December 22, 2014
On December 17, 2014, the U.S. Department of Commerce, Bureau of Industry Security (BIS) amended the microprocessor military end-use and end-user control of § 744.17 of the Export Administration Regulations (EAR) by: 1) broadening the definition of “microprocessors” and adding associated software/technology to its scope, 2) expanding its restrictions to “in-country” transfers, and 3) creating a prohibition on the use of license exceptions for exports, re-exports, and in-country transfers of such items, with the exception of the License Exception GOV.
A person or entity is prohibited from exporting, reexporting, or transferring (in-country) microprocessors or related software and technology, without a license, if at the time of such a transaction, that individual or entity knows, has reason to know, or is informed by BIS (either by specific notice or through an amendment to the regulations) that such items are for a “military end use” or “military end-user” in those countries listed in Country Group D:1. There is a presumption of denial for license applications subject to this provision.
Shipments that are no longer eligible for the license exception and/or eligible for export, reexport, or in-country transfer without a license may proceed to their destination as long as the shipment was made pursuant to an actual order to a destination and on “dock for loading, on lighter, laden aboard a carrier, or en route aboard a carrier to a port” on December 17, 2014. Pursuant to this savings clause, such a shipment must be exported, reexported, or transferred before midnight on February 17, 2015.
If you have any questions about the microprocessor military end-use and end-user control in the EAR, please do not hesitate to contact us.
Source: Federal Register (click here for more information).