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In two recent rules, the Department of Commerce, Bureau of Industry and Security (BIS) has begun to take significant steps to monitor, and potentially control access to, U.S. artificial intelligence (AI) technology. AI continues to pose a unique challenge for regulators due to its rapid expansion as a consumer product and potential defense applications.
Continue Reading Commerce Takes on AI: Recent Developments from BIS on AI

In 2021, the EU adopted an updated version of the EU Dual-Use Regulation, which establishes common standards for the control of dual-use item exports by EU member states. Among its new provisions, Regulation (EU) 2021/821 introduced, in its Article 5, a “catch-all control” for cyber-surveillance items.
Continue Reading EU’s New Export Due Diligence Guidelines: Keeping Tabs on Cyber-Surveillance Technology

In a land before time (technologically speaking . . . so, like, the mid-nineties), the most basic software encryption functions were controlled under the U.S. International Traffic in Arms Regulations. The then-current version of Netscape or Lotus Notes (the hot tech of the era) were controlled under the same regulatory regime as missiles and fighter jets. Then, in 1996, an executive order moved encryption to commercial export controls and freed up the software industry to flourish into its current, omnipresent state.
Continue Reading The Commercial Industry Gets More Space: Reduced Export Controls Ease Cross-Border Collaborations (Part II of IV)

We may imagine that a space company begins with only a few screws and some sheet metal in a garage.[1] But regardless of its origins, not long after that early phase, that same company is likely to have a global reach. Commercial space companies inherently involve elements such as international supply chains, foreign customers, and design and engineering talent from around the world.
Continue Reading Space Rules, or . . . Space Rules!: Reduced Export Controls Ease Cross-Border Collaborations (Part I of IV)

This week of September 16, Paris will play host to the biggest spectacle of the year (sorry, Olympics), the World Space Business Week. Attendees will come from around the world to discuss advancements in commercial space and global satellite infrastructure. However, it will be the representatives of Australian, UK, and U.S. companies that may have the most to talk about.
Continue Reading A (r)AUKUS Discussion in the Space Industry

On July 29, 2024, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) proposed a series of transformative new rules aimed at tightening controls related to military, intelligence, and security activities under the Export Administration Regulations (EAR). These proposed changes are set to impact how businesses manage exports and interact with end users, expanding the scope of restrictions to cover a broader range of activities and entities. These proposed changes further the U.S. government’s policy goals of using export control regulations to protect human rights around the globe.
Continue Reading Export Control Shake-Up: Navigating the Expanded Export Restrictions

On July 22, 2024, the Department of Treasury, Office of Foreign Assets Control (OFAC) announced a significant planned extension to its recordkeeping requirements, which will increase the retention period from five to ten years. OFAC expects to publish an interim final rule to provide an opportunity to comment. The change will increase compliance obligations for entities engaged in transactions subject to U.S. sanctions.
Continue Reading SoL Long to Short Limits: The Sequel — A Decade of Recordkeeping and Enforcement

Effective July 10, 2024, President Biden issued two Presidential Proclamations aimed at refining the tariff exclusions under Section 232 of the Trade Expansion Act of 1962 for steel and aluminum imports from Mexico. Together, the Proclamations close loopholes whereby steel and aluminum from outside North America could avoid tariffs by shipping through Mexico. Those Proclamations reflect a concerted effort between the United States and Mexico to refine tariff exclusions, enhance regulatory oversight, and ensure compliance with international trade agreements. Importers of steel and aluminum now face heightened compliance burdens under the new regulations. The measures aim not only to safeguard
Continue Reading Closing the Southern Border to Indirect Chinese Imports: U.S. Proclamations on Steel and Aluminum Imports from Mexico

As we pass the midpoint of a year marked by assertive enforcement of dual use laws, the Department of Commerce’s Bureau of Industry and Security (BIS) published an updated version of its Don’t Let This Happen to You! Guide. That guide, which was last updated in March 2024, includes numerous case examples illustrating BIS’s criminal and administrative enforcement actions. The update also comes with two additional BIS publications addressing measures to reduce diversion risks and a six-year review of BIS’s licensing strategy.
Continue Reading BIS Summer Update: Essential Reading for Your Next Beach Trip!

On June 27, 2024, the U.S. Department of Commerce, Bureau of Industry & Security (BIS) announced its first update to the boycott requester list. The list contains entities that have been reported by a U.S. person as having made a boycott-related request in connection with a transaction in the interstate or foreign commerce of the United States. The latest update adds 57 entities to the list and removes 127 entities. Some notable additions include entities from Japan and Germany.
Continue Reading Commerce Updates Boycott Requester List

The U.S. State Department has proposed amendments to the International Traffic in Arms Regulations (ITAR) to increase the fees required for Directorate of Defense Trade Controls (DDTC) registration. The ITAR requires persons engaging in manufacturing, exporting, temporarily importing, or brokering of any defense articles or services register with DDTC. This proposed rule marks the first adjustment to the registration fee structure in over fifteen years.
Continue Reading ITAR Fees Overhaul: Navigating the New Registration Costs

In an era where technological prowess and economic security are more entangled than ever, the United States has refined its approach towards restricting outbound investments. As we have been blogging since 2022, the past two years have seen efforts to restrict outbound investments for national security reasons. Those efforts come both from Congress through legislation and the White House through Executive Order.
Continue Reading Proposed Outbound Investment Regulations: Understanding the New Restrictions on U.S. Outbound Investments in Artificial Intelligence (AI), Semiconductors, and Quantum Computing

Last year, we published an update on BIS’s foray into prohibiting EAR99 items for export to Russia and Belarus. We noted (somewhat in jest) that kitchen sinks may one day be added. Well, that day has come. Stainless steel kitchen sinks are officially prohibited for export to Russia and Belarus.
Continue Reading Now Including the Kitchen Sink: Expansion of Export Controls on Russia Adds Restrictions on Low-Level Items and Software