ECR Task Force Publishes 16th Amendment to STA

DS_STAPigWith publication of today’s Final Rule at 80 Fed. Reg. 39,950, the President’s Export Control Reform Initiative marks its sixteenth (16th) amendment to license exception Strategic Trade Authorization (“STA”) since initial implementation of the exception in June 2011. [F/N 1]

The Final Rule somewhat unjumbles the Section 740.20(d) provisions that outline the specific subsection (d) paragraphs to include in various types of STA Prior Consignee Statements.

The Final Rule also seeks to clarify who should complete Prior Consignee Statements by removing the term “and” in the phrase “exporter, reexporter and transferor” and replacing it with “or” in two places in paragraph (d)(2). It explains that “use of the term ‘and’ may have given the misimpression that the exporter receiving the prior consignee statement would also need to obtain a prior consignee statement for subsequent transfers (in-country) or reexports authorized under License Exception STA, which is not required under paragraph (d)(2).” [F/N 2]

Other changes to license exception STA made by the Final Rule include addition of the parenthetical phrase ‘‘(such as documents created in the ordinary course of business)’’ to provide an example of an ‘‘other record’’ in paragraph (d)(2); and addition of an ‘‘(S)’’ at the end of the terms ‘‘NAME’’ and ‘‘CONSIGNEE’’ in the bracketed text at the end of paragraph (d)(2).

Fortunately, the use of license exception STA is optional.  So companies concerned with constant changes to its scope and conditions remain free to use other license exceptions that may be applicable or apply for a license.

*   *   *

[1] See 80 Fed. Reg. 39950 (July 13, 2015); 80 Fed. Reg. 34271 (June 16, 2015); 27 Fed. Reg. 77862 (December 29, 2014); 79 Fed. Reg. 76867 (December 23, 2014); 79 Fed. Reg. 48660 (Aug. 18, 2014); 79 Fed. Reg. 45288 (Aug. 4, 2014); 79 Fed. Reg. 32612 (June 5, 2014); 79 Fed. Reg. 27418 (May 13, 2014); 78 Fed. Reg. 40892 (July 8, 2013); 78 Fed. Reg. 42430 (July 16, 2013); 78 Fed. Reg. 33692 (June 5, 2013); 78 Fed. Reg. 22660 (April 16, 2013); 77 Fed. Reg. 39354 (July 2, 2012); 77 Fed. Reg. 1017 (Jan. 9, 2012); 76 Fed. Reg. 56099 (September 12, 2011); 76 Fed. Reg. 35276 (June 16, 2011).

[2] Ibid. at 39951.


*The above is not intended as an exhaustive list of restrictions that may apply to a particular transaction nor advice for a specific transaction because the specifics of an individual case may implicate application of other U.S. laws as well as foreign laws that carry added or different requirements.  In addition, U.S. export control and sanctions laws are frequently subject to change.  Such changes can affect the continued validity of the information above, which is based on U.S. law existing as of July 13, 2015. For these reasons, assistance from a qualified attorney competent to advise on such matters is highly recommended. Matthew A. Goldstein is an International Trade Attorney in Washington D.C. licensed to practice in the District of Columbia.  He can be reached at (202) 550-0040 and Matthew@GoldsteinPLLC.com


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