WASHINGTON -- The US Bureau of Industry and Security has issued a new rule imposing new documentation requirements on exports of specific controlled items to or through Hong Kong.

The rule, which goes into effect on April 19, requires persons intending to export or reexport to Hong Kong any item subject to the Export Administration Regulations (EAR) and controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear nonproliferation (NP column 1), or chemical and biological weapons (CB) reasons to obtain, prior to such export or reexport, a copy of a Hong Kong import license or a written statement from the Hong Kong government that such a license is not required.

The rule also requires persons intending to reexport from Hong Kong any item subject to the EAR and controlled for NS, MT, NP column 1, or CB reasons to obtain a Hong Kong export license or a statement from the Hong Kong government that such a license is not required.

"While this rule aims to provide greater assurance that covered goods will be properly authorized to their final destination even when they first pass through Hong Kong, compliance could be burdensome for both US and non-US exporters, said Sandler, Travis & Rosenberg, a firm specializing in import/export law.

"Exporters or reexporters must first obtain a copy of a valid Hong Kong import license (or a written statement from the Hong Kong government that an import license is not required) before exporting or reexporting to Hong Kong any item subject to the Export Administration Regulations and controlled on the Commerce Control List for national security, missile technology, nuclear nonproliferation, or chemical and biological weapons reasons. The exporter or reexporter must have the copy in its possession and the license must not have expired at the time of the shipment."

BIS expects that in nearly all instances this rule will require only that a party in Hong Kong obtain a license that is already required under Hong Kong law. In those instances, no new action is required by persons reexporting from Hong Kong. However, the rule will require companies to establish new processes for obtaining a copy of a Hong Kong import license prior to shipping controlled items to Hong Kong

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