On March 29, 2024, BIS issued an interim final rule (IFR) updating and correcting its advanced computing and semiconductor regulations[1] published in October 2023 (which we discuss here in Episode III). This marks the third release of such semiconductor-related regulations since the key regulations were issued in October 2022 (which we discuss here in Episode I; and check out these posts here (Episode II) and here (Episode IV) for background). This IFR is now in effect since April 4, 2024. Interested parties may comment for revisions, corrections, and clarifications no later than April 29, 20 ..read more

On Wednesday, March 6, 2024, the Department of Commerce, Department of the Treasury and Department of Justice issued another Tri-seal Compliance Note, focusing this time on the obligations of foreign based persons complying with U.S. sanctions and export control laws as well as recent enforcement actions. This may signal more scrutiny on the compliance of foreign companies which we have discussed here. While understanding how sanctions and export control laws impact U.S. companies is straightforward (or not!), how these laws affect non-U.S. persons and entities is often more confusing. The Not ..read more

The EU plans to step up controls on its home grown technology. That is the short version. The longer version is a (pretty dry) recitation of the proposed legislation and whitepapers that were published last week as the European Economic Security Package (ESP). We provide that (really dry . . . sorry) summary below, but hit the highlights and interesting points here. At the start. Because, in this blog (as in life) we’re here for a good time, not a long time. The Five, Real Fast The new ESP comprises plans for the EU to undertake the following: 1. Foreign Direct Investment Screening – Patrollin ..read more

Export controls are the manifestation of foreign, economic, and national security policy, and the implementation of policy requires dynamic adjustment, a back-and-forth, a balance. So, on December 7, 2023[1], amid the tightening of new semiconductor regulations, BIS announced it was relaxing regulations around another set of exports. This drawing back of the controls arrives in the form of a set of three rules easing license requirements and expanding license exceptions. While seemingly disparate, each of the three areas of amendments represents a consistent push to align U.S. export policy wi ..read more

Semiconductors are the only commodity that are as ubiquitous and as heavily regulated. Semiconductors are unique: nothing so common is as tightly controlled, and nothing so tightly controlled is as common. But this puts the industry in an extremely complex position. Other industries may ask . . . are we next? You’d be forgiven for thinking this Global Trade Law Blog has become a Semiconductors News Blog, with all the recent updates we have published on semiconductor regulation in the past year or two. And yes, we concede the point. We have a lot of semiconductor clients, and there is a lot t ..read more

In 1947, then President Harry Truman pledged that the United States would support any nation in its efforts to resist Communism and prevent its spread. The policy was commonly called, “Containment,” capturing the concept that countries aligned with U.S. policy would surround the Soviet Union and its allies, containing the spread of their ideologies. The policy was maintained as doctrine and a guiding principle in U.S. policy throughout the Cold War era. The Policy In 2023, the U.S. Government has not made such a sweeping declaration, but we can see a sort of “Technological Containment” in its ..read more

Between Russia’s invasion of Ukraine and growing U.S. tensions with China, U.S. export controls are in the spotlight like never before. As if regulators have not already made it clear enough, recent statements and actions indicate that the enforcement crosshairs are squarely on the semiconductor industry. Background Beginning back in February, 2023, the Bureau of Industry and Security (BIS) and the Department of Justice (DOJ) launched a new Disruptive Technology Strike Force, aimed at “protecting U.S. advanced technologies from [the] illegal acquisition and use by nation-state adversaries.” Th ..read more

On March 2, 2023, Deputy Attorney General Lisa Monaco delivered remarks to the ABA’s National Institute on White Collar Crime. Unsurprisingly, her remarks focused heavily on inspiring a culture of compliance – including highlighting the DOJ’s new policy to incentivize companies to self-report criminal activity (which our Organizational Integrity Group discusses here). But, her remarks also emphasized an emerging priority for DOJ enforcement: the intersection of corporate crime and national security. In particular, DOJ will increase its focus on investigating and prosecuting sanctions evas ..read more

It looks like the licensing restrictions on Huawei are trickling into effect. Our sources indicate that, as early as February 27, all license applications for exports or transfers involving Huawei which were pending with the U.S. Bureau of Industry and Security (BIS) have been placed on Hold Without Action. Further, we understand from various industry sources that BIS has begun informing certain U.S. companies that they will not receive further licenses to export chips for end use by Huawei. On March 1, in a new development, it was reported that the U.S. Government may go a step further and is ..read more

In response to Russia’s ongoing aggression in Ukraine, both the United States and the European Union have imposed additional sanctions and further restricted exports to Russia and Iran. These new controls span many industries. I. U.S. Sanctions The U.S. Department of Treasury, Office of Foreign Assets Control (OFAC) has implemented a host of new Russia sanctions. OFAC designated over 100 entities and individuals found to support Russia’s war against Ukraine. It also sanctioned Russia’s metals and mining sector. While over 80 percent of Russia’s banking sector is already sanctioned, OFAC design ..read more