export-controls 30 April 2020

BIS to end licence exception, citing ‘increased integration of civilian and military’ tech

The US Department of Commerce has announced it is to discontinue License Exception CIV (civil end-users) from the Export Administration Regulations (‘EAR’) from 20 June of this year.

The decision means that businesses using or intending to use License Exception CIV for currently exempted activities will require ‘a license for national security-controlled items on the Commerce Control List (‘CCL’) to countries of national security concern,’ the Commerce Department’s Bureau of Industry and Security (‘BIS’) announced in the official Federal Register.

The new ruling will apply to export, reexport, and transfer (in-country) of commodities, software, and technology. 

BIS said it is removing the specific License Exception ‘due to the increasing integration of civilian and military technology development in these countries of concern.’ It added that, ‘BIS has determined that transactions involving the national security-controlled items currently permitted under CIV should be reviewed by the U.S. Government prior to export, reexport or transfer (in-country).’

https://www.federalregister.gov/documents/2020/04/28/2020-07240/elimination-of-license-exception-civil-end-users-civ