BIS Will Make No Changes to Deemed Export Rule After All
More than a year after the Bureau of Industry and Security (BIS) published an advance notice of proposed rulemaking proposing significant changes to the "deemed export" rule, BIS has decided to make no changes to the deemed export provisions of the Export Administration Regulations after all. The most controversial changes, which included using a foreign national's country of birth as a criterion for issuing a deemed export license and changing the definition of "use" technology, generated a firestorm of controversy. As previously reported, the proposed changes generated more than 300 public comments, the most in the agency's history. More than two-thirds of the comments were academic and research institutions, with the remainder submitted by industry, trade associations, law firms and individuals. BIS will publish a Federal Register notice later this week announcing its decision maintain the status quo.
Meanwhile, BIS has announced that it will create a 12-person Deemed Export Advisory Committee (DEAC) that will review and provide recommendations to the Department of Commerce on deemed export policy. The DEAC is intended to provide a further in-depth technical information exchange between and among BIS and the academic, corporate, and other interested sectors."
In addition, BIS has "significantly increased" its outreach to the academic and research communities in order to "raise the level of awareness and to improve the understanding of the deemed exports regulatory requirements."
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