The Semiconductor Industry Association wants the new administration to include substantial funding for semiconductor manufacturing and research via grants and tax credits in its economic recovery plan. In a Feb. 11 letter to President Joe Biden, SIA said its competitors worldwide have an unfair advantage due to incentives and subsidies provided by their governments. SIA said the U.S. took a step in the right direction when it passed the Creating Helpful Incentives to Produce Semiconductors for America Act, or CHIPS for America Act, in the 2021 defense bill, but it said more is needed. “Semiconductors are critical to the U.S. economy, American technology leadership, and our national security,” the letter said. “They enable the technologies needed to realize your Build Back Better goals, including smarter and safer transportation, greater broadband access, cleaner energy, and a more efficient energy grid, while also providing high-paying jobs for Americans and strengthening our advanced manufacturing base.”
The Biden administration announced a slew of appointments to the Office of the U.S. Trade Representative that do not require Senate confirmation, allowing the agency to get its agenda underway as U.S. trade representative nominee Katherine Tai awaits a hearing and a floor vote.
The State Department's Defense Security Cooperation Agency approved potential military sales to Chile and the North Atlantic Treaty Organization, DSCA said Feb. 5. The sale to Chile includes $85 million worth of “Standard Missile-2 (SM-2) Block IIIA Missiles” and related equipment. The principal contractor will be Raytheon Missiles and Defense. The sale to NATO’s Communications and Information Agency includes about $65 million for “UHF SATCOM Radio Systems” and related equipment. Collins Aerospace will be the prime contractor.
One of the largest impacts felt from the drastic change in mandate and reach of the Committee on Foreign Investment in the U.S. in the last few years is how lawyers, business people and investors are viewing the committee. Speaking at a Capitol Forum webinar on Feb. 4, three CFIUS industry experts highlighted how far more resources are being exerted on CFIUS compliance measures than at any time since its inception. This is largely due to the Foreign Investment Risk Review Modernization Act of 2018, which greatly overhauled CFIUS's responsibilities, including introducing certain mandatory filings for certain foreign transactions (see 1910310053).
The National Customs Brokers & Forwarders Association of America issued several tips for industry dealing with unfair detention and demurrage fees. In a Feb. 1 email to industry, the group said shippers and traders should try to work out a “satisfactory arrangement” with the billing party and should reference the Federal Maritime Commission’s guidance on fees (see 2009140045 and 2011170041). If a “reasonable solution” can’t be reached, the NCBFAA recommends reaching out to FMC’s Office of Consumer Affairs and Dispute Resolution Services and sending a report to the FMC, which is reviewing the COVID-19 pandemic's impact on ocean transportation (see 2012180038 and 2011200024). The group also recommends bringing a formal case before the FMC if fees climb higher than six figures.
The Bureau of Industry and Security last week published an updated version of its senior management team. BIS now lists Jeremy Pelter as acting undersecretary; G. Nagesh Rao as acting chief information officer; and Opher Shweiki as acting chief counsel.
The U.S. placed a temporary freeze on certain pending arms sales made under the State Department’s Foreign Military Sales and Direct Commercial Sales programs, according to a Jan. 27 Reuters report. The review includes a freeze on arms sales to Saudi Arabia, according to The Wall Street Journal, which added that the new administration is also “scrutinizing” recent purchases made by the United Arab Emirates. The State Department didn’t comment.
The Commerce Department on Jan. 25 announced 17 appointees to lead within the agency under the Joe Biden administration. The initial list includes Christopher Hoff, deputy assistant secretary for services at the International Trade Administration; Meghan Maury, a senior adviser at the Census Bureau; and Feras Sleiman, a congressional affairs specialist at the Bureau of Industry and Security.
The U.S. and the United Kingdom agreed to formally recognize each other's authorized economic operator (AEO) programs, CBP said in a Jan. 21 news release. “This arrangement will take U.S.-UK cooperation on supply chain security to the next level,” said William Ferrara, executive assistant commissioner of the CBP Office of Field Operations. “Mutual recognition of the U.S. and UK authorized economic operator programs will mitigate risks, improve information sharing, and eliminate red tape for our partners in the trade community.” The agreement means CBP “will accept the validation of UK Authorised Economic Operators (AEO) and grant them approval status in the Customs Trade Partnership Against Terrorism (CTPAT),” it said. “Her Majesty’s Revenue and Customs will likewise accept the validation of CTPAT members and grant them approval status as AEOs.”
The State Department withdrew a proposed rule that would have permanently amended the International Traffic in Arms Regulations to allow employees involved in ITAR-related activity to work remotely. The rule, which was sent for interagency review Dec. 3 (see c), was withdrawn Jan. 20, according to the Office of Information and Regulatory Affairs. The White House on Jan. 20 announced a withdrawal of pending rules issued by the previous administration to allow incoming officials to review and approve them. The State Department’s Directorate of Defense Trade Controls had considered making the telework change permanent because it proved popular with industry (see 2004240017, 2007280014 and 2012100009). A DDTC spokesperson declined to comment.