BIS Extends Deadline to Submit Comments on Proposed "Knowledge Rule"
As a result of a number of requests from U.S. exporters and trade associations, BIS has extended the comment period on the proposed "knowledge" rule for an additional 30 days. The new deadline for submitting comments on the proposed rule to BIS is December 15, 2004.
(a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-25309.htm)
The proposed rule, which was published in the Federal Register on October 13, 2004, would make a number of changes to the Export Administration Regulations (EAR) including modifying the "knowledge" standard to incorporate a "reasonable person'' standard. The proposed rule would also increase the number of "red flags" to look for in export transactions from 12 to 23. The provision of the proposed rule that has generated the most controversy in the exporting community is the proposal to provide exporters with an optional "safe harbor" from liability arising from "knowledge-based license requirements, knowledge-based restrictions on use of license exceptions, and other knowledge provisions in the EAR." Under the proposal, exporters can submit a request to BIS asking for safe harbor and BIS is supposed to respond to the exporter within 45 days as to whether the agency agrees that all red flags have been removed, disagreeing or stating that more time is needed to review the case. U.S. exporters are very concerned about the delays that will result under the "safe harbor" proposal.
|posted by Douglas N. Jacobson| Permalink 
