On January 19, 2021, the Bureau of Industry and Security (BIS) published a final rule amending the Export Administration Regulations (EAR) to reflect and implement the State Department’s rescission of the country of Sudan as a designated State Sponsor of Terrorism (SSOT) on December 14, 2020.
As detailed in the Federal Register notice, various export control changes as they relate to Sudan have now been put into place. BIS’ final rule removes Sudan from Country Group E:1 in Supplement No. 1 to part 740, the Country Group placement for all countries deemed to support terrorism, and moves Sudan to Country Group B. This means items controlled only for Anti-Terrorism (AT) reasons on the Commerce Control List, such as certain civil aircraft and related parts and components, telecommunications, and information security products, no longer require a license for export or reexport to Sudan. The rule entirely removes § 742.10, entitled “Anti-Terrorism: Sudan,” from the EAR. The rescission of Sudan’s SSOT designation also raises the de minimis level from 10 to 25 percent for most foreign-origin items located abroad that are destined for Sudan.
The inclusion of Sudan in Country Group B means, as a general matter, more license exceptions will be available for exports and reexports to Sudan. However, License Exception Group B Shipments (GBS) and License Exception Technology and Software Under Restriction (TSR) will still be unavailable for any exports or reexports to Sudan.
It is important to be aware that Sudan continues to be included in Country Group D:5 (U.S. Arms Embargoed Countries) which impacts the availability of certain license exceptions in connection with items controlled under certain Export Control Classification Numbers (ECCNs) such as “600 series” ECCNs. In addition, the Office of Foreign Assets Control (OFAC) continues to administer sanctions on individuals and entities in connection with the conflict in Darfur.
BIS’s final rule went into effect on January 14, 2021. FAQs regarding these changes are published here.
For more information on how these could impact your business, contact:
- Martin Lutz, Partner (mlutz@mcginnislaw.com, 512-495-6024),
- Jamie Joiner, Special Counsel (jjoiner@mcginnislaw.com, 713-615-8530),
- Lindsey Roskopf, Partner (lroskopf@mcginnislaw.com, 713-615-8534),
- Justin Cawley, Senior Counsel (jcawley@mcginnislaw.com, 202-812-2644), or
- Another member of the McGinnis Lochridge International Trade and Transactions Practice Group