Archives: Export Controls

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Surprisingly Not Surprising China’s Announcement of “Unreliable Entities List” Regime

At a press conference on May 31, 2019, China’s Ministry of Commerce (MOFCOM) announced that China is going to establish an “unreliable entities list,” to which “foreign entities or individuals that do not obey market rules, deviate from the spirit of contracts, blockade or stop supplying Chinese companies for non-commercial reasons, and/or seriously damage the … Continue Reading

Commerce Department Catches Up with Export Controls on Venezuela

After months of escalating US economic sanctions on Venezuela and its international partners, the US Commerce Department’s Bureau of Industry and Security (BIS) is implementing major changes to US export controls on Venezuela that will significantly restrict remaining trade between the US (and third countries) and Venezuela in US export-controlled products (including technology transfers).  These … Continue Reading

We Finally Have an Export Control Statute – What Does It Mean for Industry?

Steptoe’s Brian Egan and Peter Jeydel authored a Feature Comment in The Government Contractor, a Thomson Reuters publication, discussing the provisions of the Export Control Reform Act of 2018 that are most likely to have a lasting impact on industry. US and international companies should take careful note of the enduring changes to export controls … Continue Reading

Coming Soon: New Export Controls on China?

Lost in the recent US-China trade headlines about tariffs, indictments, trade secrets theft, cyber espionage and other matters is a potentially important development lurking in last year’s US export controls statute. Essentially, Congress has directed the Executive Branch to review the current scope of US export controls on China and other countries subject to arms embargoes, and … Continue Reading

OFAC Enforcement Action Highlights Sanctions Risk in Supply Chain

On January 31, 2019, OFAC announced a $996,080 settlement with e.l.f. Cosmetics, Inc. (“ELF”) for violations of the North Korea Sanctions Regulations arising from the importation of 156 shipments of false eyelash kits that contained materials that were sourced from North Korea and that were purchased from suppliers in China. In January 2017, ELF discovered … Continue Reading

Administration Moves Toward Strengthening Export Controls and Investment Restrictions on “Emerging Technologies”

Yesterday the US Department of Commerce’s Bureau of Industry and Security (BIS) took its first step towards a potentially significant expansion of US export controls by publishing a Federal Register notice soliciting public comments on how the US government should regulate the export of “emerging technologies.” Under the Export Controls Reform Act of 2018 (ECRA), … Continue Reading

Export Control Hiring Practices Continue to Challenge Employers

Two recent settlements between employers and the US Department of Justice (DOJ) emphasize the complex interplay between US immigration and export control laws in the hiring process.  The settlements serve as a reminder to employers of the potential employment discrimination pitfalls for companies attempting to comply with export control laws.  In late August 2018, the … Continue Reading

Changes Afoot for CFIUS and US Export Controls as the Dust Settles on FIRRMA

Following months of hearings and other deliberations, Congress passed, and President Trump signed into law on August 13, 2018, the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). FIRRMA is the first update to the Committee on Foreign Investment in the United States (CFIUS) in over a decade and will significantly expand the jurisdiction … Continue Reading

Congress Agrees on Final Text of CFIUS Reform Bill

Earlier this week, negotiators from the House and Senate reached agreement on what will very likely be the final text of the Foreign Investment Risk Review Modernization Act (FIRRMA), which will be part of the National Defense Authorization Act for Fiscal Year 2019 (NDAA). FIRRMA seeks to overhaul the Committee on Foreign Investment in the … Continue Reading

ZTE Denial Order Lifted

The US Commerce Department’s Bureau of Industry and Security (BIS) terminated the ZTE Denial Order, effective today.  As a result, ZTE is no longer subject to any specific US export control restrictions (except for ZTE Parsian, an Iranian affiliate that remains on the BIS Entity List).  ZTE still faces a series of stringent requirements that … Continue Reading

Unmanned Systems and Export Controls: What Your Company Needs to Know

Steptoe’s Anthony Rapa authored a piece titled “Unmanned Systems and Export Controls: What Your Company Needs to Know” for the May 2018 edition of Unmanned Systems magazine. The article gives an overview of US commercial and military export controls, discusses the application of export controls to unmanned systems, and offers tips for complying with these … Continue Reading

President Tweets About ZTE, Broader US-China Issues

As if there were any doubt that we now live in an age in which the President’s Twitter feed is must-read content for those impacted by US economic sanctions and export controls, it is worth noting that the President recently has been tweeting about ZTE and US-China trade issues.  ZTE, as discussed here on the … Continue Reading

Upcoming Webinar: Export Controls for Encryption Items

On Thursday, April 26 at 11:00 AM EST, Anthony Rapa will present “US Encryption Export Controls”, a webinar hosted by Federal Publications.  As described on the Federal Publications website: Our export controls trilogy reaches a riveting conclusion with a discussion of US encryption controls. This webinar will explore encryption controls in place under the US Export Administration … Continue Reading

ZTE Denial Order Imposed

On April 16, 2018, the US Department of Commerce, Bureau of Industry and Security (BIS) imposed a denial order involving Zhongxing Telecommunications Equipment Corporation of Shenzhen, China (ZTE Corporation) and ZTE Kangxun Telecommunications Ltd of Hi-New Shenzhen, China (ZTE Kangxun).  The denial order, effective immediately, restricts ZTE Corporation and ZTE Kangxun from participating in any … Continue Reading

Webinar on Application of US Export Controls Outside the United States

On Thursday, March 29 at 11:00 AM EST, Anthony Rapa will present “Dual-Use Export Controls: Application of US Export Controls Outside the US”, a webinar hosted by Federal Publications.  As described on the Federal Publications website: When do US dual-use export controls apply outside the United States? Much more often than you might think.  This … Continue Reading

Dual-Use Export Controls Webinar

On Tuesday, February 27 at 11:00 AM EST, Anthony Rapa will be presenting “Introduction to Dual-Use Export Controls: US EAR and EU Dual-Use Regulation”, a webinar hosted by Federal Publications.  As described on the Federal Publications website: Are you involved in the flow of goods, software, or technical data across borders?  If so, you might … Continue Reading

WorldECR Publishes Article on EAR License Exceptions

Steptoe’s Ed Krauland and Anthony Rapa authored an article on Export Administration Regulations (EAR) license exceptions published in WorldECR’s July 2017 issue. The article discusses the pros and cons of license exceptions, which can offer exporters a host of cost, time, and efficiency benefits. They argue that, when mastered, these license exceptions can be a … Continue Reading

BIS Amends EAR Based on Missile Technology Control Regime Plenary Agreements

On July 7, 2017, the US Department of Commerce’s Bureau of Industry and Security (“BIS”) published a final rule amending the Export Administration Regulations (“EAR”) based on the 2016 Missile Technology Control Regime (“MTCR”) plenary agreements. The MTCR is a multilateral export control regime designed to control the export of certain goods and technology that … Continue Reading

BIS Updates Encryption Export Controls Guidance

The Bureau of Industry and Security at the US Department of Commerce has updated the information on its website to incorporate changes made to its encryption export rules in September of 2016.  The new information includes a helpful reference guide for Category 5, Part 2 of the Export Administration Regulations, flowcharts, and guidance on license … Continue Reading

ZTE Settlement Marked by Record Penalty and Lessons Learned

China’s Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Limited, and their subsidiaries and affiliates, (collectively, ZTE), reached a historic combined $1.19 billion settlement with the US government on March 7, 2017.  This settlement resolves export controls and sanctions violations associated with shipments of US-origin equipment to Iran and North Korea.  ZTE pled guilty to … Continue Reading