Key Takeaways: Department of Commerce, Bureau of Industry & Security Update Conference

Attorneys from Buchanan's Washington, D.C. and Harrisburg, PA, offices recently attended the 2024 Bureau of Industry & Security (BIS) update conference in Washington, D.C. The last BIS update conference was held in 2022. Representatives from BIS and other agencies within the Department of Commerce and the Department of State presented on the latest and forthcoming regulatory changes and shared data points on recent agency activities.

Of particular note to the attorneys who attended the conference were statements made by various agency officials, including Assistant Secretary for Export Enforcement at BIS, Matthew Axelrod, regarding the importance of submitting voluntary self-disclosures to BIS when a U.S. company is aware of potentially non-compliant export activities. Assistant Secretary Axelrod made clear that choosing to submit a voluntary self-disclosure regarding potential misconduct will be treated as a mitigating factor when BIS is determining potential sanctions. Assistant Secretary Axelrod further iterated that not submitting a voluntary self-disclosure will be seen as an aggravating factor if a U.S. company is later found to have violated applicable export regulations.

Officials from the Department of State, Directorate of Defense Trade Controls (DDTC) were also present at the BIS update and shared data regarding DDTC’s adjudication of export licenses and voluntary disclosures. Additionally, DDTC Director of Policy, Sarah Heidema, announced an upcoming change in the International Traffic in Arms (ITAR) Regulations’ rule on defense services addressing the cross-over between defense services and technical data as currently defined in the ITAR. The proposed rule is expected to be published later this year.

Another significant update provided by BIS, Office of Antiboycott Compliance (OAC) is the roll out of the boycott requester list, published on OAC’s website. The list identifies entities that have been reported to OAC as required by section 760.5 of the Export Administration Regulations (EAR) as requiring participation in an unsanctioned boycott. The publication of this list will assist U.S. persons and entities in complying with the antiboycott reporting requirements. 

Buchanan attorneys prioritize staying abreast of changes to U.S. laws and regulations and are experienced in assisting companies in a wide range of national security areas, including antiboycott and export control compliance.