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U.S. proposed changes to EAR concerning military, intelligence, and foreign security

BIS is seeking public comments on the proposed changes.

July 25, 2024

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce today released two sets of proposed regulations that would amend the Export Administration Regulations (EAR). BIS is seeking public comments on the proposed changes, which address concerns related to military, intelligence, and foreign-security end uses and end users, as well as the activities of U.S. persons.
 

The first proposed rule focuses on enhancing controls on military and intelligence end uses and end users, including activities by U.S. persons. It proposes to:

  • Revise the definition of “support” provided by U.S. persons
  • Expand the scope of “military end user” to include private and non-state actors
  • Add new controls on “military-production activities” and “intelligence end users”

The proposed rule also suggests moving and renaming certain sections of the EAR to better align with these changes and clarifies the licensing requirements and review policies for these activities.
 

The second proposed rule discusses amendments to the EAR to support U.S. national security and foreign policy interests by establishing controls on Foreign-Security End Users (FSEUs) and expanding controls on activities of “U.S. persons.” It aims to control “support” provided by “U.S. persons” to identified foreign-security end users and add new unilateral item controls on facial recognition technology. The document outlines the need for licenses for certain exports, reexports, or transfers to prevent human rights abuses and ensure compliance with U.S. national security and foreign policy objectives. It also discusses the proposed expansion of U.S. persons' controls and the addition of new item controls for facial recognition systems.

For more information, contact a professional with KPMG 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
Principal
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
E: aahanchian@kpmg.com

Christopher Young
Principal
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
E: gbelotto@kpmg.com

George Zaharatos
Principal
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
Principal
E: jlibby@kpmg.com
Jenna Leigh Glass
Managing Director
E: jennaleighglass@kpmg.com

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