Yesterday, the U.S. Bureau of Industry and Security (BIS) issued an interim rule imposing new export controls on four emerging and foundational technologies. The new rules control two substrates of ultra-wide gap semiconductors; Electric Computer-Aided Design (ECAD) software specially designed for the development of integrated circuits with Gate-All-Around Field-Effect Transistor (GAAFET) structure; and Pressure Gain
BIS: Exporters May Request 6 Month Extension for Export Licenses Nearing Expiration
On October 16, 2020, the Bureau of Industry and Security (BIS) announced that exporters may request a six-month extension for export licenses set to expire on or before December 31, 2020.
BIS indicates that most requests for extensions will be reviewed and approved on an expedited basis within two to three business days, depending on…
U.S. Adds 24 Chinese Construction and Communications Companies to the Entity List
Today the Bureau of Industry and Security (BIS) added 24 Chinese state-owned companies to the Entity List for their role in the construction of artificial islands in the South China Sea. The Entity List prohibits the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to these companies without a…
Expansion of U.S. Huawei Restrictions: More Foreign-Made Items Are Caught By U.S. Export Controls
On August 20, the Bureau of Industry and Security (“BIS”) published a final rule (“final rule”) amending the Export Administration Regulations (“EAR”) to expand restrictions on transactions involving Huawei entities that are included on BIS’s Entity List (“designated Huawei entities”). The newly expanded rule applies to a broader range of items produced outside of the…
BIS Confirms: Entity List Restrictions Apply to All Parties, Including Freight Forwarders and Purchasers
On August 20, 2020, the Bureau of Industry and Security (BIS) will publish a final rule confirming that the Entity List licensing requirements apply to all transactions in which a listed party plays a role – including where the listed party is the ultimate consignee, end-user, purchaser, or intermediate consignee. The new rule formally codifies…
China and Hong Kong Developments: Sanctions, Export Controls, and Supply Chain Risks
Over the last month, the United States has taken a variety of steps to increase pressure on China in response to the imposition of China’s National Security Law in Hong Kong and alleged human rights abuses in Xinjiang. These measures include new sanctions programs targeting Hong Kong, export and trade control restrictions, and sanctions targeting actors in the Xinjiang region. The U.S. government also issued a lengthy Advisory warning U.S. and global companies of supply chain risks related to forced labor and other human rights issues in Xinjiang.
In this post, we highlight some key risks that companies should consider when doing business in the region against the backdrop of rising U.S.-China tensions.…
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A First Step: BIS Eliminates Certain Hong Kong Export License Exceptions
Today the Bureau of Industry and Security (BIS) announced that it is suspending license exceptions for exports, re-exports, or transfers to or within Hong Kong that provide differential treatment than license exceptions available for shipments to mainland China. In other words, if a license exception is not available for shipments to China, then it can…
Effective Today – New Export Control Restrictions on Military End Users and End Uses in China, Russia, and Venezuela
Bureau of Industry and Security Issues Guidance on Rule
The new Bureau of Industry and Security (“BIS”) rule prohibiting certain exports, reexports, and transfers of items to “military end-users” and “military end-uses” in China, Russia, and Venezuela is effective today.
The new rule creates additional due diligence burdens on manufacturers and exporters in the materials…
Exports of National Security Controlled Items to Russia Could Be Banned Under New Sanctions
Yesterday the U.S. government announced that it would implement new sanctions against Russia mandated under the Chemical and Biological Weapons Act of 1991 (the CBW Act) following the apparent deployment of a chemical weapon on British soil by Russia.
The first round of sanctions, which are expected to come into force on or around August 22, will prohibit many exports and reexports of goods, software, or technology to Russia controlled for national security reasons under the dual use Export Administration Regulations. Such items include gas turbine engines, encryption items, electronics components, optical equipment, lasers, sensors, electronic components, materials, and certain unmanned systems, among many others. National security controlled items currently require a license to be exported to Russia, but the new rules will require the Commerce Department to apply a ‘presumption of denial’ to future license requests in many instances. In a briefing announcing the new sanctions, the State Department indicated that certain exceptions will be made, including those related to joint space activities, aviation safety, and the activities of U.S. and other foreign companies in Russia. While the scope of the sanctions has yet to finalized, the State Department suggested that up to half of all licensed exports to Russia are controlled for national security reasons. If the sanctions are fully enforced, the impact could be substantial – based on 2016 figures over $1 billion in trade could be impacted.
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21 Russian Companies Added To The U.S. Entity List
The United States imposed new sanctions against 21 Russian companies today by adding them to the Commerce Department’s Entity List. Among other restrictions, U.S. and non-U.S. companies are now prohibited from transferring any U.S.-origin items to the sanctioned Russian firms. The parties were added to OFAC’s SDN List last month.