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License Requirement Imposed on Certain Exports for Military End Use in Venezuela

Friday, November 07, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Nov. 7, imposes license requirements on the export, reexport or transfer (in-country) of certain items to or within Venezuela when intended for a military end use or end user. BIS states that this change comes in response to the Venezuelan military’s “violent repression of the Venezuelan people” and complements an existing U.S. arms embargo against Venezuela.

According to BIS, it is generally the policy of the U.S. government to facilitate U.S. exports for civilian end uses while preventing exports that would enhance the military capability of certain destinations and thereby threaten the national security and foreign policy of the U.S. and its allies. In furtherance of this policy, BIS published in June 2007 a final rule that established a control, based on knowledge of a military end use, on exports and reexports of certain items on the Commerce Control List that otherwise would not require a license to a specified destination. This control initially applied to China and was extended to Russia in September 2014. BIS is now expanding the scope of this rule again so that it also applies to Venezuela.

Shipments of items removed from eligibility for export or reexport under a license exception or without a license (i.e., under the designator 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 Nov. 7 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previously applicable license exception or NLR so long as they are exported or reexported before Dec. 8. Any such items not actually exported or reexported before midnight on Dec. 8 will require a license in accordance with this rule.

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