U.S. final rules: Military end-user, updated list; Hong Kong removed as separate destination

U.S. final rules: Military end-user, updated list

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

  • Military end-user (MEU) list: The final rule [PDF 300 KB] (38 pages) amends the Export Administration Regulations (EAR) by adding a new “military end-user” (MEU) list that includes the first tranche of entities. The U.S. government determined that these entities 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 military end-user. The final rule will add 102 military end-users to the MEU list (57 military end-users under China and 45 under Russia). However, the establishment of the MEU list does not imply that other parties, not included on the list, are not subject to the military end-use and military end-user controls under the EAR.

  • Removal of Hong Kong as separate destination: The final rule [PDF 437 KB] (58 pages) amends the EAR to remove the special administrative region of Hong Kong from the list of destinations in the EAR. The amendments are in response to new security measures imposed on Hong Kong by the government of China. According to the final rule, these new steps by China increase the risk sensitive U.S. technology and items will be diverted to unauthorized end-uses and end-users in China.

Both final rules will be effective upon publication in the Federal Register (scheduled to be December 23, 2020).

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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