BIS Requests Comments on Designating a New Country Group C for "Destinations of Diversion Concern"
The Bureau of Industry and Security (BIS) has issued an advance notice of proposed rulemaking (ANPR) and request for comments to consider amendments to the Export Administration Regulations (EAR) at 15 CFR Part 740 to further the national security interests of the U.S. by designating a new Country Group C for countries that are "Destinations of Diversion Concern."
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
BIS states that the amendment discussed in the ANPR would establish license requirements for exports and reexports to countries that represent a concern for the diversion of items subject to the EAR.
Comments are due no later than close of business March 12, 2007.
BIS Would Identify "Destinations of Diversion Concern" Based on Certain Criteria
According to BIS, consideration of designating Country Group C to identify "Destinations of Diversion Concern" is part of the Department of Commerce's effort to strengthen the trade compliance and export control systems of countries that are transshipment hubs. BIS states that Country Group C would identify those countries of diversion concern, based on certain criteria including, but not limited to:
Transit and transshipment volume;
Inadequate export/reexport controls;
Demonstrated inability to control diversion activities in this destination;
Government not directly involved in diversion activities; and
Government unwilling or unable to cooperate with the U.S. in interdiction efforts.
Placement in Country Group C Would Likely Change Licensing Policy
BIS states that as a result of being placed into Country Group C, the licensing policy would likely change for items going to any country designated as a "Destination of Diversion Concern." Such changes could include changes in License Exception eligibility (15 CFR Part 740), License Requirements and Licensing Policy (15 CFR Part 742), and End-User and End-Use Based Controls (15 CFR Part 744).
BIS adds that the result of these changes could mean that more license applications might be required; more stringent license review policies might be implemented, which could result in less approvals or more conditions on licenses; authorizations may be delayed because of increased end-user checks; or authorizations may decrease because of diversion risks for such countries.
- comments are due no later than close of business March 12, 2007
BIS Contact - Sharron Cook (202) 482-2440
BIS ANPR (D/N 0612242560-7024-01, FR Pub 02/26/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-3252.pdf