The Bureau of Industry and Security has issued an interim final rule imposing new export controls on any U.S. technologies and specific activities of U.S. persons who may be supporting foreign military intelligence end-uses and end-users in China, Cuba, Russia, Venezuela, and terrorist-supporting countries. This rule also enhances existing export controls to prevent U.S. persons from supporting unauthorized weapons of mass destruction programs, including weapons delivery systems and production facilities. This rule will be effective as of March 16 and comments on it are due by March 1.
For more information on this rule, please contact Kristine Pirnia.
Specific changes to the Export Administration Regulations made by this rule include the following.
- imposes additional license requirements for exports, reexports, and transfers (in-country), as well as specific activities of U.S. persons, in connection with certain military intelligence end-uses and end-users
- clarifies that license requirements under the EAR for specific activities of U.S. persons apply even when the items at issue are not subject to the EAR
- establishes restrictions on transactions intended to circumvent license requirements for listed entities
- expands the scope of activities subject to chemical and biological weapons and rocket systems and unmanned aerial vehicles end-use controls
According to a BIS press release, the new controls prevent U.S. persons from supporting certain foreign military intelligence services, such as through brokering the sale of foreign-origin items or providing maintenance, repair, or overhaul services. BIS is also expanding the license requirement for exports, reexports, and transfers (in-country) to military intelligence end-uses and end-users in China, Russia, and Venezuela to apply to all items subject to the EAR. These controls will also apply to terrorist-supporting and embargoed countries.
Similarly, BIS is revising end-use controls related to chemical and biological weapons, rocket systems, and UAVs to ensure that any U.S. activity related to the operation, installation, maintenance, overhaul, repair, or refurbishing of such items triggers a catch-all license requirement. BIS also is establishing a framework for informing exporters, re-exporters, and transferors of items subject to the EAR that a license is required for specific transactions intended to circumvent Entity List-based license requirements or for specific foreign parties assisting listed entities in circumventing such license requirements.
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