Important Changes to the EAR Take Effect Today

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 sanctions. 

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.