China/Russia/Venezuela Military End-Use/End-Users
This is a reminder that today, June 29, 2020, is the
effective date of the amendments to BIS's military end-use/end-user rule for
certain exports/reexports to China, Russia, and Venezuela is now in effect. See https://is.gd/kpIWRA and amended 15 CFR § 744.21 of the EAR.
Below is a redlined version of Supplement 2 to Part 744
of the EAR showing the ECCNs that are affected by the amended military
end-use/end-user rule. It is important to note that items classified as EAR99
or in other ECCNs not on this list are not subject to these changes, although
certain ECCNs, of course, may require a license to be exported/reexported to
China or Russia. In addition, Venezuela is also subject to certain OFAC
New BIS FAQs
Late Friday, BIS issued 31 FAQs on the military end-use/end-user rule at https://is.gd/sM2GZz.
The bottom line: Perform Due Diligence. We are strongly recommending that exporters/reexporters update and obtain end-use/end-user statements from customers.
New EEI Filing Requirements
Importantly, effective today an EEI filing is required for ALL exports of items to China, Russia, or Venezuela listed in amended Supplement 2 to Part 744, regardless of value.
Starting on September 27, 2020, an EEI filing will be required for ALL exports to China, Russia, or Venezuela, regardless of value and ECCN. This requirement does not affect items classified as EAR99.
Elimination of License Exception CIV
Finally, today license exception CIV (civil end-users) was been removed from section 740.5 of the EAR and can no longer be used
for any exports or exports. As a result, many companies will have to obtain
export/reexport licenses from BIS.