Since our last roundup was followed by a change in administrations, we have seen a flurry of activity, a regulatory freeze, a few reversals and restorations, and some business as usual. Read on for the notable export-related changes and proposals.
Department of State: DDTC / ITAR
USML Revisions Proposed, Effective September
The Department of State, Directorate of Defense Trade Controls (DDTC) proposed revisions of fourteen USML categories, ranging from minor corrections to developmental exoskeletons and foreign advanced military aircraft.
- 90 FR 5594, published January 17, 2025 & effective September 15, 2025
- Comments accepted through March 18, 2025
- See our previous post for all the details.
Department of Commerce: BIS / EAR & CCL
Implementation of Certain Australia Group Decisions
The Department of Commerce, Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to implement changes agreed to by Australia Group (AG):
- New controls on automated peptide synthesizers, dipropylamine, and neosaxitoxin
- Revised controls on botulinum toxins, toxic gas monitors, and centrifugal separators
- 89 FR 104408, published & effective December 23, 2024
Unmanned Aircraft Systems
BIS published an advance notice of proposed rulemaking (ANPRM) related to information and communications technology and services (ICTS) transactions integral to unmanned aircraft systems (UAS).
- 90 FR 271, published January 3, 2025
- Comments on 50 specific issues accepted through March 4, 2025
- Press release
Connected Vehicles
BIS published a final rule related to ICTS transactions integral to connected vehicles.
- Prohibits transactions involving Chinese or Russian origin Vehicle Connectivity System (VCS) hardware and software
- 90 FR 5360, published January 16, 2025 & effective March 17, 2025
- Press Release
Biotechnology Laboratory Equipment
BIS published an Interim Final Rule increasing controls on advanced biotechnology tools:
- High-parameter flow cytometers and certain mass spectrometry equipment moved from ECCN 3A999 into new ECCN 3A069, with development and production technology controlled under new ECCN 3E069.
- 90 FR 4612, published & effective January 16, 2025
- Comments accepted through March 17, 2025
- Press Release
Due Diligence Measures for Advanced Computing Integrated Circuits
BIS published an Interim Final Rule providing additional due diligence procedures regarding advanced computing integrated circuits
- 90 FR 5298 published & effective January 16, 2025 (corrected in 90 FR 9604, published February 14, 2025)
- Comments accepted through March 14, 2025
- Press Release
Framework for Artificial Intelligence Diffusion
BIS published an Interim Final Rule relating to Artificial Intelligence (AI) hardware and models.
- Revised controls on advanced computing integrated circuits (ICs)
- New ECCN 4E091 for artificial intelligence (AI) model weights for certain advanced closed-weight dual-use AI models.
- Updates Data Center Validated End User authorization
- Expands and adds new related license exceptions
- 90 FR 4544 published January 15, 2025, effective January 13, 2025
- Comments accepted through May 15,2 025
- Press Release
Export Enforcement 2024 Year in Review
BIS published its annual Year in Review, highlighting enforcement activities, including:
- Indictments, convictions, and civil penalties
- Release of the antiboycott Requester List and additions to the Entity List
- Updates to guidelines, guidance, and best practices
- Webinars and outreach
- Press Release
Sanctions Programs
ICC Sanctions Return
Following an Executive Order, the Department of the Treasury, Office of Foreign Assets Control (OFAC) implemented sanctions on the International Criminal Court on February 6, 2025. Similar sanctions had been in place from 2020-2021.
Cuba Restricted List Rescinded and Reinstated
The State Department’s Cuba Restricted List was rescinded on January 16, but republished and updated on February 6. Cuba’s status as a State Sponsor of Terrorism was also briefly rescinded and reinstated.
Civil Monetary Penalties
The Departments of State, Commerce, and Treasury each published their annual inflation adjustments for export-related civil monetary penalties.
Executive Orders and Memos
America First Trade Policy
This January 20, 2025 memo included, among other directives:
- A review of the United States export control system by the Secretary of State and the Secretary of Commerce including making recommendations
- how to maintain, obtain, and enhance our Nation’s technological edge;
- how to identify and eliminate loopholes in existing export controls; and
- regarding export control enforcement policies and practices, and enforcement mechanisms to incentivize compliance by foreign countries.
- The Secretary of Commerce was also directed to review Office of Information and Communication Technology and Services (ICTS) rulemaking on connected vehicles and consider whether ICTS controls should be expanded to additional connected products.
Unleashing Prosperity Through Deregulation
Executive Order 14192, dated January 31, 2025 (90 FR 9065) establishes a regulatory cap, considering both numbers and cost of regulations. The impact on export compliance may be limited, however, as “regulations issued with respect to a military, national security, homeland security, foreign affairs, or immigration-related function of the United States” are excluded from the regulatory cap.