In addition to recent proposals and changes for space-related export controls, here’s a wrap-up of other recent export-related actions.
Department of State: DDTC / ITAR
AUKUS Authorized Users Available
As required for the new AUKUS Exemption at International Traffic in Arms Regulations (ITAR) § 126.7, the list of “authorized users” in Australia and the United Kingdom is now available in the Department of State, Directorate of Defense Trade Controls (DDTC)’s DECCS. Currently including 87 entities, the authorized users are approved by their respective governments and the list is subject to change.
Precision Castparts Consent Agreement
DDTC announced a Consent Agreement with Precision Castparts:
Precision Castparts Corp. settled allegations that it violated the International Traffic in Arms Regulations (ITAR) in connection with unauthorized exports of technical data to foreign-person employees from Bhutan, Burundi, El Salvador, Honduras, Mexico, and Peru pertaining to tools (specifically, wax pattern and core dies) and wax patterns consumed in the subsequent production of casting blades used in gas turbine engines.
This is the third Consent Agreement from DDTC this year, following The Boeing Company and RTX Corporation.
Cyprus
Cyprus remains in the unique situation of being found in the ITAR § 126.1 list of proscribed destinations, but with an annually suspended status. Under 89 FR 79140 (September 27, 2024), the Republic of Cyprus’ status as a proscribed destination is suspended from October 1, 2024, through September 30, 2025.
Department of Commerce: BIS / EAR & CCL
Data Center Validated End User Authorization
The Department of Commerce, Bureau of Industry and Security (BIS) expanded the Validated End User Authorization (VEU) at Export Administration Regulations (EAR) § 748.15 to include data centers.
- 89 FR 80080, published & effective October 2, 2024
Connected Vehicles Supply Chain
Notice of Proposed Rulemaking (NPRM) would “prohibit transactions involving Vehicle Connectivity System (VCS) hardware and covered software designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the People’s Republic of China, including the Hong Kong Special Administrative Region (PRC), or the Russian Federation (Russia).”
- Part of effort to secure the information and communications technology and services supply chain
- 89 FR 79088, September 26, 2024
- Press release
Implemented Export Controls (IEC)
At EAR § 740.24 License Exception Implemented Export Controls (IEC) authorizes exports, reexports, and transfers (in-country) of eligible items to, among, or within specified destinations.
- Eligible ECCNs and destinations can be found on the BIS website at https://www.bis.gov/iec
- 89 FR 72926, September 6, 2024
- 89 FR 83427, October 16, 2024 (revision)
Best Practices for Financial Institutions
BIS Issues Guidance to Financial Institutions on Best Practices for Compliance with the Export Administration Regulations
- Recommendations include due diligence best practices, red flags, and a real-time screening.
- Press Release, October 9, 2024
Department of Defense
Cybersecurity Maturity Model Certification (CMMC) Program
Under development since 2010, the CMMC Program is intended “to verify contractors have implemented required security measures necessary to safeguard Federal Contract Information (FCI) and Controlled Unclassified Information (CUI).”
- Tiered model based on the type and sensitivity of relevant information.
- Levels include self-assessment, third party assessment, and government assessment.
- Phased implementation, with four phases over three years.
- 89 FR 83092, October 15, 2024
- Effective December 16, 2024
Department of the Treasury: OFAC
Recordkeeping Requirements Extended to Ten Years
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has extended recordkeeping requirements for sanctions-related transactions from five years to ten years to match the related statute of limitations.
- Statute of limitations for civil and criminal violations of the International Emergency Economic Powers Act (IEEPA), and the Trading with the Enemy Act, (TWEA) was extended from five to ten years in April 2024.
- Includes transactions authorized under general or specific licenses after April 24, 2019
- Effective March 12, 2025
- 89 FR 74832, September 13, 2024
Maritime Shipping Industry Sanctions Guidance
OFAC issued scenario-based guidance to the maritime shipping industry.
- Scenarios identifying new or common fact patterns include deceptive shipping practices, Specially Designated Nationals (SDNs) on trade documentation, obscured or complex ownership structures, and mid-voyage notification of sanctions risk.
Press Release, October 31, 2024