Department of Commerce: Newsroom Items

Pursuant to Executive Order (E.O.) 13873, “Securing the Information and Communications Technology and Services (ICTS) Supply Chain,” today U.S. Department of Commerce Secretary Wilbur Ross issued an interim final rule to address the national security, economic security, and public health and safety concerns related to ICTS Transactions. The rule will ensure the resilience of, and trust in, our Nation’s ICTS supply chain, and, for the purposes of this rule, identifies six foreign governments or foreign non-government persons as foreign adversaries: the People’s Republic of China (China), the Russian Federation (Russia), the Islamic Republic of Iran (Iran), the Democratic People’s Republic of Korea (North Korea), the Republic of Cuba (Cuba), and Venezuelan politician Nicolás Maduro (Maduro Regime).

“Since day one, President Trump has been committed to protecting the national security of all Americans, and the implementation of this rule is a pivotal moment in this Administration’s efforts to put America First and hold bad actors accountable,” said Secretary Ross. “Aggressively securing the ICTS supply chain will protect American citizens and businesses from vulnerabilities that could undermine the confidentiality, integrity, and availability of their personal information or sensitive data by malicious foreign adversaries and those who wish harm on the United States.”

On May 15, 2019, President Trump issued E.O. 13873, which grants the Secretary of Commerce the authority to prohibit certain ICTS Transactions that have been “designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries” and that pose an undue or unacceptable risk to the national security of the United States. Today’s rule allows the Department to promulgate regulations to create the processes and procedures that the Secretary of Commerce will use to identify, assess, and address certain transactions.

Today’s rule will be effective 60 days from publication, and Commerce is committed to issuing a subsequent final rule in which the Department will consider and respond to additional comments received. In addition, the Department will implement procedures for a licensing process 120 days from publication.

Additional Background:

The E.O. defines “foreign adversary” as “any foreign government or foreign non-government person engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons.”

Commerce Adds China National Offshore Oil Corporation to the Entity List and Skyrizon to the Military End-User List

ASowah@doc.gov — Thu, 14 Jan 2021 14:27:10 +0000

Commerce Adds China National Offshore Oil Corporation to the Entity List and Skyrizon to the Military End-User List ASowah@doc.gov Thu, 01/14/2021 - 09:27

FOR IMMEDIATE RELEASE

Thursday, January 14, 2021

Office of Public Affairs

(202) 482-4883

Today, the Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) added Chinese National Offshore Oil Corporation (CNOOC) to the Entity List and Chinese company Skyrizon to the Military End-User (MEU) List. Both companies threaten U.S. national security, CNOOC by helping China intimidate neighbors in the South China Sea and Skyrizon for its capability to develop, produce, or maintain military items, such as military aircraft engines.

“China’s reckless and belligerent actions in the South China Sea and its aggressive push to acquire sensitive intellectual property and technology for its militarization efforts are a threat to U.S. national security and the security of the international community,” said Commerce Secretary Wilbur Ross. “CNOOC acts as a bully for the People’s Liberation Army to intimidate China’s neighbors, and the Chinese military continues to benefit from government civil-military fusion policies for malign purposes.”

Despite protests from the United States and other countries, China has been rapidly building the artificial islands since 2013, enabling the Communist Chinese Party’s militarization of disputed outposts in the South China Sea to undermine the sovereign rights of U.S. partners in the region. CNOOC has repeatedly harassed and threatened offshore oil and gas exploration and extraction in the South China Sea, with the goal of driving up the political risk for interested foreign partners, including Vietnam.

The Chinese government fuels its military development, in part, through aggressive policies that allow it to access and replicate sensitive technologies for its militarization efforts.

“Skyrizon—a Chinese state-owned company—and its push to acquire and indigenize foreign military technologies pose a significant threat to U.S. national security and foreign policy interests,” added Ross. “This action serves to warn the export community of Skyrizon’s significant ties to the People’s Liberation Army.”

The Entity List is a tool utilized by BIS to restrict the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to persons (individuals, organizations, companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States. Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited.

The MEU List informs exporters, re-exporters, and transferors that a license will be required to export, re-export, or transfer (in-country) designated items to listed entities. The U.S. Government has determined that these entities represent an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ in China, Russia, or Venezuela. Skyrizon is the first company added to the MEU since it was introduced in late 2020.

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Commerce Tightens Controls to Prevent Support of Foreign Military-Intelligence and WMD Activities

ASowah@doc.gov — Thu, 14 Jan 2021 13:43:57 +0000

Commerce Tightens Controls to Prevent Support of Foreign Military-Intelligence and WMD Activities ASowah@doc.gov Thu, 01/14/2021 - 08:43

FOR IMMEDIATE RELEASE

Thursday, January 14, 2021

Office of Public Affairs

(202) 482-4883

Today, the Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) imposed new controls on any U.S. technologies and specific activities of U.S. persons who may be supporting foreign military-intelligence end uses and end users in China, Cuba, Russia, and Venezuela, as well as in terrorist-supporting countries. BIS is also enhancing controls to prevent U.S. persons from supporting unauthorized weapons of mass destruction (WMD) programs, including weapons delivery systems and production facilities.

“We cannot allow the foreign military-intelligence organizations of our adversaries in China, Cuba, Russia, Venezuela, Iran, and other terrorist-supporting nations to benefit from U.S. technology or U.S. services to support their destabilizing activities,” said Secretary of Commerce Wilbur Ross. “We must ensure our controls prevent U.S. persons, wherever located, from supporting unauthorized WMD activities around the globe. Today’s important updates to the U.S. export control system achieve these two goals and enhance our national security.”

The new controls prevent U.S. persons from supporting certain foreign military-intelligence services, such as through brokering the sale of foreign-origin items or providing maintenance, repair, or overhaul services. BIS is also expanding the license requirement for exports, reexports, and transfers (in-country) to military-intelligence end uses and end users in China, Russia, and Venezuela beyond enumerated items subject to existing military end-use and end-user (MEU) controls to apply to all items subject to the Export Administration Regulations. These controls will also apply to terrorist-supporting and embargoed countries.

“These new strict controls will inhibit China’s Intelligence Bureau and Russia’s GRU from leveraging U.S. technology and services to support espionage, intelligence collection and operations, and other activities contrary to U.S. national security interests,” added Ross.

Similarly, BIS is revising end-use controls related to chemical and biological weapons, rocket systems, and unmanned aerial vehicles (UAVs) to ensure that any U.S. activity related to the operation, installation, maintenance, overhaul, repair, or refurbishing of such weapons, rocket systems, or UAVs triggers a catch-all license requirement, as outlined in the EAR. BIS also is establishing a framework for informing exporters, re-exporters, and transferors of items subject to the EAR that a license is required for specific transactions intended to circumvent Entity List-based license requirements, or for specific foreign parties assisting listed entities in circumventing such license requirements.

Both of these actions, which go into effect March 16, 2021, are directed by the Export Control Reform Act of 2018.

The foreign military-intelligence organizations impacted by today’s action are:

Cuba’s Directorate of Military Intelligence (DIM) and Directorate of Military Counterintelligence (CIM)
China’s Intelligence Bureau of the Joint Staff Department
Iran’s Islamic Revolutionary Guard Corps Intelligence Organization (IRGC-IO) and Artesh Directorate for Intelligence (J2)
North Korea’s Reconnaissance General Bureau (RGB)
Russia’s Main Intelligence Directorate (GRU)
Syria’s Military Intelligence Service

Venezuela’s General Directorate of Military Counterintelligence (DGCIM).

