{"id":533,"date":"2025-02-14T21:53:55","date_gmt":"2025-02-15T02:53:55","guid":{"rendered":"https:\/\/exportcompliancesolutions.com\/blog\/?p=533"},"modified":"2025-02-14T21:54:47","modified_gmt":"2025-02-15T02:54:47","slug":"export-regulatory-and-policy-update-roundup-february-2025","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2025\/02\/14\/export-regulatory-and-policy-update-roundup-february-2025\/","title":{"rendered":"Export Regulatory and Policy Update Roundup: February 2025"},"content":{"rendered":"<p>Since <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2024\/12\/16\/export-regulatory-and-policy-update-roundup-december-2024\/\">our last roundup<\/a> 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.\u00a0 Read on for the notable export-related changes and proposals.<\/p>\n<p><strong><u>Department of State: DDTC \/ ITAR<\/u><\/strong><\/p>\n<p><strong>USML Revisions Proposed, Effective September<\/strong><\/p>\n<p>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.<\/p>\n<ul>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/17\/2025-01313\/international-traffic-in-arms-regulations-us-munitions-list-targeted-revisions\">90 FR 5594<\/a>, published January 17, 2025 &amp; effective September 15, 2025<\/li>\n<li>Comments accepted through March 18, 2025<\/li>\n<li>See <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2025\/02\/04\/multiple-usml-categories-revised-effective-september-15-2025\/\">our previous post<\/a> for all the details.<\/li>\n<\/ul>\n<p><strong><u>Department of Commerce: BIS \/ EAR &amp; CCL<\/u><\/strong><\/p>\n<p><strong>Implementation of Certain Australia Group Decisions<\/strong><\/p>\n<p>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):<\/p>\n<ul>\n<li>New controls on automated peptide synthesizers, dipropylamine, and neosaxitoxin<\/li>\n<li>Revised controls on botulinum toxins, toxic gas monitors, and centrifugal separators<\/li>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/12\/23\/2024-30425\/implementation-of-certain-australia-group-decisions\">89 FR 104408<\/a>, published &amp; effective December 23, 2024<\/li>\n<\/ul>\n<p><strong>Unmanned Aircraft Systems<\/strong><\/p>\n<p>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).<\/p>\n<ul>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/03\/2024-30209\/securing-the-information-and-communications-technology-and-services-supply-chain-unmanned-aircraft\">90 FR 271<\/a>, published January 3, 2025<\/li>\n<li>Comments on 50 specific issues accepted through March 4, 2025<\/li>\n<li><a href=\"https:\/\/www.bis.gov\/press-release\/commerce-issues-advance-notice-proposed-rulemaking-secure-unmanned-aircraft-systems\">Press release<\/a><\/li>\n<\/ul>\n<p><strong>Connected Vehicles<\/strong><\/p>\n<p>BIS published a final rule related to ICTS transactions integral to connected vehicles.<\/p>\n<ul>\n<li>Prohibits transactions involving Chinese or Russian origin Vehicle Connectivity System (VCS) hardware and software<\/li>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/16\/2025-00592\/securing-the-information-and-communications-technology-and-services-supply-chain-connected-vehicles\">90 FR 5360<\/a>, published January 16, 2025 &amp; effective March 17, 2025<\/li>\n<li><a href=\"https:\/\/www.bis.gov\/press-release\/commerce-finalizes-rule-secure-connected-vehicle-supply-chains-foreign-adversary\">Press Release<\/a><\/li>\n<\/ul>\n<p><strong>Biotechnology Laboratory Equipment<\/strong><\/p>\n<p>BIS published an Interim Final Rule increasing controls on advanced biotechnology tools:<\/p>\n<ul>\n<li>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.<\/li>\n<\/ul>\n<ul>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/16\/2025-00723\/controls-on-certain-laboratory-equipment-and-related-technology-to-address-dual-use-concerns-about\">90 FR 4612<\/a>, published &amp; effective January 16, 2025<\/li>\n<li>Comments accepted through March 17, 2025<\/li>\n<li><a href=\"https:\/\/www.bis.gov\/press-release\/commerce-implements-new-controls-address-national-security-risks-related\">Press Release<\/a><\/li>\n<\/ul>\n<p><strong>Due Diligence Measures for Advanced Computing Integrated Circuits<\/strong><\/p>\n<p>BIS published an Interim Final Rule providing additional due diligence procedures regarding advanced computing integrated circuits<\/p>\n<ul>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/16\/2025-00711\/implementation-of-additional-due-diligence-measures-for-advanced-computing-integrated-circuits\">90 FR 5298<\/a> published &amp; effective January 16, 2025 (corrected in <a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/02\/14\/2025-02655\/implementation-of-additional-due-diligence-measures-for-advanced-computing-integrated-circuits\">90 FR 9604<\/a>, published February 14, 2025)<\/li>\n<li>Comments accepted through March 14, 2025<\/li>\n<li><a href=\"https:\/\/www.bis.gov\/press-release\/commerce-strengthens-restrictions-advanced-computing-semiconductors-enhance-foundry\">Press Release<\/a><\/li>\n<\/ul>\n<p><strong>Framework for Artificial Intelligence Diffusion<\/strong><\/p>\n<p>BIS published an Interim Final Rule relating to Artificial Intelligence (AI) hardware and models.