Four individuals were arrested, and an indictment and criminal complaint were unsealed this week regarding two separate conspiracies to unlawfully export controlled, dual-use technologies to Russia. October 31, a criminal complaint was unsealed, and a Brooklyn, New York, resident and two Canadian nationals were arrested in connection with a global procurement scheme in which the defendants used two corporate entities registered in Brooklyn to unlawfully source and purchase dual-use electronics on behalf of end-users in Russia, including companies affiliated with the Russian military. Separately, a Brooklyn resident was arrested, and a four-count indictment was unsealed alleging an illegal exports scheme to procure dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.
The U.S. Department of Commerce is pausing for approximately 90 days the issuance of new export licenses involving certain firearms, related components, and ammunition under its jurisdiction and the provision of new export assistance activities for such products to all non-governmental end users worldwide, apart from those in certain destinations.
US and European Union negotiators were unable to reach agreement on a global steel arrangement in time for Friday’s leaders summit, but they agreed to continue negotiations and hold off on tariff hikes in the meantime. Negotiators had hoped to have a deal in hand for leaders to endorse at the White House summit, but officials said more work is needed before both sides can support agreements on steel and aluminum and energy subsidies. President Biden’s meeting with European Council President Charles Michel and European Commission chief Ursula von der Leyen ended up being primarily focused on international issues, including the war between Israel and Hamas and ensuring continued support for Ukraine in its fight against Russia's invasion.
On November 6, 2023, Assistant Secretary for Export Administration Thea D. Rozman Kendler will conduct a public briefing on the two interim final rules and one final rule: “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections” and “Export Controls on Semiconductor Manufacturing Items,” which were both filed for public inspection at the Federal Register on October 18, 2023. BIS published an associated final rule, “Entity List Additions,” in the Federal Register on October 19, 2023.
There is a wide disparity among countries when it comes to access to COVID-19 testing and medicines, largely based on income, the International Trade Commission found in its highly-anticipated report released yesterday. Other key factors affecting demand and availability including access to intellectual property, prices and affordability, regulatory approvals, healthcare infrastructure and the healthcare priorities of governments, according to the report.
On Tuesday 17 October, the Commerce Department tightened controls over exports of AI-specific semiconductors. This move makes it more challenging for U.S. firms like Nvidia and Intel to market their current products in China or to launch new products as workarounds. Addressing oversights: This step is designed to mend potential oversights in the export regulations declared last year. Those regulations had been met with notable resistance from the international semiconductor sector and increased strains with Beijing.
At the recent Defense Trade Advisory Group Meeting, Timothy A. Betts, the Acting Deputy Assistant Secretary, presented an overview of the significant developments and accomplishments of the Directorate of Defense Trade Controls (DDTC), as well as the announcement of his replacement by Compliance Director Jae Shin.
Acting Assistant Attorney General Nicole M. Argentieri reviewed developments in the Criminal Division's revised enformement policies, citing examples in the department's caseload year to date. Previously Principal Deputy Assistant Attorney General, Ms. Argentieri assumed her current role in August replacing Assistant Attorney General Kenneth Polite. Her remarks were delivered at the American Bar Association 10th Annual London White Collar Crime Institute October 10, 2023.
Global commodity trading powerhouse Trafigura announced the establishment of $400 million revolving credit facilities subsidized by the Export Import Bank of the US (EXIM). Each policy is for $200 million, with a 90 percent guarantee, for a taxpayer exposure of $360 million. The subsidies to Trafigura’s bankers, Citibank and Credit Agricole “could support over 12,000 U.S. jobs,” according to EXIM statements.
Deputy Attorney General Lisa Monaco announced a "Department-wide Safe Harbor Policy" for voluntary self-disclosures of misconduct by acquirers in the mergers and acquisition process.
The Department of Commerce’s Bureau of Industry and Security (BIS) has published new best practice guidance for industry to help prevent items that are considered the most significant to Russian weaponry requirements from being diverted for use in Russia’s war against Ukraine. The. Septermber 28 guidance recommends that exporters and reexporters of these highest priority items seek written assurances of compliance from their customers to help prevent diversion.
The U.S. Department of Homeland Security (DHS) the addition of three Chinese manufacturers to the Uyghur Forced Labor blacklist which, if enforced, could greatly impact the US vinyl flooring industry. China accounts for 63% of all vinyl floor tiling shipped to the United States in the last two years, and Vietnam comes in second at 20%. Materially all of the PVC in these shipments is sourced from the Uyghur region, including transshipments through Vietnam.
As a follow-up to the establishment of the “Export Enforcement Five” or “E5” partnership to coordinate on export control enforcement issues in June 2023, the governments of Australia, Canada, New Zealand, the United Kingdom, and the United States have issued joint guidance to industry and academia identifying high priority items critical to Russian weapons systems and urging specific actions to prevent diversion of these items to Russia through third countries.
The US Export-Import Bank Board of Directors has approved three transactions in the energy and transportation sectors, the Bank announced Friday. 1. Pre-construction engineering and feasibility studies for the potential development of two nuclear reactors at the Cernavoda nuclear power plant complex in Romania. 2. Export of Wabtec locomotive and locomotive shunter kits to the national railway of Kazakhstan. 3. Repair and upgrade of operating gas turbines in ten locations in Iraq.
In a speech at Washington's CSIS, United States Trade Representative Katherine Tai outlined the Biden-Harris Administration's vision for a reformed World Trade Organization (WTO). The Ambassador emphasized the need for the WTO to adapt to contemporary challenges like climate change and non-market economic policies. She also reiterated that the rules governing the WTO should not be static but must be updated through ongoing negotiations among member states.
In a recent speech, Marshall Miller, principal associate deputy attorney general, emphasized consistency, predictability, and transparency in the Department of Justice’s (DOJ) approach to corporate enforcement, particularly in relation to national security. "National security laws must rise to the top of your compliance risk chart, with the recognition that even the most innocuous-looking transaction or activity could implicate our collective security."
The Department of Commerce’s Bureau of Industry and Security (BIS) released updates to its list of controlled “common high priority” items identified as critical to Russia’s war effort following meetings with key members of the Global Export Control Coalition. In coordination with partners, BIS has added seven new Harmonized System (HS) codes to the list, including bearings needed for heavy vehicles or other machinery and antennae used for navigation systems. Additionally, Tier 3 has been divided into mechanical and non- mechanical items to provide greater clarity.
Assistant Secretary for Investment Security Paul Rosen gave attendees of the Second Annual CFIUS Conference an update on enforcement and pending regulatory change. His remarks follow, well worth the read. For those without the time, here's the gist: "“We are on track to have more civil monetary penalties issued this year than we have in our entire history.”
Sen. Richard Blumenthal (D-CT), Chair of the Senate Permanent Subcommittee on Investigations (PSI), issued a subpoena to the Saudi Arabian Public Investment Fund’s (PIF) wholly-owned U.S. subsidiary, USSA International LLC, for documents related to PIF’s takeover of American golf and other investments throughout the United States. “The Saudi’s Public Investment Fund cannot have it both ways: if it wants to engage with the United States commercially, it must be subject to United States law and oversight,” Blumenthal said. “That oversight includes this Subcommittee’s inquiry.”
The Commerce Department’s Bureau of Industry and Security Regulations and Procedures Technical Advisory Committee met September 12th, with little news, but steady progress on the rulemaking front.
