After three days of informational sessions on multiple regulatory and compliance topics, the Bureau of Industry and Security (“BIS”) wrapped up its annual update conference this week in Washington D.C. Secretary of Commerce Howard Lutnick kicked off the conference with an opening keynote address, his first official (non-interview) public address since being confirmed as Secretary. In speaking to almost 1000 attendees, Secretary Lutnick communicated that the Trump Administration plans a “dramatic increase in enforcement and fines” against companies who violate U.S. export controls. During his keynote, Secretary Lutnick also signaled that the Trump Administration is planning to integrate export controls into trade agreements that will be negotiated with foreign trading partners.
During the conference, officials from BIS updated industry on many notable topics, including recent updates on export controls on semiconductors and commercial space items and technologies. BIS also informed industry of a new “Know Your Customer” compliance effort that it has initiated through what it is calling a “Red Flag Letter”. BIS will use this outreach to notify a company of a potential compliance issue with a transaction and suggest that the exporter conduct additional due diligence. BIS confirmed that these letters are meant to be informational only for the exporter.
BIS’s Office of Information Communications Technology and Services (“OICTS”) also held an overview session on the “Connected Vehicle” rule went into effect on March 17, 2025. OICTS highlighted a new IT portal that it launched appropriately named the Compliance Application and Reporting System or CARS, where industry will be able to submit specific authorization applications as well as Declarations of Conformity and Advisory Opinions, as required by the new rule.
BIS also took the opportunity to announce a revamp of its main website, which can now be found at www.bis.gov. The revamped website includes new compliance resources as well as a reorganized Export Administration Regulations that is intended to be easier for industry to reference.
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