The Bureau of Industry and Security is considering several major changes to its administrative enforcement authorities, including publicizing its charging letters before cases are resolved and increasing penalty amounts for export violations. The agency may also limit its use of no admit/no deny settlements, which allow companies to avoid admitting explicit wrongdoing.
The Los Angeles and Long Beach ports again postponed by a week a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced May 13. The ports had planned to begin imposing the fee in November 2021 but have postponed it each week since. The latest extension delays the effective date until May 20.
The U.S. and the EU this week plan to announce a range of new initiatives through the Trade and Technology Council, including more collaboration on export controls and additional efforts to secure semiconductor supply chains, a senior administration official said. The official, speaking to reporters May 13 ahead of the TTC's second meeting May 15-16 in Paris, said the two sides will “deepen the partnership and announce a number of key outcomes.”
Commerce Secretary Gina Raimondo said she supports including an outbound investment screening provision in the final version of Congress’ China competition bill (see 2202030062), and said more guardrails are needed to stop China from finding technology transfer loopholes. While Raimondo didn’t explicitly endorse the bipartisan National Critical Capabilities Defense Act, which would create a committee to review outbound investments, she said the U.S. could use more regulatory power.
The U.S. should take steps to address a range of loopholes in its export control regimes, including its inability to conduct end-use checks in China and unregulated technology transfers resulting from outbound investments, said Nazak Nikakhtar, former acting head of the Bureau of Industry and Security. “We have a lot of gaping holes in our export control system,” Nikakhtar told the Senate Intelligence Committee May 11. “I think we really need to tighten those up.”
Companies should expect the Commerce Department to add more entities to the Entity List for aiding Russia amid its war in Ukraine, said Thea Kendler, the agency’s assistant secretary for export administration. Commerce has so far added more than 100 entities to the list for supporting the Russian and Belarusian militaries (see 2204040006). Kendler, speaking during a May 12 Materials and Equipment Technical Advisory Committee meeting, said the agency is looking at entities in both Russia and Belarus "that may be contributing to the military industrial complex."
The U.S. and EU should use the upcoming Trade and Technology Council meeting to further harmonize their export controls and strengthen cooperation in semiconductor supply chains, the American Chamber of Commerce to the EU (AmCham EU) said in May 10 recommendations. While government officials have said the two sides have already surpassed some of the TTC’s short-term goals (see 2204130045), the chamber said it can still make progress outlining “clear deliverables” and better defining the scope of the council’s working groups.
The Transportation and Related Equipment Technical Advisory Committee is considering asking the Bureau of Industry and Security for more Russian export control guidance and is hoping to help address the agency's backlog of military end-user license applications, said committee Chair Ari Novis, chief global trade officer for Pratt & Whitney.
The Commerce Department is working with allies to create a new multilateral export control enforcement coordination mechanism to better tighten gaps in global export control regimes, said Matthew Axelrod, the agency’s lead export enforcement official. Axelrod said more enforcement cooperation can strengthen the effectiveness of the controls, particularly for Russia-related restrictions.
The U.S. needs to be careful when imposing export controls on emerging technologies to avoid hurting U.S. research and innovation, said Robert Blair, Microsoft's senior director-5G and external affairs. Blair, speaking during a May 10 event hosted by the Task Force on American Innovation, said industry wants to help the administration stem the proliferation of technologies to bad actors while also avoiding hurting the competitiveness of U.S. companies, specifically those working on quantum technologies.