BIS to Require Import License for Controlled Exports to/from Hong Kong

On January 19, 2017 the Bureau of Industry and Security published a Final Rule in the Federal Register that requires persons intending to export or re-export any item subject to the Export Administration Regulations (EAR) and controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear nonproliferation (NP column 1), or chemical and biological weapons (CB) reasons to obtain, prior to such export or reexport, a copy of a Hong Kong import license or a written statement from the Hong Kong government that such a license is not required.

Specifically, under this new rule which becomes effective on April 19, 2017 U.S exporters or re-exporters who are exporting to Hong Kong under a validated export license or a license exception any commodities, software or technology controlled for NS, MT, NP column 1 or CB reasons must, prior to shipment, obtain from your consignee a copy of a valid import license issued to the Hong Kong consignee by the Hong Kong Director General of Trade and Industry authorizing import of the items into Hong Kong or a copy of a written statement by the Hong Kong government stating the a license is not required or you may keep as validation, any official statement available to the general public and posted on the Government of Hong Kong website that confirms a license is not required for the particular item you are exporting. You may apply for a BIS license while waiting for your consignee to obtain the Hong Kong import license, but under the EAR you may not ship until you have received a copy of the HK import license or written confirmation from the Hong Kong government confirming the item is NLR for import into Hong Kong.

Re: Re-Exports from Hong Kong—This new rule also requires re-exporters in Hong Kong of items subject to the EAR and controlled for NS, MT, NP column I or CB to obtain an export license from the Hong Kong government or a statement from the Hong Kong government confirming that a license is not required.

Please contact Jonathan Fink at TSI Global Consulting, LLC for further information or to discuss the implications for your export business as a result of this pending new regulatory requirement when exporting under a validated license or license exception to Hong Kong.

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