Source: http://learnexportcompliance.bluekeyblogs.com/category/topics/export-license/page/2/
Timestamp: 2018-01-16 13:11:16
Document Index: 424883225

Matched Legal Cases: ['§ 740', '§ 748', '§ 748', '§ 748', '§ 748', '§ 748', '§ 745', '§ 748', '§ 748', '§ 748', '§ 748', '§ 748', 'art 762', '§ 762', '§ 762', '§ 748', '§ 742', '§ 742', '§ 748', 'art 744', 'art 744', 'art 748', 'art 748', 'art 744']

Export License « ECTI Blog
Archive for the ‘Export License’ Category
EAR Expands License Application Support Document Requirements for Hong Kong
Effective April 19, 2017, the Bureau of Industry and Security (BIS) will require persons planning on exporting and reexporting to Hong Kong any items subject to the Export Administration Regulations (EAR) and controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear nonproliferation (NP column 1), or chemical and biological weapons (CB) reasons to obtain, prior to the export or reexport, a copy of a Hong Kong import license or a written statement from the Hong Kong Government that such a license is not required. The purpose of this change is to require that the Hong Kong Government issue an import license as an acknowledgement that sensitive EAR-controlled items are entering Hong Kong and as an agreement to prevent unauthorized reexport or transfer of those items to prohibited destinations. Interestingly, the prohibited destination that most concerns the US is the People’s Republic of China (PRC). The EAR treats Hong Kong as a separate “country” from the PRC even though the PRC, the United Nations, and nearly everybody else in the world considers Hong Kong to be part of the PRC because Hong Kong is part of the PRC.
Leaving behind the interesting point that the EAR treats Hong Kong as if it is not part of the PRC, there are a lot of details in this new rule. In addition what was described above, this rule will also require persons planning on reexporting from Hong Kong any item subject to the EAR and controlled for NS, MT, NP column 1, or CB reasons to obtain a Hong Kong export license or a statement from Hong Kong government that such a license is not required. This final rule will be effective April 19, 2017.
In § 740.2, add paragraphs (a)(19) and (20) to read as follows:
(19) The exporter or reexporter to Hong Kong of any item subject to the EAR and controlled on the CCL for NS, MT, NP Column 1, or CB reasons has not received one of the following with respect to the item:
(i) A copy of an import license issued to the Hong Kong importer by the Government of the Hong Kong Special Administrative Region, pursuant to the Hong Kong Import and Export (Strategic Commodities) Regulations, that covers all items to be exported or reexported pursuant to that license exception for which a Hong Kong import license is required and that is valid on the date of the export or reexport that is subject to the EAR; or
(ii) A copy of a written statement issued by the Government of the Hong Kong Special Administrative Region that no import license is required to import into Hong Kong the item(s) to be exported or reexported. The statement may have been issued directly to the Hong Kong importer or it may be a written statement available to the general public. The statement may be used for more than one export or reexport to Hong Kong so long as it remains an accurate statement of Hong Kong law.
(20) The reexporter from Hong Kong of any item subject to the EAR controlled on the CCL for NS, MT, NP column 1, or CB reasons has not received one of the following with respect to the item:
(i) An export license issued by the Government of the Hong Kong Special Administrative Region, pursuant to the Hong Kong Import and Export (Strategic Commodities) Regulations, that covers all items to be reexported pursuant to that license exception for which a Hong Kong export license is required and that is valid on the date of the reexport that is subject to the EAR; or
(ii) A copy of a written statement issued by the Government of the Hong Kong Special Administrative Region that no Hong Kong export license is required for the item(s) to be rexported.
The statement may have been issued directly to the Hong Kong reexporter or it may be a written statement available to the general public. The statement may be used for more than one reexport from Hong Kong so long as it remains an accurate statement of Hong Kong law.
748.9(b) is amended by revising the section heading, revising paragraph (b) and all notes to paragraph (b), and adding two sentences to the end paragraph of (e)(1), to read as follows:
§ 748.9 Support documents for evaluation of foreign parties in license applications and/or for promoting compliance with license requirements.
(b) Requirements to obtain support documents for license applications. Unless an exception in paragraph (c) of this section applies, a support document is required for certain license applications for:
(1) The People’s Republic of China (PRC) other than the Hong Kong Special Administrative Region (see §§ 748.10 and 748.11(a)(2));
(2) ‘‘600 Series Major Defense Equipment’’ (see § 748.11);
(3) Firearms and related commodities to member countries of the Organization of American States (see § 748.12); and
(4) The Hong Kong Special Administrative Region of the People’s Republic of China (see § 748.13).
