BIS Final Rule Amends VEU Reporting Requirements, Etc.

Highlights of the changes made by the final rule are as follows (partial list):

Changes to VEU Reporting Requirements, Etc.

This final rule amends 15 CFR 748.15(f)(1)(i) to no longer require exporters to submit the reports required under that section for validated end users (VEUs) because BIS already has access to that information. However, reexporters must continue to submit the annual reports as required by 15 CFR 748.15.

This final rule also updates the contact information for China's Ministry of Commerce, Department of Mechanic, Electronic and High Technology Industries in Supplement No. 4 to 15 CFR Part 748.

Clarification of Import Certificate and End-User Statement Requirements

The final rule amends 15 CFR 748.10(a) and 748.10(b) to clarify the applicability of the $50,000 threshold for import certificates and end-user statements as follows:

• For exports to countries listed in 15 CFR 748.9(b)(2), an Import Certificate is required for commodities controlled for national security (NS) reasons for transactions valued over $50,000.
• For exports to China, an End-User Statement is required for transactions exceeding $50,000 involving most commodities that require a license to China for any reason. Exceptions to the $50,000 threshold for certain exports to China have been consolidated into new 15 CFR 748.10(b)(3).

BIS notes that this final rule does not add any additional requirements for Import Certificates or End-User Statements; it only reorganizes the existing provisions to enhance clarity.

The final rule also corrects 15 CFR 748.10(b)(4) to remove references to "software" as BIS had previously clarified a longstanding policy that no support documentation is required for exports of technology or software. (A previous BIS final rule had removed references to technology and software to certain destinations in 15 CFR 748.10(b)(1) but did not remove the reference to software in 15 CFR 748.10(b)(4).)

Requesting Approval Via Fax to Submit Applications Etc. Electronically

The final rule amends 15 CFR 748.7(a)(1), which describes procedures for applicants to request approval to apply for a license or classification request electronically, in order to allow submission of written requests via fax (which BIS states conforms to actual practice).

Removal of Libya Reference and Revision to Iran Provisions

The final rule removes references to Libya from the second sentence of 15 CFR 746.1(a)(1), as BIS previously (in an August 31, 2006 interim final rule) amended the EAR to allow EAR99 items to be exported or reexported to Libya without a license, subject to the end-user and end-use controls in 15 CFR Part 744.

(See ITT's Online Archives or 09/05/06 and 09/06/06 news, 06090520 and 06090620, for BP summaries of BIS' August 31, 2006 final rule on Libya, etc.)

Removal of References to Certain Countries from Country Group D

BIS' final rule amends Country Group D (countries of concern due to national security, nuclear, chemical and biological, and/or missile technology reasons) in 15 CFR Part 740, Supplement No. 1 by removing references to Algeria, Andorra, Comoros, Djibouti, Micronesia, and Vanuatu due to their status as signatories of the Nuclear Non-Proliferation Treaty.

(See final rule for details on changes which remove the post office box address for BIS,

update the contact information for the San Jose field office, reinsert missing footnotes in sections describing License Exceptions, correct formatting in the supplement listing items subject to the military end-use license requirement for China, correct the legal authority citation for 15 CFR Part 745, make a technical correction to shipping tolerances, remove references to certain entries on the Commerce Control List (CCL), and amend the Defense Priorities and Allocations System (DPAS) Regulation by updating an office name and by removing a reference to a form.)

BIS contact - Steve Emme (202) 482-2440

BIS final rule (D/N 071011588-7712-02, FR Pub 01/02/08) available at http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E7-25423.pdf.