Multilateral export regimes need to be modernized to address new export and proliferation controls surrounding emerging technologies, technology proliferation experts said. While groups such as the Wassenaar Arrangement work well to control physical categories of items, they may overlook advancements in exports and other technology areas that could lead to proliferation of dual-use goods, the experts said.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The European Union announced new initiatives to support its Customs Union and tackle a rise in smuggling, fraud and other trade challenges faced by member states. The initiatives, part of the EU’s Sept. 28 Customs Union Action Plan, include measures to combat customs duty fraud, a rollout of modern customs equipment under the next EU budget and an EU-wide single customs portal.
The Commerce Department informed some U.S. chip companies they need export licenses before shipping certain items to Semiconductor Manufacturing International Corporation, China’s largest semiconductor maker, according to two people familiar with the situation. Commerce sent the information in a letter to companies last week, the people said, which effectively placed export controls on shipments to the Chinese company.
The U.S. needs to increase engagement with China to convince it to limit restrictions on foreign companies and to end unfair government subsidies, former U.S. Trade Representative Michael Froman said. Although Froman said he is “hopeful” the U.S. can secure these concessions through more trade negotiations, he also said the U.S. may need to focus more on its own industrial policy to remain technologically competitive with China.
The Office of Foreign Assets Control on Sept. 25 issued guidance on sanctions against Hong Kong officials and renewed a general license authorizing certain transactions with the Xinjiang Production and Construction Corps (see 2007310028).
A California electronics company was fined about $475,000 after its former Finnish subsidiary illegally exported test measurement equipment to Iran, the Office of Foreign Assets Control said Sept. 24. After Keysight Technologies acquired Anite Finland Oy in 2015, Anite continued to illegally supply equipment to Iranian end-users, hiding the transactions from Keysight, OFAC said. In a settlement agreement, Keysight agreed to implement improved compliance procedures and an annual audit of its compliance program for the next five years.
CBP and other export enforcement agencies are increasing detentions of shipments to China and Hong Kong due to a series of recently imposed export restrictions announced by the Trump administration, trade lawyer Doug Jacobson said. Jacobson said he has noticed a “dramatic increase” in detentions and seizures, and said he is spending “a lot of time” working with agencies to provide information on clients’ shipments.
China’s so-called unreliable entity list could present compliance challenges for multinational companies and may be used to retaliate against U.S. export controls and sanctions, trade lawyers said. As a result, companies trying to comply with both U.S. and Chinese regulations may have to choose one over the other, risking sanctions from at least one country, law firms said.
The Office of Foreign Assets Control announced new Cuba sanctions and restrictions to limit the use of certain licenses and prohibit a range of activities in Cuba. The sanctions include restrictions on lodging in Cuba, professional research and “public performances.” The changes, outlined in a final rule released Sept. 23, are effective Sept. 24.
The Bureau of Industry and Security’s proposal to reduce the number of countries eligible for license exception Additional Permissive Reexports (APR) (see 2004270025) could damage U.S. competitiveness and lead to overly broad export restrictions, trade groups and industry said in comments released this month. If BIS follows through on the change, commenters suggested that it first limit the scope of the rule, which could potentially restrict more than 20 countries from receiving certain U.S. reexports that are controlled for national security reasons.