Note 1 to Paragraph (b): On a case-by-case basis, BIS may require license applicants to obtain a support document for any license application.
Note 2 to Paragraph (b): For End-Use Certificate requirements under the Chemical Weapons Convention see § 745.2 of the EAR.
(1) * * * The documents issued by the Government of the Hong Kong Special Administrative region that are required pursuant to § 748.13 are not used to evaluate license applications. They must be obtained before shipment and need not be obtained before submitting a license application.
Redesignate § 748.13 as § 748.14 and add new § 748.13 to read as follows:
§ 748.13 Hong Kong import and export licenses.
(a) Requirement to obtain the document—(1) Exports and reexports to Hong Kong. An exporter or reexporter must obtain the documents described in paragraph (a)(1)(i) or (a)(1)(ii) of this section before using a license issued by BIS to export or reexport to Hong Kong any item subject to the EAR and controlled on the CCL for NS, MT, NP column 1, or CB reasons. Collectively, the documents issued by Hong Kong must cover all of the items to be exported or reexported pursuant to a license.
(i) A copy of an import license issued to the Hong Kong importer by the Government of the Hong Kong Special Administrative Region, pursuant to the Hong Kong Import and Export (Strategic Commodities) Regulations, that covers the items to be exported or reexported pursuant to that BIS license for which a Hong Kong import license is required and that is valid on the date of the export or reexport that is subject to the EAR; or
(ii) A copy of a written statement issued by the Government of the Hong Kong Special Administrative Region that no import license is required to import into Hong Kong the item(s) to be exported or reexported to Hong Kong. The statement may have been issued directly to the Hong Kong importer or it may be a written statement available to the general public. The statement may be used for more than one export or reexport to Hong Kong so long as it remains an accurate statement of Hong Kong law.
(2) Reexports from Hong Kong. No license issued by BIS may be used to reexport from Hong Kong any item subject to the EAR controlled on the CCL for NS, MT, NP column 1, and/or CB reasons unless the reexporter has received either:
(i) An export license issued by the Government of the Hong Kong Special Administrative Region, pursuant to the Hong Kong Import and Export (Strategic Commodities) Regulations, that covers all items to be rexported pursuant to that BIS license for which a Hong Kong export license is required and that is valid on the date of the reexport that is subject to the EAR; or
(ii) A copy of a written statement issued by the Government of the Hong Kong Special Administrative Region that no export license is required from Hong Kong for the item(s) to be reexported. The statement may have been issued directly to the Hong Kong reexporter or it may be a written statement available to the general public. The statement may be used for more than one reexport from Hong Kong so long as it remains an accurate statement of Hong Kong law.
(b) Recordkeeping. The documents required to be obtained by paragraph (a) of this section must be retained and made available to the U.S. Government upon request in accordance with part 762 of the EAR.
In § 762.2 remove the word ‘‘and’’ from the end of paragraph (b)(52); remove the period from the end of paragraph (b)(53) and add in its place a semicolon followed by the word ‘‘and’’; add paragraph (b)(54) to read as follows:
§ 762.2 Records to be retained.
(b) * * * (54) § 748.13, Certain Hong Kong import and export licenses.
Posted in 2017, BIS, Chemical & Biological Weapons, Export License, Licensing, Nonproliferation & Nuclear | Comments Off on EAR Expands License Application Support Document Requirements for Hong Kong
BIS Announces Favorable Export License Approval Policy for India
Effective January 19, 2017, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to put in place a favorable export license approval policy for military items destined for India. BIS stated that it generally will approve license applications subject to national security controls or regional stability controls to implement state that the US commitments related to the US and India becoming Major Defense Partners (according to the India-US Joint Statement of June 7, 2016).
More specifically, the following amendments have been made:
742.4 is amended by adding paragraph (b)(8) to read as follows:
§ 742.4 National security.
(8) For India, there is a general policy of approval for license applications to export, reexport, or transfer items, including ‘‘600 series’’ items, for civil or military end uses in India, for ultimate end use by the Government of India, for reexport to countries in Country Group A:5, or for return to the United States, so long as such items are not for use in nuclear, ‘‘missile,’’ or chemical or biological weapons activities.
742.6 is amended by adding paragraph (b)(7) to read as follows: § 742.6 Regional Stability.
(7) For India, there is a general policy of approval for license applications to export, reexport, or transfer items, including ‘‘600 series’’ items, for civil or military end uses in India, for ultimate end use by the Government of India, for reexport to countries in Country Group A:5, or for return to the United States, so long as such items are not for use in nuclear, ‘‘missile,’’ or chemical or biological weapons activities.
