BIS Issues Notice on Transfer of Export Licenses
The Bureau of Industry and Security (BIS) today issued the following notice reminding exporters about their responsibilities in cases involving the transfer of export licenses, such as when the party listed on the license no longer exits due to a merger or acquisition.
The full text of BIS's notice is as follows:
Under the Export Administration Regulations (EAR), BIS issues individual export licenses to parties. In some instances, ownership of the party/licensee changes due to mergers and acquisitions. This may result in a change to the license if the party to whom the license was issued no longer exists, or is no longer engaged in exporting.
The EAR contain a procedure under Section 750.10 that provides for the transfer of export licenses in such circumstances. Persons planning corporate mergers, transfers, or acquisitions should consider whether any existing export licenses will need to be transferred and should consult Section 750.10(b) which provides detailed instructions.
Please note that the transfer of an export license must be requested by the licensee, therefore, any request for a transfer of a license that is the result of a corporate transaction in which the licensee will cease to exist as a legal entity must be made prior to the licensee ceasing to exist.
Labels: BIS; EAR