Clifford Chance

BIS Amends National Security License Review Policy, Providing Welcome Transparency

November 2, 2020

On October 29, 2020, the Bureau of Industry and Security issued a final rule amending the license review policy for items subject to the Export Administration Regulations that are controlled for National Security reasons when destined to China, Venezuela, or Russia. See the final rule announcement here. This final rule amends part 742 of the EAR so that NS license applications for EAR items being exported to these countries of concern will be evaluated based on whether the items will make a "material contribution to the weapons systems capability of those countries," which runs counter to U.S. national security interests. The final rule provides a "robust illustrative list of license application review factors" that helps guide exporters on the contents of their applications and assist BIS in its license determinations.

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