eight months for other refined petroleum products. The council also laid out a temporary exception for crude oil imported via pipeline into the EU member states that "suffer from a specific dependence on Russian supplies and have no viable alternative options" -- namely, Hungary, which held up the ban over energy supply concerns (see 2206020016). Bulgaria and Croatia were also granted exceptions for the import of Russian seaborne crude oil and vacuum gas oil, respectively.