Bureaus and Offices

Commerce Secretary Signs MOU Establishing U.S. Trade Zone in Kingdom of Bahrain

KCPullen@doc.gov — Wed, 13 Jan 2021 15:31:40 +0000

Commerce Secretary Signs MOU Establishing U.S. Trade Zone in Kingdom of Bahrain KCPullen@doc.gov Wed, 01/13/2021 - 10:31

FOR IMMEDIATE RELEASE

Wednesday, January 13, 2021

Office of Public Affairs

(202) 482-4883

Yesterday, the U.S. Department of Commerce and the Ministry of Industry, Commerce and Tourism of the Kingdom of Bahrain signed of a Memorandum of Understanding (MoU) to Enhance U.S.-Bahrain Trade through the Establishment of a U.S. Trade Zone (USTZ) in the Kingdom of Bahrain. The MoU was signed by U.S. Secretary of Commerce Wilbur Ross and the Minister of Industry, Commerce, and Tourism in the Kingdom of Bahrain H.E. Zayed R. Alzayani.

“The Kingdom of Bahrain has been, and continues to be, an important strategic and trade partner of the United States, maintaining stability and ensuring the free flow of commerce in the Gulf. The Department of Commerce remains committed to our deep partnership with the Kingdom,” said Commerce Secretary Wilbur Ross. “This MoU is but one such example of our mutual commitment and close relationship, and the International Trade Administration is committed to working with the Kingdom of Bahrain toward the realization of this unique free trade zone.”

The Establishment of a USTZ in the Kingdom of Bahrain will foster enhanced economic connectivity, trade, and industrial cooperation and will help boost bilateral trade between the two countries. The United States and the Kingdom of Bahrain will promote the USTZ as a regional trade, manufacturing, logistics, and distribution hub for U.S. companies in Bahrain, markets in the Gulf Cooperation Council, and beyond.

The USTZ will allow U.S. businesses multimodal access to an area ideal for crossdocking activities, end-to-end specialized customs solutions, and fast track operation for the purpose of exporting via Khalifa bin Salman Port, Bahrain International Airport, King Fahad Causeway or any future customs posts created by the Kingdom of Bahrain.

The United States and the Kingdom of Bahrain are longstanding partners with a strong record of economic and security cooperation. The United States established diplomatic relations with the Kingdom of Bahrain in 1971 and designated Bahrain a Major Non-NATO Ally in 2002. The U.S-Bahrain Free Trade Agreement (FTA) entered into force in 2006, generating additional commercial opportunities for both countries. In 2019, bilateral merchandise trade reached $2.45 billion, with an additional $1.5 billion of trade in services (2019 figures).

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Statement from U.S. Secretary of Commerce Wilbur Ross on President Trump's Executive Order: "Addressing the Threat Posed by Applications and other Software Developed or Controlled by Chinese Companies"

KCPullen@doc.gov — Tue, 05 Jan 2021 23:15:15 +0000

Statement from U.S. Secretary of Commerce Wilbur Ross on President Trump's Executive Order: "Addressing the Threat Posed by Applications and other Software Developed or Controlled by Chinese Companies" KCPullen@doc.gov Tue, 01/05/2021 - 18:15

FOR IMMEDIATE RELEASE

Tuesday, January 5, 2021

Office of Public Affairs

(202) 482-4883

Today, President Donald J. Trump signed an Executive Order (E.O.) titled, “Addressing the Threat Posed by Applications and other Software Developed or Controlled by Chinese Companies.”

U.S. Secretary of Commerce Wilbur Ross issued the following statement in response:

"Consistent with the authorities designated to the Secretary of Commerce from the President, I have directed my Department to begin implementing the E.O.’s directives, including identifying prohibited transactions related to certain Chinese connected software applications. I stand with President Trump’s commitment to protecting the privacy and security of Americans from threats posed by the Chinese Communist Party, and the Department of Commerce will leverage the authorities of the E.O. to continue our mission to secure the nation, the economy, and the people of the United States."

U.S. Department of Commerce Unveils new Aluminum Import Monitoring and Analysis System

ASowah@doc.gov — Wed, 23 Dec 2020 14:59:39 +0000

U.S. Department of Commerce Unveils new Aluminum Import Monitoring and Analysis System ASowah@doc.gov Wed, 12/23/2020 - 09:59

FOR IMMEDIATE RELEASE

Wednesday, December 23, 2020

Office of Public Affairs

(202) 482-4883

Today, the U.S. Department of Commerce announced the creation of the Aluminum Import Monitoring and Analysis (AIM) system, which will enable Commerce to collect and publish data on aluminum imports. AIM is modeled on Commerce’s successful Steel Import Monitoring and Analysis (SIMA) system.

“AIM represents yet another step forward for the Administration’s America First trade agenda,” said Secretary of Commerce Wilbur Ross. “The new program will enable Commerce and the public to better detect potential transshipment and circumvention involving aluminum products – helping to ensure that domestic producers can compete on a level playing field.”

Under AIM, importers will be required to obtain a free, automatic import license before they import aluminum products. To obtain the import license, companies must report the volume, value, country of origin, country of most recent cast, and certain other information, as detailed in a Federal Register notice published today https://www.federalregister.gov/documents/2020/12/23/2020-28166/aluminum-import-monitoring-and-analysis-system. The licensing requirement becomes effective on January 25, 2021. In addition, following a one-year grace period, Commerce will require importers to report the country where imported aluminum products were smelted. Commerce will offer an additional opportunity to comment on this and other aspects of the licensing requirements in the coming months.

Once license data is collected, Commerce will release the data on an aggregate basis through the public AIM monitor. The monitor will track aggregate trends in U.S. imports of certain aluminum products in almost real-time, providing an early indication of trends. The AIM monitor will also identify surges of specific aluminum products suggesting potential transshipment and circumvention relating to these products. The monitor will be available here, starting on January 25, 2021.

Commerce will hold a series of training webinars to educate the trading community about the new import licensing requirements. These webinars will be offered on a first-come, first-served basis. To access these reference materials, find upcoming webinar dates and times, and to participate, please visit https:/www.trade.gov/updates-steel-import-licensing.

Today’s establishment of the AIM system follows Commerce’s recent expansion and modernization of the SIMA system, announced in September 2020. The new online platform created for SIMA will also be used for AIM.

AIM and SIMA are administered by Commerce’s Enforcement and Compliance unit within the International Trade Administration, which is responsible for vigorously enforcing U.S. trade laws.

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Commerce Department Will Publish the First Military End User List Naming More Than 100 Chinese and Russian Companies

ASowah@doc.gov — Mon, 21 Dec 2020 19:46:40 +0000

Commerce Department Will Publish the First Military End User List Naming More Than 100 Chinese and Russian Companies ASowah@doc.gov Mon, 12/21/2020 - 14:46

FOR IMMEDIATE RELEASE

Monday, December 21, 2020

Office of Public Affairs

(202) 482-4883

The Bureau of Industry and Security (BIS) will amend the Export Administration Regulations (EAR) by adding a new ‘Military End User’ (MEU) List, as well as the first tranche of 103 entities, which includes 58 Chinese and 45 Russian companies. The U.S. Government has determined that these companies are ‘military end users’ for purposes of the ‘military end user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to the China, Russia, and Venezuela when such items are destined for a prohibited ‘military end user.’

“This action establishes a new process to designate military end users on the MEU List to assist exporters in screening their customers for military end users,” said Commerce Secretary Wilbur Ross. “The Department recognizes the importance of leveraging its partnerships with U.S. and global companies to combat efforts by China and Russia to divert U.S. technology for their destabilizing military programs, including by highlighting red flag indicators such as those related to Communist Chinese military companies identified by the Department of Defense.”

The MEU List informs exporters, reexporters, and transferors that a license will be required to export, reexport, or transfer (in-country) designated items to listed entities. The U.S. Government has determined that these entities represent an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ in China, Russia, or Venezuela.

Commerce is taking this action, which is scheduled to go on public display at the Federal Register on December 22, to respond to requests received from the public to identify specific ‘military end users’ by name and address in the regulations. The MEU List supports the export community by identifying military end users known to the U.S. Government, improving the effectiveness of military end-use and military end-user controls.

