The Bureau of Industry and Security sent a final rule for interagency review that would revise the Unverified List. Sent for review Sept. 29, the rule would also clarify activities and criteria that could lead to additions to the Entity List.
The U.S. last week announced a host of new sanctions and export controls against Russia, targeting Russian defense and technology companies, Russian government officials and various suppliers for supporting the country's military. The measures include hundreds of new designations and 57 additions to the Entity List, most of which will be subject to certain foreign direct product rule restrictions.
The Bureau of Industry and Security was “overwhelmed” with advisory opinion requests after issuing its 2020 rules creating military end-user regulations and an MEU list (see 2004270027), said Matt Borman, deputy assistant secretary for export administration, speaking during a Sept. 27 defense industry conference hosted by IDEEA. He said the agency was “happy” to help companies that had questions about the rule, but the process was time-consuming. “It took us a while,” Borman said. “But I think we're through that backlog” now.
The U.S. imposed new sanctions against Russia Sept. 30 and announced it will add 57 entities to the Entity List for supporting Russia's military amid its war in Ukraine. The sanctions target members of Russia’s military-industrial complex, including various technology and defense firms, two of Russia's international suppliers and members of Russia’s legislature, the Treasury Department said. The Entity List additions, which BIS said will take effect Sept. 30, target parties that have sought to supply Russia’s military with controlled U.S. items or are involved in the country’s quantum computing industry, the Bureau of Industry and Security said in an emailed news release. Fifty of the 57 newly added entities will be subject to BIS’ Russia/Belarus Military End User Foreign Direct Product Rule, which will limit their ability to acquire certain foreign-produced goods made by or with U.S.-origin items.
The director of national intelligence should study how a potential “supplier partnership arrangement” between China’s Yangtze Memory Technologies Co. and Apple would affect U.S. national security, four senators said in a Sept. 21 bipartisan letter to DNI Avril Haines. The study should assess how China supports YMTC as part of a plan to advance its domestic semiconductor industry, how YMTC potentially helps Chinese firms evade U.S. sanctions and YMTC’s role in China’s civil-military fusion program.
The Bureau of Industry and Security this week updated its restricted aircraft list by adding three Iranian-owned and operated planes for violating U.S. export controls after they provided flight services to Russia. The planes -- owned by Mahan Air, Qeshm Fars Air and Iran Air -- are the first Iranian aircraft added to the list and are now subject to certain maintenance and repair restrictions and other prohibitions outlined in General Prohibition 10 of the Export Administration Regulations.
Apple should “rethink” any decision to purchase chips from China’s Yangtze Memory Technologies Co., Sen. Tom Cotton, R-Ark., wrote in a Sept. 14 letter to the U.S. technology company. Cotton said Apple and “far too many” other American businesses “already rely on China for manufacturing and supplies. Adding another Chinese company to Apple’s supply chain, particularly one with close ties” to the Chinese government and military, “compounds these risks.”
A Bureau of Industry and Security official last week confirmed the agency sent letters to specific companies restricting their ability to export certain artificial intelligence-related chips to China, and said more restrictions may be coming. In the agency’s first public comments on the matter, Thea Kendler, BIS’s assistant secretary for export administration, said the agency hopes the letters help inform industry about the types of exports the agency is scrutinizing.
The Bureau of Industry and Security this week announced a host of measures to expand its export restrictions against Russia and Belarus, including an expansion of its Russian industry sector sanctions to add new export controls on lower-level items. The agency also expanded its military and military intelligence end-user controls, applied its Russian-Belarusian MEU foreign direct product rule to additional entities, added additional dollar value exclusion thresholds for certain luxury goods exports and more.
While the Biden administration hasn't yet decided whether to establish an outbound investment screening regime, officials believe more investment screening could help fill certain gaps in semiconductor-related export controls, said Peter Harrell, a National Security Council official. Harrell said an outbound regime also could provide the U.S. with more information about global semiconductor investments, which could be useful as the U.S. seeks to stop China from acquiring advanced chip equipment.