BIS offers clarification on the use of STA & GOV license exceptions

On Nov 1, the US Bureau of Industry and Security has issued a final rule offering clarifications to the Export Administration Regulations (EAR), specifically on the use of two license exceptions, Strategic Trade Authorization (STA) and Governments, International organizations, International inspections under the Chemical Weapons Convention and the International Space Station(GOV). Although no significant changes were made to the license exceptions in practice, Philip Sidney noted two know-how updates regarding STA for non-US re-exporters:

 

  1. Less-detailed information required on a ‘prior consignee statement’

Under paragraph (d)(2)(i), a prior consignee statement must contain description of the item and the applicable ECCN(s) of the shipped items. However the final rule offers flexibility to concerned party as BIS clarifies that they only need to provide a generic item description and exclude the make and model number of the said item.  An accepted example of product description by BIS is as follows; “aircraft parts and components classified under ECCN 9A610”.

 

  1. Relief with respect to recordkeeping requirements for intangible (re)exports

BIS has specified that intangible exports, re-exports and transfers are now not subject to notification requirements under paragraph (d)(3), nor to log and record maintenance requirements under paragraph (d)(2), thus providing considerable relief from recordkeeping requirements. In addition, BIS states that license exception STA is not applicable to intangible exports, re-exports, transfers and that this rule is a re-affirmation of an existing agency practice and interpretation.

Clarification to EAR for the use of license exceptions can be found here.

 

PHILIP SIDNEY HEADING FOR WASHINGTON D.C.

Philip Sidney’s Managing Founder, Gert Demmink Two weeks following the Export Controls conference in Munich, Philip Sidney will be making its presence in Washington D.C and contribute its know-how at … Read more

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