Importantly, this is a non-exhaustive list, and does not imply that other parties not included on the list are exempt from regulatory prohibitions. For example, parties not listed on the MEU List but included on the Department of Defense’s Section 1237 list of the National Defense Authorization Act would raise a Red Flag under the EAR and require additional due diligence by exporters, reexporters, or transferors.

While the initial MEU list includes 103 companies, additional parties may be added or deleted from the MEU List pursuant to a determination made by the End-User Review Committee, the interagency body composed of Commerce, and the Departments of Defense, Energy, State, and, where appropriate, the Treasury.

This final rule will add the following 103 entities to the MEU List:

China

Academy of Aerospace Solid Propulsion Technology (AASPT);
The following eight subordinate institutions of Aero-Engine Company of China: AECC Aero Science & Technology Co. Ltd.; AECC Aviation Power Co. Ltd.; AECC Beijing Institute of Aeronautical. Materials; AECC China Gas Turbine Establishment; AECC Commercial Aircraft Engine Co. Ltd.; AECC Harbin Dongan Engine Co., Ltd.; AECC Shenyang Liming Aero Engine Co., Ltd.; and AECC South Industry Company Limited;
Anhui Yingliu Hangyuan Power;
The following seven subordinate institutions of Aviation Industry Corporation of China:
AVIC Aircraft Co. Ltd.; AVIC Chengdu Aircraft Industrial (GROUP) Co., Ltd.; AVIC Flight Automatic Control Research Institute (FACRI); AVIC General Aircraft Huanan Industry Co. Ltd.; AVIC General Aircraft Zhejiang Institute Co., Ltd.; AVIC International Holding Corporation; AVIC Leihua Electronic Technology Research Institute (LETRI);

Baimtec Material Co., Ltd.;
Beijing Aero Lever Precision Ltd.;
Beijing Ander Tech. Co., Ltd.;
Beijing Guang Ming Electronics Co., Ltd.;
Beijing Siyuan Electronic Co., Ltd.;
CAST Xi’an Spaceflight Engine Factory;
Chengdu Holy Aviation Science & Tech;
China Aviation Ind. Std. Parts;
CSSC Xijiang Shipbuilding Co., Ltd.;
Elink Electronic Technology Co., Ltd.;
Fly Raise International Limited;
Fuhua Precision Man. Co.;
Government Flying Service;
Guangzhou Hangxin Aviation Technology Co., Ltd.;
Guizhou Aviation Tech. Dev. Nat.;
Guizhou Liyang Intl Manufacturing Co., Ltd.;
Hafei Aviation Industry Co., Ltd. (HAFEI);
Hangzhou Bearing Test & Research Center Co., Ltd.;
Harbin General Aircraft Industry Co., Ltd.;
Henan Aerospace Precision Mach;
Hunan South General Aviation Engine Co., Ltd.;
Hutchison Optel Telecom Technology Co., Ltd.;
Jiangsu Meilong Aviation Components Co.;
Jiatai Aircraft Equipment Co., Ltd.;
Jincheng Group Imp & Exp. Co., Ltd.;
Laboratory of Toxicant Analysis, Institute of Pharmacology and Toxicology;
Molecular Devices Shanghai Corporation;
Nanjing Engineering Institute of Aircraft Systems (NEIAS);
National Satellite Meteorological Bureau;
Second Institute of Oceanography, Ministry of Natural Resources;
Shaanxi Aero Electric Co., Ltd.;
Shaanxi Aircaft Industry Co., Ltd.;
Shanghai Aerospace Equip. Man.;
Shanghai Aircraft Design and Research Institute;
Shanghai Aircraft Manufacturing Co., Ltd. (SAMC);
Shanghai Tianlang Electronic Science Co., Ltd.;
Shenyang Academy of Instrumentation Science Co., Ltd.;
Shenyang Aircraft Corporation;
Shenyang Xizi Aviation Industry Co., Ltd.;
Sichuan Hangte Aviation Tech. Co., Ltd.;
Star Tech Aviation Co., Ltd.;
Sumec Instruments Equipment Co., Ltd.;
Suzhou Eric Mechanics and Electronics Co., Ltd.;
Wuxi Hyatech Co., Ltd.;
Wuxi Paike New Mat. Tech. Co., Ltd.;
Wuxi Turbine Blade Co. Ltd.;
Xac Group Aviation Electronics Import & Export Co. Ltd.;
XAIC Tech (Xi’an) Industrial Co., Ltd.;
Xian Aero-Engine Controls Co., Ltd.;
Xian Aircraft Industrial Company Limited;
Xi’an Xae Flying Aviation Manufacturing Technology Co., Ltd.;
Xian Xr Aero- Components Co., Ltd.;
Yibin Sanjiang Machine Co., Ltd.; and
Zhejiang Perfect New Material Co., Ltd.

Russia

Admiralty Shipyard JSC;
Aleksandrov Scientific Research Technological Institute NITI;
Argut OOO;
Communication center of the Ministry of Defense;
Federal Research Center Boreskov Institute of Catalysis;
Federal State Budgetary Enterprise of the Administration of the President of Russia;
Federal State Budgetary Enterprise Special Flight Unit Rossiya of the Administration of the President of Russia;
Federal State Unitary Enterprise Dukhov Automatics Research Institute (VNIIA);
Foreign Intelligence Service (SVR);
Forensic Center of Nizhniy Novgorod Region Main Directorate of the Ministry of Interior Affairs;
Irkut Co.;
Irkut Research and Production Corporation Public Joint Stock Company;
Joint Stock Company Scientific Research Institute of Computing Machinery;
JSC Central Research Institute of Machine Building (JSC TsNIIMash);
JSC Rocket and Space Centre – Progress;
Kamensk-Uralsky Metallurgical Works J.S. Co.;
Kazan Helicopter Plant PJSC;
Komsomolsk-na-Amur Aviation Production Organization (KNAAPO);
Korporatsiya Vsmpo Avisma OAO;
Ministry of Defence RF;
Molot Oruzhie;
NPO High Precision Systems JSC;
NPO Splav JSC;
Oboronprom OJSC;
PJSC Beriev Aircraft Company;
PJSC Irkut Corporation;
PJSC Kazan Helicopters;
POLYUS Research Institute of M.F. Stelmakh Joint Stock Company;
Promtech-Dubna, JSC;
Public Joint Stock Company United Aircraft Corporation;
Radiotechnical and Information Systems (RTI) Concern;
Rapart Services LLC;
Rosoboronexport OJSC (ROE);
Rostec (Russian Technologies State Corporation);
Rostekh – Azimuth;
Russian Aircraft Corporation MiG;
Russian Helicopters JSC;
Sukhoi Aviation JSC;
Sukhoi Civil Aircraft;
Tactical Missiles Corporation JSC;
Tupolev JSC;
UEC-Saturn;
United Aircraft Corporation;
United Engine Corporation; and
United Instrument Manufacturing Corporation.

For more information, visit www.bis.doc.gov.

Bureaus and Offices

Remarks by Commerce Secretary Wilbur Ross at the Export-Import Bank Virtual Board Meeting on Domestic Content Policy

ASowah@doc.gov — Fri, 18 Dec 2020 17:00:52 +0000

Remarks by Commerce Secretary Wilbur Ross at the Export-Import Bank Virtual Board Meeting on Domestic Content Policy ASowah@doc.gov Fri, 12/18/2020 - 12:00

AS PREPARED FOR DELIVERY

Thursday, December 17, 2020

Office of Public Affairs

(202) 482-4883

Thank you, Chairman Reed and Directors Bachus and Pryor, for your leadership of this Board, and for your work developing the proposal we are considering today, permitting EXIM to provide full financing packages for exports in designated transformational sectors containing at least 51 percent U.S. content. This change is an update over the current policy which stipulates an 85 percent requirement. Over the past 40 years, this policy has helped ensure that EXIM Bank financing supports American exports and jobs.

