Share with your friends

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).


Related content

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The ECRA repealed most of the Export Administration Act of 1979 (EAA), which had lapsed.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

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094

Irina Vaysfeld
T: 212-872-2973

Amie Ahanchian
T: 202-533-3247

Christopher Young
T: 312-665-3229

Gisele Belotto
Managing Director
T: 305-913-2779

George Zaharatos
T: 404-222-3292

Andy Doornaert
Managing Director
T: 313-230-3080

Jessica Libby
Managing Director
T: 612-305-5533

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal