Category: Export Controls, Economic Sanctions, and National Security

BIS Rescinds 2024 Firearms Export Controls, Reduces Regulatory Burdens on U.S. Firearms Industry

Anthony Rapa and Patrick F. Collins ●

The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) issued a final rule on September 30, 2025, rescinding the 2024 interim final rule (“Firearms IFR”) under the Export Administration Regulations (“EAR”) that had imposed new export license requirements and restrictions on firearms, ammunition, and related items. The new rule restores export controls for these items to their pre-May 2024 status, with the exception of maintaining certain new Export Control Classification Numbers (“ECCNs”). The action is intended to reduce regulatory burdens on U.S. firearms exporters while maintaining appropriate controls to protect national security and foreign policy interests.

Background

BIS issued the Firearms IFR on April 30, 2024, tightening controls on commercial firearms, ammunition, and related items under the EAR. It created four new ECCNs for semi-automatic rifles, pistols, shotguns, and certain parts (0A506-0A509) on the Commerce Control List (“CCL”). It also applied broad crime-control licensing worldwide, shortened license validity to one year, curtailed certain license exceptions, and adopted presumptions of denial for non-government end users in 36 high-risk destinations.

The Firearms IFR followed a 2023 licensing pause and policy review that identified significant diversion and misuse of U.S.-origin guns abroad. BIS used the Firearms IFR to act swiftly while soliciting public comment on further refinements.

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U.S. Department of State Eases Military Drone Export Review Policy

Anthony Rapa and Patrick F. Collins ●

The U.S. Department of State (“State”) announced an update to its miliary drone export review policy on September 15, 2025, pursuant to which advanced unmanned aerial systems (“UAS”) will be subject to an export control policy similar to that of crewed aircraft, rather than more restrictive review applicable to missiles. Key takeaways include:

1. Policy Shift: Drones Reviewed Like Fighter Jets, Not Missiles

State announced that pursuant to the policy change, it will consider requests to export UAS similarly to how it reviews requests to export crewed fighter aircraft, rather than as missile systems. This marks a departure from the longstanding application of the Missile Technology Control Regime (“MTCR”) to exports of certain UAS, which imposed a strong presumption against the transfer of large, weaponizable drones due to their range and payload capabilities and provided for rigorous review of other UAS transfers.

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Hybrid Event: Export Controls Amid Evolving Trump 2.0 Trade Dynamics: Policy Updates and Best Practices

April 29, 2025
12:00–2:00 p.m.
McLean, Virginia, or online

Blank Rome partners Anthony Rapa, partner & co-chair of the International Trade group, and Justin A. Chiarodo, partner & co-chair of the Government Contracts group, will join Sol Brody (Vice President, International Trade Licensing & Sanctions, BAE Systems, Inc.) to present the Association of Corporate Counsel National Capital Region’s (“ACC NCR”) hybrid event, “Export Controls Amid Evolving Trump 2.0 Trade Dynamics: Policy Updates and Best Practices,” on Tuesday, April 29, 2025. The event will be held from 12:00 to 2:00 p.m. in McLean, Virginia, with a virtual participation option available.

ABOUT THE PROGRAM

This hybrid (in-person and online) program will cover up-to-the minute developments in the export controls landscape, one of the linchpins of the Trump administration’s national security strategy and “America First” trade policy. This will include the latest regarding semiconductor export controls, controls relating to emerging technologies, China-focused restrictions, anticipated Russia-related developments, ramped-up government enforcement, and best practices in an ever-changing environment.

For more information and to register, please visit the registration page and select the “Speaker/Panelist” registration option to register for free.

Defense Contractors’ Restrictions When Contracting with Chinese Companies

Merle M. DeLancey, Jr. and Oliver E. Jury ●

In the current economic climate, the obvious focus of many companies is on the administration’s imposition of tariffs. However, government contractors, especially those contracting with the U.S. Department of Defense (“DoD”), must not lose sight of their current and potential future direct and indirect relationships with certain Chinese entities.

Contractors’ compliance obligations regarding relationships with Chinese entities flow from:

  • FAR 52.204-25 (Section 889 of the 2019 National Defense Authorization Act (“NDAA”)), and
     
  • The Chinese Military Companies (“CMC”) List (Section 1260H of the 2021 NDAA) (also known as the “1260H List”).

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The FAR Council Publishes Long-Awaited CUI Rule

Michael Joseph Montalbano ●

On January 15, 2025, the Federal Acquisition Regulation (“FAR”) Council issued its long-awaited “CUI Rule.” CUI, or Controlled Unclassified Information, is information that the government creates or possesses, or that an entity creates or possesses for or on behalf of the government, that a law, regulation, or governmentwide policy requires or permits an agency to handle using safeguarding or dissemination controls. For nearly 15 years, contractors have struggled to determine what information meets this definition. The CUI rule is an opportunity for the federal government to finally provide contractors with the guidance needed to better identify and safeguard the CUI they receive in connection with their federal contracts.

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BIS Issues New Export Controls Targeting GAAFET, Quantum, and Additive Manufacturing, and Ushers in New Age of Plurilateral Export Controls: 5 Key Takeaways

Anthony Rapa, Alan G. Kashdan, and Brendan S. Saslow ●

The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) recently issued an interim final rule (“IFR”) under the Export Administration Regulations (“EAR”) imposing licensing requirements for exports to all destinations worldwide of certain gate all-around field effect transistor (“GAAFET”) technology, quantum computing items, advanced semiconductor manufacturing equipment (“SME”), additive manufacturing equipment, and aerospace coating systems technology.