But as the world changes and global supply chains become more complex, our competitors have adopted more flexible approaches. Germany, for instance, requires 51 percent domestic content but can approve exceptions; the United Kingdom requires only 20 percent; and Canada requires zero percent provided that the transaction benefits Canada. Furthermore, EXIM Bank’s 2019 Report to the U.S. Congress on Global Export Credit Competition details how China provided $33.5 billion in financing during 2019, more than three times Italy at $11.1 billion. So I welcome the EXIM Board’s consideration of this proposal today to modernize the existing U.S. content policy.

The new measure aims to bolster U.S. export competitiveness, to the benefit of American exporters, jobs, and economic and national security. I understand too that if projects are deemed critical to national security in combatting China, this new proposal allows for a transaction with less than 51 percent U.S. content to also be considered for financial support from EXIM. This is critically important to U.S. exporters and foreign buyers experiencing difficulties due to the COVID-19 pandemic. And as a result, EXIM will be able to support many of the more than $1 billion in financing requests in its pipeline under the Program on China and Transformational Exports, including several water treatment and 5G telecommunications programs, among others.

I am also especially pleased that this proposal includes the provision recommended by the Commerce Department requiring each applicant to submit a written action plan for expanding its U.S.-based jobs in the coming 3-5 years. This includes potentially shifting supply chains and sourcing to the United States from offshore. We must do all we can to keep our exporters viable and competitive during this time.

And my Department stands ready and willing to continue our work with EXIM as you implement your Program on China and Transformational Exports. Thank you, and I look forward to our discussion.

Statement from Secretary Ross on The Department's 77 Additions to the Entity List for Human Rights Abuses, Militarization of the South China Sea and U.S. Trade Secret Theft

ASowah@doc.gov — Fri, 18 Dec 2020 16:43:54 +0000

Statement from Secretary Ross on The Department's 77 Additions to the Entity List for Human Rights Abuses, Militarization of the South China Sea and U.S. Trade Secret Theft ASowah@doc.gov Fri, 12/18/2020 - 11:43

FOR IMMEDIATE RELEASE

Friday, December 18, 2020

Office of Public Affairs

(202) 482-4883

Today, the Commerce Department added 77 entities to the Entity List for actions deemed contrary to the national security or foreign policy interest of the United States. These include entities in China that enable human rights abuses, entities that supported the militarization and unlawful maritime claims in the South China Sea, entities that acquired U.S.-origin items in support of the People’s Liberation Army’s programs, and entities and persons that engaged in the theft of U.S. trade secrets.

Secretary Ross provided the following statement:

“China’s corrupt and bullying behavior both inside and outside its borders harms U.S. national security interests, undermines the sovereignty of our allies and partners, and violates the human rights and dignity of ethnic and religious minority groups. Commerce will act to ensure that America’s technology—developed and produced according to open and free-market principles—is not used for malign or abusive purposes.

China actively promotes the reprehensible practices of forced labor, DNA collection and ubiquitous surveillance to repress its citizens in Xinjiang and elsewhere. Over the last two years this administration has added nearly 50 entities to the Entity List for their support for the Chinese Communist Party’s despicable offensive against vulnerable ethnic minorities. With these new additions, we are applying those principles to the rest of China, including in Tibet, and to the authoritarian regimes to which these practices are being exported.

The additions also include entities that have contributed to China’s militarization of disputed outposts in the South China Sea, unlawful maritime claims in the South China Sea, and intimidation and coercion of other coastal states lawfully accessing and developing offshore marine resources.

Commerce added additional persons participating in China’s campaign of malign technology acquisition efforts, including for theft of U.S. trade secrets, and the support of research and development, and production of advanced weapons systems, in support of the People’s Liberation Army’s destabilizing military modernization efforts.”

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Commerce Adds China’s SMIC to the Entity List, Restricting Access to Key Enabling U.S. Technology

ASowah@doc.gov — Fri, 18 Dec 2020 11:39:37 +0000

Commerce Adds China’s SMIC to the Entity List, Restricting Access to Key Enabling U.S. Technology ASowah@doc.gov Fri, 12/18/2020 - 06:39

FOR IMMEDIATE RELEASE

Friday, December 18, 2020

Office of Public Affairs

(202) 482-4883

The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) added Semiconductor Manufacturing International Corporation (SMIC) of China to the Entity List. BIS is taking this action to protect U.S. national security. This action stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex.

“We will not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary. Between SMIC’s relationships of concern with the military industrial complex, China’s aggressive application of military civil fusion mandates and state-directed subsidies, SMIC perfectly illustrates the risks of China’s leverage of U.S. technology to support its military modernization,” said Commerce Secretary Wilbur Ross.

“Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage U.S. technologies to enable indigenous advanced technology levels to support its destabilizing military activities,” added Ross.

The Entity List designation limits SMIC’s ability to acquire certain U.S. technology by requiring U.S. exporters to apply for a license to sell to the company. Items uniquely required to produce semiconductors at advanced technology nodes—10 nanometers or below—will be subject to a presumption of denial to prevent such key enabling technology from supporting China’s military-civil fusion efforts.

BIS also added more than sixty other entities to the Entity List for actions deemed contrary to the national security or foreign policy interest of the United States. These include entities in China that enable human rights abuses, entities that supported the militarization and unlawful maritime claims in the South China Sea, entities that acquired U.S.-origin items in support of the People’s Liberation Army’s programs, and entities and persons that engaged in the theft of U.S. trade secrets.

The Entity List is a tool utilized by BIS to restrict the export, re-export, and transfer (in-country) of items subject to the Export Administration Regulations (EAR) to persons (i.e., individuals, organizations, and companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States. Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited.

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Op-Ed by Commerce Secretary Wilbur L. Ross: Space Commerce Accelerating

ASowah@doc.gov — Wed, 16 Dec 2020 17:08:16 +0000

Op-Ed by Commerce Secretary Wilbur L. Ross: Space Commerce Accelerating ASowah@doc.gov Wed, 12/16/2020 - 12:08

Space commerce

FOR IMMEDIATE RELEASE

Publication

SpaceNews

Wednesday, December 16, 2020

Office of Public Affairs

(202) 482-4883

National Oceanic and Atmospheric Administration

Space has forever captured the imagination of people around the world. Starting in the late 1950s, the United States and the Soviet Union recognized the national security importance of space, fueling the initial space race that culminated in the Apollo moon landings.

China’s successful lunar landings and Japan’s impressive return of a sample from the asteroid Ryugu are part of the new race to leverage the economic potential of space, with even higher stakes. Private companies, investors, and over 70 nations are placing huge bets on space technology in order to reap both economic and security benefits. Competition is increasing, especially between Western nations and China.

Our advantage in this new space race is the U.S. commercial space industry. It is critical that we continue to enable American entrepreneurs and innovators, lest we miss the opportunity and potentially lose the race.

The space economy is accelerating. Over 80% of the rapidly growing $423 billion global space economy is commercial. In 2020, the commercial space industry shattered records by launching over 1,000 spacecraft to orbit. Space activities that only existed on paper a few years ago are now being demonstrated and entering operation. Reusable launch vehicles, 3D printing in space, and in-space refueling are just a few of the developments that have emerged from a diverse community of U.S. entrepreneurs.

The federal government’s role is still important but changing rapidly. President Donald Trump’s decision to reestablish the National Space Council in 2017 signaled this Administration’s renewed emphasis and support for space activities. Space remains a vitally important strategic domain for the United States, but we also fully recognize it as an important commercial domain as well. Space will have over $5 trillion in annual economic impact in the U.S. alone across areas like weather, navigation, finance, communication, entertainment, and others. The aerospace industry is also a key driver of high-tech talent and enables millions of high-paying jobs across the country.

