BIS Pauses All New Export License Applications; Industry Seeks Answers
The Bureau of Industry and Security has paused reviews of new export license applications submitted this month, without explanation, causing concern and frustration among exporters and trade compliance officials.
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Five trade lawyers and consultants told Export Compliance Daily that they were aware of the BIS licensing pause, which appeared to begin for applications during the first week of February.
Bailey Reichelt, a founding partner of Aegis Space Law, said she was told by a BIS licensing officer that the agency was ordered to “hold without action” all new applications filed after Feb. 5. She said BIS has given no indication of when those reviews may resume -- only that the pause appears to be in place for all items subject to BIS jurisdiction.
Reichelt said the pause could increase already lengthy processing times at BIS, where the licensing office is experiencing a staffing shortage. “No one has given us an estimate of how licensing times may increase,” she said.
Two other trade lawyers said they were also informed about the licensing pause after reaching out to BIS. One lawyer, who requested anonymity to speak candidly, said the pause came with no warning -- the person said they had just been approved for three licenses involving a Chinese company last week.
BIS has since told the lawyer that the agency is undergoing a “review of policy.”
“This is fucking ridiculous,” the lawyer said. “It’s bringing industry to a grinding halt for an indeterminate amount of time.”
Beth Pride, president of BPE Global, said her firm’s open applications submitted this month are being held even though her applications from December and January are listed as “pending.”
“I can’t understand what reasoning the administration would have for putting requests for authorization to export from companies with well-established export compliance programs on hold,” she said. “This is impacting these companies' abilities to do business.”
Reichelt, who works with companies in the commercial space industry, said she learned of the pause after one of her clients was informed by BIS about a “freeze” of all new licenses. The company had been trying to submit an application involving a foreign person employee and an aircraft.
“I’m not sure why this was put in place,” Reichelt said. “No one was made aware in industry.”
As of press time, multiple lawyers said they were still trying to reach BIS to gather more information about the pause.
BIS didn’t respond to a request for comment.
This isn’t the first time a BIS licensing hold has caused backlash from industry. BIS quietly placed an indefinite hold in 2023 on new export licenses to send certain firearms, components and ammunition to Peru, Ecuador and Guatemala, Export Compliance Daily reported at the time, sparking concern from gun suppliers and some lawmakers (see 2311200009).
BIS also has previously placed holds on new licenses for exports to certain end-users, such as China’s Semiconductor Manufacturing International Corp. and Huawei, as it worked through sensitive policy issues.