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BIS Publishes Interim Rule for Adding Controls on Imagery Analysis Software
On January 6, 2020 The Bureau of Industry and Security (BIS) published an interim final rule amending the Export Administration Regulations (EAR) to classify software specially designed to automate the analysis of geospatial imagery under the Export Control...
New Interim Final Rule Creates End-to-End Encryption Carve-Out for ITAR Technical Data
By: Olga Torres and Derrick Kyle (Torres Law, LLP) The Department of State Directorate of Defense Trade Controls (“DDTC”) has published an interim final rule (“the Interim Final Rule”) seeking public comments and clarifying that certain transfers of encrypted...
ITAR Defense Controls Catches Up to Modern IT, Allowing Exporters to Use Encryption to Protect Defense Technology on the Cloud
By: Kay C. Georgi, Marwa M. Hassoun, Regan K. Alberda, Sylvia G. Costelloe (202-857-6293, Arent Fox LLP) In a surprise holiday present, the State Department finally brought the International Traffic in Arms Regulations (ITAR) into the 21st century by releasing an...
District Court Throws Out OFAC Penalty, Citing Due Process, Unclear Regulations
By Nicholas Turner, Meredith Rathbone, Brian Egan and Ed Krauland (Steptoe & Johnson LLP) On December 31, 2019, the U.S. District Court for the Northern District of Texas threw out a $2 million fine issued in 2017 by the Treasury Department’s Office of Foreign...
DDTC Publishes FAQs on US Persons Abroad
On January 6, 2020 the Directorate of Defense Trade Controls (DDTC) published Frequently Asked Questions for guidance on the subject of US persons providing defense services abroad. The guidance addresses questions regarding registration and authorization...
Trade Associations Worried Over Impact of Reduced De Minimis Thresholds for China
By: Danielle Hatch There has been chatter that the Department of Commerce will be reducing the US-made content (“de minimis”) amount required for US reexports to be licensed to China. The change is said to be an attempt to squeeze Huawei even more past the addition of...
Wassenaar Puts Stronger Controls Cyber-Warfare Systems
In early December 2019 the Wassennar Arrangement held its annual plenary meeting and discussed stricter rules for software designed or modified for the conduct of military offensive cyber operations. Under the new provisions to Military List Item 21, this technology...
Census Updates Schedule B and Harmonized Tariff Schedule in AES
The Schedule B, Harmonized Tariff Schedule (HTS), and HTS Codes That Are Not Valid for AES tables have been updated in the Automated Export System (AES) and the system will now accept the codes. AES will continue to accept shipments with outdated codes for a grace...
Justice Department Publishes Enforcement Policy for Export Controls and Sanctions
By: Danielle Hatch In December 2019 the Department of Justice (DOJ) released a policy, through the National Security Division’s (NSD) Counterintelligence and Export Control Section (CES) that sets forth the criteria that will be used in determining solutions for...
Department of State Creates Definition of “Activities That Are Not Exports, Reexports, Retransfers, Or Temporary Imports”
The Department of State recently published an interim final rule requesting comments (must have been received by January 27, 2020) based on the idea of creating a definition of “activities that are not exports, reexports, retransfers, or temporary imports.” The...