The Bureau of Industry and Security on June 30 formally issued a notice with details (see 2007130018) of its June decision to suspend Hong Kong export licenses (see 2006300050 and 2006290063), outlining which licenses are impacted and reiterating the agency’s savings clauses for affected exports. BIS also said it is reviewing the Export Administration Regulations along with other agencies to “assess whether additional amendments are warranted.”
The European Union imposed a range of restrictions against China for its actions in Hong Kong (see 2007130042), including export controls on “sensitive” equipment and technologies for end-use in Hong Kong, the EU said July 28. The EU will also not begin “any new negotiations” with Hong Kong and will consider more measures before year-end.
The Office of Information and Regulatory Affairs began an interagency review for a proposed Bureau of Industry and Security rule to control “software” for the operation of “automated nucleic acid assemblers and synthesizers.” BIS will request comments on the proposed export controls. OIRA received the rule July 20.
A top Pentagon official said the U.S. needs to loosen export controls on certain defense items, adding that U.S. companies are losing customers to countries with less-strict export regulations. Ellen Lord, the Defense Department’s undersecretary for acquisition and sustainment, said she hopes to work with the Commerce, Treasury and State departments to rethink the administration’s export control strategy by year-end.
As part of its revised policy on gun suppressor exports (see 2007130014), the State Department’s Directorate of Defense Trade Controls will not authorize suppressor shipments without an ultimate end-user listed on the license, according to a July 15 alert from Reeves & Dola. The law firm said it reached out to DDTC for clarification about its new policy and was told that suppressor exports licenses must list a specific end-user for the customer. “In other words, license applications that state ‘for commercial resale in NAMED COUNTRY’ as an end-use/end-user will not be acceptable for suppressors,” the alert said.
The State Department’s Directorate of Defense Trade Controls rescinded its policy for exports of firearms sound suppressors and will instead handle those shipments “in a manner consistent” with other U.S. Munitions List controlled technologies, DDTC said July 10. DDTC’s policy previously called for “enhanced guidelines” for approving export licenses for suppressors and restricted exports to “only official end users such as government or military entities,” the agency said.
Canada announced a ban on exports of “sensitive” military items to Hong Kong due to Beijing’s passage of the Hong Kong national security law. In a July 7 notice, the country said it will treat exports to Hong Kong “in the same way as those destined for China” and will “closely scrutinize” all export permit applications to Hong Kong to deny permits “that are not in line with Canada’s domestic and international legal obligations, foreign policy or security interests.” The country said it will reassess the ban if changes in Hong Kong are made.
The State Department’s Directorate of Defense Trade Controls July 7 published documents related to the May 14 Defense Trade Advisory Group plenary meeting. The documents include meeting minutes, presentations, compliance guidelines for defense exports and information about foreign licensing reviews.
The United Kingdom will begin processing export license applications for military exports to Saudi Arabia about one year after halting those licenses (see 1907180047), a July 7 notice said. The U.K., which had restricted licenses for exports of defense or military goods to Saudi Arabia that could be used for the conflict in Yemen, will now begin clearing that backlog of license applications and issuing decisions. The country’s Export Control Joint Unit said each application will be “carefully assessed” and could “take some months to clear this backlog.” It also said industry would expect delays in processing new applications until the backlog is cleared.
Rich Ashooh, the Commerce Department’s assistant secretary for export administration, submitted his resignation and will officially leave the agency July 16, a Commerce spokesperson said. The spokesperson declined to comment on the reasons for Ashooh’s departure. Ashooh’s resignation was first reported by Reuters.