Commerce Issues Proposed Rule on EAR Bona Fides Verification
The Commerce Department’s Bureau of Industry and Security (BIS) issued a proposed rule to amend the Export Administration Regulations (EAR) to implement changes to the Unverified List (UVL) in order to increase the government’s ability to verify the bona fides of parties to exports, reexports or in-country transfers of EAR items. The changes also seek to increase transparency with individuals involved in such practice, whose bona fides cannot be verified. Commerce is asking interested parties to comment on the changes by Oct. 11 via e-mail to publiccomments@bis.doc.gov/. The proposed rule amends the EAR by the following ways:
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- requiring exporters to file an Automated Export System (AES) record for all exports subject to the EAR involving a party or parties to the transaction who are listed on the Unverified List (UVL)
- suspending the availability of license exceptions for exports, reexports, and transfers (in-country) involving a party or parties to the transaction who are listed on the UVL
- requiring exporters, reexporters, and transferors to obtain a UVL statement from a party or parties to the transaction who are listed on the UVL before proceeding with exports, reexports, and transfers (in-country) involving items subject to the EAR, but where the item does not require a license, i.e., No License Required (NLR); publishing the UVL in the EAR
- adding to the EAR the procedures to request removal or modification of a UVL entry
(Federal Register 9/11/13)