Commerce Implements 90-Day Pause on Issuing New Firearm and Ammunition Export Licenses

 

June 27, 2023 News from Reeves & Dola, LLP ***HOLD WITHOUT ACTION*** Commerce Implements 90-Day Pause on Issuing New Firearm and Ammunition Export Licenses ---- “Effective immediately, the U.S. Department of Commerce is pausing for approximately 90 days the issuance of new export licenses involving certain firearms, related components, and ammunition under its jurisdiction and the provision of new export assistance activities for such products to all non-governmental end users worldwide, apart from those in certain destinations.” -- Bureau of Industry and Security press release, October 27, 2023 SCOPE AND DURATION The pause applies to the Bureau of Industry and Security's (BIS) issuance of new licenses involving firearms, related components, and ammunition in the Export Control Classification Numbers (ECCNs) listed below destined for non-governmental end users worldwide EXCEPT those located in Ukraine, Israel, or a country in Country Group A:1 (Wassenaar participating states) (see Supp. No. 1 to Part 740 of the Export Administration Regulations). The affected ECCNs are: ECCN 0A501 ECCN 0A502 ECCN 0A504 ECCN 0A505 This pause applies only to pending license applications and does not affect previously issued/received licenses. Further, the pause does not impact license exceptions. While the pause is in effect, exporters may continue to submit license applications, but be warned that if subject to the pause, BIS will place the application on “Hold Without Action” (HWA) and will not be processed until the end of the pause. BIS will notify the exporters when the pause is over. It is important to note that BIS retains the authority to modify, suspend, or revoke licenses as appropriate. Should exporters with valid licenses violate the terms of their licenses, or present other U.S. national security or foreign policy concerns, BIS can respond by revoking their license(s) or by pursuing criminal or administrative action. It is possible this pause is a first step. During this 90-day (approximately) period, BIS will further assess current firearm export control review policies to determine whether any changes are warranted to advance U.S. national security and foreign policy interests. BIS will conduct the review with urgency to assess and mitigate risk of firearms being diverted to entities or activities that promote regional instability, violate human rights, or fuel criminal activities. BIS cautions that it may take additional steps to further U.S. national security and foreign policy interests. LICENSE APPLICATIONS FOR GOVERNMENT END USERS If submitting a license application for a government end user, the applicant must name name specific end users on license applications. BIS will return without action an application involving unnamed government, military, and police end users. For those applications involving named government, military, and police end users, BIS will review on a case-by-case basis consistent with existing policies in the EAR to determine whether any concerns about regional stability, human rights or other U.S. foreign policy or national security concerns exist specific to the transaction proposed by the application. Exports in support of U.S. government cooperative programs with foreign partners are consistent with U.S. national security and foreign policy interests. Applicants should provide support documentation evidencing the government end user. For example, copies of contracts, purchase orders, government tenders, or other documentation confirming that the transaction has been identified and authorized by the official user specified on the application. LICENSE APPLICATIONS FOR NON-GOVERNMENT END USERS IN COUNTRY GROUP A:1, ISRAEL, AND UKRAINE Applications involving exports, reexports, or transfers (in-country) to non-government end users in Country Group A:1, Israel, and Ukraine also will be reviewed on a case-by-case basis consistent with existing policies in the EAR to determine whether any concerns about regional stability, human rights, or other U.S. foreign policy or national security concerns exist specific to the transaction proposed in the license application. Exporters should exercise due diligence in their review and submission of such applications, particularly for exports of firearms for commercial resale. FOR MORE INFORMATION The BIS press release includes Frequently Asked Questions to guide exporters. You can view the full press release on the BIS FAQ page here. The above alert is for informational purposes only and is not intended to be construed or used as legal advice. Receipt of this alert does not establish an attorney-client relationship. Questions about this alert may be directed to: Johanna Reeves: 202-715-9941, jreeves@reevesdola.com About Reeves & Dola Reeves & Dola is a Washington, DC law firm that specializes in helping clients navigate the highly regulated and complex world of manufacturing, sales and international trade of defense and commercial products. We have a deep understanding of the Federal regulatory process, and use our expertise in working with a variety of Federal agencies to assist our clients with their transactional and regulatory needs. Reeves & Dola, LLP Reeves & Dola, LLP 1775 I Street, NW, Suite 1150 Washington, DC 20006 202-683-4200 info@reevesdola.com