The Office of Information and Regulatory Affairs on Aug. 7 concluded an interagency review for a final Commerce Department rule that will implement export control decisions from the 2019 Wassenaar Arrangement plenary. The rule, which OIRA received June 9 (see 2006120018), will place new controls on emerging technologies. Commerce officials said in May the agency was preparing to issue several emerging technology controls (see 2005190052), including six controls agreed to at Wassenaar. OIRA also recently completed review of a rule to implement export control decisions from the 2018 Wassenaar Arrangement plenary (see 2007220015).
The United Nations Security Council Committee on resolution 751 (1992) concerning Somalia issued an Aug. 3 guidance on export controls for components of improvised explosive devices shipped to Somalia. The guidance contains a list of items subject to the controls and mandatory notification requirements for exporters. The committee report also called on member states to conduct due diligence on exports to Somalia, keep records of transactions and share information with the committee on “suspicious purchases.”
The United Kingdom’s Department for International Trade officially removed Hong Kong as an eligible destination under 20 open general export licenses, one open general transhipment license and one open general trade control license, an Aug. 4 notice said. The U.K. also revoked two open general licenses in which Hong Kong was the only destination: a license for exports of certain dual-use goods for nonmilitary use and a license for exports of dual-use goods to any destination in Hong Kong. The moves come about a week after the U.K. imposed an arms embargo against Hong Kong due to interference from Beijing (see 2007230018).
The Office of Information and Regulatory Affairs began an interagency review of a Bureau of Industry and Security pre-rule to pinpoint potential controls for foundational technologies. OIRA received the rule Aug. 3. A BIS official said in May the agency was finalizing an internal review of the rule (see 2005190052), which has been expected since Congress passed the Export Control Reform Act of 2018 mandating BIS reviews of controls for both emerging and foundational technologies.
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.