Bill introduced to ban government employees from using Huawei, ZTE products.

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Senators Ted Cruz and Josh Hawley will introduce a bill banning US officials from using projects from Chinese companies that have been deemed to be national security threats. In the past, Chinese companies such as Huawei and ZTE have been deemed to be national security threats.

The proposed legislation is named the “Countering Chinese Attempts at Snooping Act” and would prohibit federal employees from conducting official business through technology from companies deemed by the State Department to be under the control of the Chinese government.

If passed, the bill would also require the State Department to create a list of companies supported by the Chinese company that could pose a threat and be used to conduct espionage.

This proposed legislation comes one month after President Trump signed into law legislation that barred the use of federal funds to purchase equipment from Huawei and ZTE.

If you have any questions about export compliance or think it’s time to revisit your compliance program, contact experienced compliance attorney David Hsu for a no-cost consultation by/phone or text at 832-896-6288 or by email at attorney.dave@yahoo.com.

New rules on exports to China, effective June 29, 2020.

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Yesterday, the Federal Register published new guidelines by the Bureau of Industry and Security governing the export, reexport and transfer of goods to the People’s Republic of China (PRC).

The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end use or military end users in the People’s Republic of China (China).

The first major change will require U.S. companies to obtain a license before selling certain items in China that can support the military, even if the products are for civilian use. Previously, a loophole allowed an exception for civilian technology to be exported with a license.

The new regulations will impact several industries in the US, such as the semiconductor industry.

The second major change will require U.S. companies to file declarations for all exports to China, regardless of value.

A third proposed rule change will require foreign companies shipping American goods to China to seek approval from the US prior to export.

There will be a brief comment period to collect information on the proposed changes.

If you would like to submit a comment, or if you would like an evaluation of your company’s export (and import) compliance program, or have any trade questions – contact experienced trade law attorney David Hsu by phone/text at anytime: 832-896-6288 or by email at attorney.dave@yahoo.com