The State Department’s Directorate of Defense Trade Controls published new guidance this week to clarify how and when joint ventures must be included on registration statements. The new frequently asked questions cover companies subject to the International Traffic in Arms Regulations and that are governed by a joint venture agreement.
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 State Department’s Directorate of Defense Trade Controls will again change the export control threshold for certain high-energy storage capacitors to remove license requirements from capacitors that are widely commercially available and no longer provide military or intelligence advantages. The change, outlined in a final rule published March 25 and effective April 24, decontrols certain capacitors with a voltage rating of 500 volts or less.
A European Parliament committee this week approved an updated version of new EU-wide supply chain due diligence rules that represent a narrower version from the original proposal but would still require certain companies to conduct specific due diligence on their supply chains to address various environmental and social concerns.
The Bureau of Industry and Security is adding new export license requirements for people and entities designated under certain Treasury Department sanctions programs, a move it said will strengthen U.S. financial blocking measures and act as a “backstop” for activities that those restrictions don’t cover.
A senior State Department official called rising weapons shipments between Russia and North Korea “deeply concerning,” saying the U.S. plans to continue using a combination of sanctions and diplomacy to try to disrupt trade between the two countries.
Although the EU is trying to reform its approach to export controls and other economic security issues, there still are loopholes in the bloc’s rules that allow technology to be illegally exported to China and elsewhere, EU policy experts said this week.
American, Canadian and Mexican customs brokers and freight forwarders are urging Canada to rethink its upcoming deployment of a new customs management system in two months, saying they’re concerned the country’s current approach could significantly disrupt trade.
The U.S. announced more countries signed on to a commitment to place export controls around spyware technology, part of an effort to raise trade guardrails for cyber-related items that can be used for human rights violations. The group, which now includes 17 nations, plans to meet this week to share best practices and exchange policy ideas for how they can better control technologies used for “malicious cyber activity.”
A trade association representing ASML, Applied Materials and other major semiconductor companies called on the EU to keep any new export controls narrowly targeted and abandon its plans for an outbound investment screening mechanism, saying new restrictions would be a “major interference” for the chip industry. It also cautioned European lawmakers about introducing new supply chain reporting obligations that would place too big a burden on industry.
A Swiss private banking group agreed to pay about $3.7 million to settle allegations that it violated multiple U.S. sanctions programs, including restrictions against Russia and Cuba. The Office of Foreign Assets Control said EFG International AG, which operates about 40 global subsidiaries, bought and sold securities on behalf of people sanctioned by OFAC.