In response to the Venezuelan military’s violent repression of the Venezuelan people, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) is issuing a final rule to impose license requirements on the export, reexport, or transfer (in-country) of certain items to or within Venezuela when intended for a “military end use” or “military end user.” The final rule amends Section 744.21 of the Export Administration Regulations (“EAR”) to add a licensing requirement for Venezuela that is similar to pre-existing military end use/end user licensing requirements for Russia and the People’s Republic of China. The licensing requirement applies to (i) any items subject to the EAR listed in Supplement No. 2 to Part 744 of the EAR, as well as (ii) any items classified under 9×515 or the “600 series” of the U.S. Commerce Control List. This change complements an existing U.S. arms embargo against Venezuela, which already applies to items subject to the International Traffic in Arms Regulation and to most of the “600 series” items on the U.S. Commerce Control List. Venezuela is not otherwise subject to specific U.S. export controls, other than the regular country-based controls that apply under the EAR based on an item’s ECCN and the corresponding reasons for control on the Commerce Country Chart.
BIS Adds Venezuela Military End Use/End User Licensing Requirements
By Maria H. van Wagenberg, Janet K. Kim and Alexandre (Alex) Lamy 2 Mins Read
Ms. Kim focuses on outbound trade compliance issues that arise under US economic sanctions, export control laws, investment restrictions, anti-boycott regulations, anti-money laundering laws and the Foreign Corrupt Practices Act. She represents and advises US and non-US companies in criminal and regulatory proceedings, internal investigations, and compliance audits relating to these areas of law. She also advises on the extraterritorial application of these laws in cross-border transactions, including mergers and acquisitions, joint venture arrangements, and other international commercial activities. Her practice includes the development and implementation of workable, risk-based internal compliance programs and procedures for companies in a wide range of industries.
Alex advises clients on compliance with US export controls, trade and economic sanctions, export controls (Export Administration Regulations (EAR); International Traffic in Arms Regulations (ITAR)) and antiboycott controls. He counsels on and prepares filings to submit to the US Government's Committee on Foreign Investment in the United States (CFIUS) with respect to the acquisition of US enterprises by non-US interests. Moreover, Alex advises US and non-US companies in the context of licensing, enforcement actions, internal investigations, compliance audits, mergers and acquisitions and other cross-border transactions, and the design, implementation, and administration of compliance programs. He has negotiated enforcement settlements related to both US sanctions and the EAR.