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New Restrictions on Exports of EAR-Regulated Goods to Foreign Entities

Thursday, December 15, 2016
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Dec. 15, adds seven persons in Pakistan to the list of entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. BIS has determined that these entities have been involved in actions contrary to U.S. national security or foreign policy interests.

For these seven entities there will be a license requirement for all items subject to the EAR and a license review policy of presumption of denial. The license requirement applies to any transaction in which items are to be exported, reexported, or transferred (in-country) to any of these entities or in which they act as purchaser, intermediate consignee, ultimate consignee, or end-user. In addition, no license exceptions are available for exports, reexports, or transfers (in-country) to these entities.

Shipments of items removed from eligibility for a license exception or export or reexport without a license (NLR) as a result of this rule that were en route aboard a carrier to a port of export or reexport on Dec. 15 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previous eligibility for a license exception or NLR.

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