The National Space Council, led by Vice President Mike Pence, spearheaded U.S. government efforts on a wide range of complex space issues: exploration, regulatory reform, space debris, cybersecurity for space systems, and others. This “whole of government” approach allowed for rapid progress to advance our national space goals.

Now, the Trump administration’s newly released National Space Policy provides a forward-looking foundation for the future. The policy provides lasting guidance to federal agencies on how to encourage continued progress in space exploration and space commerce. It sets the stage for American businesses to thrive domestically and compete internationally as the global space economy grows into a trillion-dollar market.

As secretary of commerce, I am pleased with the emphasis placed on commercial activities with the National Space Policy. While the Department of Commerce has the lead role for advocating on behalf of the U.S. commercial space industry, many other federal agencies explicitly recognized the importance of a strong commercial space industry to our national and economic security while developing this policy.

More importantly, the federal government is already taking bold actions. Perhaps the finest example of this has been NASA’s partnership with SpaceX that resulted in the first launch in nearly a decade of American astronauts in American rockets from American soil. NASA has been a longtime proponent of commercial space and is partnering with commercial firms for key elements of future deep space exploration, such as the landers that will map and collect water ice samples from the Moon. This past October, NASA’s incredible landing and sample collection on the asteroid Bennu has provided new inspiration for companies striving to utilize space resources, including, ultimately, mining asteroids. Mars is next: NASA’s Perseverance Rover is expected to land there in mid-February 2021 to continue America’s exploration and understanding of the Red Planet.

Commercialization is fueling our advance in space activities. The application of sensible business practices and efficiencies — like reusable rocket boosters — has lowered the cost and increased the availability of launch for new space missions. The revolution in small satellite technology allows for much greater innovation and flexibility in the development of new space architectures. Developments in related technology areas are dramatically increasing throughput for communications satellites and enabling an explosion in the volume and diversity of remote sensing information and other space-based data. Advances in artificial intelligence and data management are able to use space-based data to help us make better decisions here on Earth. We continue to leverage the unique contributions of past space investments as we navigate the COVID-19 pandemic, through virtual webinars, telemedicine, and distance learning.

Novel missions like space tugs, commercial space stations, and on orbit servicing manufacturing and debris removal are just around the corner. Scientists and entrepreneurs are experimenting with how to grow food in space and how to mitigate the harsh effects of the space environment on the human body. Right now, we are developing the infrastructure needed to support the next wave of space exploration, from deep space communications to housing and training the first generation of pioneers who will live sustainably on the moon. We expect to see space tourism flights take off in the latter half of 2021.

Additionally, the advent of satellite servicing revolutionizes the economics of space. The first of Northrop Grumman’s Mission Extension Vehicles has already breathed an additional five years of life into an aging Intelsat satellite, and the second is on its way to serve as a fuel source and engine for another. Companies are pursuing additional capabilities from satellite inspection to on-orbit assembly and manufacturing. OrbitFab’s first satellite refueling tanker is scheduled for launch early next year, signaling the maturation of a key technology for interplanetary travel. Beyond the obvious technical benefits, these developments will help sharpen the business cases that encourage private investment and enable a truly sustainable human presence in space.

The strategic importance of these commercial developments is immense. A hallmark achievement of the Trump administration has been the establishment of the U.S. Space Force to address the complex security environment in space. From my perspective, the Space Force will provide a secure and stable environment that will encourage continuing investment in space and the expansion of the space economy. Our national security community depends increasingly on leveraging the speed and agility of commercial innovations. The “pitch days” held by the Space Force and other national security space organizations demonstrate a new flexibility in government acquisition and allow for targeted investment in early-stage innovative space capabilities.

Even as the Space Force deals with challenges from our adversaries in space, we will have to remain vigilant and be ready to take action to ensure fair competition in space markets on the ground. The Trump administration has taken bold action to modernize regulations that have been holding back private sector growth and discouraging investment in the U.S. commercial space industry. U.S. economic development and export financing agencies are pushing back on China’s aggressive “belt and road initiative,” which seems designed to hold developing space partners hostage and prevent market access for U.S. commercial space firms. The U.S. must not only remain the “flag of choice” for commercial space activities, but must also work harder to boost our partners and allies’ space capacity, economic growth, and sustainable development.

Partnerships have been another key pillar of our approach to space. From the Artemis Accords to my department’s ongoing efforts to engage like-minded nations on ways to mitigate space debris, the United States is committed to mutually beneficial partnerships that advance safe and responsible exploration of the moon and the advancement of space commerce. This includes strategic allies, such as Japan, who see the security and economic threats posed by China. Other partner countries, such as the United Arab Emirates, are inspired as much by the potential for workforce development and economic growth as they are for the exploration of the heavens.

While we are proud of our successes during the Trump administration, there’s still plenty of work to be done. Government initiatives and investment will remain important, especially for the most ambitious scientific and exploration missions, and they must be done in partnership with the private sector. Regulations must be continuously reevaluated to keep up with the blistering pace of technology innovation and commercialization. The government must also consider whether new commercial space missions exceed the scope of current licensing authorities and take swift action to address any gaps. And we need to deal with the problem of space debris — now! Despite any challenges, the future is bright, and the space economy and the benefits of commercialization are central to achieving our nation’s goal of a safer, more prosperous, and multi-planetary future for humanity.

Wilbur Ross is the U.S. secretary of commerce under the Trump administration.

Bureaus and Offices

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Commercial space

U.S. Secretary of Commerce Wilbur Ross and Singapore Minister for Trade and Industry Chan Chun Sing Sign Memorandum of Understanding on Trade Financing and Investment Cooperation

ASowah@doc.gov — Tue, 15 Dec 2020 21:56:16 +0000

U.S. Secretary of Commerce Wilbur Ross and Singapore Minister for Trade and Industry Chan Chun Sing Sign Memorandum of Understanding on Trade Financing and Investment Cooperation ASowah@doc.gov Tue, 12/15/2020 - 16:56

FOR IMMEDIATE RELEASE

Tuesday, December 15, 2020

Office of Public Affairs

(202) 482-4883

The United States of America (U.S.) and Singapore have signed a Memorandum of Understanding (MOU) to deepen economic cooperation and extend trade financing and investment support to companies in Singapore and the U.S. The MOU was signed by U.S. Secretary of Commerce Wilbur Ross and Singapore Minister for Trade and Industry Chan Chun Sing.

“The U.S. and Singapore have enjoyed more than fifty years of official partnership since we established diplomatic ties in 1966,” said Secretary Ross. “This MOU will help Singapore importers finance the purchase of U.S. exports and support Singapore investors looking at opportunities in the U.S.”

Singapore’s Minister for Trade and Industry Chan Chun Sing said, “As like-minded partners, Singapore and the U.S. are committed to supporting our businesses as they respond to the global economic disruptions caused by COVID-19. Through this MOU, we will facilitate company investments into Singapore and the U.S., and help businesses access more trade financing facilities. We also look forward to catalysing greater trade and investment flows between the U.S., Singapore, and Southeast Asia, and enabling our companies to continue trading and accessing opportunities in these challenging times.”

The U.S. and Singapore are like-minded and longstanding partners with a strong record of economic cooperation. Recognising the significant global tightening of credit following the economic slowdown caused by the COVID-19 pandemic, the MOU aims to enhance the availability of and access to trade financing options for U.S. and Singapore companies. The MOU will also facilitate bilateral trade in goods and services to enhance our respective regions’ growth opportunities. In addition, the MOU seeks to strengthen cooperation on investment promotion and provide opportunities for both countries to explore the use of technology (e.g. FinTech) to address new trade financing and investment challenges.

