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:
John L. McLoughlin
Luis (Lou) Abad
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