U.S. BIS issues guidance on export diversion risks

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce today published guidance outlining the different actions that it takes to inform industry and academia about parties—beyond those identified on public screening lists like the Entity List—that present risks of diversion of items subject to BIS export controls to countries or entities of concern. The guidance also outlines certain responsibilities companies and universities have to comply with BIS regulations, as well as additional steps they need to take to mitigate diversion risks.

According to the BIS release, today’s guidance also contains a new recommended best practice asking that exporters, reexporters, and transferors of common high priority list (CHPL) items screen transaction parties using online resources made newly available by the Trade Integrity Project (TIP). Specifically, the TIP identifies third-country suppliers with a history of exporting CHPL items to Russia since its full-scale invasion of Ukraine. The TIP screening tool can enable companies and universities around the globe to identify possible red flags prior to proceeding with an export transaction that risks diversion to Russia.

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