LONDON -- The U.K. is having “deep” conversations with the U.S. about aligning the two countries’ defense export regulations in an effort to slash technology sharing restrictions as part of the Australia-U.K.-U.S. (AUKUS) agreement, said Rosemary Pratt, director of the U.K.’s Export Control Joint Unit. Pratt said she believes the U.K. eventually will update its controls enough to benefit from a new potential defense-related license exemption being considered by Congress.
Licensing work at sanctions and export control agencies likely will grind to a near halt in the event of a federal government shutdown Oct. 1, though enforcement activities at the Bureau of Industry and Security, Directorate of Defense Trade Controls and Office of Foreign Assets Control will continue -- if previous shutdowns are any guide.
LONDON -- The Bureau of Industry and Security hopes to publish the final version of its Oct. 7 China chip controls in October, said Liz Abraham, senior adviser for international policy at BIS.
LONDON -- The U.K. has seen a spike in export license refusals for shipments destined to China and expects that trend to continue, said Rosemary Pratt, director of the U.K.’s Export Control Joint Unit. She also said her agency is undergoing several export control reform initiatives that it hopes see progress on in the coming year, including an effort to assess the effectiveness of its military end-use (MEU) controls and evaluate and control emerging technologies.
Dealmakers are hoping for more certainty when the Treasury Department finalizes regulations for its August executive order on outbound investment restrictions, which may force companies to make difficult investment decisions without assurances that their deals won’t be later unwound.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
Rising U.S.-China tensions are causing all-time highs in uncertainty and pessimism for U.S. companies doing business in China, and are driving U.S. companies to reduce investment in China in record numbers, according to an annual member survey released by the U.S.-China Business Council on Sept. 26. More than a third of companies said they have either stopped investing in China or have scaled back.
Members of a new export enforcement partnership recently formed by the Five Eyes countries released new guidance Sept. 26 for industry and academia on countering evasion of export controls and sanctions on Russia.
The CEOs of two major European multinationals called for the simplification and increased coordination of sanctions at a forum held by the Atlantic Council last week. Michael Schoellhorn, CEO of Airbus Defense and Space, said the implementation of Russia sanctions, and the latest EU sanctions package in particular (see 2306230013), has “triggered such a bureaucracy,” with “a degree of minutia that is killing small companies.”
The Bureau of Industry and Security added 28 entities to the Entity List this week for various reasons, all falling under the umbrella of “acting contrary to the national security or foreign policy interests of the United States.” The final rule, effective Sept. 27, adds entities in China, Finland, Germany, Oman, Pakistan, Russia and the United Arab Emirates. It also modifies entries for two entities and removes a Military End User List entity.