Nearly a quarter of the 123 new entries the Bureau of Industry and Security will add to its Entity List this week are Chinese suppliers that the agency named in private red-flag letters to U.S. companies earlier this year.
The Bureau of Industry and Security will add 123 entities to the Entity List, expand the scope of its Russia/Belarus-Military End User Foreign-Direct Product rule, add export controls on certain computer numerical control (CNC) machine tools-related software, and makes corrections to the agency’s Russia and Belarus controls, the agency said in two rules released Aug. 23. The Entity List and FDP rule updates take effect Aug. 27, and the new CNC controls and other corrections take effect Sept. 16.
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The Bureau of Industry and Security this week fined a Pennsylvania electronics business and its Hong Kong affiliate $5.8 million after the company voluntarily disclosed and admitted to illegally shipping controlled technology to China, including to military research institutes on the Entity List. The company, TE Connectivity Corporation, had “knowledge or reason to know” that the shipments violated U.S. export controls, BIS said, adding that its employees in China hid the true end-users and bypassed the company’s denied-party screening process.
A new compliance note released by the Bureau of Industry and Security this week reveals the types of export violations that universities are most commonly disclosing to BIS, what led to those violations and the steps the academic institutions took to improve their compliance programs. The agency also issued a set of resources it said universities should use for compliance, including lists of risky parties maintained by both the government and outside organizations.
Silvaco Group, a California-based company that provides software solutions for semiconductor design, received a cautionary letter from the Office of Foreign Assets Control after disclosing possible sanctions violations involving Russia.
A new set of export controls on U.S. persons activities and other transactions could require “dramatic expansions” to some companies’ internal compliance programs, Akin Gump said this month, including additional compliance training, end-user certifications and greater due diligence of suppliers and customers.
U.S. export controls are blocking Huawei's access to evidence that it needs to prepare for its upcoming trial on racketeering, trade secret theft and other charges (see 2002130045), the Chinese technology company said in a court filing last week.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Office of Foreign Assets Control this week sanctioned five people and seven entities across mainland China, Hong Kong and Iran for helping to provide key parts to Iran’s missile and drone programs. OFAC said they procure accelerometers, gyroscopes and other components that “serve as key inputs” for Iranian weapons programs, which that country uses to produce drones for Russia and its “proxies” in the Middle East.