With advancing technology, it has never been more crucial to practice due diligence regarding export controls. Technologies, such as artificial intelligence (AI) and quantum computing are at the forefront of the Bureau of Industry and Security’s (BIS) concerns. BIS is working to protect these advanced technologies from falling into the wrong hands is essential.
Top Export Enforcement Efforts in 2023
- Launched the Disruptive Technology Strike Force with the Department of Justice (DOJ) to protect U.S. advanced technologies from illegal acquisition and use by nation-state adversaries like Russia, China, and Iran.
- Took enforcement action against significant national security threats, including the highest number ever of convictions, Temporary Denial Orders (TDOs), and post-conviction denial orders. One example is the largest standalone administrative penalty in BIS history $300 million for continued shipments to a restricted party.
- Clarified the voluntary self-disclosure (VSD) policy to specify that if a company knows of a significant potential violation and affirmatively decides not to divulge it, that lack of disclosure will be an aggravating factor in any subsequent penalty calculation, should the violation later be discovered.
- Issued a joint alert with the Financial Crimes Enforcement Network (FinCEN) regarding Russian evasion of U.S. export controls that, among other things, introduced nine new high-priority Harmonized System (HS) codes to inform U.S. financial institutions’ customer due diligence.
- Established export enforcement coordination mechanisms with Five Eyes partners and G-7 counterparts.
- Implemented a new data sharing arrangement with the European Anti-Fraud Office (OLAF) to allow closer coordination on export enforcement.
- Issued a “Know Your Cargo” joint compliance note with the Departments of Justice (DOJ), Homeland Security, State, and the Treasury focused on maritime and other transportation industries.
For more information on how to ensure your company is compliant, reach out to Mohawk Global Trade Advisors.
By Clarissa Chiclana