BIS Proposes Rule to Scale Back Import Certificate Requirement
The Commerce Department’s Bureau of Industry and Security (BIS) proposed to remove the requirement to obtain an International Import Certificate (IC) or Delivery Verification (DV) for exports, reexports and in-country transfers subject to the Export Administration Regulations (EAR). The proposed rule was published in the Federal Register on April 9 (see 14040817). The proposal also changes the support documents required to be submitted for license applications under the EAR and includes additional, technical changes to the EAR. Public comments on the proposal are due by June 9, and may be submitted by publiccomments@bis.doc.gov, physical mail or http://www.regulations.gov, identification number BIS-2014-0009. The changes draw from comments BIS requested in August 2011.
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In the IC/DV system, the U.S. may issue an IC (here) or DV (here) when goods are exported to the U.S, said BIS in the proposal. After considering comments from the public, BIS determined the IC/DV system imposes inappropriate barriers because the system lacks an “affirmative statement” on the end use of the goods. Moreover, many countries participating in the Wassenaar Arrangement do not require their exporters to obtain an IC from the country of destination for dual-use items, said BIS.
BIS now will require that the exporter obtain a statement by the ultimate consignee and purchaser, rather than an IC. An IC is required for license applications of items controlled for national security reasons, valued at over $50,000 and destined for a certain group of countries. The proposal would allow goods destined to that group of countries to be subject to more lax regulation on IC requirement, with the exception of China and Argentina. License applications for China would continue to require a Chinese End-User Statement.
Currently, U.S. exporters must receive a signed original of the IC prior to shipping goods under an approved license, but BIS determined the time necessary to obtain an original IC can be significant and burdensome. Unlike ICs, Statements by Ultimate Consignee and Purchaser only require the engagement of parties directly involved in the transaction, said BIS. This proposal also eliminates the BIS requirement to request a DV be obtained from a foreign government for a transaction. The rule does not remove IC/DV requirement by other U.S. agencies, such as the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives requirement for ICs for items on the U.S. Munitions List.