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First Post
14 minutes ago
- First Post
US export license backlog hits record levels amid internal commerce department turmoil
Thousands of US export license applications, including high-value tech shipments to China, are stuck in limbo due to bureaucratic dysfunction within the Commerce Department's Bureau of Industry and Security. read more An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US. File image/ Reuters Thousands of license applications by US companies to export goods and technology around the globe, including to China, are in limbo because turmoil at the agency in charge of approving them has left it nearly paralyzed, two sources said. While US Commerce Secretary Howard Lutnick has become a familiar face touting President Donald Trump's tariff and trade deals, sources said the export bureau under Lutnick's command has failed to issue expected new rules, stifled communications with industry representatives, pushed out experts, and lost staff through buyouts and resignations. STORY CONTINUES BELOW THIS AD Shipments of artificial intelligence chips from Nvidia to China are the most high-profile example of licenses not being swiftly approved. The company said July 14 the government assured it licenses would be granted for its H20 chip, and it hoped to start deliveries soon. Lutnick and other officials confirmed sales would be allowed. But sources said this week no licenses have yet been issued, and billions of dollars of AI chip orders are at stake. One US official said the backlog of license applications is the lengthiest in more than three decades. A spokesperson for Nvidia declined to comment. The Department of Commerce did not respond to a request for comment. The turmoil and resulting inaction at an agency tasked with promoting overseas trade and safeguarding American technology are alarming both those seeking tougher restrictions on exports to China and companies trying to sell their wares abroad. 'Licensing is how the US does business and competes globally,' said Meghan Harris, who served on the National Security Council in the first Trump administration and has worked at Commerce. 'Delays and unpredictability put us at an unnecessary disadvantage.' The Commerce Department's Bureau of Industry and Security averaged 38 days per export license application in fiscal year 2023, the most recent data available, denying 2% of 37,943 applications. STORY CONTINUES BELOW THIS AD The license process enforces US export restrictions in an effort to make sure sensitive goods and technology do not reach countries or entities whose use of the items could harm US national security. Some staff have criticized Jeffrey Kessler, who became BIS undersecretary in March, saying he has micromanaged the bureau and failed to communicate adequately. Kessler did not respond to a request for comment. At a staff meeting soon after he took office, Kessler urged BIS staff to limit communications with company representatives and industry officials, according to two additional sources, who said he later asked for all meetings to be entered on a spreadsheet. Getting approval from Kessler's office to attend meetings with other government agencies has also been tricky, those sources said. Sources spoke anonymously because they were not authorized to speak publicly. Frustration among exporters Frustration is growing within US industry. 'We're seeing whole sectors where there is no movement or indication if or when licenses will be issued," including license applications for semiconductor manufacturing equipment worth billions of dollars, said Sean Stein, president of the US-China Business Council. STORY CONTINUES BELOW THIS AD While the clock is ticking on license applications, 'Chinese companies are exploring and doing deals with suppliers in China and other countries,' he said. 'The longer we have the delay, the more market share we're going to lose." Jim Anzalone, president of Compliance Assurance, a Florida-based trade consultancy, said he has seen delays in license approvals for sensors, radars, and sonar to Latin America and other parts of the world. 'There's nothing official about what the policy is and when the backlog would be cleared,' he said. He has received denials sporadically after submitting some two dozen applications months ago to export semiconductor manufacturing equipment to China, including four denials on Wednesday, he added. Sources stressed that some licenses are getting approved, especially exports to allied countries, and they noted that some communication with companies continues, especially around license applications. Commerce is also delaying regulatory changes. The agency said in May it would rescind and replace a Biden administration rule before it went into effect that month restricting where AI chips can be exported, but the agency has not done so yet. STORY CONTINUES BELOW THIS AD Other rules, which sources said have been drafted for months, have not been published, including one to expand export restrictions to subsidiaries of companies already banned from receiving controlled US exports. Meanwhile, important staff vacancies such as China-based export control officers have not been filled, and high-level career employees have resigned. A retirement party was held this week for Dan Clutch, acting director of the BIS Office of Export Enforcement, the latest experienced staff member to leave.