<\/p>\n<ul>\n<li>Revised controls on advanced computing integrated circuits (ICs)<\/li>\n<li>New ECCN 4E091 for artificial intelligence (AI) model weights for certain advanced closed-weight dual-use AI models.<\/li>\n<li>Updates Data Center Validated End User authorization<\/li>\n<li>Expands and adds new related license exceptions<\/li>\n<\/ul>\n<ul>\n<li><a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/15\/2025-00636\/framework-for-artificial-intelligence-diffusion\">90 FR 4544<\/a> published January 15, 2025, effective January 13, 2025<\/li>\n<li>Comments accepted through May 15,2 025<\/li>\n<li><a href=\"https:\/\/www.bis.gov\/press-release\/biden-harris-administration-announces-regulatory-framework-responsible-diffusion\">Press Release<\/a><\/li>\n<\/ul>\n<p><strong>Export Enforcement 2024 Year in Review<\/strong><\/p>\n<p>BIS published its annual Year in Review, highlighting enforcement activities, including:<\/p>\n<ul>\n<li>Indictments, convictions, and civil penalties<\/li>\n<li>Release of the antiboycott Requester List and additions to the Entity List<\/li>\n<li>Updates to guidelines, guidance, and best practices<\/li>\n<li>Webinars and outreach<\/li>\n<li><a href=\"https:\/\/www.bis.gov\/press-release\/export-enforcement-releases-2024-year-review\">Press Release<\/a><\/li>\n<\/ul>\n<p><strong><u>Sanctions Programs<\/u><\/strong><\/p>\n<p><strong>\u00a0<\/strong><strong>ICC Sanctions Return<\/strong><\/p>\n<p><strong>\u00a0<\/strong>Following an <a href=\"https:\/\/ofac.treasury.gov\/media\/933981\/download?inline\">Executive Order<\/a>, the Department of the Treasury, Office of Foreign Assets Control (OFAC) implemented <a href=\"https:\/\/ofac.treasury.gov\/sanctions-programs-and-country-information\/international-criminal-court-related-sanctions\">sanctions on the International Criminal Court<\/a> on February 6, 2025.\u00a0 <a href=\"https:\/\/ecscreening.com\/index.php\/blog\/69-ofac-icc-sanctions-terminated\">Similar sanctions<\/a> had been in place from 2020-2021.<\/p>\n<p><strong>Cuba Restricted List Rescinded and Reinstated<\/strong><\/p>\n<p>The State Department\u2019s <a href=\"https:\/\/www.state.gov\/division-for-counter-threat-finance-and-sanctions\/cuba-restricted-list\">Cuba Restricted List<\/a> was rescinded on January 16, but <a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/02\/06\/2025-02282\/publishing-the-state-departments-list-of-entities-and-subentities-associated-with-cuba-cuba\">republished and updated<\/a> on February 6.\u00a0 Cuba\u2019s status as a State Sponsor of Terrorism was also briefly rescinded and <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/initial-rescissions-of-harmful-executive-orders-and-actions\/\">reinstated<\/a>.<\/p>\n<p><strong>\u00a0<\/strong><strong><u>Civil Monetary Penalties<\/u><\/strong><\/p>\n<p>The Departments of <a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/10\/2025-00361\/department-of-state-2025-civil-monetary-penalties-inflationary-adjustment\">State<\/a>, <a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/12\/30\/2024-31310\/civil-monetary-penalty-adjustments-for-inflation\">Commerce<\/a>, and <a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/15\/2025-00786\/inflation-adjustment-of-civil-monetary-penalties\">Treasury<\/a> each published their annual inflation adjustments for export-related civil monetary penalties.<\/p>\n<p><strong>\u00a0<\/strong><strong><u>Executive Orders and Memos<\/u><\/strong><\/p>\n<p><strong>America First Trade Policy<\/strong><\/p>\n<p>This <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/america-first-trade-policy\/\">January 20, 2025 memo<\/a> included, among other directives:<\/p>\n<ul>\n<li>A review of the United States export control system by the Secretary of State and the Secretary of Commerce including making recommendations\n<ul>\n<li>how to maintain, obtain, and enhance our Nation\u2019s technological edge;<\/li>\n<li>how to identify and eliminate loopholes in existing export controls; and<\/li>\n<li>regarding export control enforcement policies and practices, and enforcement mechanisms to incentivize compliance by foreign countries.<\/li>\n<\/ul>\n<\/li>\n<li>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.<\/li>\n<\/ul>\n<p><strong>Unleashing Prosperity Through Deregulation<\/strong><\/p>\n<p>Executive Order 14192, dated January 31, 2025 (<a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/02\/06\/2025-02345\/unleashing-prosperity-through-deregulation\">90 FR 9065<\/a>) establishes a regulatory cap, considering both numbers and cost of regulations.\u00a0 The impact on export compliance may be limited, however, as \u201cregulations issued with respect to a military, national security, homeland security, foreign affairs, or immigration-related function of the United States\u201d are excluded from the regulatory cap.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Export Regulatory and Policy Update Roundup: February 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