Important changes for BIS license applications

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On October 6th, 2020, Bureau of Industry Security (BIS) issued an important final rule if you are an exporter of controlled goods and require an export license to move your goods. This revision was necessary to clarify to the exporting community that licensing decisions are based in part upon U.S. Government assessments of whether items may be used to engage in or enable violations or abuses of, human rights. This includes those involving censorship, surveillance, detention, or excessive use of force. This update was effective on October 6, 2020, since the notice served as a final rule.

This final rule also amends EAR regulation §742.7 by adding a new subparagraph (b)(2) to make clear that BIS will consider the licensing policy set forth in new subparagraph (b)(1) when reviewing items controlled for reasons other than CC with the exception of items controlled for short supply. This revision furthers the foreign policy interests of the United States pertaining to the prevention of human rights violations and abuses by helping to ensure that items controlled for reasons other than CC are not exported or re-exported in support of human rights violations or abuses.

Exporters who export to countries or regions in which possible human rights have possibly been violated should develop an additional due diligence step on customers and their end uses prior to filing an export license application, and be able to address any potential human rights risks that might appear in their license applications

To review the full final rule please click here.

As always, if you have any questions regarding this rule change please do not hesitate to contact me.