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Export Regulations Revised to Ease Burma Controls, Reflect NSG Understandings, Modify Russian Sanctions

Tuesday, December 27, 2016
Sandler, Travis & Rosenberg Trade Report

Burma. The Bureau of Industry and Security is amending the Export Administration Regulations, effective Dec. 27, by removing license requirements and other restrictions on exports, reexports, or transfers (in country) of items subject to the EAR made to persons whose property and interests in property were blocked pursuant to three Burma-related executive orders that were revoked on Oct. 7. Consistent with the revised U.S. policy toward Burma, the rule also moves Burma from Country Group D:1 to Country Group B, a less restrictive country group placement under the EAR.

NSG Understandings. In a separate final rule that will also enter into force Dec. 27, BIS is revising the EAR to reflect the understanding reached at the June 2015 Nuclear Suppliers Group plenary meeting held in Bariloche, Argentina, as well as certain understandings reached at the 2016 NSG plenary meeting held in Seoul, South Korea.

The amendments to the EAR based on the 2015 meeting address the nuclear nonproliferation controls that apply to certain centrifugal multiplane balancing machines described on the Commerce Control List, while the amendments to the EAR based on the 2016 meeting address the NP controls that apply to certain linear displacement measuring systems identified on the CCL. The rule also makes additional changes to the description of these systems on the CCL to fully conform to their description on the NSG annex.  In addition, the rule corrects an error in the technical parameters of the CCL entry that describes certain radiation-hardened TV cameras (including lenses therefor) that are subject to NP controls.

Russia. BIS is amending the EAR, effective Dec. 27, by adding 23 entities to the Entity List that have been determined by the U.S. government to be acting contrary to the national security or foreign policy interests of the U.S. BIS is taking this action to ensure the efficacy of existing sanctions on Russia for violating international law and fueling the conflict in eastern Ukraine. In addition, BIS is revising the licensing policy in three sections of the CCL- based controls in the EAR to clarify that BIS’s review of license applications for exports, reexports, and transfers (in-country) to Russia will take into account and protect U.S. national security interests.  

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