748.15 is amended by revising paragraphs (a)(2) and (d) introductory text to read as follows:
§ 748.15 Authorization Validated End-User (VEU).
(2) In evaluating an end user for eligibility under authorization VEU, the ERC will consider a range of information, including such factors as: The entity’s record of exclusive engagement in appropriate end-use activities; the entity’s compliance with U.S. export controls; the need for an on- site review prior to approval; the entity’s capability of complying with the requirements of authorization VEU; the entity’s agreement to on-site reviews by representatives of the U.S. Government to ensure adherence to the conditions of the VEU authorization; and the entity’s relationships with U.S. and foreign companies. In addition, when evaluating the eligibility of an end user, the ERC will consider the status of export controls and the support and adherence to multilateral export control regimes of the government of the eligible destination.
(d) End-use restrictions. Items obtained under authorization VEU in China may be used only for civil end uses and may not be used for any activities described in part 744 of the EAR. Items obtained under authorization VEU in India may be used for either civil or military end uses and may not be used for any activities described in part 744 of the EAR. Exports, reexports, or transfers made under authorization VEU may be made to an end user listed in Supplement No. 7 to this part only if the items will be consigned to and for use by the validated end user. Eligible end-users who obtain items under VEU may only:
Paragraph (7)(ii) of the section titled Required Information for Validated End-User Authorization Requests in Supplement No. 8 to part 748 is revised to read as follows:
Supplement No. 8 to Part 748— Information Required in Requests for Validated End-User (VEU) Authorization
Required Information for Validated End-User Authorization Requests
(ii) Understands and will abide by all authorization VEU end-use restrictions, including the requirement that items received under authorization VEU will only be used for authorized end-uses and may not be used for any activities described in part 744 of the EAR;
Federal Register: https://www.gpo.gov/fdsys/pkg/FR-2017-01-19/pdf/2017-00439.pdf
Posted in 2017, BIS, Export License, India | Comments Off on BIS Announces Favorable Export License Approval Policy for India
Routed export transactions are a much discussed topic. Therefore, we are revisiting this blog topic to give some helpful tips on remaining compliant if you’re involved in a routed export transaction. We’ll also take a look at an example. For those not familiar with routed export transactions, it is when the Foreign Principal Party in Interest (FPPI) directs the movement of the goods out of the U.S. and authorizes a U.S. agent to file the Electronic Export Information (EEI) on their behalf.
Below are some helpful tips to keep in mind:
Communication is key! Having conversations with all parties involved before the transaction occurs will make a difference in understanding roles and responsibilities to prevent filing errors in the Automated Export System (AES);
Refer to Sections 30.3(e), (e)(1) and (e)(2) of the Foreign Trade Regulations (FTR) for the definition and more information on the responsibilities of the parties involved in a routed transaction;
Utilize the Census Bureau resources; and
View sample templates for the power of attorney and written authorization on our website here or here.
Routed Export Transaction Example:
A U.S. Principal Party in Interest (USPPI) sells two paintings to a FPPI located in Italy. Keep in mind, the USPPI is defined as the person or legal entity in the U.S. that receives the primary benefit, monetary or otherwise, from the transaction. The FPPI instructs the USPPI to send the paintings to an agent located in Florida. The FPPI authorizes the agent to file the EEI in the AES on their behalf and ship the goods to Italy. In this example, each party has important responsibilities that are outlined below.
Provides the agent, who is authorized to file the EEI, with a power of attorney or written authorization, the authorization comes after the FPPI provides the POA or written authorization.
Provides the agent with the data elements, such as Schedule B number, value, quantity, etc., specified in Section 30.3(e)(1) of the FTR.
Retains documentation to support the information provided to the authorized agent for five years from the date of export.
Requests a copy of the data elements that were filed in the AES and the power of attorney or written authorization.
Ensures that a power of attorney or written authorization is received from the FPPI.
Files the EEI in the AES.
Provides the Internal Transaction Number or exemption code if filing is not required to the carrier.
Retains documentation pertaining to the shipment for 5 years.
If requested, provides the USPPI with a copy of the USPPI data elements that were filed in the AES and the power of attorney or written authorization from the FPPI. For further questions, please contact the Trade Regulations Branch (TRB) at 1-800-549-0595, option 3 or email us at itmd.askregs@census.gov
Posted in 2017, AES, Export License, FTS/Census | Comments Off on Understanding Routed Export Transactions