The U.S. Bureau of Industry and Security (BIS) has introduced a new rule concerning exports to Hong Kong. The new rule is effective as of 19 April 2017. The BIS has also published a FAQ’s to explain its rule.
Although the BIS does not fully explain the rationale for this new rule, the new rule requires the following:
- Parties intending to (re)export to Hong Kong require to obtain (prior to (re)export) a copy of a Hong Kong import license or a written statement from the Hong Kong government that such a license is not required for any item:
- subject to the Export Administration Regulations (EAR) and
- controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear nonproliferation (NP column 1), or chemical and biological weapons (CB) reasons.
- This rule also requires persons intending to reexport from Hong Kong any item subject to the EAR and controlled for NS, MT, NP column 1, or CB reasons to obtain a Hong Kong export license or a statement from the Hong Kong government that such a license is not required.
The only rationale for this new rule is set-out in BIS FAQ 7 –
What’s unclear is why the U.S. requires this form of assurances? Why doesn’t the U.S. institute a licensing program?
Well who said that export controls are rational and logic?