On April 9th, the Bureau of Industry and Security (“BIS”) proposed a rule that would remove certain documentation requirements in connection with Export Administration Regulations (“EAR”) license applications. Export nerds are well aware that changing these requirements would go a long way toward streamlining the license application process (which is ridiculous and complicated). As the BIS itself notes, the IC/DV system is the vestigial appendage of a long-defunct Cold War relic. (That is not a quote; it’s just the pent-up frustration of every export lawyer in the country.) For all its support documentation requirements, the IC/DV system nevertheless fails to obtain an affirmative statement from the ultimate end-user regarding the actual end use of the imported item.
Under the proposed changes, however, the following would happen:
- International import certificates or delivery verifications would no longer be required in connection with license applications
- Statements by the ultimate consignee and purchaser would be required for most license applications that previously required an international import certificate
- Value threshold for requiring a Statement by Ultimate Consignee would increase from $5,000 to $50,000
It’s like Christmas in July. Incidentally, comments on this proposed rule must be received by June 9, 2014. If your business would benefit from reducing delays and administrative burdens in connection with exports or imports, you may want to voice your support for this rule change. And if you think we’re exaggerating when we characterize the IC/DV requirements as onerous, just read the description for obtaining an international import certificate.