BIS - Proposed rule to require AES records for all exports involving “unverified list” parties 

September 11: A proposed rule issued by the Bureau of Industry and Security (BIS) and published in today’s edition of the Federal Register would require exporters to file an Automated Export System (AES) record for all exports subject to the Export Administration Regulations (EAR) and involving a party or parties to the transaction who are listed on the “unverified list.”

The proposed rule [PDF 252 KB] would:


  • Suspend the availability of license exceptions for exports, re-exports, and transfers (in-country) involving a party listed on the “unverified list”
  • Require exporters, re-exporters, and transferors to obtain an “unverified list” statement from a party to the transaction listed on the “unverified list” before proceeding with the exports, re-exports, and transfers (in-country) involving items subject to the EAR, even when the item does not require a license
  • Add procedures to the EAR concerning requests for removal or modification of a “unverified list” entry

The proposed changes are intended to enhance the ability of U.S. officials to verify the bona fides of parties to exports, re-exports, or transfers (in-country) of items subject to the EAR and provide increased visibility into such exports, re-exports, and transfers involving persons whose bona fides could not be verified.


Comments are due by October 11, 2013.



For more information, contact a professional with KPMG’s Trade & Customs practice:


Douglas Zuvich

(312) 665-1022


Andrew Siciliano

(631) 425-6057


John L. McLoughlin

(267) 256-2614


Todd R. Smith

(949) 885-5617


Luis A. Abad

(212) 954-3094


Amie Ahanchian

(202) 533-3247


Or your local KPMG Trade & Customs professional.




©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

TaxNewsFlash-Trade & Customs by year