Background

The Bureau of Industry and Security has issued a final rule that, effective Dec. 28, 2020, eased controls on exports to Cyprus, Mexico, and Ukraine.

This rule moved Ukraine from Country Group D:1 in the Export Administration Regulations to Country Group B. According to BIS, this change will have the following impacts.

- a less-restrictive licensing policy for the export and reexport to Ukraine of items listed on the Commerce Control List and controlled for national security reasons

- applications to export such goods to Ukraine will no longer be subject to the case-by-case licensing policy in 15 CFR 742.4(b)(2) and will instead be subject to a licensing policy of approval per 15 CFR 742.4(b)(1)(i)

 - restrictions on the export, reexport, and transfer (in-country) of certain microprocessors to military end-uses and end-users no longer apply to Ukraine

- licensing requirements for reexports of the foreign-produced direct product of U.S.-origin technology and software to Ukraine no longer apply

- the following license exceptions are generally available for Ukraine: LVS (shipments of limited value), TMP (temporary imports, exports, reexports, and transfers (in-country)), RPL (servicing and replacement of parts and equipment), GFT (gift parcels and humanitarian donations), BAG (baggage), AVS (aircraft and vessels), APR (additional permissive reexports), and ENC (encryption, commodities, software, and technology)

- exports to Ukraine are not eligible for license exceptions GBS (shipments to Country Group B countries) or TSR (technology and software under restriction).

This rule also adds Cyprus and Mexico to Country Group A:6, which makes license exception STA (strategic trade authorization) available for exports, reexports, and transfers (in-country) of lesser-sensitivity items controlled for national security reasons to these countries.

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

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