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.

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