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BIS Adopts a “one China” policy regarding license exceptions for Hong Kong

Effective immediately (June 30, 2020) BIS has suspended use of all license exceptions for exports, re-exports or transfers within Hong Kong of items subject to the EAR unless such items are eligible for the same license exception when exported or re-exported to the Peoples Republic of China. In essense, this new ruling creates a “one China” policy with respect to that manner in which the EAR treats exports, re-exports and transfers within Hong Kong and the Peoples Republic. BIS is providing an allowance for use of Hong Kong license exceptions for shipments on dock for loading, on lighter, laden aboard an exporting or transferring carrier, or en route aboard a […]

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BIS Issues Interpretive Guidance on Implementation of New Military End User Rule

The Bureau of Industry and Security (BIS) has issued new interpretive guidance and FAQs related to the new military end user rule. The guidance makes it very clear that BIS is implementing an extremely broad definition of the term military end user. Extreme due diligence will be required when exporting any product listed in Supplement 2 to Part 744 of the EAR when evaluating whether a license is required. For specific transaction evaluation please contact TSI Global Consulting at 210-757-0618.

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Reminder: EEI filings for exports to China, Russia and Venezuela

The Bureau of Industry and Security has published guidance on its website reminding exporters of the new April 28th ruling that requires exporters to file the EEI through ACE for all exports when exporting products listed on the Commerce Control List (15 CFR Part 774) when exported to China, Russia and Venezuela. EEI will be required regardless of shipment value (i.e. there is no $2500 low value exemption) Effective Dates: June 29, 2020 EEI filings are required for all exports of items listed in Supplement 2 to Part 744. September 27, 2020: EEI filings for items exported to these three countries with an ECCN that is NOT listed in Supplement […]

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US-Mexico-Canada Free Trade Agreement

The U.S.-Mexico-Canada (USMCA) Free Trade Agreement will be formally implemented on July 1, 2020. Links to the official USMCA regulations for each country (in English) are noted below. For commentary and/or assistance in understanding specific aspects of the USMCA, please contact our office at 210-757-0618 United States Implementing Regulations Canada Implementing Regulations Mexico Implementing Regulations

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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 […]

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What is NOT an Export, Re-Export, Re-Transfer or Temporary Import?

On March 26th the U.S. Department of State published a FINAL RULE amending the ITAR effective immediately with a series of long awaited revisions and clarifications on activities that are NOT considered exports, re-exports or re-transfers and thus do NOT require licensing authorization by the Directorate of Defense Trade Controls (DDTC). While this new regulatory change contains many new wrinkles, two of the major changes to the ITAR that TSI Global Consulting sees as important elements for our clients include: Export, Re-Export and Re-Transfer of unclassified ITAR controlled technical data does NOT require authorization if such data is exported [with the exception that such data may not be “intentionally” exported, […]

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TSI Global Consulting to Offer Pro-Bono Export Licensing and General Import/Export Assistance for equipment used to manufacture medical supplies

Effective immediately, TSI Global Consulting, LLC is offering no cost export licensing and general export regulatory assistance to any of our clients that are importing or exporting medical supplies and/or machine tools used to alleviate the current COVID crisis. Manufacturers of CNC and other machine tools that are subject to US export licensing will receive expedited service from TSI Global Consulting, LLC in advising on, drafting and filing licenses. Provided end use is related to helping out with the COVID crisis, all services will be provided at no cost. Call the office if you wish to discuss 210-757-0618.

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DDTC Issues Interim Final Rule Making Important Changes to Transmission of Encrypted ITAR Technical Data

On December 26th, 2019 the Department of State published in the Federal Register (Volume 84, No. 247 an interim final rule that will, effective March 2020 amend the International Traffic in Arms Regulations (ITAR) to a) define activities that do not constitute an export, re-export, re-transfer or temporary import, b) create a new definition of “access information” and 3) revise the current ITAR definitions of export, re-export, re-transfer, temporary import and release. While the technical changes noted in this interim final rule are too extensive and detailed to cover within the context of a brief blog post, by far the most important change relates to the manner in which DDTC […]

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BIS/OFAC Walk Back Obama Era Cuba Travel Regulatory Reforms

With simultaneous FINAL RULES scheduled to be published in tomorrow’s (June 5th, 2019) Federal Register, both OFAC and BIS will, effective tomorrow, be rescinding liberalization of travel rules that were enacted in the waning days of the Obama Administration. Specifically, with regard to BIS, tomorrow’s final rule amends license exception AVS (temporary sojourn of aircraft, vessels and spacecraft) effectively removing use of this license exception for passenger and recreational vessels from making temporary sojourn to Cuba. Under the new rule, AWS will no longer apply for cruise lines (and many aircraft as well) and BIS licenses for cruises will be subject to a presumption of denial (sorry, looks like no […]

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Venezuela Moved from Group B to Group D

The U.S. Department of Commerce published a Final Rule in today’s Federal Register officially moving Venezuela from country Group B which provides favorable treatment for certain exports of national security concern to Group D:1  Countries of National Security concern. This new announcement also places Venezuela into Country Groups D:2-4 which contains countries of concern for nuclear, chemical and biological weapons and missile technology. The movement to Group D negates the potential to use certain license exceptions found in Part 740 and subjects Venezuela to the  stricter “case-by-case” licensing requirements on exports to countries of National Security Concern delineated in Part 742.4 of the EAR. The rule is effective as of […]

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