On July 29, 2024 the Department of Commerce, Bureau of Industry and Security published a new proposed rule which (upon implementation) will, among other things significantly broaden the scope of the current Part 744.21 Military End User/End Use rules (MEU rules). Under the new proposed rule a license would be required for export, re-export or transfer (in-country) of any item subject to the EAR (as opposed to the current MEU rules which only apply to items listed in Supplement 2 to Part 744) if there is knowledge that the item is intended, entirely or in part, for: (1) a ‘military end use,’ when the ‘military end use’ occurs in, or the product of the ‘military end use’ is destined to a country specified in Country Group D:5 in supplement no. 1 to part 740 of the EAR + Macau; or (2) A ‘military end user,’ wherever located, of Macau or a country specified in Country Group D:5. Under the new rule, a slightly less restrictive (all items listed on the Commerce Control List) licensing requirement will apply to “military support end users.” In addition, the new rule would impose restrictions on US persons providing support to military end users/end uses in a manner quite similar to the way in which defense services require licensing under the USML/ITAR. For further information please contact the office and/or download a copy of the proposed rule HERE. BIS is seeking written comments prior to September 27, 2024.
