Commerce Tightens Restrictions on Technology Exports to Combat Chinese, Russian and Venezuelan Military Circumvention Efforts

The Department of Commerce announced new export control actions to prevent efforts by entities in China, Russia, and Venezuela to acquire U.S. technology. As the same could be used in the development of weapons, military aircraft, or surveillance technology through civilian supply chains, or under civilian-use pretenses, for military end uses and military end-users.

Department of Commerce Secretary Wilbur Ross said: “It is important to consider the ramifications of doing business with countries with histories of diverting goods purchased from U.S. companies for military applications. Certain entities in China, Russia, and Venezuela have sought to circumvent America's export controls, and undermine American interests in general. So we will remain vigilant to ensure U.S. technology does not get into the wrong hands.”

Specifically, the rule changes include:

  • Expansion of Military End-Use/User Controls (MEU)
  • Expands MEU license requirements controls on China, Russia, and Venezuela to cover military end-users in all three countries and items such as semiconductor equipment, sensors, and other technologies sought for military end-use or by military end-users in these countries.
  • Removal of License Exception Civil End Users (CIV)
  • Removes a license exception for exports, reexports, or transfers (in-country) to civilian end-users in countries of national security concern for National Security- (NS) controlled items.
  • Elimination of License Exception Additional Permissive Reexports (APR) Provisions
  • Proposes to eliminate certain provisions of a license exception for partner countries involving the reexport of NS-controlled items to countries of national security concern to ensure consistent reviews of exports and reexports of U.S. items.

The Bureau of Industry and Security (BIS) in the Department of Commerce is responsible for overseeing these export control activities. BIS's mission is to advance U.S. national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. BIS committed to restricting U.S.-origin commodities and technology from use in support of Weapons of Mass Destruction (WMD) projects, terrorism, or destabilizing military modernization programs.

Monday, April 27, 2020
Office of Public Affairs
(202) 482-4883
commerce.gov