On Tuesday, June 30, 2020, the Bureau of Industry and Security (BIS) announced with immediate effect that it is suspending any license exceptions for export to Hong Kong, reexports to Hong Kong and transfers (in-country) within Hong Kong of items subject to the Export Administrations Regulations (EAR), 15 CFR Parts 730-774 that provide differential treatment than those available to the People’s Republic of China.
The announcement of revocation was made because the Chinese government has imposed new security measures on Hong Kong which undermine its autonomy, thereby increasing the risk that sensitive U.S. items will be illegally diverted to the People’s Liberations Army or Ministry of State Security.
As a result of this revocation, no items subject to the EAR may be exported to Hong Kong, reexported to Hong Kong or transferred within Hong Kong based upon an authorization provided by a license exception except for transactions that would otherwise be eligible for a license exception if exported to China. A license will now be required.
Please note that shipments that were on dock for loading, on lighter, laden aboard an exporting or transferring carrier or in route aboard a carrier to a port for export or reexport on June 30, 2020, pursuant to actual orders for export to Hong Kong, reexport to Hong Kong, or transfer within Hong Kong, may proceed to their destination under the previous license exception eligibility.
BIS has implemented a 60-day savings clause for “deemed” export/reexport transactions involving Hong Kong persons authorized under a license exception issued prior to June 30, 2020, to continue to be authorized until August 28, 2020. Exporters, reexporters, or transferors (in-country) taking advantage of this clause must maintain documentation demonstrating that the Hong Kong recipient was hired and provided access to technology eligible for Hong Kong under part 740 prior to June 30, 2020.
For questions regarding Automated Export System (AES) changes please contact BIS at: excoexs@bis.doc.gov.