A revision to U.S. export regulations included in the fiscal year 2023 defense spending bill could lead to new end-use screening obligations for U.S. people and companies operating abroad, Akin Gump said in a Jan. 5 client alert. Although it remains unclear how and when the Bureau of Industry and Security will implement the change, the law firm said it could lead to new restrictions on activities that support foreign military, security or intelligence services even if the activity doesn’t involve technology subject to the Export Administration Regulations.
The Commerce Department published its fall 2022 regulatory agenda for the Bureau of Industry and Security, including one new rule that will finalize new chip export controls against China and others that could revise chemical weapons reporting requirements, the Export Administration Regulations and the Entity List.
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New Manufacturing USA Institutes can help the semiconductor industry reduce costs and accelerate innovation, particularly in emerging technology areas that could soon be subject to export controls, chip companies and industry representatives said in comments to the National Institute of Standards and Technology. They also said the Commerce Department should bar foreign entities from working with Manufacturing USA Institutes if they are subject to U.S. export restrictions or have operations in certain countries, including China.
Several U.S. technology companies recently disclosed their ongoing efforts to comply with new export restrictions against China (see 2210070049), with some determining the regulations will have little effect and others saying the uncertainty is leading to business interruptions.
A small change to U.S. export regulations included in the fiscal year 2023 defense spending bill could go a long way to restricting shipments of sensitive U.S. technology, including hacking tools, lawmakers said this week. The provision, which passed as part of the National Defense Authorization Act last week, “represents the largest expansion of presidential export control authority in several years,” Rep. Tom Malinowski’s office said Dec. 21, adding that it allows the president to treat exports of hacking technology and expertise “just as we treat the export of sensitive military technology, to make sure it doesn’t fall into dangerous hands.”
The Bureau of Industry and Security this week announced new, stricter license requirements for exports to the Wagner Group, a Russian private military company, by designating it as a Russian military end-user, BIS said in a final rule effective Dec. 21. The new designation imposes a license review policy of denial for all items subject to the Export Administration Regulations, except for certain food and medicine, which will be reviewed on a case-by-case basis.
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The Senate this week unveiled its fiscal year 2023 government spending package, which includes additional funding for key export control, sanctions and trade priorities. The package also includes another round of emergency defense aid for Ukraine.
China officially requested dispute consultations with the U.S. at the World Trade Organization Dec. 15 over American export controls on certain semiconductors, the WTO announced. China, which announced the move earlier in the week (see 2212120061), said the restrictions violate Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT), Article XXII of the General Agreement on Trade in Services, Article 8 of the Agreement on Trade-Related Investment Measures and Article 64.1 of the Agreement on Trade-Related Aspects of Intellectual Property Rights.