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Export Restrictions Eased on Certain EAR-Controlled Goods

Monday, January 23, 2017
Sandler, Travis & Rosenberg Trade Report

Entity List. The Bureau of Industry and Security has issued a final rule removing four persons in Germany, one person in Hong Kong, one person in India, one person in Singapore, one person in Switzerland, and two persons in the United Arab Emirates from the list of entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. These changes eliminate the associated licensing requirements and limitations on the use of license exceptions for exports, reexports, and transfers (in-country) to these entities. However, they do not eliminate the need to apply for export, reexport, or in-country transfer licenses required by other provisions of the EAR or other obligations under other parts of the EAR.

India. BIS has issued a final rule establishing a licensing policy of general approval for exports or reexports to or transfers within India of items subject to the EAR (including 600 series military items) for civil or military end-uses in India or for ultimate end-use by the government of India, for reexport to a Country Group A:5 country, or for return to the U.S. so long as such items are not for use in nuclear, missile, or chemical or biological weapons activities.

This rule also allows items obtained under authorization VEU (validated end-user) in India to be used for either civil or military end uses other than those that are for use in nuclear, missile, or chemical or biological weapons activities.

BIS is making these changes pursuant to a June 2016 U.S.-India joint statement that recognized the two countries as major defense partners.

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