In a Final Rule, published on December 23, 2020, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) amended the Export Administration Regulations (“EAR”) by creating a “Military End User (MEU) List”. The list includes the first tranche of 103 entities consisting of 58 military end-users in China and 45 in Russia. BIS determined that these companies are ‘military end users’ for purposes of the ‘military end user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to China, Russia, and Venezuela when such items are destined for a prohibited ‘military end user.’ Prior to this final rule, exporters, reexporters, or transferors were responsible for identifying these entities as ‘military end users’ themselves, assuming they were not otherwise individually informed. The MEU List (which is now searchable on the consolidated screening list) allows the public to be informed of BIS’s determination so all potential exporters are informed simultaneously. Export Compliance Obligations Nevertheless, exporters are still be responsible for ensuring their transactions are in compliance with the license requirements set forth § 744.21 because BIS cannot list every ‘military end user’ or identify all situations which could lead to an item being used for a ‘military end use.’ Compliance remains the obligation of the exporter reexporters, or transferors. According to Commerce Secretary Wilbur Ross “This action establishes a new process to designate military end-users on the MEU List to assist exporters in screening their customers for military end-users.” This is not an exhaustive list … Continue reading BIS Publishes First Military End User List