The renewable, two-year MOU will be overseen by the U.S. Department of Commerce and Singapore’s Ministry of Trade and Industry. The MOU will also be supported by implementing agencies, including the Export-Import Bank of the U.S., the U.S. Commercial Service in Singapore, and Enterprise Singapore.

The MOU is the latest tangible result of the robust economic and investment partnership between the U.S. and Singapore. The U.S. is Singapore’s largest foreign investor, while Singapore was the fourth-largest Asian investor in the U.S. in 2019. Both countries are committed to working together towards a stronger post-COVID-19 economic recovery. Our continued partnership will help to facilitate bilateral trade and investments and ensure that our companies are well positioned to tap into growth opportunities in our respective markets and regions.

Bureaus and Offices

U.S. Secretary of Commerce Wilbur Ross Applauds New National Space Policy That Drives American Leadership in Space Commerce

ASowah@doc.gov — Wed, 09 Dec 2020 20:31:29 +0000

U.S. Secretary of Commerce Wilbur Ross Applauds New National Space Policy That Drives American Leadership in Space Commerce ASowah@doc.gov Wed, 12/09/2020 - 15:31

Space commerce

FOR IMMEDIATE RELEASE

Wednesday, December 9, 2020

Office of Public Affairs

(202) 482-4883

National Oceanic and Atmospheric Administration

Today, U.S. Secretary of Commerce Wilbur L. Ross, Jr. praised President Donald J. Trump’s new National Space Policy for recognizing the significance of the rapidly growing U.S. commercial space industry and for strengthening the Nation’s role as the country of choice for space commerce.

“This new National Space Policy reflects the emergence of space commerce as a driving force for positive change in our economic and national security, contributing to America’s leadership in commercial space,” said Secretary Ross. “The policy sets the stage for American businesses to thrive domestically and compete internationally as the global space economy grows into a trillion dollar market over the next two decades.”

The 2020 National Space Policy recognizes that a robust, innovative, and competitive commercial space sector is foundational to economic development, continued progress, and sustained American leadership in space. It commits the United States to facilitating growth of an American commercial space sector that supports the nation’s interests, is globally competitive, and advances American leadership in the generation of new markets and innovation-driven entrepreneurship.

Among other things, the new policy makes the following updates in support of space commerce:

Directs the government to partner with the commercial space industry to gain innovation and cost savings;
Calls for targeted investments to encourage commercial space innovation and entrepreneurship;
Directs further regulatory streamlining to ensure timely, predictable, transparent, and flexible licensing processes that accommodate rapid innovation and adapt to market demands, consistent with Space Policy Directive-2 (SPD-2);
Tasks the Commerce Department to develop a new process to review, authorize, and supervise space activities beyond the scope of existing federal authorizations;
Reiterates the Commerce Department’s role as the lead civil agency for providing space situational awareness (SSA) and collision warnings to commercial space operators, consistent with SPD-3;
Underscores the need for responsible behavior in space (including use of SSA data and services), which is essential to safe, sustainable space commerce;
Calls for government and industry collaboration to secure the IT infrastructure for space systems, consistent with SPD-5; and
Promotes the development of commercial habitats in Earth orbit to eventually replace the International Space Station.

In addition, the National Space Policy provides updated guidance to civil space agencies including the National Oceanic and Atmospheric Administration (NOAA), which operates the Nation’s fleet of weather satellites. The policy calls for closer collaboration among NOAA, Department of Defense, NASA, academia, the commercial sector, and international partners on weather data sharing and future satellite architecture development.

The non-profit Space Foundation estimates that the global space economy exceeded $423 billion in 2019, with nearly 80% of that total representing commercial space activity. Commercial activities are growing and diversifying into a wide range of space infrastructure and new space missions. Multiple investment banks have forecast that the global space economy will surpass $1 trillion by 2040. The Commerce Department’s Bureau of Economic Analysis has initiated its own research effort to measure the space sector’s contribution to U.S. Gross Domestic Product (GDP).

Space is just one area where the Department of Commerce promotes economic growth and opportunity. Secretary Ross’s Strategic Plan for the Department of Commerce prioritizes the expansion of U.S. commercial space activities as Strategic Objective 1.1. The Department is leveraging resources from across its bureaus to grow the space economy through industry engagement, policy advocacy, export promotion, regulatory streamlining, international cooperation, satellite data buys, regional development grants, minority business promotion, economic analysis, and intellectual property protection.

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Commercial space

Remarks by Commerce Secretary Wilbur Ross at the Eighth Meeting of the National Space Council

ASowah@doc.gov — Wed, 09 Dec 2020 19:10:48 +0000

Remarks by Commerce Secretary Wilbur Ross at the Eighth Meeting of the National Space Council ASowah@doc.gov Wed, 12/09/2020 - 14:10

Space commerce

AS PREPARED FOR DELIVERY

Wednesday, December 9, 2020

Office of Public Affairs

(202) 482-4883

National Oceanic and Atmospheric Administration

Introduced by Vice President Mike Pence.

Thank you, Vice President Pence, for the opportunity to update the National Space Council on the growth of the space economy and the related work that is taking place at the Department of Commerce.

Here at Cape Canaveral last week, SpaceX executed its 100^th successful commercial Falcon 9 rocket launch, sending a crew and thousands of pounds of supplies and research gear aboard a Dragon spacecraft to the International Space Station. I am reminded of a time not long ago when travel among the stars was merely a distant goal, before it was even a race among nations.

Indeed, our country has achieved remarkable progress in the space sector, and now again as American business people continue creating new ways to make space more commercially accessible. I toured such an example earlier this year, when I visited Astrobotic’s new headquarters in Pittsburgh. Their facility will support unmanned missions to the moon and drive technological development that brings us closer to NASA’s planned 2024 human moon landing.

Such landmark accomplishments in the commercial space field come alongside record-breaking economic investment in space activities. Globally, another $4.9 billion was invested in space companies in Q3 alone. This not only marks the most productive quarter on record, but it also raises total 2020 investment to $17.5 billion in the overall industry. And the United States accounts for 62 percent of the industry’s cumulative investment. Morgan Stanley projects that the revenue generated by the global space industry may top $1 trillion by 2040.

The recent explosion in the industry here in the United States is owed in no small part to the efforts of the Trump Administration. The Administration’s pro-space agenda and the work of the National Space Council has already had significant impacts. NOAA has been able to remove red tape that previously surrounded remote sensing technology by shortening licensing timelines from 74 days to 28 days. This enables companies to sell data from satellites more easily and efficiently, helping commercial satellite operators stay competitive in a rapidly changing global marketplace.

The Commerce Department has also taken steps over the last year, at the behest of the Vice President, to identify new space missions and get them the necessary authorization to proceed. The goal here is to alleviate the administrative and regulatory burden on emerging companies and technologies, and we enthusiastically continue on in that mission.

Financial indicators and regulatory procedures aside, one simple way to observe the growth of our space industry is to look at the sheer number of satellites in orbit. This year alone, the number of active satellites in orbit is set to increase by more than 50 percent. The Satellite Industry Association estimates that up to 110,000 new satellites could be in orbit by 2030.

This is good news for projects like SpaceX’s Starlink as well as for smaller companies that can benefit from the growing accessibility of private satellites. But the increase in satellites has also created a unique set of challenges when it comes to managing orbital traffic. We are seeing more and more frequent near misses that could create unprecedented new debris. If two significant objects were to collide, they could create a shower of debris that may endanger the astronauts aboard the International Space Station, billions of U.S and allied investment in space, and the growth of space commerce.

Fortunately, there is no shortage of brilliant men and women who have made remarkable headway toward managing this problem. In 2018, the Trump Administration’s Space Policy Directive-3 provided a unique approach to the management of space traffic. The Commerce Department’s Office of Space Commerce and our interagency partners took on the mission laid forth by this initiative. Today, I’m proud to report that we’re in the midst of finalizing a DOC-DOD MOU that will provide a detailed plan for the improvement of space situational awareness, and ultimately, space traffic management.

