BIS proposes rules revising export licensing requirements for China

BIS proposes rules revising export licensing requirements for China    The U.S. Commerce Department’s Bureau of Industry and Security published a proposed rule in today’s Federal Register, which promises a American shippers clearer policy for keeping U.S.-made commercial technologies out of the hands of the Chinese military.
   For the past three years, the Bush administration has considered ways to strengthen export controls to China on “dual-use” items, or commercial products with the potential for military use.
   The proposed rule calls for the development of a list of certified Chinese importers, or “validated end users,” who have proven to the U.S. government they neither engage in weapons development nor serve as procurement entities for the Chinese military.
   The proposed rule also places restrictions on nine broad categories of technology, including materials, chemicals, microorganisms and toxins; material processing; electronics design, development and production; computers; telecommunications; information security; marine (underwater systems and equipment); and propulsion systems, space vehicles and related equipment.
   In addition, the proposed rule requires U.S. companies that deal with verified end users in China to maintain records of their transactions. BIS warned that these records “would be audited on a routine basis.”
   Comments regarding the proposed rule are due to the agency by Nov. 3. For more information, access
https://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/E6-10504.htm.