The State Department’s Directorate of Defense Trade Controls is renewing a December change to the U.S. Munitions List that allowed U.S. manufacturers to apply for export licenses to participate in development of the KF-21 aircraft “without removing those defense articles from the USML simply because they are used in the KF-21” (see 2312010010). The revision, which was scheduled to expire Dec. 1, will now last through Dec. 1, 2026, or “when terminated by the Department, whichever occurs first,” DDTC said in a final rule released Nov. 25 and effective Nov. 26.
The Bureau of Industry and Security is drafting a final rule that would make certain changes to U.S. export controls based on recent decisions made at the multilateral Australia Group. BIS sent the rule to the Office of Information and Regulatory Affairs Nov. 22.
Export control lawyer Christopher Stagg recently launched a U.S. Munitions List revision tracker to capture updates made to USML categories within the International Traffic in Arms Regulations in recent years. The document reflects changes across all USML categories “since their revision under Export Control Reform,” Stagg said on LinkedIn, adding that he plans to update the tracker with future USML changes. Each category includes the Export Control Reform effective date, any completed regulatory changes along with their Federal Register citations, any proposed modifications and any expected future revisions.
Chinese President Xi Xinping raised concerns about U.S. export controls during what was expected to be his last meeting with President Joe Biden before Donald Trump takes office (see 2411140018), warning the U.S. against pursuing policies that could lead to the decoupling of the two economies.
China’s Ministry of Commerce released its new dual-use export control list Nov. 15 ahead of the Dec. 1 effective date for its recently issued dual-use export regulations, which outline how the ministry will approach dual-use licensing and export enforcement, detail possible extraterritorial impacts of the controls, and more (see 2410210042).
The Commerce and State departments are extending the public comment periods for one interim final rule and two proposed rules that are expected to revise U.S. export controls to remove a range of export barriers faced by the commercial space industry (see 2410180027 and 2411070024). Comments on all three rules originally were due Nov. 22, but the agencies said they are extending that deadline to Dec. 23 after the “regulated community” asked for more time.
A letter reportedly sent by the Commerce Department ordering Taiwan Semiconductor Manufacturing Company to stop shipments of advanced semiconductors to certain Chinese customers (see 2411120011) is a “serious violation of international economic and trade rules” and a “gross interference in free trade,” a Chinese commerce ministry spokesperson said last week.
The Commerce Department sent a letter to Taiwan Semiconductor Manufacturing Company ordering it to stop shipments of advanced semiconductors to certain Chinese customers, including 7 nanometer chips or others of “more advanced designs,” Reuters reported Nov. 9. The letter specifically orders TSMC to stop shipments, beginning Nov. 11, destined for Chinese customers of chips that power artificial intelligence accelerator and graphics processing units, the report said.
The Bureau of Industry and Security this week updated its “Don’t Let This Happen To You” guidance with new summaries and case examples of past export control investigations. The guidance now includes new case summaries of violations involving a Russia-related procurement network; a criminal case where export-controlled items were smuggled outside the U.S. and used in an assassination plot; a penalty against a semiconductor wafer manufacturing company for shipments to a party on the Entity List; violations of BIS antiboycott regulations; and more. “Exporters are encouraged to review the publication, which provides useful illustrations of the type of conduct that gets companies and universities in trouble,” BIS said.
Taiwan Semiconductor Manufacturing Company is expected to begin suspending production of AI chips at advanced process nodes of 7 nanometers for its Chinese customers beginning Nov. 11, the Financial Times reported last week.