By Maya lester – April 28, 2020
The US Commerce Dept has announced amendments to technology export controls relating to China, Russia and Venezuela in response to concerns that goods intended for civilian use are being diverted for military applications. Final rules (1) and (2) below, published in the federal register today (28 April 2020) come into effect in 60 days, 26 June 2020. See press release.
- Expansion of export, re-export and transfer controls for military end user/end users in China, Russia and Venezuela. Final Rule.
The Export Administration Regulations (EAR) have been expanded to:
- Impose licensing requirements on exports/re-exports/transfers of US technology to China which could be used in the development of weapons, military aircraft or surveillance equipment, when the exports are intended for military end uses and military end users. This means that exports to a civilian company that provides support to the operation of Chinese military items will now require a licence. This rule already applies to Venezuelan and Russian exports/re-exports/transfers;
- Broaden the scope of controlled exports to include items relating to telecommunications, the aerospace industry, information security, semiconductors, sensors and lasers;
- Amend the definition of “military use” to encompass the support or contribution to the operation, installation, maintenance, repair, overhaul, refurbishing, development or production of military items; and
- Impose a requirement to file declarations for all US exports to China, Russia or Venezuela regardless of the value of the shipment.
2. Removal of Civil Use Licence Exception
The Final Rule removes the licence exception for civil-end users (CIV). It imposes licence requirements on national security-controlled items for export to civilian end-users in China, Russia, Venezuela and other D:1 countries (see list).
3. Proposed rule
The Commerce Dept has published a proposed rule which would amend the EAR to remove provisions authorising the re-export of controlled US technology to D:1 countries (countries of concern for national security reasons, which includes China) by non-US countries. Non-US countries would have to seek approval from their own governments as well as the US government to do so. The proposed rule is open for comment.
Featured image: United States Secretary of Commerce Wilbur Ross during a session at the World Economic Forum (WEF) in Davos, Switzerland. January 22, 2020. REUTERS / Denis Balibouse