During the dark days of winter (January to be exact), the U.S. Department of Commerce, Bureau of Industry and Security (BIS), published a new regulatory requirement dealing with items controlled under multilateral regimes. This new rule, effective in April, requires exporters and reexporters to obtain a Hong Kong import license or written statement from the Hong Kong government stating no license is required prior to exporting or reexporting any items subject to the EAR.
This rule applies to items with the following Reasons for Control:
- National Security (NS)
- Missile Technology (MT)
- Nuclear Non-Proliferation (NP Column 1)
- Chemical/Biological (CB)
In short, if your item requires a BIS export license or uses a license exception due to the above reasons, and that item is going to Hong Kong, you will need to obtain an import license or statement from the Hong Kong government prior to the export taking place. The same holds true for reexports.
Exporters can check the Hong Kong Trade and Industry Department website to determine if a license is required. However, the list is not comprehensive so you must still seek confirmation from the Hong Kong Trade and Industry Department regarding licensing requirements.
By implementing this new requirement, BIS is taking action to ensure U.S.-origin items passing through Hong Kong and subject to multilateral regimes are being properly authorized by the United States to the ultimate destination. Per BIS, the rule is also intended to complement the control system of the Government of the Hong Kong Special Administrative Region, which requires both an import license and export license for multilaterally controlled items imported and reexported by parties in Hong Kong.
If you haven’t already, make sure to update your procedures to account for the additional time it will take to meet these new requirements. The rule is effective April 19.
Need assistance determining whether your items are affected by this new requirement? Request a no-charge consultation with one of our experts today.
Emmalie Armstrong is a Trade Compliance Consultant with Export Solutions – a firm specializing in U.S. import/export regulations.