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November 18, 2008 

BIS Publishes Final Rule Amending EAR End-Use and End-User Controls

The Bureau of Industry published in today's Federal Register a final rule amending the end-use and end-user controls in Part 744 of the Export Administration Regulations (EAR) and revising the definition of the term "transfer."

The changes to the EAR made in today's rule, which is effective immediately, clarify that a party cannot proceed with an export, reexport, or in-country transfer that is in transit at the time the party is informed by BIS that a license is required, unless that party first obtains a license from BIS authorizing the completion of the transaction. These changes are intended to enhance BIS's ability to stop items subject to the EAR, including items not on the Commerce Control List, from being exported, reexported or transferred in-country when there is an unacceptable risk that such items will be used in, or diverted to, any of the proliferation activities specified in the the EAR.

This rule also amends the EAR by revising the definition of the term "transfer" in section 772.1 of the EAR to clarify that the term merely refers to the conveyance of items and certain related terms to provide greater clarity regarding these provisions.

Today's final rule is identical to the proposed rule published by BIS on April 18, 2008. BIS received one comment on the proposed rule but made no changes as a result.




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