Kharon’s white paper The New Military End Use and End User Regulations: A Guide for Identifying Risk delves into the US Department of Commerce Bureau of Industry and Security’s (BIS) expanded license requirements on exports, re-exports, and transfers of items intended for military end use or military end users in China, Russia, or Venezuela.
The new rule broadens the list of items covered by military end use licensing requirements and expands the definition of “military end use” to cover broader categories of activity. The rule also establishes new restrictions on exports to military end users in China. Requirements for end use and end users have been in effect since 2014 for both Russia and Venezuela, but the restrictions on China, in place since 2007, only covered end use.
In this paper we bring into focus the importance of screening and due diligence in order to identify exposure to customers that present material risk considerations for the control framework:
+ Expansion of the definition of military end use
+ Military end user restrictions
+ Procurement agents and distribution partners
+ Understanding ownership chains and activities that support military end uses
