Updates to EEI Requirements for Exports to China, Venezuela, and Russia
Article Summary
Exporters must file EEI for all shipments to these countries if the items are listed on the Commerce Control List (CCL), regardless of shipment value.
The updated requirements became effective on June 29, 2020.
Items listed on the CCL, including those subject to military end use or end user controls, require EEI filings.
The changes aim to enhance national security by increasing oversight of exports to countries of concern, particularly for military-related items.
Exporters must include the Export Control Classification Number (ECCN) for all shipments, even if a license is not required.
Exporters should review the EAR updates, classify items accurately, and ensure all EEI filings are submitted through the Automated Export System (AES).
On Monday, June 29th, exports from the U.S. to China, Russia, and Venezuela will be subject to new export compliance requirements. As CTP previously discussed, on April 28, 2020, the Bureau of Industry and Security (BIS) published a rule to expand controls for military end uses or military end users in China, Russia, and Venezuela. Having provided exporters a two-month window to review and modify their compliance procedures, these changes to the Export Administration Regulations (EAR) will now enter into effect.
Under the existing EAR, exporters must submit an Electronic Export Information (EEI) filing in the online Automated Export System (AES) except in certain circumstances, such as shipments valued at $2,500 or less. Additionally, the obligation to enter the Export Control Classification (ECCN) in the EEI was not required when the only reason for control was for anti-terrorism (AT).
The new rule amends §758.1 of the EAR to require exporters to submit an EEI filing for all shipments to China, Venezuela, and Russia, regardless of the value. The ECCN must be entered for all shipments, even if an export license is not required. The only exceptions to these requirements are if the shipment is eligible for export pursuant to License Exception GOV as described in §740.11 or if the shipment includes only items classified as EAR99. The purpose of modifying the EEI reporting requirement was to provide BIS, and other U.S. government agencies, with increased visibility of shipments to these countries.
As a result, exporters looking to ship to China, Venezuela, and Russia should ensure that they have the appropriate export classification information prior to exporting. While EAR99 shipments do not trigger the new requirement to these countries, exporters and/or freight forwarders submitting information on their behalf should be certain of their export classifications.
Initially, the EEI requirement for all shipments to these countries was to enter into effect as of June 29th. However, BIS appears to have changed course. Based on a post to the BIS website, the EEI filing requirement will be staggered. For items described in Supplement No. 2 to Part 744, an EEI filing is required as of June 29th. This applies to the following ECCNs: 1A290, 1C990, 1C996, 1D993, 1D999, 1E994, 2A991, 2B991, 2B992, 2B996, 3A992.g, 3A999.c, 3E991, 4A994, 4D993, 4D994, 5A991, 5D991, 5E991, 6A995, 6C992, 6A993, 7A994, 7B994, 7D994, 7E994, 8A992, 8D992, 8E992, 9A991, 9D991, and 9E991. For exports of all other items to China, Venezuela, or Russia, an EEI filing will not be required until September 27, 2020, giving exporters an extra three months to update their policies and procedures.
Key Points
What are the new EEI filing requirements for exports to China, Venezuela, and Russia?
- Overview: The updated rules require exporters to file Electronic Export Information (EEI) for all shipments to China, Venezuela, and Russia if the items are listed on the Commerce Control List (CCL), regardless of the shipment’s value.
- Scope: This applies to tangible items, even if an export license is not required.
When did the new EEI filing requirements take effect?
- Effective Date: The new requirements became effective on June 29, 2020.
- Implementation: Exporters must comply with these rules for all applicable shipments made after this date.
What items are affected by the new EEI rules?
- Affected Items:
- Items listed on the CCL, including those subject to military end use or end user controls.
- Examples include advanced electronics, semiconductors, and other dual-use technologies.
- Military End Use/End User Controls: Expanded controls apply to items destined for military-related applications or entities in these countries.
Why were these changes implemented?
- National Security: The updates aim to enhance oversight of exports to countries of concern, particularly for items that could contribute to military modernization efforts.
- Increased Transparency: By requiring EEI filings for all CCL-listed items, the U.S. government can better monitor and control sensitive exports.
What information must be included in EEI filings?
- Mandatory Details:
- Export Control Classification Number (ECCN) for all shipments, even if no license is required.
- Detailed information about the shipment, including the destination, end user, and intended use.
- Submission Process: EEI filings must be submitted through the Automated Export System (AES).
What steps should exporters take to comply with the new rules?
- Review EAR Updates: Familiarize yourself with the changes to §758.1 of the EAR and Supplement No. 2 to Part 744.
- Classify Items Accurately: Ensure all items are properly classified under the CCL and determine if they are subject to military end use or end user controls.
- Submit EEI Filings: Use the AES to file EEI for all applicable shipments, including the ECCN.
- Monitor Compliance: Conduct regular audits of export processes to ensure adherence to the new requirements.
- Engage Experts: Work with export compliance specialists to navigate complex regulations and avoid penalties.
