2020-12-23

Jan 8, 2021 On December 23, 2020, BIS published a rule (85 FR 83793) adding the the U.S. government as “military end users” subject to EAR §744.21.

2021-01-27 2020-12-23 and Security (BIS) took effect, further limiting exports of certain items to China, Russia, and Venezuela. The rule, which was issued on April 28, 2020, broadens Part 744.21 of the Export Administration Regulations (EAR) that imposes certain heightened military end-use and end-user controls involving the export, reexport, and transfer BIS amended Section 744.21 of the EAR to expand the licensing requirement for exports, reexports, and transfers (in-country) of items intended for certain military end uses and military end users in a number of significant ways. The new rule will take effect on June 29, 2020. BIS amended EAR § 744.21 to require a license for the export, reexport, or transfer (in-country) of any item that is (a) subject to the EAR and (b) specifically listed in Supplement No. 2 to EAR Part 744 if the exporter, reexporter, or transferor has knowledge.

Section 744.22 imposes restrictions on exports, reexports, and transfers (in-country) for a military Revisions to EEI Filing Requirements Pursuant to Revisions to Section 744.21 (China/Russia/Venezuela military end use/end user rule). The Electronic Export Information (EEI) filing requirement for items subject to Supplement No. 2 to Part 744 destined for China, Russia, and Venezuela will become effective on June 29, 2020. 744.21 Restrictions on certain 'military end use' or 'military end user' in the People's Republic of China, Russia, or Venezuela. § 744.21 Restrictions on certain 'military end use' or 'military end user' in the People's Republic of China, Russia, or Venezuela. Link to an amendment published at 86 FR 4873, Jan. 15, 2021. (a) General prohibition.

Rather, this rule relocates those requirements to the ‘License Requirements” section in the CCL in order to help the public comply with EAR § 744.21. BIS’s position is that such items require a license for export to China, Russia or Venezuela in order to support the US policy of regional stability in those areas.

§ 744.21. Jul 1, 2020 Expands the licensing requirements under Section 744.21 of the EAR (15 CFR parts 730–774) for China to include “military end users” and Jun 18, 2020 On April 28, 2020, the BIS published two final rules and one the following significant changes to the controls set forth in EAR §744.21:. Jan 8, 2021 On December 23, 2020, BIS published a rule (85 FR 83793) adding the the U.S. government as “military end users” subject to EAR §744.21.

In April 2020, BIS amended the EAR § 744.21 to tighten military end-use and end-user controls against China, Russia, and Venezuela. As amended at that time, EAR § 744.21 imposed a license requirement on the export, reexport, and transfer (in-country) of items listed in Supplement No. 2 to Part 744 of the EAR to military end-uses or military end-users in China, Russia, or Venezuela.

5 See 15 C.F.R. § 744.21.

§ 744.21(b)(1) of the EAR, BIS may designate entities subject to this additional prohibition under paragraph (b) that have been determined by the ERC to be a ‘military end user’ pursuant to § 744.21. These entities will be added to supplement no.
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5 See 15 C.F.R. § 744.21. § 744.21(b)(1) of the EAR, BIS may designate entities subject to this additional prohibition under paragraph (b) that have been determined by the ERC to be a ‘military end user’ pursuant to § 744.21. These entities will be added to supplement no.

under § 744.21(b). Exporters, reexporters, or transferors will still be responsible for ensuring their transactions are in compliance with the license requirements set forth in § 744.21 because BIS cannot list every ‘military end user’ or party representing a risk of diversion thereto in the BIS has now issued 32 FAQs ranging from summary descriptions of the new MEU rules to guidance on BIS’ application thereof to certain select fact scenarios.
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use’ (as defined in § 744.21(f)) or ‘military end user’ (as defined in § 744.21(g)). Additionally, pursuant to § 744.21(b), BIS may inform persons that a license is required for the export, reexport, or transfer (in-country) of any item because there is an unacceptable risk of use in or diversion to such an end use or end user.

For exports, reexports, shipments, transmissions, or transfers (in-country) that are in transit at the time you are informed by BIS that a license is required in accordance with §§ 744.2(b), 744.3(b), 744.4(b), 744.6(c), 744.9(b), 744.11(c), 744.17(b), 744.21(b), or 744.22(b) of the EAR, you may not proceed any further with the transaction unless you first obtain a license from BIS (see part BIS states, “Exporters, reexporters, or transferors will still be responsible for ensuring their transactions are in compliance with the license requirements set forth in § 744.21 because BIS cannot list every `military end user' or party representing a risk of diversion thereto in the MEU List, or identify all situations which could lead to an item being used for a `military end use.'” The final rule published by BIS on March 8, 2021 implements the following changes to the Export Administration Regulations (“EAR”) affecting Burma: moving Burma from Country Group B to Country Group D:1; adding Burma to the countries subject to military end use and military end user restrictions in § 744.21 of the EAR; and Feb 25, 2021 Adding to the challenges of implementing the expanded military end use/end user rule in Part 744.21 of the Export Administration Regulations Dec 22, 2020 (Although § 744.21 also applies to Venezuelan “military end users,” no Venezuelan companies were named in the MEU List, though they could Jun 29, 2020 (“BIS”) published a final rule (“Final Rule”) that, among other changes, revises the 15 C.F.R. § 744.21 provision related to Military End Uses A shipper is now required to obtain a BIS license if it knows the Supplement No. 2 listed item will have military end uses as defined in new § 744.21. There will May 4, 2020 BIS also adopted a license review policy of “presumption of denial” in §744.21(e). Under this policy, all license applications under EAR §744.21 15 CFR § 744.21.