U.S.: Commerce Department’s Bureau of Industry and Security (BIS) Latest Updates
- Arne Mielken
- Jan 9, 2024
- 9 min read
Access the latest Updates of the U.S. agency in charge of export controls of the United States of America. Date of last update:08.01.2023
Latest Updates
Enforcement of U.S. Export Controls
The Department of Commerce has implemented a new policy that states that withholding information about a known violation of export controls is a significant aggravating factor. However, the policy also makes it clear that reporting a violation to another company will be considered a significant mitigating factor, even if the violation is unrelated and happens later. Does your organisation have robust export control and compliance with economic sanctions procedures in place, especially if it deals with items or technical data that is subject to export control under the International Traffic in Arms Regulations or the Export Administration Regulations, or if it is a major exporter? Read the policy here
The US Bureau of Industry & Security has released 3 rules to ease several categories of export licensing requirements and expand the availability of export license exceptions for allied and partner countries, and for members of certain multilateral export control regimes.
Rule 1 changes licensing requirements for certain Australia Group (AG)-controlled pathogens and toxins (and their related technologies) so that no license is required to AG countries, unless the item is also subject to Chemical Weapons Convention controls. It also removes crime control licensing requirements for several countries.
Rule 2 expands license exception eligibility to additional countries for certain missile technology items. For example, certain components used in or for the “production” of civil manned aircraft will now be eligible for an EAR license exception to countries that are in both Country Group A:2 and the Global Export Controls Coalition (GECC).
Rule 3 seeks public comment on ways to facilitate use of License Exception Strategic Trade Authorization (STA), including by clarifying which items are eligible for STA to certain destinations, and proposing a number of changes intended to increase the usage of STA and reduce the burden on exporters, re-exporters, and transferors.
Previous Updates
Export Violations Belavia Belarusian Airlines Banned from U.S. EAR exploring activities
EAR Entity List
The Bureau of Industry and Security is responsible for advancing US national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system. The US Bureau of Industry and Security has updated its Entity List, please see this updates here:
Ministry of Public Security's Institute of Forensic Science of China Delisted
In a new rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by removing the Ministry of Public Security's Institute of Forensic Science of China from the Entity List pursuant to a removal proposal and review that the ERC conducted in accordance with procedures described in supplement no. 5 to part 744 of the EAR. Prior to removal from the Entity List by this rule, the Ministry of Public Security's Institute of Forensic Science of China was listed under the destination of China.
Bureau of Industry and Security and FinCEN Issue Joint Notice and New Key Term for
Reporting Evasion of U.S. Export Controls Globally
WASHINGTON, D.C. – Today, the Department of Commerce’s Bureau of Industry and Security
(BIS) and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network
(FinCEN) issued a joint notice highlighting a new Suspicious Activity Report (SAR) key term
(“FIN-2023-GLOBALEXPORT”) for financial institutions to reference when reporting
potential efforts by individuals or entities seeking to evade U.S. export controls not related to
Russia’s invasion of Ukraine. FinCEN and BIS previously issued two joint alerts in June 2022
and May 2023 urging financial institutions to be vigilant against potential Russian export control evasion in response to Russia’s illegal invasion of Ukraine. Financial institutions are encouraged to continue to use the key term “FIN-2022-RUSSIABIS” when filing SARs related to suspected Russian export control evasion
Temporary Denial Order (TDO) to Russian Individuals and Entities
Seven individuals and three companies—Nikolay Goltsev, Salimdzhon Nasriddinov, Kristina Puzyreva, Oleg Zenchenko, Yekaterina Vetoshkina, Pavel Chernikov, Vladimir Bochkarev, SH Brothers Group Inc. (SH Brothers), SN Electronics, Inc., and Suntronic F.Z.E. (Suntronic)—had their export rights suspended by a BIS Temporary Denial Order (TDO). These ten are accused of participating in a global procurement ring that illegally purchased millions of dollars of dual-use electronics for Russian end users, including military businesses.
Indictment says defendants used Brooklyn-based SN Electronics and SH Brothers to execute plan.
These entities bought and shipped millions of dollars of dual-use electronics from American distributors and manufacturers to sanctioned Russian end users through third countries.
They shipped many electronic components through SH Brothers, which the Department of Commerce deemed "of the highest concern due to their critical role in the production of advanced Russian precision-guided weapons systems, Russia's lack of domestic production, and limited global manufacturers."
Russian weapons platforms and signals intelligence equipment seized in Ukraine contained SH Brothers-shipped electronic parts with the same make, model, and part number, according to court documents.
These included the RB-301B "Borisoglebsk2" electronic warfare complex, Ka-52 helicopters, Vitebsk L370 airborne counter missile system, Orlan-10 UAVs, T-72B3 battle tanks, and Torn-MDM radio reconnaissance
The indictment involved several hundred SH Brothers shipments to Russia worth over $7 million.