We have also drawn on existing NOAA resources to establish a new open architecture data repository. This system allows both private and government entities, including those of our allies, to share data, increasing all parties’ situational awareness amidst an increasingly crowded orbital environment. We continue to work with our allies and industry on the norms, standards and best practices that will inform new “rules of the road” in space.

We have also worked with private business and technology leaders from around the nation on this issue. In fact, just before Thanksgiving, the Office of Space Commerce hosted an industry day with over 250 companies participating to discuss our approach to the Open Architecture Data Repository. We will continue to work collaboratively with the public and private sector to tackle this challenge.

It is not the only one we face. China’s lunar landing last week underscores that we are not the only ones invested in the business of space, and that competition for American companies operating in this sector face real competition. Looking ahead, my Department’s Bureau of Economic Analysis is set to publish innovative experimental statistics within the next two weeks that will help us further measure and understand the space sector.

I look forward to sharing this informative new data with you. The United States remains an incubator for greatness like no other, and I’m confident that we will retain our position as the premier hub for space-based exploration and business.

Thank you.

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Commercial space

National Space Council

U.S. Department of Commerce Issues Affirmative Preliminary Countervailing Duty Determination for Twist Ties From China

KCPullen@doc.gov — Tue, 24 Nov 2020 21:19:18 +0000

U.S. Department of Commerce Issues Affirmative Preliminary Countervailing Duty Determination for Twist Ties From China KCPullen@doc.gov Tue, 11/24/2020 - 16:19

FOR IMMEDIATE RELEASE

Tuesday, November 24, 2020

Office of Public Affairs

(202) 482-4883

Today, U.S. Secretary of Commerce Wilbur Ross announced an affirmative preliminary determination in the countervailing duty (CVD) investigation of twist ties from China. The Commerce Department preliminarily determined that exporters/producers from China received countervailable subsidies at a rate of 122.5 percent. Among the subsidies preliminarily countervailed is China’s undervalued currency – making this the first time Commerce has ever countervailed the Renminbi. This is the second time that Commerce has countervailed a foreign currency with a unitary exchange rate.

“Today’s preliminary determination reaffirms the Trump Administration’s commitment to free, fair, and reciprocal trade,” said Secretary Ross. “The Department of Commerce will continue to use the legal tools at our disposal to aggressively counter currency undervaluation and other unfair subsidies, further ensuring a level playing field for American businesses and workers.”

As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of twist ties from China based on the preliminary rate noted above.

The petitioner is Bedford Industries, Inc. (Worthington, MN).

Commerce is scheduled to announce its final determination in this case on or about February 17, 2021. This deadline may be extended.

If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about April 2, 2021. If Commerce makes an affirmative final determination in this investigation and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will be terminated, and no order will be issued.

The petitioner estimated the value of twist ties imported from China in 2019 at $4.15 million.

Click HERE for a fact sheet on today’s decisions.

Commerce is also conducting a concurrent antidumping duty (AD) investigation of twist ties from China. The preliminary determination in this investigation is scheduled to be announced on
December 4, 2020.

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current administration, Commerce has initiated 306 new AD and CVD investigations – a 283 percent increase from the comparable period in the previous administration. Commerce currently maintains 539 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

The CVD law provides American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. In February 2020, Commerce published a final regulation explaining how Commerce will apply the CVD law to subsidies associated with the undervaluation of foreign currencies.

Foreign companies that receive financial assistance from foreign governments that benefit those companies’ production of goods and are limited to specific enterprises or industries, or are contingent upon export performance or upon the use of domestic goods over imported goods, are subject to countervailing duties.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process consistent with international rules and is based on factual evidence provided on the record.

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Countervailing duty [CVD]

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OECD Working Group on Bribery Issues Report Commending United States for Maintaining Leading Role in the Fight Against Transnational Corruption

KCPullen@doc.gov — Wed, 18 Nov 2020 19:58:27 +0000

OECD Working Group on Bribery Issues Report Commending United States for Maintaining Leading Role in the Fight Against Transnational Corruption KCPullen@doc.gov Wed, 11/18/2020 - 14:58

FOR IMMEDIATE RELEASE

Wednesday, November 18, 2020

Office of Public Affairs

(202) 482-4883

The Working Group on Bribery of the Organisation for Economic Co-operation and Development (OECD Working Group) issued its Phase 4 Report of the United States, announced the U.S. Departments of Justice, Commerce, State, and the Securities and Exchange Commission (SEC).

The Phase 4 Report is part of the OECD Working Group’s peer monitoring process and focuses primarily on the United States’ enforcement of its foreign bribery statute, the Foreign Corrupt Practices Act (FCPA), and was issued following a year-long review that included a series of interviews with government, private sector, academic, and civil society experts. In releasing the report, the 44-country OECD Working Group applauded the United States for its sustained and outstanding commitment to enforcing its foreign bribery laws.

The report highlights the United States’ increasing foreign bribery enforcement level since the OECD Working Group’s Phase 3 Report in 2010. As provided in the Phase 4 Report, between September 2010 and July 2019, through the Justice Department and the SEC’s efforts, the United States convicted or sanctioned 174 companies and 115 individuals for foreign bribery and related offences under the FCPA. The report indicates that this achievement resulted from a combination of enhanced expertise and resources to investigate and prosecute foreign bribery, the enforcement of a broad range of offences in foreign bribery cases, the effective use of non-trial resolution mechanisms, and the development of published policies to incentivize companies’ cooperation with law enforcement agencies.

Established in 1994, the OECD Working Group is responsible for monitoring the implementation and enforcement of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the 2009 Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions, and related instruments. Made up of representatives from the 44 countries that are signatories to the OECD Convention, the OECD Working Group meets four times per year, conducts peer-review country monitoring in successive phases, and publishes all of its country monitoring reports online. The OECD Working Group has been instrumental in leading global efforts to fight bribery of foreign officials. Further, the OECD Working Group’s law enforcement officers’ meetings serve an important role in fostering contacts between global law enforcement officials who focus on foreign bribery matters.

The full Phase 4 Report of the United States can be found at: https://www.justice.gov/criminal-fraud/file/1337591/download

Bureaus and Offices

Investing in communities and workers

U.S. Departments of Labor, Commerce and Education Sign Six Party Joint Declaration of Intent with Germany

KCPullen@doc.gov — Thu, 12 Nov 2020 23:17:03 +0000

U.S. Departments of Labor, Commerce and Education Sign Six Party Joint Declaration of Intent with Germany KCPullen@doc.gov Thu, 11/12/2020 - 18:17

FOR IMMEDIATE RELEASE

Thursday, November 12, 2020

Office of Public Affairs

(202) 482-4883

Secretary of Labor Eugene Scalia, Secretary of Commerce Wilbur Ross, and Secretary of Education Betsy DeVos today ratified a Joint Declaration of Intent with their German counterparts concerning cooperation on apprenticeships, vocational education and training. The signing, during National Apprenticeship Week, represents the firm commitment of the U.S. Departments of Labor, Commerce and Education in advancing the Trump Administration’s pledge to create a highly skilled 21st century workforce providing well-paying jobs for American workers.

The new Joint Declaration of Intent will create more formal structures and strategies for the United States and Germany to cooperate on apprenticeship and vocational education including encouraging businesses to establish quality apprenticeship programs in both countries; increasing access to work-based learning, including apprenticeships, for students and workers; fostering cooperative efforts among state and local governments, companies, trade and industry groups, non-profit organizations, unions, and other stakeholders to develop industry-driven apprenticeships and career and technical education systems; and facilitating bilateral exchanges of apprentices and trainers.

