Exporters of military end use products to require expanded licensing requirements

U.S. exporters who ship goods abroad to entities and governments for military end use will have a longer list of paperwork required to do so after a recent amendment to Export Administration Regulations (EAR) by the U.S. government.

The rule ensures that foreign militaries and intelligence services hostile to the U.S. do not gain access to the resources they need to harm U.S. interests (85 FR 23459).  This rule expands the licensing requirements for China, Russia, or Venezuela to include ‘‘military end users,’’ in addition to ‘‘military end use.’’  It broadens the list of items for which the licensing requirements and review policy apply and expands the definition of ‘‘military end use.’’ (See BIS MEU FAQ).

Amendments to the rule expand license requirements on exports, re-exports and in-country transfers of military-use items or goods destined for military end users located in Burma (Myanmar), People’s Republic of China (China), Russia, or Venezuela. (86 FR 18436).

The rule also revised the Electronic Export Information filing requirements in the Automated Export System for exports to China, Russia, and Venezuela (15 CFR §758.1 (b)(10 & (g)(3)).

Exporters are responsible for ensuring their commodities aren’t intended for military use or for a military end user in Burma, China, Russia, or Venezuela. Exporters must confirm the intended end use or end user when exporting commodities.

Shipping instructions and/or documentation must include, at a minimum, the applicable export control information, including the Export Control Classification Number (ECCN) or U.S. Munitions List (USML) Category Code, Licensing Exception or Exemption, Value, Country of Origin, and the Schedule B/HTSUS to ensure export reporting obligations are met. (15 CFR §30.6).

Exporters must declare whether their goods are intended for a military end use or a military end user in Burma (Myanmar), China, Hong Kong, Russia, or Venezuela.

Livingston Freight clients with questions about these updates can reach out to their Livingston Freight managers directly.