Recently the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued a final rule removing Hong Kong as a separate destination under the Export Administration Regulations (EAR).
Previously Hong Kong was seen a seperate from China, but due to recent changes within government in China, BIS has now reclassified Hong Kong as China. This change now means that exports from the US to Hong Kong will require an Automated Export System (AES) filing.
This rule change is confusing many exporters because the change to the EAR has not yet been mirrored by changes to the Foreign Trade Regulations (FTR). It is the FTR that governs AES filings.
What does this rules change mean?
Last year BIS announced a new rule that expands the requirement for Electronic Export Information (EEI) filing through AESDirect for exports to China, Russia and Venezuela. The rule requires exporters to file their EEI for items on the Commerce Control List (CCL), regardless of value.
Their is a waiver if the export is eligible for the license exception GOV.
Exporrters should very aware that export controls are not set in stone and are likely to change from time to time. The changes to the AES filing requirements are just one example of why exzporrters should having monitoring tools in place, as their will certainly be more changes in the future.
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