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BIS Announces July 17, 2006 Meeting on its Proposed Rule to Expand, Revise Export/Reexport Controls for China, Etc.

The Bureau of Industry and Security (BIS) has announced that it will hold a meeting on July 17, 2006 in Washington, DC for companies, organizations, and individuals that have an interest in understanding the U.S.' revised policy for exports and reexports of dual-use items to the People's Republic of China (PRC) as presented in BIS' July 6, 2006 proposed rule.

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(The State Department's Washington File states that BIS' July 6, 2006 proposed rule would affect U.S. companies that export items from a list of 47 product classifications - including certain software, computers, machine tools, hydraulic fluids and aircraft.)

According to BIS, its proposed rule states that it is the policy of the U.S. government to prevent exports that would make a material contribution to the military capability of the PRC, while facilitating U.S. exports to legitimate civil end-users in the PRC. Consistent with this policy, BIS proposes to amend the Export Administration Regulations (EAR) by revising U.S. licensing requirements and licensing policy on exports and reexports of goods and technology to the PRC, etc. Specifically, BIS is proposing the following (partial list):

  1. a revision to the licensing review policy for items controlled on the Commerce Control List (CCL) for reasons of national security, including a new control based on knowledge of a military end-use on exports to the PRC of certain CCL items that otherwise do not require a license to the PRC;
  2. a revision of the licensing review policy for items controlled for reasons of chemical and biological proliferation, nuclear nonproliferation, and missile technology for export to the PRC, requiring that applications involving such items be reviewed in conjunction with the revised national security licensing policy;
  3. the creation of a new authorization for validated end-users in certain destinations, including the PRC, to whom certain, specified items may be exported or reexported. Such validated end-users would be placed on a list in the EAR after review and approval by the U.S. government;
  4. a requirement that exporters obtain an End-User Certificate, issued by the PRC Ministry of Commerce, for all items that both require a license to the PRC for any reason and exceed a total value of $5,000. The current PRC End-Use Certificate applies only to items controlled for national security reasons; and
  5. elimination of the current requirement that exporters submit PRC End-User Certificates to BIS with their license applications but provides that they must retain them for five years.

BIS requests that those planning to attend the meeting provide their name, company or organizational affiliation to fax number (202) 482-4094 Attn: China Policy Briefing so that BIS can prepare for the meeting.

(See ITT's Online Archives or 07/10/06 news, 006071015, for Part I of BP's multi-part series of summaries on BIS' proposed rule.)

- meeting on 07/17/06 at 2:00 p.m. in Washington, DC

BIS contact - Judith Peterson (202) 482-0092

BIS notice (FR Pub 07/11/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-10753.pdf.

Washington File (dated 07/06/06) available at http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2006&m=July&x=20060707121159berehellek2.431887e-02.