Top Story

Commerce Broadens Chip Equipment Controls

Rendering of the sequence showing the full light path from EUV source to silicon wafer.

Commerce’s Bureau of Industry and Security (BIS) announced a package of rules designed to further impair China’s capability to produce advanced-node semiconductors that can be used in the next generation of advanced weapon systems and in artificial intelligence and advanced computing. In response, the Chinese government imposed further restrictions on the export of "dual use" commodities banning sales of gallium, germanium, antimony and tightening controls on graphite exports. The BIS controls target some, but not all affiliates of chip manufacturers SMIC and Huawei, as well as semiconductor manufacturing equipment manufacturers in the PRC.

Welcome to your new Export Practitioner

The Export Practitioner introduces a web-based format for easier review, research and sharing.

In addition to your monthly print or e-edition, we can furnish mid-month updates for our readers.

We seek your input as we make this transition. Please send your suggestions to fruffing@traderegs.com or call 703.283.5220.

– Frank Ruffing, Editor

November 2024 Export Practitioner

View this issue

Browse other issues

McKinsey Africa to Pay $122 Million FCPA Settlement

McKinsey and Company Africa (Pty) Ltd (McKinsey Africa), which operates in South Africa as a wholly owned and controlled subsidiary of international consulting firm McKinsey & Company Inc. …

Cessnas to Russia Scheme Foiled

Sergey Nechaev, a dual U.S.-Russian citizen, was arrested December 2 in the Southern District of Georgia on charges related to the unlawful attempted export of two small aircraft to Russia. In conjunction with the arrest, the U.S. government also seized the aircraft.

Chinese Arrested Smuggling Arms to DPRK

A 41 year-old Chinese national with an an expired student visa has been arrested and charged with exporting firearms, ammunition and other military items to North Korea. Shenghua Wen was arrested December 3rd in Ontario, California.

$14.5 Million Fine for Plastics Plant Sale to Iran

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today announced a $14,550,000 settlement with a German firm involved in smuggling a plastics plant from Austraiia to Iran. The out of pocket penalty for the violator is $250,000 to be paid within three months, with 27 quarterly payments of $150,000 thereafter. assuming the violator complies with the settlement and remains in business for the next seven years.

CFPB Rule on Data Brokers

The Consumer Financial Protection Bureau (CFPB) has proposed a rule to rein in data brokers that sell Americans' sensitive personal and financial information. The December 3rd proposal would make clear that when data brokers sell certain sensitive consumer information they are "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA), requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse. “By selling our most sensitive personal data without our knowledge or consent, data brokers can profit by enabling scamming, stalking, and spying,” said CFPB Director Rohit Chopra. “The CFPB’s proposed rule will curtail these practices that threaten our personal safety and undermine America’s national security.” Companies that sell data about income or financial tier, credit history, credit score, or debt payments would be considered consumer reporting agencies required to comply with the FCRA, regardless of how the information is used.

BOI Enforcement Injunction

The United States District Court for the Eastern District of Texas issued a nationwide injunction Tuesday to enjoin the United States Government from enforcing the Corporate Transparency Act and its Implementing Regulations.

U.S. Sanctions Venezuelan Officials for Repression and Electoral Fraud

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned 21 Venezuelan officials, including security and cabinet-level leaders aligned with Nicolás Maduro. These actions, pursuant to Executive Order 13692, target individuals for supporting Maduro’s repression of civil society and attempts to declare himself the winner of the July 28 presidential election, despite Edmundo González Urrutia being elected by a significant majority.

Read more of our coverage of Sanctions

Policy Briefs

Halifax Forum Convenes

The 16th annual Halifax International Security Forum (HFX), held from November 22 to 24, 2024, in Halifax, Nova Scotia, convened global leaders to address pressing security challenges. Referred to by Canadian media as "The Davos of international security," the Forum's agenda encompassed topics such as Russia’s aggression in Ukraine, the influence of China, Iran, and North Korea (collectively referred to as “CRINKs”), Arctic security, and the impact of artificial intelligence on defense.

