Export Compliance Consulting
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Export Administration Act (EAA) was permanently renewed by Congress

After a period of being held in stasis, the Export Administration Act has finally been permanently renewed by Congress. Since its expiration in 1996, the validity of the EAR was challenged in court and was ruled to be legally administered through the International Economic Emergency Powers Act (IEEPA). The EAA is approved now as part of the Export Control Reform Act of 2018 (ECRA), codified in the John S. McCain National Defense Authorization Act for the Fiscal Year 2019 (NDAA 2019.

The EAA, being passed, demonstrates the government’s view of the importance on controls of technology, software, and hardware with our adversaries, primarily China, Iran, and Russia. The penalties for violations have increased from 10 years to 20 years in prison and from $250,000 per violation to $300,000 or twice the value up to $1 million. It requires the government to evaluate emerging technologies that need to be controlled in the future and the impact of a license denial on the defense industry. The NDAA 2019 is on the congressional website at https://www.congress.gov/bill/115th-congress/house-bill/5515/text; the ECRA is comprised of Sections 1741-1781.

Department of State

83 Fed. Reg. 43723: The State Department imposed sanctions on Russia under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, as amended (22 U.S.C. Section 5604(a) and Section 5605(a)). This is based on the poisoning of the Russian citizen in the UK. A determination was made that Russia had used chemical weapons in violation of international law or lethal chemical weapons against its own nationals. The sanctions include:

  • Termination of sales to Russia under the AECA and licenses for exports to Russia of any item on the U.S. Munitions List (USML, 22 CFR Sec. 121.1), with a partial waiver for issuance of licenses in support of government space cooperation and commercial space launches on a case-by-case basis consistent with export licensing policy for Russia prior to the enactment of these sanctions;
  • Termination of all foreign military financing for Russia under the AECA;
  • Denial of U.S.G. credit or other financial assistance, including from the U.S. Export-Import Bank;
  • Prohibition of exports of national security-sensitive goods and technology to Russia, subject to waivers permitting the following:
    • Exports and reexports of goods or technology eligible under License Exceptions GOV, ENC, RPL, BAG, TMP, TSU, APR, CIV, and AVS;
    • Exports and reexports of the following items pursuant to new licenses provided that such licenses shall be issued on a case-by-case basis, consistent with export licensing policy for Russia prior to these sanctions:
      • Exports and reexports necessary for the safety of flight of civil fixed-wing passenger aviation;
      • Deemed exports and reexports of goods or technology to Russian nationals;
      • Exports and reexports of goods or technology to wholly-owned U.S. subsidiaries in Russia;
      • Exports and reexports of goods or technology in support of government space cooperation and commercial space launches; and
      • Exports and reexports of goods or technology for civil end-uses by commercial end-users in Russia; and
    • Exports and reexports of goods or technology pursuant to new licenses for Russian state-owned or state-funded enterprises, to be reviewed on a case-by-case basis, subject to a policy of presumption of denial.

The sanctions will remain in effect for at least one year, until further notice. Consult us for further information, including details about waivers and licensing policies.

DL Exports International
PO Box 363
Lancaster, MA 01523
Phone: 978.368.7940
Email: dlexports@comcast.net   

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