The State Department’s Directorate of Defense Trade Controls will perform scheduled maintenance on its Defense Export Control and Compliance System 8 p.m. to 8:30 p.m. EDT Sept. 16, the agency said in a notice this week. DECCS will be unavailable to industry during this time. The agency said users should ensure their “work in progress is saved prior to the scheduled downtime.”
Export Compliance Daily is providing readers with the top stories for Sept. 7-10 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security this week sent a final rule for interagency review that would expand export controls on certain biological equipment software. The rule, received by the Office of Information and Regulatory Affairs Sept. 13, would amend the Commerce Control List by adding a new Export Control Classification Number to control software “for the operation of automated nucleic acid assemblers and synthesizers” that are “capable of designing and building functional genetic elements from digital sequence data.”
The European Commission opened a consulting period on amendments to its Blocking Statute, publishing an impact assessment on the regulation. The commission has received responses from the Italian Banking Association; Spectaris, the German Industrial Association for Optics, Photonics, Analytical and Medical Technology; the Medical Engineering Industry Association; and two anonymous sources. The consulting period will run for 12 weeks from the beginning of August. The impact assessment originally said that the blocking statute should be changed due to the increasing complexity and proliferation of extraterritorial sanctions and the European Union's exposure to certain third countries (see 2108110014). The blocking regulations are meant to protect EU businesses from extraterritorial sanctions, including those imposed by the U.S., which are increasingly leading to global sanctions compliance issues in Europe.
The U.S. should use the upcoming inaugural meeting of the U.S.-European Union Trade and Technology Council (see 2109090004) to convince the European Union to adopt more measures to “constrain China,” including stricter export controls and investment screening, the Information Technology and Innovation Foundation said Sept. 13. If used correctly, the council could become a significant and useful U.S. tool to increase multilateral trade restrictions on China, the group said. “U.S. negotiators need to define success not as becoming more like the EU or increasing cooperation for cooperation’s sake,” ITIF said, “but rather in increasing cooperation while also advancing key U.S. national interests and maintaining core elements of the U.S. technology policy ecosystem.”
The Bureau of Industry and Security revoked the export privileges of a Chilton, Wisconsin, man after he was convicted Dec. 13, 2019, of violating the Arms Export Control Act, the agency said in a September order. Andy Lloyd Huebschmann was convicted of illegally exporting defense articles to Australia, BIS said, including a “Model GA 9mm lower receiver, upper receiver, barrel, trigger control group, bolt carrier, and pistol grip,” all controlled under the U.S. Munitions List. BIS said Huebschmann didn’t have the required State Department export license to ship the items. He was sentenced to two years in prison, one year of supervised release, a $15,000 criminal fine and a $100 “assessment.” BIS revoked Huebschmann’s export privileges for 10 years from the date of conviction.
The State Department will amend its existing Exchange Visitor Program regulations to change the way it “may accomplish service of a notice to a sponsor” that is subject to a U.S. sanctions action, the agency said Sept. 13. The change, which takes effect Oct. 14, will allow the State Department to email designated sponsors under the program that are subject to a sanction. Previously, the agency said it could communicate with the sponsor only through physical mail and certain other means, adding that the regulations hadn’t expanded these communication methods in more than 30 years.
The Office of Foreign Assets Control on Sept. 13 amended two Russia-related entries on its Specially Designated Nationals List. The entries are for Russia’s 27th Scientific Center and the 33rd Scientific Research and Testing Institute, both of which were sanctioned in March in response to the Russian government’s poisoning and imprisonment of opposition leader Alexei Navalny (see 2103020067).
The Bureau of Industry and Security completed an interagency review Sept. 10 of a rule that would make changes to its Strategic Trade Authorization license exception. The proposed rule, sent to the Office of Information and Regulatory Affairs June 13 (see 2107150004), would clarify the availability and expand restrictions on the availability of license exception STA under the Export Administration Regulations. BIS withdrew a similar rule from consideration last year to allow for more informal talks within the interagency (see 2011130008).
Despite recent steps by the White House and the Federal Maritime Commission to address supply chain issues hampering agricultural exporters, the problems are worsening, trade groups said this week. Carriers are increasingly declining or canceling export bookings, ship delays are backlogging orders by months and agricultural exporters are seeing steep drops in revenue due to continually rising container costs, 76 trade associations said.