U.S. final rule amending EAR, export enforcement provisions

U.S. final rule amending EAR

The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today released for publication in the Federal Register a final rule amending and clarifying certain provisions of the Export Administration Regulations (EAR).


Today’s final rule [PDF 267 KB] promotes compliance with existing EAR requirements and implements the export enforcement portions of the Export Control Reform Act of 2018 (ECRA), that affirmed existing authorities under the EAR and provided expanded export control authorities to the Secretary of Commerce.

According to the preamble, the final rule also amends certain provisions of the EAR not strictly related to the implementation of ECRA concerning the issuance of licenses and denial orders and the payment of civil penalties.

The ECRA repealed most of the Export Administration Act of 1979 (EAA), which had lapsed. The ECRA continues existing authorities under the EAR that had been issued pursuant to, and been maintained in force under, the EAA until its lapse, and thereafter under the International Emergency Economic Powers Act (IEEPA). The ECRA provides the Secretary of Commerce with additional authorities to implement effective export controls in furtherance of U.S. national security and foreign policy interests.

Accordingly, the BIS final rule amends the EAR to reflect enforcement authorities and to update certain EAR provisions to make them consistent with ECRA. These amendments include:

  • Replacing existing references to the EAA currently in the EAR with references to ECRA and other export laws and regulations
  • Amendments to the EAR that reflect the expanded scope of authority provided to the Secretary of Commerce in ECRA
  • Amendments to the EAR to implement the following enforcement provisions:
    • Pre-license checks and post-shipment verifications
    • Overseas investigative authority
    • Searches, inspections, detentions, and seizures, and related authorities concerning exports, reexports, and transfers (in-country)
    • Inspection of books, records, and other information
    • Violations and penalties under ECRA

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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