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Exports of Controlled Items to Crimea Generally Prohibited Under BIS Rule

Thursday, January 29, 2015
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Jan. 29, imposes a license requirement for the export and reexport to the Crimea region of Ukraine, and the transfer within Crimea, of all items subject to the Export Administration Regulations other than food and medicine designated as EAR99. This rule establishes a presumption of denial for all such shipments except with respect to items authorized under Office of Foreign Assets Control General License No. 4 (agricultural commodities, medicine, medical supplies and replacement parts), which BIS will review on a case-by-case basis.

However, this rule allows covered exports, reexports or transfers (in-country) without a license if a transaction meets all the applicable terms and conditions of any of the following license exceptions.

- TMP for items for use by the news media

- GOV for items for personal or official use by personnel and agencies of the U.S. government, the International Atomic Energy Agency or the European Atomic Energy Community

- GFT for gift parcels and humanitarian donations

- TSU for operation technology and software for lawfully exported commodities and sales technology

- BAG for exports of items by individuals leaving the United States as personal baggage

- AVS for civil aircraft and vessels

Shipments of items removed from eligibility for a license exception or export or reexport without a license (NLR) as a result of this final rule that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport on Jan. 29 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previous license exception eligibility or NLR so long as they are exported or reexported before Feb. 1. Any such items not actually exported or reexported before midnight on Feb. 1 will require a license in accordance with this rule.

If an export, reexport or transfer (in-country) does not qualify for the above savings clause but does fall within the scope of OFAC’s General License No. 5 (authorizing certain activities necessary to wind down operations involving Crimea), an applicant may note this fact in its BIS license application either under block 24 or in a separate attachment, and BIS will consider it as part of the license review process.

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