World ECR | Export Control Enforcement “Shift”

Matthew Axelrod, assistant secretary of the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), told the Practicing Law Institute that in response to Russia’s invasion of Ukraine, BIS (BIS) has significantly expanded law enforcement capabilities and international partnerships while intensifying operations against China and Iran. PLI’) Export Control Meeting on December 9.

Axelrod said export enforcement is more important now than ever in preventing sensitive U.S. technology from being used for malicious purposes by our adversaries. Large-scale invasion of Ukraine in February 2022.

The agency has reached unprecedented levels of enforcement and cooperation, establishing new multilateral enforcement mechanisms and increasing penalties for violators. Axelrod said in his speech that we have changed our procedures – making our charging letters public, canceling “no admit, no denial” settlements and increasing fines for serious violations. “The powers we have under the Export Control Reform Act are powerful.”

The Disruptive Technology Strike Force, launched in February 2022 with the Department of Justice, has filed 25 criminal cases, a 50% increase from the previous two years. “Because our resources are limited, it’s a zero-sum game,” Axelrod explained. “We need to be relentless in thinking about how to use our limited resources to have the greatest national security impact.”

Commenting on China, he said, “We have been focused on countering China’s efforts to modernize its military using advanced technologies,” noting that the initiative targets “quantum computing, advanced semiconductors and hypersonics.”

BIS has achieved “the highest number of convictions, months in prison, interim denial orders, end-use inspections and post-conviction denial orders ever recorded,” he said, highlighting Seagate’s record $3 fine for Huawei violations earlier this year. billion dollar fine. “We have also publicly listed for the first time nearly 200 aircraft from Russia, Belarus and Iran that have flown in violation of our controls,” Axelrod noted.

Earlier this year, BIS worked with the Justice Department to seize a $13 million aircraft associated with the Maduro regime in Venezuela and seized a plane previously flown by sanctioned Iranian airline Mahan Air Owned Boeing 747 freighter.

He said that although export control has long been subject to multilateral coordination in terms of policy, there has not been any corresponding multilateral coordination mechanism in terms of implementation. “Thanks to our leadership efforts and those of our allies and partners, I’m proud to say that is no longer the case,” he added, detailing the disruption to Japan and Japan through the G7 export controls working group. New partnership forged by Sex Technology Protection Network. South Korea and the “Export Enforcement Five” consisting of Australia, Canada, New Zealand and the United Kingdom.

Notable cases include the “dismantling of more than a dozen separate illegal Russian procurement networks,” including one led by Maxim Marchenko, who was jailed in July for using Hong Kong shell companies to obtain military-grade electronics Sentenced to three years in prison. The agency also targeted China’s acquisition of military technology and Iran’s weapons programs, while adding more than 900 parties to its entity list and establishing new export control officials in Taiwan and Finland.

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