In what it describes as part of the initial step in the Export Reform Initiative, the Bureau of Industry and Security (BIS) released its final rule implementing the Strategic Trade Authorization (STA) license exception to the licensing requirements of the Export Administration Regulations (EAR). The license exception authorizes the export, reexport and transfer (in-country) of specified items to destinations that pose relatively low risk of unauthorized uses or diversion. The license exception is conditioned upon the creation and exchange by the parties to the transaction of notifications and statements designed to provide assurance against diversion. The license exception is effective immediately.
The number of countries to which goods may be shipped under the STA rule is much more limited than as provided for in the proposed rule, but the agency has also provided more clarity regarding when the exception may be used. The following key points are important with respect to the use of the license exception:
Finally, in response to some of the comments submitted, BIS noted that it is reviewing the Commerce Control List as a whole as part of the Export Control Reform Initiative. Those interested can provide input through informal contacts, contacting one of the technical advisory committees, or petitioning BIS. BIS, however, is not planning on setting up a formal process to receive proposals for changes to License Exception STA.
For more information as to how the STA license exception could affect your business or regarding the Export Control Reform Initiative in general, please contact the Thompson Coburn attorney with whom you work or a member of the Thompson Coburn
Transportation and International Commerce Practice Group.
Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you (an ‘engagement letter’).
By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and, further, even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you. Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.