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December 10, 2014

BIS Including New Standard Language on Licenses

On Monday December 8, 2014, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) announced that effective immediately it will include the following language on all licenses issued by BIS:

“Unless limited by a condition set forth below, the export, reexport or transfer (in-country) authorized by this license is for the item(s), end-use(s), and parties described in the license application and any letters of explanation. The applicant is responsible for informing the other parties identified on the license, such as ultimate consignees and end-users, of the license’s scope and of the specific conditions applicable to them. BIS has granted this license in reliance on representations the applicant made in the license application, letters of explanation, and other documents submitted.”

BIS has said that the purpose of this language is to make consistent the use of conditions included in licenses and to eliminate the inclusion of requirements and prohibitions that are already contained in the Export Administration Regulations (EAR). This language does not impose any additional requirements on exporters, but rather concisely states the scope of the license and eliminates the redundancy of including conditions already set forth in the EAR. This language also highlights the requirement that the exporter inform the parties identified on the license of the conditions associated with the license.