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Export Regulations Revised to Reflect Changes to Dual-Use Goods List, Entity List

Tuesday, September 20, 2016
Sandler, Travis & Rosenberg Trade Report

Dual-Use Goods. The Bureau of Industry and Security has issued a final rule that, effective Sept. 20, revises the Commerce Control List and corresponding parts of the Export Administration Regulations to implement changes made to the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies at the December 2015 WA plenary meeting, which include raising the adjusted peak performance for high-performance computers.

This rule (1) amends APP parameters in several places in the EAR, such as in the de minimis rules, license exception APP, and related reporting requirements, (2) updates license requirements and policies associated with Category 5 - Part 2, including revising ECCNs 5A992, 5D992, and 5E992, and (3) removes the foreign national review requirement associated with deemed exports under license exceptions APP and CIV.

Shipments of items removed from license exception eligibility or eligibility for export, reexport, or transfer (in-country) without a license (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on Sept. 20 pursuant to actual orders for exports, reexports, or transfers to a foreign  destination may proceed to that destination under the previous license exception eligibility or NLR so long as they have been exported, reexported, or transferred before Nov. 21. Any such items not actually exported, reexported, or transferred before midnight on Nov. 21 will require a license in accordance with this rule.

Entity List. Separately, BIS has issued a final rule that addresses national security concerns resulting from the removal of certain subparagraphs of ECCNs 5A992, 5D992, and 5E992 in the WA rule discussed above and the designation of these encryption items as EAR99 by revising the license requirements for 12 Chinese entities on the Entity List to cover “all items subject to the EAR,” including EAR99 items.

This rule also brings the general Entity List license requirements, policies, and procedures under a single section of the EAR (but does not change them) to help the public better locate and comply with these regulations.

Shipments of items removed from eligibility for a license exception or NLR export, reexport, or transfer (in-country) as a result of this rule that were en route aboard a carrier to a port of export, reexport, or transfer on Sept. 20 pursuant to actual orders for export, reexport, or transfer to a foreign destination may proceed to that destination under the previous eligibility for a license exception or NLR.

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