The new measures are notable not only for their restrictive application to all destinations in the world—an unusual type of control under the EAR—but also for their institution of a new license exception, “Implemented Export Controls” (“IEC”), that allows for exports of the newly controlled items to specified “like-minded” countries that have instituted comparable export controls that are harmonized with U.S. controls.

The new controls are effective immediately as of September 6, 2024, with the exception of controls over certain quantum items, which take effect November 5, 2024, the cutoff date for public comment on the IFR.

Read the full client alert on our website.

3 Takeaways from Recent U.S. Regulatory Actions Implementing AUKUS

Anthony Rapa, George T. Boggs, Justin A. Chiarodo, and Dimitri DeChurch-Silva ●

As a next step in the U.S. government’s implementation of the trilateral AUKUS security pact with Australia and the United Kingdom (“UK”), the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) and the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) recently took measures to further ease export controls among the member countries. Reducing export control restrictions is the linchpin to implementing the AUKUS pact, which aims to bolster security cooperation and defense trade between Australia, the UK, and the United States.

While DDTC stopped short of concretely scaling back export controls under the International Traffic in Arms Regulations (“ITAR”), it proposed a framework to do so in the coming year (likely to turn on Australia and the UK completing the adoption of ITAR-equivalent export controls and exemptions). Meanwhile, BIS lifted a range of controls under the Export Administration Regulations, placing Australia and the UK on nearly equal footing with Canada.

Read the full client alert on our website.

New U.S. Russia Sanctions Target Financial Support of Military-Industrial Base and Expand Ban of Seafood Imports

Anthony Rapa, George T. Boggs, Alan G. Kashdan, and Matthew J. Thomas ●

The Biden Administration recently issued the latest round of U.S. sanctions against Russia, focusing on (1) secondary sanctions applicable to foreign financial institutions (“FFIs”) that engage in certain transactions in support of Russia’s military-industrial base, and (2) the importation into the United States of certain Russian-origin seafood processed in third countries. The U.S. sanctions, issued December 22, 2023, follow the European Union’s twelfth package of sanctions against Russia, imposed on December 18, 2023.

As a result of the new sanctions, it will be important for FFIs to conduct export controls-related due diligence for any transaction with potential Russia exposure and for U.S. seafood importers to engage in supply chain tracing to ensure that imported products are not prohibited.

To effectuate the sanctions, President Biden issued a new executive order (“EO”) amending EO 14024 (providing for the imposition of sanctions against certain categories of Russia-related persons) and EO 14068 (prohibiting certain Russia-related imports, exports, and new investment). Furthermore, the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) issued a determination (the “Critical Items Determination”) identifying categories of goods triggering secondary sanctions risks for FFIs and a determination (the “Seafood Determination”) identifying categories of seafood processed in third countries that are prohibited for import.

To read the full client alert, please visit our website. 

Starting December 4th, Contractors Must Rid Supply Chains of Covered Articles and Sources Subject to FASC Orders

Robyn N. Burrows ●

Effective December 4, 2023, a new interim rule will prohibit contractors from delivering or using covered articles and sources subject to exclusion or removal orders issued under the Federal Acquisition Supply Chain Security Act of 2018 (“FASCSA”). The rule is intended to eliminate certain technology from the federal supply chain that foreign adversaries might exploit to commit malicious cyber acts. The interim rule allows the executive branch through the Federal Acquisition Security Council (“FASC”) to exclude certain technologies and manufacturers from federal procurements and even to require removal of covered articles from federal or contractor information systems during performance.

The rule imposes a host of new obligations, including certification, monitoring, and reporting requirements. This post provides practical guidance on the rule and several compliance tips to help contractors prepare for the December deadline.

Background

Congress passed Section 202 of the FASCSA to protect the information and communications technology (“ICT”) supply chain against threats and vulnerabilities that may lead to data and intellectual property theft, damage to critical infrastructure, or national security harm. The Act established the FASC as an interagency council authorized to make recommendations for orders that would require the removal of covered articles from agency information systems (removal orders) or the exclusion of sources or covered articles from agency procurement actions (exclusion orders) (collectively referred to as “FASCSA orders”).

In August 2021, the FASC issued a final rule establishing procedures for recommending removal and exclusion orders. The FASC evaluates supply chain risk based on several non-exclusive factors and sends its recommendations to the Secretaries of Homeland Security and Defense and the Director of National Intelligence to consider when deciding whether to issue a FASCSA order. If a FASCSA order is issued, agencies are required to implement the exclusion or removal order.

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PLI Chronicle: Towards a “Reverse CFIUS”? President Biden’s Executive Order on Outbound Investment and Related Congressional Proposals

Anthony Rapa ● PLI Chronicle: Insights and Perspectives for the Legal Community ● September 22, 2023 ●

Should the U.S. government regulate U.S. investments in other countries?

The Biden Administration resoundingly answered that question in the affirmative on August 9, 2023, when the President issued an executive order (EO) providing for official oversight of certain U.S. tech-related investments in China and Chinese-linked companies. The EO followed years of national security experts and congressional leadership calling for the regulation of U.S. investment in China and other countries of concern, and came amidst intensive efforts by Congress to legislate in the area.

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