The indictment states that Russian procurement agents Bochkarev, Chernikov, Vetoshkina, and Zenchenko oversaw Goltsev and Nasriddinov's purchase of US-made electronics.
SH Brothers and SN Electronics sponsored Nasriddinov and Goltsev's purchase of American electronics for multiple Brooklyn locations.
Nasriddinov and Goltsev illegally transported the goods to intermediates in Turkey, India, China, and the UAE, who returned them to Russia. Suntronic was Bochkarev's procurement front. To advance the scheme, Puzyreva managed multiple bank accounts and financial transactions.
Commerce/BIS Reinstates Rossiya Airlines Export Privilege Denial
Under Section 766.24 of the Export Administration Regulations, 15 C.F.R. Parts 730-774 (“EAR” or “the Regulations”), I grant the Office of Export Enforcement (“OEE”)'s request to renew the temporary denial order (“TDO”) issued in this matter on May 12, 2023. I find that renewing this order is necessary in the public interest to prevent an imminent violation of the Regulations and that an extended period is appropriate because Rossiya Airlines (“Rossiya”) has committed repeated, ongoing, and/or continuous apparent EAR violations.
BIS: Update Conference on Export Controls and Policy
The Bureau of Industry and Security Announces New Dates for the Update Conference on Export Controls and Policy New Dates: March 27-29, 2024
The Bureau of Industry and Security (BIS) is rescheduling the Update Conference on Export Controls and Policy from November 28–30, 2023 to March 27-29, 2024.
BIS anticipates that the planned agenda for the rescheduled conference, while subject to change will include sessions on the following:
• Semiconductors I: semiconductor tools
• Semiconductors II: Advanced Computing
• Regulatory Updates
• U.S. Persons Activities
• Foreign Direct Product Rules Overview
• Anatomy of a Disruptive Technology Strike Force Investigation
• Interagency Update
• Export Control Officers Abroad
• Human Rights Due Diligence
• DDTC Updates (invited)
• Census Updates (invited)
• The Entity List ERC
• BIS Data Analysis
• China Brief
• Russia Brief
• International Cooperation and Export Controls
• License Application Tips
The venue for the rescheduled conference remains the Marriott Marquis hotel in Washington, DC. BIS will provide information on making room reservations at the conference venue for the March conference dates shortly.
Existing registrations (attendees and exhibitors) will remain valid for the new conference dates, but attendees and exhibitors may request refunds by e-mail to: UpdateConference@bis.doc.gov. In requesting a refund, please use the email address used for registration and put “Refund Request” in the email’s subject line. Requests for refunds that are received before November 28, 2023, will not be subject to processing fees; requests received after November 28, 2023 are subject to a $50.00 processing fee. Please remember to cancel any hotel reservations made for the November conference dates, as appropriate.
BIS sincerely regrets any inconvenience that this change may cause.
Firearms Export Licences STOPPED
The United States Department of Commerce (DOC) said recently that it will no longer be granting new export licences for certain firearms, related components, and ammunition that are within its jurisdiction for a duration of about ninety days. This affects export permits for all items prohibited to non-government end users globally—apart from specified locations—by ECCNs 0A501, 0A502, 0A504, and 0A505. The press release also included a provision for new export assistance schemes for these goods to all non-governmental end users worldwide, with the exception of those in certain areas. The Bureau of Industry and Security (BIS) of the Department of Defence (DOC) is permitted to take further actions to support U.S. foreign policy and national security goals. During this "pause" period, authorities will further assess the current weapon export control review regulations to see if any changes are required. Commerce claims the investigation will be finished "urgently," allowing authorities to assess and lessen the likelihood that weapons may be transferred to groups or pursuits that uphold regional instability, violate human rights, or more effectively encourage criminal activity.
Click here to review an FAQ sheet issued by the BIS on October 27, 2023.
COMMERCE ADDS 13 ENTITIES TO ENTITY LIST FOR AIDING RUSSIA’S ILLEGAL WAR IN UKRAINE
BIS released a rule adding 13 entities to the Entity List for supporting Russia’s military through
the procurement, development, and proliferation of Russian unmanned aerial vehicles (UAVs).
The rule applies some of the Department’s most severe export restrictions on these entities,
effectively cutting them off from legally accessing items subject to U.S. jurisdiction.
Four Arrested and Multiple Russian Nationals Charged in Connection with Two Schemes to Evade Sanctions and Send U.S. Technology Used in Weapons Systems to Russia
Over $7 Million Worth of Semiconductors, Integrated Circuits, and Other Electronics Unlawfully Exported to Russian End-Users Affiliated with the Russian Military
Brooklyn Resident and Two Russian Nationals Charged with Exporting Dual-Use Electronics Used in Russian Military's Drones
Brooklyn Company Received Over $250,000 from Sanctioned Russian Entity to Purchase and Export Electronic Components
Forta settles three violations with antiboycott provisions
BIS announced the imposition of a civil penalty of $44,750 against Forta LLC (Forta), a
manufacturer of synthetic reinforcement fibers, located in Grove City, Pennsylvania, to resolve
three violations of the antiboycott provisions of the Export Administration Regulations (EAR, 15
C.F.R. parts 730-774) (antiboycott regulations), as alleged in BIS’s Proposed Charging Letter
(PCL). Forta voluntarily disclosed the conduct to BIS, cooperated with the investigation by
BIS’s Office of Antiboycott Compliance (OAC), and took remedial measures after discovering
the conduct at issue, all of which resulted in a significant reduction in penalty.