China Hawks Target Hong Kong

House China Hawks wrote to Treasury Secretary Janet Yellen following the prison sentencing of 45 pro-freedom activists in Hong Kong last week. Citing deteriorating human rights and financial transactions between Hong Kong, Russia, and North Korea, the lawmakers seek a briefing from Treasury Department officials on potential actions the U.S. will take.

EXIM Chief Goes to the Islands

The head of the Export-Import Bank of the United States (EXIM) President signed two memoranda of understanding with the governments of Barbados and Saint Kitts and Nevis, securing a total of "up to $800 million in potential financing to support financing in cybersecurity, renewable energy, and critical areas for the region’s long-term growth and sustainability," according to a Bank announcement The announced sum represents a thirty-five fold increase from the amount of business EXIM has done with the two countries over the past 35 years. No specific projects have been identified.

Supply Chain

CBP Keeps Trying with Aluminum Extrusions

A Chinese-owned producer and distributor of aluminum extrusions in the Dominican Republic has been determined to be employing convict, forced or indentured labor by US Customs and Border Protection. This comes on the heels of a successful appeal by Kingtom Aluminio SRL, of an Enforce and Protect Act (EAPA) case before the U.S. Court of International Trade (CIT), where an alleger asserted Kingtom Aluminio was evading antidumping and countervailing duty orders on aluminum extrusions from China.

Uniqlo Says No to Xinjiang Cotton

Tadashi Yanai, chairman and president of Fast Retailing, the parent company of Japanese fast fashion giant Uniqlo, said the company does not use Xinjiang cotton. Speaking in Tokyo about the firm's measures to be more transparent about where the materials in its clothes come from and how they are made, Yanai said: "We're not using [cotton from Xinjiang," BBC reported on Thursday. "Actually, it gets too political if I say anymore so let's stop here,"

DHS Adds 29 Entities to UFLPA Entity List

The Department of Homeland Security (DHS), on behalf of the Forced Labor Enforcement Task Force (FLETF), announced the addition of 29 companies based in the People’s Republic of China to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List – bringing the total number of entities on the UFLPA Entity List to 107. The 29 added entities span sectors including agriculture, food processing, and industrial materials. Twenty-three additional entities in agriculture are cited for sourcing products like tomato paste, walnuts, and raisins from XUAR, with sales traced through online wholesale markets.

USML Modifications for Korea Tech Transfer Extended

On November 26, 2024, the Department extended the temporary modification of the Note to paragraph (h)(1) of USML Category VIII with regard to certain commodities used in the KF-21 aircraft or variants thereof.

Pakistan Proliferation Controls Update

Commerce’s Bureau of Industry and Security (BIS) published a final rule imposing new controls on exports, reexports, and transfers (in-country) involving six key categories of items – some of which were previously controlled for nuclear nonproliferation reasons – to Pakistan to address diversion concerns.

Export Controls in China Commission Report

Deep in the 782 Page annual doorstop prepared by the commission are sections of interest on export controls and the regulation of outbound investment.

Read more of our Export Control coverage

Licensing

Space Rules Comment Periods Extended

The State and Commerce Depaertments have extended the comment periods for their revisions to the EAR and ITAR governing Space - Related Export Controls.

House China Hawks Query Chip Equipment Firms

House China Hawks wrote letters Friday to industry leaders in semiconductor manufacturing equipment (SME), regarding their businesses' sales to the People’s Republic of China (PRC). "The …

Space-Related Export Controls Briefing

The regulators responsible for drafting the biggest rulemaking changes to space-related export controls briefed stakeholders on the initiative,, addressed some initial questions, and urged engagement through comments as the rules are finalized. The November 6 presentation included officials from the State Department, Commerce and NASA who shared their perspectives on their remits. The event finished with a review of some questions submitted by stakeholders.