Author Topic: New sanctions might hit hard supply chain?  (Read 1301 times)

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Offline nuclearcatTopic starter

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New sanctions might hit hard supply chain?
« on: June 30, 2020, 09:50:48 pm »
https://www.globaltradeandsanctionslaw.com/new-export-control-rules-confront-integration-of-civilian-and-military-technology-development-in-china-russia-and-venezuela/

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On April 28, 2020, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) published two final rules that will eliminate the license exception for civil end users (CIV) in the People’s Republic of China, Russia, and Venezuela and expand military end use and end user restrictions on these countries. These rules confront the national security risks presented by the increasing integration of civilian and military technology development, particularly in China, by requiring U.S. Government review of a broader range of exports including electronics and telecommunications items only controlled for antiterrorism (AT) reasons (with licenses subject to a presumption of denial) when shipped for military end uses or to military end users. These final rules will go into effect on June 29, 2020.
 

Offline Stray Electron

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Re: New sanctions might hit hard supply chain?
« Reply #1 on: July 01, 2020, 10:40:35 pm »
   I don't see how this will affect most of the people on this forum since most are buying FROM China and aren't selling TO China. I also doubt that many on this forum own, or are buying or selling, the type(s) equipment that falls under this ban.

  Scary title but unless you're a Chinese, Russian or Venezuelan university that is affiliated with the MILITARY I don't see how this is going to affect anyone.
 

Offline nuclearcatTopic starter

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Re: New sanctions might hit hard supply chain?
« Reply #2 on: July 01, 2020, 11:51:48 pm »
   I don't see how this will affect most of the people on this forum since most are buying FROM China and aren't selling TO China. I also doubt that many on this forum own, or are buying or selling, the type(s) equipment that falls under this ban.

  Scary title but unless you're a Chinese, Russian or Venezuelan university that is affiliated with the MILITARY I don't see how this is going to affect anyone.
For example, if you are doing PCBA in China(which is quite common here), your factory might have problems buying US components.
And i am not talking about many products that are made in China that might get more expensive because of that.
Because:
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Adopts a policy of presumption of denial of licenses for exports to China, Russia, and Venezuela for military end uses and end users, rather than the existing case-by-case license review standard
and list of "controlled" ECCN just got extended.
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Significantly expands the list of items subject to the military end use and end user license requirements in Supplement No. 2 to Part 744 of the EAR
 


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