Recent Developments in Export Controls
2024 BIS Settles Alleged Export Control Violations with Indiana University
On June 24th, 2024, as part of a settlement agreement, the Department of Commerce’s Bureau of Industry and Security (BIS) issued an order imposing an administrative penalty on Indiana University (IU) related to exports by IU’s Bloomington Drosophila Stock Center (BDSC). This settlement resolves the allegations outlined in a Proposed Charging Letter (PCL) regarding 42 violations related to the export of fruit flies genetically modified to produce a subunit of a controlled toxin. These exports went to numerous research institutions and universities worldwide without the required export licenses. “Researchers should take note: even the smallest items, like a genetically modified fruit fly, can implicate chemical and biological weapons controls,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod.
IU admitted to the conduct outlined in the PCL, which alleged 42 violations related to the export of a strain of Drosophila melanogaster (fruit flies) containing transgenes carrying ricin A sequences to research locations in 16 countries. The alleged violations included engaging in prohibited conduct by exporting various strains of genetically modified fruit flies containing transgenes of the A subunit of the ricin toxin without the required export license. More information about the settlement can be found here.
2023 BGI Research and BGI Tech Solutions (Hongkong) Co., Ltd added to the Entity List
Effective March 6th, 2023, several entities are added to the Department of Commerce's Entity List, including BGI Research and BGI Tech Solutions. The Commerce Department states, "the addition of these entities is based upon information that indicates their collection and analysis of genetic data poses a significant risk of contributing to monitoring and surveillance by the government of China, which has been utilized in the repression of ethnic minorities in China. Information also indicates that the actions of these entities concerning the collection and analysis of genetic data present a significant risk of diversion to China’s military programs". More information about these restrictions and a full list of the newly added entities is available here.
2022 New Russia license requirements and licensing policies to the Export Administration Regulations (EAR)
In response to the Russian Federation's (Russia's) further invasion of Ukraine, the Department of Commerce has added new Russia license requirements and licensing policies to the Export Administration Regulations (EAR) to protect U.S. national security and foreign policy interests. Any exports to Russia, the Donetsk People's Republic (DNR), and Luhansk People's Republics (LNR) regions of Ukraine need to be reviewed by the Office of Research Compliance and training.
2021 Ex-UM professor charged with shipping genetic equipment to Iran in violation of U.S. sanctions
Mohammad Faghihi, 52, was arrested on conspiracy and related charges stemming from allegations that he shipped genetic sequencing equipment to the Iranian military without a required license from the U.S. Department of Treasury. Faghihi was in contact with the Islamic Revolutionary Guard Corps, a U.S.-designated terrorist organization, which bought several genetic testing machines from his local business. Read more about this case here.
2021 U.S. Department of Commerce settlement with Princeton University
The U.S. Department of Commerce announced a settlement with Princeton University for allegations that Princeton sent various strains and recombinants of animal pathogens controlled under the U.S. Export Administration Regulations to various overseas research institutions without the required export control licenses. The animal pathogens were controlled under Export Control Classification Numbers (ECCN) 1C351 and 1C352. Genetic elements of the pathogens were controlled under ECCN 1C353. A copy of the settlement is available here. A list of currently controlled human and animal pathogens and toxins (ECCN 1C351), genetic elements and genetically modified organism (ECCN 1C353) is available on the U.S. Commerce Department’s Commerce Control List, available here
2020 New Military End User (MEU) List
A new Military End User (MEU) list for entities in China and Russia has been published by the Commerce Department. This list is non-exhaustive but informs exporters that a license will be required to export designated items to the listed entities. You can review the MEU list here.
2020 Export Control Restrictions on Certain "Emerging Technologies"
In recent months, the Commerce Department has imposed new export control restrictions on certain “emerging technologies” in a variety of areas. A list of these emerging technologies and links to the Commerce Department rules is available on Columbia’s Export Controls webpage, available here.
2020 New Electronic Export Information (EEI) Filing Requirements
Electronic Export Information (EEI) filing requirements in the Automated Export System (AES) have been expanded for all exports of physical items listed on the EAR’s Commerce Control List (CCL) to China, Russia, or Venezuela regardless of value. All physical items being shipped to China, Russia or Venezuela need to be escalated to RCT for export control review. Additional information is available on Columbia’s Export Controls webpage.
2020 New Military End User Rule
Expansion of Military End Use and End User Controls: This rule further expands license requirements for exports, re-exports, and transfers (in-country) of items intended for military end use or military end users in the People’s Republic of China, Russia, or Venezuela by broadening the license requirement in § 744.21 of the Export Administration Regulations (15 CFR parts 730–774) (EAR) to include military end users in China. Additional information is available on Columbia’s Export Controls webpage.