New U.S. Export Controls on China: Answering Your Questions
Get all your questions answered about the new U.S. export controls on China's access to AI chips. Learn how these restrictions impact businesses.
U.S. Export Controls: 13 Entity List Additions - Advanced Computer & Semiconductor
Discover the latest U.S. export controls updates and how they impact advanced computer and semiconductor manufacturing items by placing 13 companies on the U.S. EAR Entity List.
U.S. Publishes to "Semiconductor Manufacturing Items to China" Export Control Rules
We added a detailed analysis of the changes + we provide access to the exact Publishes Interim Rule on the Federal Register
U.S. Publishes "Advanced Computing to China" Export Control Rules
We added a detailed analysis of the changes + we provide access to the exact Publishes Interim Rule on the Federal Register
BIS Issues Rule to Strengthen National Security Partnership to Secure Semiconductor Supply Chains with Republic of Korea
The Commerce Department's Bureau of Industry and Security (BIS) has updated the general authorizations for Samsung and SK hynix - two companies based in the Republic of Korea (RoK) - for their semiconductor fabrication facilities in the Peoples Republic of China (PRC). The new rule updates the items that may be exported to these companies under the Validated End-Users (VEUs) authorization. The VEU authorizations reflect the U.S. and RoK's close partnership and commitment to a secure and transparent supply chain, particularly for memory chips.
BIS added 49 entities to the Entity List
Recently, the Bureau of Industry and Security (BIS) updated its Entity List by adding 49 new entities that have links to Russia's military and defense industry. Out of the 49 entities, 42 are based in the People's Republic of China (PRC), while the rest are located in Estonia, Finland, Germany, India, Turkey, the United Arab Emirates (UAE), and the United Kingdom. These entities have provided Russian consignees who are connected to the Russian defense sector with integrated circuits of US origin, including those identified in "Tier 1" of the Common High Priority Items List. Russia heavily relies on these microelectronics for precision guidance systems in its missiles and drones, which it uses against civilian targets in its unlawful war in Ukraine.
01.10.2023
Today, the Commerce Department’s Bureau of Industry and Security (BIS) released a rule adding 28 entities to the Entity List, 11 of which are based in the People’s Republic of China (China), 5 in Russia, 5 in Pakistan, along with others located in Finland, Oman, Germany, and the United Arab Emirates (UAE). The entities listed in today’s action were added to the Entity List for having been involved, being involved, or posing a significant risk of being or becoming involved in activities contrary to the national security or foreign policy of the United States.
The US, Australia, Canada, New Zealand, and UK developed a detailed instruction sheet to tackle Russia's evasion methods
As a follow-up to the establishment of the “Export Enforcement Five”
or “E5” partnership to coordinate on export control enforcement issues in June 2023, the
governments of Australia, Canada, New Zealand, the United Kingdom, and the United States
today issued joint guidance to industry and academia identifying high priority items critical to
Russian weapons systems and urging specific actions to prevent diversion of these items to
Russia through third countries.
Russian International Money Launderer Arrested for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use Military Grade Microelectronics for Russian Elites
U.S. Export Controls: EAR Amended. Details Here
The U.S. Export Administration Regulations detail how and when U.S. and Non-U.S. companies can export U.S. dual-use goods. When it changes, that change matters to exporters wherever located in the world.
BIS IMPOSES PENALTY AGAINST PRATT & WHITNEY COMPONENT SOLUTIONS TO RESOLVE 13 ALLEGED VIOLATIONS OF THE ANTIBOYCOTT REGULATIONS (10.09.2023)
BIS Issues Temporary Denial Order in Support of Strike Force Case Against Russian National For Illegally Exporting Sensitive U.S.-Sourced Micro-Electronics with Military Applications to Russia Press Release
August 31, 2023
New York Man Sentenced in Connection with the Illegal Export of Weapons Press Release
August 31, 2023
Bureau of Industry and Security Continues to Update Section 232 Exclusions Process Press Release
August 28, 2023
Commerce to Remove 33 Parties from the Unverified List after Successful Completion of End-Use Checks Press Release
August 21, 2023
EAR Amended: U.S Tightens Export Controls On China (Nuclear)
China's nuclear nonproliferation prohibitions were expanded by a U.S BIS rule on August 11, 2023. We examine how this affects U.S. and non U.S enterprise
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