Background

The Bureau of Industry and Security has issued a final rule that, effective Dec. 23, 2020, amended the Export Administration Regulations to specify that Hong Kong will be treated as part of China for export control purposes. As a result, Hong Kong is subject to the same license requirements, license exceptions, and other applicable provisions under the EAR as China. However, some EAR provisions will retain references to Hong Kong because it still operates separate customs and export control systems.

BIS states that among other things this rule will make the following changes.

- expand the licensing requirements for reexports of the foreign-produced direct product of U.S.-origin technology and software to Hong Kong

- restrict the export, reexport, and transfer (in-country) of certain microprocessors to military end-uses and end-users in Hong Kong

- subject exports to persons in Hong Kong to the military end-use and end-user provisions of 15 CFR 744.21

- apply the electronic export information filing requirement for China to exports to Hong Kong for purposes of the EAR even if Automated Export System requirements state that the destination filed in EEI is to be listed as Hong Kong

- makes end-users in Hong Kong eligible to be added as validated end-users

However, BIS notes that a China-issued end-user statement is not required for license applications for exports or reexports to Hong Kong even though Hong Kong is considered part of China elsewhere in the EAR.

For more information on the impacts of this rule, please contact Kristine Pirnia.

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