BIS Releases Final Rule Implementing STA License Exception


In what it describes as part of the initial step in the Export Reform Initiative, the Bureau of Industry and Security (BIS) released its final rule implementing the Strategic Trade Authorization (STA) license exception to the licensing requirements of the Export Administration Regulations (EAR). The license exception authorizes the export, reexport and transfer (in-country) of specified items to destinations that pose relatively low risk of unauthorized uses or diversion. The license exception is conditioned upon the creation and exchange by the parties to the transaction of notifications and statements designed to provide assurance against diversion. The license exception is effective immediately.

The number of countries to which goods may be shipped under the STA rule is much more limited than as provided for in the proposed rule, but the agency has also provided more clarity regarding when the exception may be used. The following key points are important with respect to the use of the license exception...

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