Senior administration officials agreed to new measures to further restrict foreign exports of chips to Huawei (see 2003050041), according to a March 26 Reuters report. The measures would alter the Foreign Direct Product Rule to restrict foreign sales that contain U.S. chip making equipment, Reuters said, although it remains unclear if President Donald Trump will sign off on the change. Trump has said that he wants to ease restrictions on exports and sell more to China (see 2002180057). The change, which has been discussed within the administration for months (see 1912100033, 1912130052 and 2002050047) has been met with criticism from the semiconductor industry (see 2002180060). The White House and the Commerce Department Bureau of Industry and Security did not comment.
The Commerce Department Bureau of Industry and Security canceled its annual export control conference set to be held in Los Angeles in April due to coronavirus concerns, BIS said March 12. BIS said it made the decision “out of an abundance of caution.” The Export Control Forum, which was scheduled for April 1-2, will instead be offered as a “remote access program in the near future” and will provide some of the information officials “intended to present” at the conference, the agency said. BIS has not yet determined the date of that program. BIS also said the event’s co-sponsor, the District Export Council of Southern California, will return registration fees.
Continued U.S. restrictions on exports of technology to Chinese companies could have “profound negative repercussions” for the U.S. semiconductor industry, significantly depleting their global competitive standing, according to a March 9 report from the Boston Consulting Group. If current export control trends continue or escalate, leading to a further decoupling between U.S. and China, U.S. semiconductor companies could lose “8 percentage points of global share and 16% of their revenues,” the report said. And if the U.S. bans semiconductor companies from selling to Chinese customers, U.S. companies would lose nearly 40 percent of their revenues, the report said, leading to “severe” cuts in research and development and losses of thousands of jobs.
China should address and clarify several of its proposed export control provisions announced in its draft export law (see 2002040059 and 2001100047), more than 10 U.S., European and Japanese trade associations said in comments. The comments, released in February by the Center for Information on Security Trade Control, said the country should take “careful consideration” before finalizing the law and said trade associations have “significant outstanding concerns.” The comments were endorsed by the U.S. Computing Technology Industry Association and the National Association of Manufacturers.
The Commerce Department Bureau of Industry and Security issued guidance Feb. 25 clarifying that the virus causing the outbreak of the coronavirus disease, SARS-CoV-2, will continue to be classified under the Export Control Classification Number EAR99, meaning export licenses are generally not required for exports of the virus. BIS said it issued the guidance in response to a report recently published by the International Committee on Taxonomy of Viruses, which classified the virus, SARS-CoV-2, as belonging to a species similar to SARS-CoV, a virus controlled under the Export Administration Regulations under ECCN 1C351.a.46. But because SARS-CoV-2 is a “genetically distinct virus,” “causes a clinically distinct disease” and the “specifics of the disease … are still being investigated,” BIS said it considers SARS-CoV-2 to be “distinct” from SARS-CoV, adding that it does not yet warrant increased controls. BIS did warn, however, that some end-users, end-uses and destination countries may require a license for exports of EAR99 items, and exporters “should continue to screen all requests in accordance” with the Export Administration Regulations.
The Office of Information and Regulatory Affairs concluded an interagency review of a final rule from the State Department titled “International Traffic in Arms Regulation: Central African Republic.” OIRA received the rule Nov. 26 and concluded its review Feb. 19. The State Department declined to comment.
The Commerce Department Bureau of Industry and Security will submit a proposal for collection of information to the Office of Management and Budget relating to procedures for parties to request removal from the Entity List or Unverified List, according to a notice published in the Federal Register. Comments are due to the Office of Information and Regulatory Affairs at OIRA_Submission@omb.eop.gov by March 26.
The Commerce Department Bureau of Industry and Security will send an information collection proposal to the Office of Management and Budget relating to reports of requests for restrictive trade practices or boycotts, according to a notice published in the Federal Register. The information is used to monitor requests for participating in foreign boycotts. Comments are due to the Office of Information and Regulatory Affairs at OIRA_Submission@omb.eop.gov by March 26.
The Commerce Department Bureau of Industry and Security will send an information collection proposal to the Office of Management and Budget relating to foreign availability procedures, according to a notice published in the Federal Register. The information collection is used by Congress and industry to make foreign availability determinations under the Export Administration Regulations. Comments are due to the Office of Information and Regulatory Affairs at OIRA_Submission@omb.eop.gov by March 26.
The Directorate of Defense Trade Controls officially launched the registration and licensing applications for its Defense Export Control and Compliance System (see 2002040060) on Feb. 18. Users can register at the DECCS industry portal enrollment page, which also includes an enrollment guide.