On April 28, the US Department of Commerce Bureau of Industry and Security (BIS) published two final rules and a proposed rule pursuant to the "Export Administration Regulations" including the expansion of military end user/user controls (MEU), the removal of License Exception Civil End Users (CIV) and the proposed modification of certain provisions of License Exception Additional Permissive Reexports (APR), which are designed to impose further restrictions to the export and transfer of technology to China, Russia, Venezuela and other countries of national security concern to the United States. Among these rules, the first two will be formally implemented on June 29, and comments on the proposed rule are due on the same day.
Jing Zhang, Partner of the International Trade Practice (Washington DC), was invited by China Zhongguancun Science and Technology Park Management Committee (中国中关村科技园区管理委员会) to conduct a webinar to their members on May 22. She was joined by Associate Elizabeth (Liz) Owerbach (Washington DC) and gave an overview of the Export Administration Regulations (EAR). Jing discussed special regulations pertaining to military end use and a China-specific validated end-user program. Jing and Liz discussed the new rules set forth by BIS, including an expanded set of products subject to military end use/end-user restrictions, and the implications for the final and proposed rules removing and amending license exceptions CIV and APR, respectively. Towards the end of the webinar, Jing shared key implications for companies operating or engaging in exports to or from China, including potential penalties for violations.