BIS Export Controls Update: May 14-15, 2018 in D.C.

The U.S. Department of Commerce, Bureau of Industry and Security (BIS) announced it will hold its annual export controls update conference on May 14-15, 2018 in Washington, D.C.  The conference will be hosted at the Marriott Marquis Hotel.  For additional information contact BIS at: or +1 (202) 482-6031.

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BIS adds Hong Kong documentation requirements for exports/re-exports

On January, 19, 2017 the Department of Commerce, Bureau of Industry and Security (BIS) published a final rule (82 FR 6216-6218) which will require, in certain cases, that documents be obtained prior to exporting to Hong Kong or re-exporting from Hong Kong (HK).  BIS issued this rule to provide more assurance that items subject to multilateral control regimes, that pass through HK, are appropriately authorized to their final destination. 

Export Administration Regulation (EAR) regulated items, controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear non-proliferation (NP column 1), or chemical and biological weapons (CB) will now be required to obtain, prior to export or re-export, a copy of a Hong Kong import license.  If a license is not required the exporter or re-exporter will be required to obtain a statement from the Hong Kong government that a license is not required.

This rule will be effective on April 19, 2017.


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US Treasury, State, and Commerce - Monetary Penalty Increases Last Two Years

The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the "Act") required federal agencies to adjust their maximum allowable civil monetary penalties ("CMPs") annually.  The initial "catch-up" adjustments occurred in 2016; and now the first annual adjustments have been finalized by the US Department of Commerce's Bureau of Industry and Security ("BIS"), the US Treasury Department's Office of Foreign Assets Control ("OFAC"), and the US Department of State's Directorate of Defense Trade Control ("DDTC").  The chart below provides a reference for the original, 2016 "catch-up", and 2017 annual adjustment penalty amounts. 

BIS Harmonization of Destination Control Statements

On August 17, 2016 the Department of Commerce, Bureau of Industry and Security (BIS) published a final rule (81 FR 54721-54732) that implements changes recommended in a May 22, 2015 proposed rule (80 FR 29551-29554).  The rule revises the destination control statement in Sect 758.6 of the Export Administration Regulations (EAR).  The rule harmonizes the EAR statement with the destination control statement required for the export of items subject to the International Traffic in Arms Regulations (ITAR). 

The revised destination control statement reads as follows:

"These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end user(s) herein identified.  They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations"

The rule is effective November 15, 2016.

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