BIS amends EAR to implement Australia Group decisions

On June 17, 2020 the Department of Commerce, Bureau of Industry and Security (BIS)(1) published a final rule(2) that updates the Export Administration Regulations (EAR) to implement decisions made at the February 2020 Australia Group(3) meeting. The rule amends Export Control Classification Numbers (ECCNs) 1C350, 1C351 and 2B352 on the Commerce Control List (CCL) by:

• Adding twenty-four (24) precursor chemicals, as well as mixtures in which at least one of these chemicals constitutes 30% or more of the weight of the mixture to ECCN 1C350.d;

• Amending ECCN 1C351 by adding Middle East respiratory syndrome-related coronavirus (MERS-related coronavirus); and

• Amending ECCN 2B352 by adding a technical note to indicate that cultivation chamber holding devices controlled in 2B352.b.2.b include single-use cultivation chambers with rigid walls.

The following twenty-four (24) precursor chemicals are now controlled under ECCN 1C350:

• (C.A.S. #589–57–1) Diethyl chlorophosphite;

• (C.A.S. #762–77–6) Ethyl chlorofluorophosphate;

• (C.A.S. #1498–51–7) Ethyl dichlorophosphate;

• (C.A.S. #460–52–6) Ethyl difluorophosphate;

• (C.A.S. #754–01–8) Methyl chlorofluorophosphate;

• (C.A.S. #677–24–7) Methyl dichlorophosphate;

• (C.A.S. #22382–13–4) Methyl difluorophosphate;

• (C.A.S. #14277–06–6) N,NDiethylacetamidine;

• (C.A.S. #53510–30–8) N,NDiethylbutanamidine;

• (C.A.S. #90324–67–7) N,NDiethylformamidine;

• (C.A.S. #1342789–47–2) N,NDiethylisobutanamidine;

• (C.A.S. #84764–73–8) N,NDiethylpropanamidine;

• (C.A.S. #1315467–17–4) N,NDiisopropylbutanamidine;

• (C.A.S. #857522–08–8) N,NDiisopropylformamidine;

• (C.A.S. #2909–14–0) N,NDimethylacetamidine;

• (C.A.S. #1340437–35–5) N,NDimethylbutanamidine;

• (C.A.S. #44205–42–7) N,NDimethylformamidine;

• (C.A.S. #321881–25–8) N,NDimethylisobutanamidine;

• (C.A.S. #56776–14–8) N,NDimethylpropanamidine;

• (C.A.S. #1339586–99–0) N,NDipropylacetamidine;

• (C.A.S. #1342422–35–8) N,NDipropylbutanamidine;

• (C.A.S. #48044–20–8) N,NDipropylformamidine;

• (C.A.S. #1342700–45–1) N,NDipropylisobutanamidine; and

• (C.A.S. #1341496–89–6) N,NDipropylpropanamidine.

Note: Mixtures in which at least one of the chemicals listed in ECCN 1C350.d constitutes 30% or more of the weight of the mixture are also controlled under this ECCN.

Contact the professionals at GCSG for more information on this development.

References

1. Bureau of Industry and Security: “Home Page”

2. Federal Register: “85 FR 36483-36492” - June 17, 2020

3. Australia Group: “Home Page”

BIS adds Hong Kong documentation requirements for exports/re-exports

On January, 19, 2017 the Department of Commerce, Bureau of Industry and Security (BIS) published a final rule (82 FR 6216-6218) which will require, in certain cases, that documents be obtained prior to exporting to Hong Kong or re-exporting from Hong Kong (HK).  BIS issued this rule to provide more assurance that items subject to multilateral control regimes, that pass through HK, are appropriately authorized to their final destination. 

Export Administration Regulation (EAR) regulated items, controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear non-proliferation (NP column 1), or chemical and biological weapons (CB) will now be required to obtain, prior to export or re-export, a copy of a Hong Kong import license.  If a license is not required the exporter or re-exporter will be required to obtain a statement from the Hong Kong government that a license is not required.

This rule will be effective on April 19, 2017.

Key Link(s):

• Commerce Control List
• Federal Register Notice: Support Document Requirements With Respect to Hong Kong
• Hong Kong's Trade and Industry Department
• The Australia Group
• The Missile Technology Control Regime
• The Nuclear Suppliers Group
• The Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies
• 15 CFR 734.13 - 734.14 (Export and Re-Export) 
• 15 CFR 740 (License Exceptions)
• 15 CFR 748 (Application Classification Advisory and License)
• 15 CFR 762 (Recordkeeping)   

BIS Harmonization of Destination Control Statements

On August 17, 2016 the Department of Commerce, Bureau of Industry and Security (BIS) published a final rule (81 FR 54721-54732) that implements changes recommended in a May 22, 2015 proposed rule (80 FR 29551-29554).  The rule revises the destination control statement in Sect 758.6 of the Export Administration Regulations (EAR).  The rule harmonizes the EAR statement with the destination control statement required for the export of items subject to the International Traffic in Arms Regulations (ITAR). 

The revised destination control statement reads as follows:

"These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end user(s) herein identified.  They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations"

The rule is effective November 15, 2016.

Key Link(s):

• May 22, 2015, 15 CFR 758, EAR: Harmonization of the Destination Control Statements - Proposed Rule
• August 17, 2016, 15 CFR 758, EAR: Harmonization of the Destination Control Statements - Final Rule
• U.S. Department of Commerce, Bureau of Industry and Security