BIS Postpones Part of New EEI Filing Requirement for Exports to China, Russia, and Venezuela Under New MEU Rule
Client Alert
Between June 29 and Sept. 27, 2020, the new EEI filing requirements for exports to China, Russia, and Venezuela will only apply to ECCNs listed in Supp. No. 2 to Part 744
This past April, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued new rules to modify the Export Administration Regulations (EAR) on June 29, 2020. One of these rules imposed new restrictions on exports for Military End Users and Uses (MEU) in the People’s Republic of China (PRC), Russia, and Venezuela. See 85 FR 23459. The MEU rule also expanded the Electronic Export Information (EEI) filing requirements in the Automated Export System (AES) for exports to these three jurisdictions. This week, BIS posted an update to its website postponing the effective date of some of the new requirements for EEI transmission to AES with respect to the PRC, Russia, and Venezuela. Accordingly, the changes to 15 CFR § 758.1 will become effective as follows.
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On June 29, 2020, the EEI filing requirements for items subject to Supplement No. 2 to Part 744 of the EAR destined for the PRC, Russia, or Venezuela will become effective. Supp. No. 2 to Part 744 includes a list of Export Controls Classification Numbers (ECCNs) that will require a license for export to MEUs in the PRC, Russia, or Venezuela starting on June 29, 2020.
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On September 27, 2020, the EEI filing requirements for exports of items controlled by ECCNs not listed in Supp. No. 2 to Part 744 to the PRC, Russia, or Venezuela will become effective.
As a reminder, under the new MEU rule EEI filings will be required for items destined to the PRC, Russia, or Venezuela regardless of the value of the item (i.e., items valued under $2,500 that are controlled for solely anti-terrorism reasons will now require EEI filings when exported to these destinations). Further, even if no license is needed to export the item to these three destinations, the EEI filings for non-EAR99 exports to these countries will need to include the correct ECCNs, regardless of the reason of control.
In short, the new EEI filing requirements for exports to the PRC, Russia, and Venezuela will apply to ECCNs listed in Supp. No. 2 to Part 744 on June 29, 2020, and to all other ECCNs on the Commerce Control List (CCL) on Sept. 27, 2020. Accordingly, between June 29 and Sept. 27, 2020, forwarders will need to cross-reference the ECCNs of exports to these three destinations against Supp. No. 2 to Part 744 to determine the appropriate EEI filing requirements.
