On October 12, 2016, the State Department’s Directorate of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry and Security (BIS) published companion final rules to amend Category XII of the United States Munitions List (USML) and move some less sensitive items to the Commerce Control List (CCL). The final rules will become … Continue Reading
On December 23, 2016, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) issued a final rule amending the Export Administration Regulations (15 C.F.R. Parts 730-774) to ease export restrictions against Burma consistent with Executive Order 13742, issued in October 2016. That executive order, which we previously have summarized, terminated the national emergency … Continue Reading
Members of the Steptoe International Regulation and Compliance team, Tom Best, Jack Hayes, Andy Irwin, Ed Krauland, and Lucinda Low co-authored “DOJ Export Controls and Economic Sanctions Enforcement Guidance Likely to Impact Government Contractors, Parallels FCPA Pilot Program” for Thomson Reuters Briefing Papers (No. 16-12). The paper discusses a memorandum by the US Department of … Continue Reading
On November 18, 2016, the Department of Commerce’s Bureau of Industry and Security (“BIS”) announced that it extended its temporary general license for exports, reexports, and in-country transfers to Zhongxing Telecommunications Equipment Corporation (ZTE Corporation) and ZTE Kangxun. The temporary general license benefitting these two ZTE entities was scheduled to expire on November 27, 2016, … Continue Reading
After the November 8, 2016 elections, Washington is preparing for a new Congress and the transition of power from eight years of the Democratic Obama administration to the Republican administration of President-elect Donald Trump. As the incoming president builds his transition team and sets out his policy priorities, Steptoe will examine what these changes may … Continue Reading
On October 31, 2016, the Department of Defense (DoD) published a proposed rule entitled, Withholding of Unclassified Technical Data and Technology from the Public Disclosure. Public comments must be submitted by December 30, 2016. The proposed rule establishes DoD policy, assigns responsibilities, and prescribes procedures for the circulation and withholding of certain unclassified technical data and … Continue Reading
On October 2, the Department of Justice’s (DOJ) National Security Division (DOJ NSD) issued a memorandum announcing the policy framework for negotiated resolutions with companies involved in economic sanctions and export control investigations with a criminal dimension. The policy statement titled “Guidance Regarding Voluntary Self-Disclosures, Cooperation, and Remediation in Export Control and Sanctions Investigations Involving … Continue Reading
On September 28, 2015 the European Commission (the Commission) unveiled a proposal to “modernize and strengthen” the European Union’s (EU) dual-use export control regime pursuant to Regulation (EC) No. 428/2009 (the Regulation). As noted in our previous advisory, a version of the Commission’s proposal was leaked in July, causing concern from industry and other stakeholders. … Continue Reading
On September 8, 2016, the US Department of State’s Directorate of Defense Trade Controls published a final rule to amend the International Traffic in Arms Regulations. This rule clarifies and finalizes changes from a June 3, 2016, interim final rule related to the definitions of “export,” “re-export” and “retransfer.” The preamble of the final rule … Continue Reading
On September 20, the US Department of Commerce (DOC) published a final rule revising the Commerce Control List (CCL) and other sections of the Export Administration Regulations (EAR). This rule implements revisions decided at the December 2015 Wassenaar Arrangement plenary meeting, but also includes additional updates to the EAR. The final rule revises 58 Export … Continue Reading
The State Department’s Directorate of Defense Trade Controls (DDTC) recently published a final rule amending the International Traffic in Arms Regulations (ITAR) to finalize and clarify changes from a June 3, 2016 interim final rule related to the definitions of “export,” “reexport,” and “retransfer.” For additional information on the interim final rule, see our previous … Continue Reading
A European Commission proposal to amend the European Union’s dual-use export control regime was leaked recently, exposing significant changes to current EU policy. The proposal includes new controls on cyber-surveillance technology exports, including intrusion software. This proposed enhancement of export controls on cyber-surveillance technologies comes as the EU dual-use export control system as a whole … Continue Reading
Tomorrow, September 7, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) will issue a final rule adding 81 entities to the BIS Entity List (15 C.F.R. Part 744, Supplement No. 4) under the Export Administration Regulations (EAR). BIS is designating the companies, which are based in Russia, the Crimea region of Ukraine, India, … Continue Reading
The US Departments of State and Commerce published final rules revising the destination control statements required under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Destination control statements are required to alert recipients of ITAR or EAR-controlled items of associated US export control requirements. The agencies’ Federal Register notices describe … Continue Reading
On August 19, 2016 the Commerce Department Bureau of Industry and Security (BIS) is publishing in the Federal Register a notice extending its temporary general license for exports, reexports, and in country transfers to Zhongxing Telecommunications Equipment (ZTE) Corporation (ZTE Corporation) and ZTE Kangxun. BIS is extending the period of the license from its current … Continue Reading
On June 22, 2016, the Department of Commerce, Bureau of Industry and Security (BIS), finalized a new enforcement policy for administrative (i.e., non-criminal) matters called the Guidance on Charging and Penalty Determinations in Settlement of Administrative Enforcement Cases (Guidance). The Guidance, which is effective immediately, lays out the factors that BIS and its Office of … Continue Reading
In its second enforcement action this year, on June 20th, the State Department’s Directorate of Defense Trade Controls (DDTC) reached a $100,000 settlement with Massachusetts-based Microwave Engineering Corporation. Despite the small penalty amount, this case is noteworthy in several respects. … Continue Reading
On June 3, 2016 the Department of Commerce issued a final rule, and the Department of State issued an interim final rule, making changes to key definitions in the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). The rules update the definitions of “export,” “reexport,” “release,” and “retransfer” under both the … Continue Reading
A recent 60 minutes report about an ill-conceived criminal case against Xiaoxing Xi, the chair of Temple University’s physics department, carries important lessons for individuals who operate in the high-tech space, along with universities and other government contractors. The U.S. Attorney for the Eastern District of Pennsylvania brought criminal charges against Dr. Xi, alleging that … Continue Reading
If submitting a voluntary disclosure to OFAC, BIS, DDTC or one of the many other agencies involved in export controls and sanctions enforcement was not enough, it is becoming increasingly clear that it will soon be necessary to consider whether to disclose possible criminal wrongdoing to the DoJ as well. David Laufman of the DoJ’s … Continue Reading
The State Department’s Directorate of Defense Trade Controls (DDTC) announced on May 4, 2016 that, effective immediately, it would start considering requests to conduct defense-related trade with Sri Lanka under the International Traffic in Arms Regulations (ITAR). This reverses the previous U.S. policy to deny ITAR license applications for Sri Lanka due to concerns about stability … Continue Reading
On March 24, 2016, OFAC issued General License I (“GL I”) to authorize US persons to engage in transactions that are “ordinarily incident” to the negotiation of and entry into “contingent contracts” for the export or re-export to Iran of commercial passenger aircraft and related parts and services. GL I requires that the performance of … Continue Reading
On March 16, 2016, the Obama administration issued another round of amendments to the Cuban sanctions program. The Treasury Department’s Office of Foreign Assets Control and the Commerce Department’s Bureau of Industry and Security released revisions to the Cuban Assets Control Regulations and the Export Administration Regulations, respectively, that further ease sanctions and export restrictions … Continue Reading
On March 8, 2016, the U.S. Department of Commerce Bureau of Industry and Security (BIS) published a Federal Register notice adding four ZTE entities to the BIS Entity list. Three of the entities are located in China and one is located in Iran. The Chinese entities are: (1) Beijing 8-Star International Co., (2) Zhongxing Telecommunications … Continue Reading
