BIS Final Rule to Require Exporters to Obtain Hong Kong Trade Authorizations for Certain Controlled Items
The Bureau of Industry and Security issued a final rule (here) requiring individuals intending to export or re-export to Hong Kong any item subject to the Export Administration Regulations (EAR) for national security, missile technology, nuclear nonproliferation, or chemical or biological reasons to get written approval from the government of Hong Kong before shipping the items. The rule, which is set to take effect April 19, will require individuals planning to export or re-export EAR items for those reasons to obtain a copy of a valid Hong Kong import license from a client or consignee, or written statement from the Hong Kong government that such a license isn’t required.
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The rule will also require individuals intending to re-export EAR items controlled for these reasons from Hong Kong to obtain a Hong Kong export license or statement from the Hong Kong government that such a license isn’t required. BIS issued this rule to provide greater assurance that U.S.-origin items subject to the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Missile Technology Control Regime, the Nuclear Suppliers Group and the Australia Group will be properly authorized by the U.S. to their final destination, “even when the items first pass through Hong Kong,” the agency said. “Because the Hong Kong schedules and most of the [Commerce Control List] are developed from these same four sources, large portions of both sets of documents cover the same items.” The exporter or re-exporter must keep copies of the paperwork on file.
(Federal Register 01/19/17)