Important Information

Addition of `Military End User’ (MEU) List to the Export Administration Regulations and Addition of Entities to the MEU List

On December 23, 2020, the U.S. Department of Commerce (DOC) Bureau of Industry and Security (BIS) issued notice of a Final Rule in the Federal Register that requires AES EEI filings for the export of all goods destined to Hong Kong, except common household personal items such as clothing & furniture.

Similar to China, Russia and Venezuela (effective as of June 29, 2020), all shipments tendered to DHL Express that are destined to Hong Kong must include one of the following:

• Proof of AES EEI filing Internal Transaction Number (ITN) or Foreign Trade Regulation (FTR) Exemption Citation, or;
• ECCN or EAR99 classification for each line item on the Invoice

This is a new rule published by the U.S. Department of Commerce – Bureau of Industry and Security (BIS) on April 28, 2020. The rule revises the Export Administration Regulations (EAR) and significantly increases restrictions on exports to China, Russia & Venezuela. Learn more

The rule enables the U.S. government to more closely monitor exports, re-exports and in-country transfer of certain items, and broadens the scope of export-controlled items to include electronic and telecommunications equipment (i.e. PC’s, mobile devices and similar items), even if there is no military end use.

Glossary

• ITN: Internal Transaction Number. Confirmation that the AES EEI was accepted and also the filer’s proof of filing

• FTR Exemption Citation: Foreign Trade Regulation Exemption Citation 15 CFR part 30 

  Exemption Citation: Foreign Trade Regulation Exemption Citation 15 CFR part 30 view here

• AES: US Census’ Automated Export System where export declarations are made

• EEI: Electronic Export Information submitted to the AES as part of the export declaration

• ECCN: An Export Control Classification Number used to classify goods, technology and software to determine whether an export license is required.

• EAR99: EAR99 is a classification for an item. The majority of Commercial products are classified this way, and indicates that a particular item is subject to the Export Administration Regulations (EAR), but not listed with a specific ECCN on the Commerce Control List (CCL).

Please note:

• The rule applies to all shipments to these four countries, regardless of value

• This is a U.S. Government requirement and affects all air carriers

• EAR99 items will not require an EEI submission if under $2,500 per HTS/Schedule B

Click here to view the new rule published by the U.S. Department of Commerce – Bureau of Industry and Security (BIS). Click here to view Revisions to EEI Filing Requirements published by the U.S. Department of Commerce – BIS.

FAQs

What are the primary impacts of the new rule?

• Electronic Export Information (EEI) filing requirement changes – two phases, effective 6/29/2020 and 9/27/2020.

• Broadened definition of “military end use” to include more ancillary applications

• Expanded list of items subject to military end use and military end user restrictions.

• Elimination of License Exception Civil End-Users (CIV)

Will all exports from the U.S. to China, Russia, Venezuela, or Hong Kong now require an EEI submission?
No. Under the new rule, any export of CCL items to China, Russia, Venezuela, or Hong Kong will require an EEI submission even if the value of the goods are under $2,500 and even if a license is not required to export those items. EAR99 items will not require an EEI submission if they are under the $2,500 threshold set for in 15 CRF 30.37(a).

What is an ECCN?
ECCN stands for Export Control Classification Number and is used to classify goods, technology and software to determine whether an export license is required. If you need assistance with classifying your product or understanding these requirements, you should contact the export control officer at your company.

U.S. DOC BIS also has counselors that can assist you:

ECCN stands for Export Control Classification Number and is used to classify goods, technology and software to determine whether an export license is required. If you need assistance with classifying your product or understanding these requirements, you should contact the export control officer at your company. Click here to visit the U.S. Department of Commerce (DOC) – Bureau of Industry and Security (BIS) website for more information.U.S. DOC BIS also has counselors that can assist you:

• Eastern Regional Office: (202) 482-4811

• Western Regional Office: (949) 660-0144

• Northern CA Branch: (408) 998-8806

Do I need to file AES EEI if my items are all designated EAR99?
An EEI submission is not required for EAR99 items valued at less than $2,500.

Who is responsible for determining whether a shipment is destined for a military end-use or end-user?
The exporter is responsible for ensuring that any export complies with U.S. regulations, including the EAR. As such, the exporter must classify the goods, technology or software being shipped under the Commerce Control List to determine whether an export license is required. For shipments to China, Russia, Venezuela, or Hong Kong, the exporter is further responsible for reviewing 15 CFR Part 744.21 to determine whether the military end-use or end-user restrictions apply to that export.

Will shipments of foreign goods that transit the United States in-bond be subject to these licensing requirements if destined for a military end-use or end-user?
No. As is the case with CCL items today, the new rule only applies to goods being exported from the United States, not goods being shipped from other countries via the United States destined to CN, RU, VE and HK.

Where can I look up ECCN and CCL items?
Exporters can access the U.S Government websites for additional information on the CCL and ECCN’s

• ECCN Description: https://www.bis.doc.gov/index.php/licensing/commerce-control-list-classification/export-control-classification-number-eccn
• International Trade Administration How Do I Determine my Export Control Classification Number (ECCN): https://www.trade.gov/how-do-i-determine-my-export-control-classification-number-eccn
• BIS publishes an index of ECCN’s (item names/descriptions > ECCN):
  https://www.bis.doc.gov/index.php/documents/regulations-docs/13-commerce-control-list-index/file
   
• CCL Description: https://www.bis.doc.gov/index.php/licensing/commerce-control-list-classification/commerce-control-list-ccl/17-regulations/139-commerce-control-list-ccl
• Commerce Control List (CCL): https://www.bis.doc.gov/index.php/regulations/commerce-control-list-ccl

• U.S. DOC BIS also has counselors that can assist you:
  Eastern Regional Office: (202) 482-4811
  Western Regional Office: (949) 660-0144
  Northern CA Branch: (408) 998-8806

Click here to view FAQs published by the U.S. Department of Commerce – Bureau of Industry and Security (BIS).

If you have any questions, please contact your DHL Sales Representative or the DHL Export Compliance team at [email protected]