“This agreement will help foster the creation of new apprenticeship opportunities for American workers across the country,” said Secretary Scalia. “Today’s joint declaration recognizes the priority the United States and Germany have placed on using work-based learning as a way to prepare workers for prosperous careers.”

“The Trump Administration’s level of cooperation on apprenticeship programs with Germany comes at a critical time as both of our countries are experiencing an economic resurgence,” said Secretary of Commerce Wilbur Ross. “The Department of Commerce is committed to invigorating our economy and strengthening the American workforce by creating more pathways for American industry to educate and retain skilled workers.”

“An apprenticeship is a tremendous pathway to a meaningful, in-demand career and provides the kind of earn-and-learn opportunity the Trump Administration has championed since day one,” said Secretary DeVos. “The highly successful German track record shows just how powerful and productive apprenticeship experiences can be, both for students and employers. On National Apprenticeship Week, I encourage schools and employers alike to invest in partnerships that are building the workforce of the future.”

The parties will pursue this cooperation by exchanging information, experience and good practices. The two countries will foster partnerships through cooperative activities between businesses and stakeholders involved in apprenticeships and other work-based learning programs, will conduct information gathering visits and expert meetings, and engage in consultations at the federal, state, and local government levels. And the Joint Declaration of Intent will encourage greater understanding and adoption of Germany’s apprenticeship model, which is one of the best in the world.

Sharing the United States’ commitment, the German government ratified the Joint Declaration of Intent with signatures from its Ministers of Education and Research, Economic Affairs and Energy, and Labor and Social Affairs. The jointly-ratified agreement marks an important new chapter in the U.S.-German relationship.

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Apprenticeships

Workforce development

Remarks by Commerce Secretary Wilbur L. Ross at the U.S.-Ireland Economic Forum Virtual Meeting

KCPullen@doc.gov — Thu, 05 Nov 2020 21:13:08 +0000

Remarks by Commerce Secretary Wilbur L. Ross at the U.S.-Ireland Economic Forum Virtual Meeting KCPullen@doc.gov Thu, 11/05/2020 - 16:13

AS PREPARED FOR DELIVERY

Thursday, October 22, 2020

Office of Public Affairs

(202) 482-4883

Organized by Ian Hyland, President, Ireland INC.

Thank you, Ian, for organizing this important forum today. And a warm welcome to Ambassador Crawford, and the panelists joining today’s discussion.

I am grateful for all you do to support the strong bond between our two countries – a relationship whose history pre-dates both of our nations’ independence.

Nearly a quarter million Irish immigrants were among the first to settle here during the colonial era. In fact, Irish immigrants played such a significant role in the American War of Independence that American General Charles Lee reported they made up half the Continental army.

Our commercial and diplomatic ties have sustained and flourished across the nearly two and a half centuries since, and through many challenges – two world wars, your country’s War of Independence, the Troubles, the War on Terror, Brexit, and this year’s COVID-19 pandemic.

Indeed, the world looks very different than in November last year when I met in-person with Irish companies visiting Washington to discuss commercial investment opportunities in the United States, the potential impact of Brexit, and concerns over tariffs on Irish goods as a result of the WTO Airbus case.

Still, I am encouraged that as your country’s top export destination and source of foreign direct investment, we are continuing to nurture and grow our social, cultural and economic ties. Last year, U.S. stock of FDI in Ireland totaled more than $354 billion. And 700 American companies support roughly 155,000 Irish jobs. Likewise, Ireland’s investment position in the United States grew between 2018 and 2019 from $322 billion to $343 billion. And Irish companies support more than 294,000 U.S. jobs.

From Irish food companies in Idaho, ICT companies in California, and manufacturing companies in Oklahoma, to Irish healthcare companies in Florida and engineering firms in New York, we welcome your country’s innovation and investment in all 50 states – currently the fourth fastest growing compared with other nations.

And I encourage Irish companies to continue your engagement as we focus on strategic industries like as Energy, Healthcare and ICT. We have a SelectUSA office at our Embassy in Dublin, ready to support you and your growing operations as you look to scale up in the United States.

Alongside the United States, Ireland is globally renowned for being one of the most innovative countries in the world.

Unfortunately, as you are aware, a recent development has complicated the free flow of data that undergirds many innovative relationships between the United States and Europe.

The United States remains deeply concerned about the Court of Justice of the European Union’s July 16 Schrems II ruling that invalidated the European Commission’s adequacy decision underlying the EU-U.S. Privacy Shield Framework. This ruling has negative implications for the viability of using Standard Contractual Clauses, Binding Corporate Rules, and other mechanisms for EU-U.S. data transfers that underpin our $7.1 trillion transatlantic economic relationship.

If EU and U.S. companies continue to face legal burdens and uncertainty while transferring data across the Atlantic, the United States and Europe will face severe economic consequences.

On August 10, Commissioner Didier Reynders and I released a joint statement announcing discussions to evaluate the potential for an enhanced EU-U.S. Privacy Shield framework to comply with the Court’s ruling.

And on September 28, the U.S. government released a white paper to assist organizations in assessing whether their EU-U.S. data transfers offer appropriate protection in accordance with the Schrems II ruling.

The Trump Administration remains committed to and is actively working with our European partners to address the uncertainty created by the Schrems II ruling and find an enduring solution that ensures continuity for transatlantic data flows and strong privacy protections.

And my Department will continue to make resources available to Ireland’s businesses and government.

Deepening our bilateral commercial ties is essential to economic recovery for both our nations.

I thank you all again for participating in today’s discussion, and I wish you a productive session.

Bureaus and Offices

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EU-U.S. Privacy Shield

U.S. Department of Commerce Issues Affirmative Preliminary Countervailing Duty Determination for Passenger Vehicles and Light Truck Tires From Vietnam

KCPullen@doc.gov — Wed, 04 Nov 2020 16:25:45 +0000

U.S. Department of Commerce Issues Affirmative Preliminary Countervailing Duty Determination for Passenger Vehicles and Light Truck Tires From Vietnam KCPullen@doc.gov Wed, 11/04/2020 - 11:25

FOR IMMEDIATE RELEASE

Wednesday, November 4, 2020

Office of Public Affairs

(202) 482-4883

U.S. Secretary of Commerce Wilbur Ross announced an affirmative preliminary determination in the countervailing duty (CVD) investigation of passenger vehicle and light truck (passenger tires) tires from Vietnam. The Commerce Department preliminarily determined that exporters and producers from Vietnam received counter available subsidies with rates ranging from 6.23 percent to 10.08 percent. Among the subsidies preliminarily countervailed is Vietnam’s undervalued currency – making this the first time that Commerce has ever made an affirmative CVD determination regarding a foreign currency with a unitary exchange rate.

“Today’s preliminary determination represents an important step forward for the America First trade agenda,” said Secretary Ross. “The Trump Administration remains vigilant against foreign actors that take advantage of American workers and businesses, and we will continue addressing this issue to ensure American industry competes on a level playing field.”

As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of passenger tires from Vietnam based on these preliminary rates noted above.

The petitioner is the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union, AFL-CIO, CLC. The company is headquartered in Pittsburgh, PA.

Commerce is scheduled to announce its final determination in this case on or about March 16, 2021. This deadline may be extended.

If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about April 30, 2021. If Commerce makes an affirmative final determination in this investigation and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination of countervailable subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

In 2019, imports of passenger tires from Vietnam were valued at approximately $469.6 million.

Click HERE for a fact sheet on today’s decision.

Commerce is also conducting concurrent antidumping duty (AD) investigations of passenger tires from Korea, Taiwan, Thailand, and Vietnam. The preliminary determinations in these investigations are scheduled to be announced on December 29, 2020.

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Commerce currently maintains 540 AD and CVD orders, which provide relief to American companies and industries impacted by unfair trade. Since the beginning of the current administration, Commerce has initiated 297 new AD and CVD investigations – a 271 percent increase from the comparable period in the previous administration.

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