BIS Expands Export, Re-Export and Transfer Controls for Military End Use or Military End Users in China, Russia and Venezuela.

In a FINAL RULE published in the April 28, 202 version of the Federal Register, the Bureau of Industry and Security announced a tightening and expansion of export controls related to military end users and end use in China, Russia and Venezuela. The new Rule becomes effective June 29, 2020.

The key provisions of this new rule include:

— Expansion of the licensing requirement in Part 744.21 of the EAR to include military end users in China. The current/previous rule requires licensing for military end use in China.

— Broadening the definition of “military end use” by identifying each category of “use” so that that export of commodities, software or technology that is associated with any one of the six elements of use with/for/on behalf of a military end use will trigger a license requirement when exported, re-exported or transferred to China, Russia or Venezuela.

— Broadening the scope of Part 744.21 of the EAR by both a)adding the following ECCNs to Supplement 2 to Part 744 [2A290, 2A291, 2B999, 2D290, 3A991, 3A992, 3A999, 3B991,3B992,3C992, 3D991, 5B991, 5A992, 5D992, 6A991, 6A996, 9B990] and b) expanding the range of items under ECCNs 3A992, 8A992, and 9A991 as listed in Supplement 2 to Part 744.

Also, an important new aspect of this ruling is the elimination of the less than $2500 low value shipment exemption from Electronic Export Information (EEI) filing in the Automated Export System for items destined to China, Russia or Venezuela. Even if no license is required to ship an item(s) to those destinations, the EEI filing must include the correct ECCN regardless of the reason for control.

For further details on this new FINAL RULE feel free to contact TSI Global Consulting for a consultation.

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