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 U.S. will increasingly look to apply new export licensing requirements to entire countries rather than to specific companies, which could lead to a shift away from the Entity List, Commerce Secretary Gina Riamondo said. She also said the agency will continue targeting new artificial intelligence-related products developed by American semiconductor companies, such as Nvidia, that fall just below U.S. export control thresholds.
End-use certificates can be a good way to mitigate some sanctions and export control risk, but “it doesn't necessarily make the risk completely disappear,” said Jan Dunin-Wasowicz, a Hughes Hubbard trade lawyer. Dunin-Wasowicz cautioned companies about relying solely on end-use and end-user statements when conducting due diligence, adding that companies can take other compliance steps to vet a transaction, especially because some customers are willing to lie about a product's end-use.
The U.S. should place export controls and investment restrictions on Chinese drone maker Autel Robotics, which has ties to the country’s military and uses parts from at least one other Chinese company on the Entity List, the leaders of the House Select Committee on China said in a letter last week to the Biden administration. The lawmakers also said they’re concerned that the Chinese government uses Autel’s technology for human rights abuses in Xinjiang and that the company sells its products to Russia.
The Biden administration should take several steps to boost U.S. agricultural exports, including by negotiating new free trade deals and better eliminating tariff and nontariff barriers, industry executives said during a President’s Export Council meeting this week. They also urged the administration to enforce existing trade agreements and more quickly make progress in reforming the World Trade Organization.
Republican leaders of the House Financial Services Committee urged Congress this week to exclude a measure from the upcoming 2024 defense spending bill that could lead to new guardrails around U.S. outbound investments into China. They said existing sanctions and export control measures are sufficient to target Chinese military and technology companies, and any new investment restrictions would only limit American “control, influence, and intelligence gathering” in China.
The Biden administration should investigate all Chinese lidar technology companies to determine whether they should be placed on the Entity List or made subject to U.S. investment restrictions, the House Select Committee on China said in a letter this week. The lawmakers said lidar, or light detection and ranging, is being used in autonomous systems and robotics but isn’t subject to export controls, potentially allowing a loophole for Chinese companies to acquire U.S. technologies for use in lidar systems that can aid the country’s military.
DOJ is increasingly prioritizing corporate enforcement against executives -- regardless of how high they rank -- and is more frequently looking to take those cases to trial, said Marshall Miller, principal associate deputy attorney general.
The Biden administration will soon add another industry advisory committee to provide input on U.S. export control regulations.
The House Oversight Committee is probing the Bureau of Industry and Security's 90-day suspension of new export licenses for firearms, saying the potentially “extralegal” decision was made with no explanation and infringes on the Commerce Department’s goal of increasing U.S. competitiveness. Committee Chair James Comer, R-Ky., in a letter this week to Commerce Secretary Gina Raimondo, requested a briefing on the issue by Dec. 5 and asked for a range of agency documents before Dec. 12, including any related to the decision-making process that led to the suspension announcement.