BIS Amends Sudan's EAR Status to Reflect Removal of Terrorism Designation

The Bureau of Industry and Security removed certain license restrictions for Sudan (see 2012080003) to reflect the U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015). The final rule, effective Jan. 14, will amend the Export Administration Regulations by removing anti-terrorism controls on exports to Sudan and by removing Sudan from Country Group E:1, which makes the country eligible for a 25% de minimis level, BIS said. Sudan also was added to Country Group B and will be eligible for several new license exceptions.

By removing Sudan from Country Group E:1, BIS raised the de minimis level from 10% to 25% for “most foreign-origin items located abroad” and destined to Sudan. This covers certain “foreign-made encryption items” destined for Sudan controlled under the EAR, BIS said, but that added other items “will continue to be subject to the EAR regardless of the level of U.S.-origin content.”

Sudan, which was moved to Country Group B, also will be subject to “relatively less stringent license review policies.” But BIS stressed that License Exception Shipments to Country Group B countries (GBS) and License Exception Technology and software under restriction (TSR) will be unavailable for exports and reexports to BIS. And because Sudan will still be in Country Group D:5, which lists certain countries subject to a U.S. arms embargo, Sudan will not be eligible for items controlled under certain Export Control Classification Numbers, BIS said.

The agency will review license applications for exports and reexports to Sudan case by case. BIS also said it will revise four license exceptions that “make specific reference to Sudan or to Sudanese nationals,” to reflect the changes, including the removal of certain restrictions on releases to Sudanese nationals of technology and source code “pertaining to computers.”

BIS also clarified that the changes to the EAR do not affect restrictions and sanctions imposed by other agencies, including the Treasury’s Office of Foreign Assets Control and the State Department’s Directorate of Defense Trade Controls. BIS said exporters should be aware of restrictions that apply to transactions involving people and entities in Darfur, which may be subject to OFAC sanctions.