Time of India
43 minutes ago
- Time of India
Gujarat high court issues notice police over summons in civil dispute case
Ahmedabad: Gujarat high court Justice Nirzar Desai has issued a notice to the inspector of Khatodara police station in Surat, asking him to explain why summons were sent in a matter that his own department had earlier closed as a civil issue. The case centres on a payment dispute over a land deal between two former business partners. The complainant had accused the other party and associates of cheating, forgery, criminal conspiracy, and intimidation. However, similar complaints earlier filed by him in 2023–24 had been shut down by the same police station on the grounds that the matter was civil in nature and needed to be pursued in civil court. Despite that, a fresh summons was issued on July 6 by the Khatodara police. The recipient responded, but also filed a complaint in the HC through advocate Shakeel Qureshi, challenging the police's involvement and the issuance of the notice. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad The petition pointed out the contradictory approach of the police: closing the complaints in 2023-24 by stating it was a civil dispute, and then suddenly reopening it as a criminal case. In response, the state govt's lawyer submitted that after Khatodara PI gave his opinion regarding the civil nature of the dispute in May 2024, the complainant approached CID (Crime), Gandhinagar, "and thereafter, as per the instructions of the higher officers, the matter was remanded back to the concerned police station for investigation and that is how the aforesaid summons came to be issued to the petitioner". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo After hearing this, Justice Nirzar Desai stayed the police summons and stated, "From a perusal of the material on record, prima facie, it seems that the nature of the dispute between the parties is of civil nature and hence, issue Notice, returnable on Aug 25."
Hindustan Times
44 minutes ago
- Hindustan Times
PBS, NPR shutting down? Here's what Corporation for Public Broadcasting's latest announcement means
The Corporation for Public Broadcasting (CPB), the entity that channels federal funds to PBS and NPR, announced on Friday that it will begin winding down operations, raising fears about the future of public broadcasting in the United States. The 'orderly wind-down' comes after Congress's vote last month to cut $1.1 billion in its federal funding. (FILES) The headquarters for National Public Radio, or NPR, are seen in Washington, DC,(AFP) 'For nearly 60 years, CPB has carried out its Congressional mission to build and sustain a trusted public media system that informs, educates, and serves communities across the country. Through partnerships with local stations and producers, CPB has supported educational content, locally relevant journalism, emergency communications, cultural programming, and essential services for Americans in every community,' CPB said in its press release on Friday. On July 24, President Trump signed a $9 billion rescission package into law. The CPB, led by President and CEO Patricia de Stacy Harrison, said that most positions will be eliminated by September 30, 2025, with a small transition team remaining until January 2026, signaling an end to its role as a funding conduit after decades of support. Will PBS and NPR shut down? The announcement does not mean PBS and NPR will shut down immediately. NPR relies on direct federal funding for less than 2 percent of its budget, with member stations contributing about 30 percent, while PBS and its stations average 15 percent from CPB grants. "Despite the extraordinary efforts of millions of Americans who called, wrote, and petitioned Congress to preserve federal funding for CPB, we now face the difficult reality of closing our operations," CPB President and CEO Patricia Harrison said in a statement. "CPB remains committed to fulfilling responsibilities and supporting our partners through this transition with transparency and care." "Public media has been one of the most trusted institutions in American life, providing educational opportunity, emergency alerts, civil discourse, and cultural connection to every corner of the country," Harrison said. The loss of this funding threatens local stations, especially in rural areas like Unalakleet, Alaska, and Pendleton, Oregon, where federal support exceeds 90 percent of some budgets, NPR reported. CPB warns that without this lifeline, many of the 1,500 stations could close, disrupting educational programming like 'Sesame Street' and 'Daniel Tiger's Neighborhood' as well as emergency alerts and local news. The move stems from Trump's long-standing criticism of perceived liberal bias in public media. "It is very important that all Republicans adhere to my Recissions [sic] Bill and, in particular, DEFUND THE CORPORATION FOR PUBLIC BROADCASTING (PBS and NPR), which is worse than CNN & MSDNC put together. Any Republican that votes to allow this monstrosity to continue broadcasting will not have my support or Endorsement. Thank you for your attention to this matter!" Trump wrote on Truth Social last month.
