The U.S. Commerce Department’s Bureau of Industry and Security has proposed a requirement for exporters, whose overseas customers are part of the “validated end user” (VEU) program, to send a notification with shipment details to these recipients prior to export.
BIS said the purpose of this new requirement would be to “enhance the ability of VEUs to comply with the requirements of the VEU program.”
The agency emphasized that it’s “not the result of non-compliance with VEU requirements by existing VEUs. Rather, BIS proposes making this change at the request of VEUs. Some VEUs have informed BIS that compliance is challenging when they receive items under multiple authorizations, but are unable to determine which authorization is used for each shipment, and thus determine which set of conditions applies to the items received in each shipment.”
BIS established the VEU program in June 2007 to allow the export of certain controlled items to approved end-users under a general authorization instead of the more rigorous export licensing process.
The End-User Review Committee (ERC), composed of representatives from the State, Defense, Energy, and Commerce departments, and other agencies, is responsible for administering the VEU program. A unanimous vote by the ERC is required to authorize VEU status for a candidate or to add any eligible items to an existing authorization. A majority vote of the ERC is required to remove VEU authorization or to remove eligible items from an existing authorization.
Details that would be required in the proposed notification include:
- List of the contents of the shipment and quantity of such items that have been or will be shipped to the VEUs.
- List of the applicable Export Control Classification Numbers (ECCNs) for items included in the shipment.
BIS is not mandating the form of communication, such as fax, email, or letter, for the notification, but would require that it be in writing. “The notification must be conveyed to the VEU within seven calendar days of shipment to the VEU,” BIS said. Exporters, re-exporters and VEUs are also required to keep these notifications on file.
To view the proposed requirement, see the Federal Register notice. Comments are due to BIS by June 18.