Background

The Bureau of Industry and Security has issued a final rule that, effective Aug. 29, allows the agency to renew temporary denial orders for a longer period.

TDOs suspend the right of named parties to participate in transactions subject to the Export Administration Regulations and are issued to prevent imminent or ongoing export control violations. Currently TDOs can be renewed for up to 180 days at a time if BIS can demonstrate that doing so is necessary to prevent a violation, and BIS states that this rule would not alter that process.

Instead, the rule allows BIS to also request the renewal of a TDO for up to a year if it can  demonstrate that a subject party has engaged in a pattern of repeated, ongoing, and/or continuous apparent violations of the EAR. Examples include when a party has acted in apparent blatant disregard of the EAR, attempted to circumvent or otherwise appeared to violate the restrictions of a TDO or the EAR, or otherwise acted in a manner demonstrating a pattern of apparent noncompliance. In making such a request BIS would not only have to demonstrate the likelihood of future imminent violations but also include specific facts demonstrating past apparent violations.

For more information on this rule or other export control issues, please contact attorney Kristine Pirnia.

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