The US Department of Commerce’s Bureau of Industry and Security (“BIS”) has issued new FAQs on its website addressing the new military end use / military end user rule (“MEU Rule”) and the expansion of the MEU controls for China, Russia, and Venezuela. For a summary of the MEU rule changes, please see our prior blog post detailing the changes to Section 744.21 and other related provisions in the Export Administration Regulations (“EAR”).

There are 32 FAQs, which provide a summary of the new MEU Rule, guidance on specific scenarios, and interpretations of the key terms, including, “military end use” and “military end user.” Below we discuss a few of the key points from the BIS FAQs regarding military end users, military end uses, and due diligence.


Continue Reading BIS Issues New FAQs Regarding the Expansion of the Military End Use / Military End User Rule

On June 29, 2020, the US Department of State announced that the US government “will today end exports of US-origin defense equipment and will take steps toward imposing the same restrictions on US defense and dual-use technologies to Hong Kong as it does for China.”

The US Department of Commerce also announced on June 29, 2020, that, as part of the “revocation of Hong Kong’s special status,” the “Commerce Department regulations affording preferential treatment to Hong Kong over China, including the availability of export license exceptions, are suspended. Further actions to eliminate differential treatment are also being evaluated. We urge Beijing to immediately reverse course and fulfill the promises it has made to the people of Hong Kong and the world.”


Continue Reading Developing: US Announces Tightened Export Controls on Hong Kong

On June 24, 2020, the US Department of Defense (“DoD”) sent a letter to Senator Tom Cotton enclosing a list of twenty companies headquartered in the People’s Republic of China (“PRC”) which DoD determined are operating directly or indirectly in the United States and are “Communist Chinese military companies.”  Titled “Qualifying Entities Prepared in Response to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999 (PUBLIC LAW 105-261),” the “DoD List” includes some Chinese companies frequently associated with the Chinese military, and others that may not have been previously associated with the Chinese military.

For companies doing business with the US government, the US government may consider the inclusion of any of the listed companies in a government contractor’s supply chain as a “supply chain risk” that must be assessed, particularly in connection with information technology.  DoD contractors are already prohibited by their contracts from acquiring certain items and services from “any Communist Chinese military company.”

While not a sanctions list itself, the DoD List may lead to sanctions actions by the US government, as well as reactions from business partners assessing the risk of further action against the listed companies by the US government, particularly for listed companies that are not currently subject to US sanctions.  Pressure from Congress may continue for the administration to continue to update this list, and to impose restrictions on the companies on this list.


Continue Reading US Department of Defense Publishes List of “Communist Chinese Military Companies” Operating Directly or Indirectly in United States Pursuant to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999 (the “Act”)

On May 29, President Trump announced in a White House news conference the US government would “begin the process” to revoke the “full range of agreements” providing the Hong Kong Special Administrative Region of China separate treatment from mainland China under US law on topics including “export controls on dual use technologies,” among others, “with

On Friday, May 1, President Trump issued an Executive Order declaring a national emergency with respect to the threat posed to the United States bulk-power system by certain equipment potentially liable to exploitation by “foreign adversaries.” Under the Executive Order, certain foreign-supplied equipment used in the US bulk-power system will be subject to US government

On May 29, 2020, President Trump announced in a White House news conference that the US government would begin taking steps to revoke the “full range of agreements” providing the Hong Kong Special Administrative Region of China separate treatment under US law on topics including customs, extradition, and export controls “with few exceptions.” The United States also plans to sanction Chinese and Hong Kong officials “directly or indirectly involved in eroding” Hong Kong’s autonomy, the President announced.

The President’s announcement contained few specifics on the proposed measures or a timeline for their implementation. We anticipate additional guidance and actions from the US Departments of State, Treasury, and Commerce in the coming days and weeks.  


Continue Reading United States to Take Steps to Revoke Hong Kong’s Separate Status, Impose Sanctions and Enhanced Export Controls after Beijing National Security Vote

On May 26, 2020, the European Commission announced that it would not prolong the Export Authorization Scheme for Personal Protective Equipment (PPE) it had put in place due to the COVID-19 crisis. The Commission explained that the scheme has “served its purpose” in ensuring adequacy of supply of PPE in the EU. The measures ceased to apply on the same day.

Since April 26, 2020, exporters have requested more than 1,300 authorizations, of which 95% have been approved. As a result, over 13 million protective masks, around 1 million protective garments and over 350,000 protective masks and visors have been exported from the EU since April 16.


Continue Reading EU Ends Export Authorization Scheme for Personal Protective Equipment

On May 19, the US Department of Commerce’s Bureau of Industry and Security (BIS) published a new interim final rule, retroactively effective on May 15, amending the Foreign-Produced Direct Product Rule (FPDP) under the US Export Administration Regulations (EAR). The new rule expands the jurisdictional scope of the EAR and restricts the non-US supply

The European Commission has published a Guidance Note on how humanitarian aid related to COVID-19 can be provided to countries and areas that are subject to EU sanctions. The Note provides practical help, in the form of questions and answers (Q&As), on how to comply with EU sanctions when providing humanitarian aid, such as medical assistance and supplies, to fight the COVID-19 pandemic. The first version of the Guidance Note covers Syria. The Commission will update it with further information on other countries subject to EU sanctions, including Yemen, Somalia and North Korea.

EU sanctions targeting Syria are set out in Council Regulation (EU) No 36/2012 – as periodically amended – and consist of a number of sectoral restrictions, such as a prohibition on exporting goods or technology which might be used for internal repression, including chemicals used in chemical attacks, and a prohibition on the local purchase and import of petroleum products. The EU framework provides for a number of exceptions, notably for humanitarian purposes. It also includes individual designations entailing notably the freezing of funds or economic resources of certain persons, entities and bodies (“designated persons”).


Continue Reading European Commission publishes Guidance on the provision of humanitarian aid to fight the COVID-19 pandemic in countries subject to EU sanctions

Following the COVID-19 outbreak, the EU introduced measures requiring that exports to non-EU countries of some personal protective equipment (PPE) be subject to authorization (see our previous alert). The European Commission now announced the prolongation of these measures until 25 May 2020 and issued a modified Implementing Regulation. The adjustments result from a careful evaluation of needs signaled by EU Member States and include the following:

Continue Reading EU Prolongs and Adjusts Export Authorization Scheme for Personal Protective Equipment