December 29, 2020
Census Clarification on the Bureau of Industry and Security's Mandatory Filing Requirements related to the December 23, 2020 Final Rule
On Wednesday, December 23, 2020, the Bureau of Industry and Security (BIS) issued a final rule that amends the Export Administration Regulations (EAR) to remove Hong Kong as a separate destination under the EAR. A Note was added to § 758.1(b)(10) of the EAR which stated that the Electronic Export Filing (EEI) filing requirements for China described in § 758.1(b)(10) applies to exports to Hong Kong for purposes of the EAR, even if the Automated Export System (AES) requirements state that the destination filed in the EEI is to be listed as Hong Kong. This rule became effective on December 23, 2020 and can be found in its entirety at: https://www.govinfo.gov/content/pkg/FR-2020-12-23/pdf/2020-28101.pdf
Foreign Trade Regulations and AES Filing Requirements
The changes brought by BIS’s final rule are for purposes of BIS’s export control requirements under the EAR. This rule does not change the U.S. Census Bureau’s Foreign Trade Regulations (FTR) § 30.6(a)(3) Ultimate Consignee; § 30.6(a)(5) Country of Destination; and §30.6(b)(2) Intermediate Consignee reporting requirements of the EEI in the AES. Additionally, this rule does not change Appendix C of the AES Trade Interface Requirements (AESTIR), where Hong Kong is denoted by the International Standards Organization (ISO) Country Code “HK.” For example, if the goods are destined to Hong Kong and received by an ultimate consignee located in Hong Kong, then you must still report Hong Kong (HK) as the country of destination and the ultimate consignee country, respectively. Another example would be if the goods are routed to an intermediate consignee located in Hong Kong, then you report Hong Kong (HK) as the intermediate consignee country.
Hong Kong and BIS’s Mandatory Filing Requirements under § 758.1(b)
Per the Note to § 758.1(b) of the BIS’s EAR, BIS considers Hong Kong to be a part of China and so any mandatory filing requirements under § 758.1(b) of the BIS’s EAR that apply to China would also apply to Hong Kong. What this means, relative to BIS’s final rule issued on April 28, 2020 related to China, Russia, and Venezuela, is that EEI filing is required for exports to Hong Kong of items on the Commerce Control List (CCL) (Part 774 of the EAR), unless the shipment is eligible for License Exception GOV. See the link for the October 8, 2020 AES broadcast related to the April 28, 2020 rule: https://content.govdelivery.com/accounts/USCENSUS/bulletins/2a4e09f
Resources and Contact Information:
For questions related to BIS’s final rule, how to determine if an item has an ECCN or is designated as EAR99, and for all other questions related to the EAR, please reach out to BIS directly at one of the phone numbers below:
- Outreach and Educational Services Division (located in Washington, DC): (202) 482-4811
- Western Regional Office (located in Irvine, CA): (949) 660–0144
- Northern California branch (located in San Jose, CA): (408) 998-8806
|
