BIS Makes AES Changes to Prevent NLR Filing on Controlled Encryption Exports
The Commerce Department’s Bureau of Industry and Security (BIS) added on Oct. 15 an edit in the Automated Export System (AES) to prevent exporters and freight forwarders from inadvertently reporting electronic export information (EEI) on items of Encryption Commodities, Software and Technology, the Census Bureau said on Oct. 24. The items in question fall under Export Control Classification Numbers (ECCNs) 5A002, 5B002, 5D002 and 5E002 and the designation of “No License Required” (NLR) or AES license code C33. AES will expand the edit to include license code C32, effective Nov. 15, Census said.
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These two new edits will generate a fatal error “ECCN MUST BE FROM APPROVED LIST” because encryption items specifically classified under the ECCNs noted are subject to a national security license requirement to all destinations except Canada. “AES Filers encountering this fatal error when the export is destined to Canada are reminded that NLR exports to Canada regardless of value are exempt from filing in AES under the U.S. Census Bureau’s Foreign Trade Regulations §30.36,” said Census. “BIS will send a ‘friendly reminder’ letter to these filers reminding them that AES reporting is not required.” Interested parties should contact BIS’s Office of Technology Evaluation at (202) 482-4933 or via email at ECR_AES@bis.doc.gov for further information or questions regarding this change.
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