U.S. authorization of certain “items” to entities on the entity list in context of specific standards activities

Interim final rule amending the Export Administration Regulations (EAR)

U.S. authorization of certain “items” to entities on the entity list

The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today released for publication in the Federal Register an interim final rule amending the Export Administration Regulations (EAR) to authorize the release of specified items subject to the EAR without a license when that release occurs in the context of a “standards-related activity.”

The interim final rule [PDF 406 KB] is summarized as follows:

  • The final rule revises the terms used in the EAR to describe the actions permissible under the authorization rather than defining the organizations to which it applies. The scope of the authorization is revised to include certain “technology” as well as “software” and applies to all entities listed on BIS’s entity list.
  • The uncertainty of not knowing whether other entities listed on the entity list are participants in standards organizations and whether a BIS license is required to release low-level technology for legitimate standards activities has caused U.S. companies to limit their participation in standards-related activities in areas that are critical to U.S. national security.
  • This authorization only overcomes licensing requirements imposed as a result of an entity’s inclusion on the entity list. Other EAR licensing requirements, including additional end-use or end-user based licensing requirements may continue to apply.
  • The final rule does not change the assessment of whether “technology” or “software” is subject to the EAR. The revisions are so that export controls and associated compliance concerns as they relate to the entity list do not impede the leadership and participation of U.S. companies in national and international standards-related activities.

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
E: ivaysfeld@kpmg.com

Amie Ahanchian
E: aahanchian@kpmg.com

Christopher Young
E: christopheryoung@kpmg.com

Gisele Belotto
E: gbelotto@kpmg.com

George Zaharatos
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
E: jlibby@kpmg.com

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.