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BIS Clarifies Requirements for License Exceptions GOV and STA

Wednesday, November 01, 2017
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that (a) makes three clarifications to license exception GOV (governments, international organizations, international inspections under the Chemical Weapons Convention, and the International Space Station) and (b) adds five notes and makes other minor clarifications to license exception STA (strategic trade authorization). BIS states that these clarifications do not change existing regulatory requirements for the use of these license exceptions; instead, they are intended to assist exporters new to the Export Administration Regulations, including exporters of items that have recently moved to the EAR from the International Traffic in Arms Regulations, by providing answers to frequently-asked questions based on existing agency interpretive practice.

License Exception GOV

- “contractor support personnel” is limited to those individuals providing support within a U.S. government-owned or -operated facility or under the direct supervision of a U.S. government employee and does not include private security contractors

- “temporary” in the phrase “temporary export, reexport, or transfer (in-country)” means that within no more than four years from the date of an item’s initial export, reexport, or transfer it must be returned to the exporter, reexporter, or transferor or its disposition otherwise authorized (e.g., pursuant to a license or another license exception) in accordance with the EAR

- civil intergovernmental organizations in which membership is limited to national governments that are cooperating governments are also considered cooperating governments to which certain exports, reexports, and transfers are authorized under this license exception

License Exception STA

- explains why transfers are included in license exception STA and describes how this term is applied in the context of this license exception

- 600 series items authorized under this license exception must be provided to an eligible ultimate end-user to stay in compliance with the original authorization

- replaces the undefined terms “shipment” and “shipped” with the terms “export” or “reexport or transfer”

- prior to making any export, reexport, or transfer, including those that are intangible, the exporter, reexporter, or transferor must ensure that a prior consignee statement has been obtained

- when multiple consignees who form a network engaged in a production process (or other type of collaborative activity) will be receiving items under this license exception, it is existing BIS policy to allow the use of a single consignee statement identifying multiple consignees provided all applicable requirements are met

- excludes Country Group A:5 and A:6 government consignees from the requirement to sign or provide a prior consignee statement to an exporter, reexporter, or transferor under this license exception

- intangible exports, reexports, and transfers under this license exception are not subject to certain notification requirements

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