Military End Use List (MEU)
Export Administration Regulations
Export Administration Regulations (EAR) Military End User List
The Military End Use (MEU) List was added to the Export Administration Regulations (EAR) in December of 2020. This list identifies foreign parties to whom a license is required to export items deemed to have a potential military end use.
These parties are considered to pose an unacceptable risk for transfer of items to the governments of concern. Items controlled by these regulations are delineated in Supplement Number 2 of EAR Part 744. These items include products in the following categories:
- Category 1 – Materials, Chemicals, Microorganisms, and Toxins
- Category 2 – Materials Processing
- Category 3 – Electronic Design, Development, and Production
- Category 4 – Computers including some types of software
- Category 5 – Telecommunications and Information Security software
- Category 6 – Sensors and Lasers
- Category 7 – Navigation and Avionics
- Category 8 – Marine vessels, systems, and equipment
- Category 9 – Propulsion Systems, Space Vehicles, and Related Equipment
Background on U.S. Export Law
The United States government export control laws generally require export licensing for defense items. This includes items that have applications for both commercial and military use. It also requires licensing for exports to sanctioned persons and destinations. U.S. national security, economic interests and foreign policy shape the U.S. export control regime.
The export laws and regulations are created to prevent the proliferation of weapons of mass destruction, advance the U.S. economic interests at home and abroad, aid regional stability, implement anti-terrorism and crime controls, and protect human rights.
Most export regulations fall under the jurisdiction of the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR).
Parties Listed on the MEU
Initially, 103 entities were listed in Supplement no. 7 to part 744. These organizations are associated with the People’s Republic of China (including Hong Kong), Cambodia, Russia, and Venezuela. It is expected that additional organizations associated with Burma and will be added.
It should be noted that the Military End Use List is not exhaustive. Parties not on the list may still be subject to legal prohibitions. Exporters should consider if their transactions could involve any branch of a nations armed services, national intelligence, national guards, or national police.
Additional prohibitions would extend to entities identified by the Department of Defense under the National Defense Authorization Act Section 1237.
Under §744.21(f) the EAR defines military end use as:
- An item on the U.S. Munitions List
- An item with an ECCN classification ending in A018
- Any item that contributes to the operation, installation, maintenance, repair, overhaul, refurbishment, development, or production of military items described in the USML or the ECCN ending in A018 or a 600 series ECN
Previously these restrictions applied only to items for the use, development, production of, or incorporation into military items. Under the new regulations an item that meets a single element of the new definition of “use” will now require a license.
Foreign Direct Product Rule
The Department of Commerce has also amended the EAR by clarifying the scope of the Foreign Direct Product Rule (FDPR). This amendment prevents listed entities in certain nations from receiving any foreign-produced items that were incorporated or were produced with controlled U.S.-origin technology or software without a license. This requires firms that use U.S. production technology or software to make technology overseas to obtain a U.S. license before exporting to controlled countries.
Foreign Policy Issues Driving Export Regulations
These regulations address instances where military organizations are merged into civil organizations that provide fronts for their objectives and actions. These institutions are prevalent in the People’s Republic of China. They can also apply to nations that have institutions covertly controlled by Chinese interests as in the case with Cambodia.
The Bureau of Industry and Security (BIS), which administer the EAR is not the only agency to be affected by these events. The U.S. Department of Treasury, through the Office of Foreign Assets Control, blocks assets of Special Designated Nationals (SDNs) and prohibits U.S. persons from conducting business with them. The treasury department has continued to expand its list of SDNs.
What MEU Changes Hold for Business
Changes in the Military End Use List complicate an already intricate landscape of export regulations. This means that organizations intending to export, reexport, or transfer “dual use” items in-country should exercise extra due diligence when addressing this additional license requirement.
Companies involved in export cannot afford to overlook any details. Correct classification of items and thorough screening of customers is essential.
CVG Strategy Export Compliance Expertise
CVG Strategy export compliance can assist your team with consultant services including classifications and license applications. We can also tailor an export compliance program to fit the specific needs of your organization.
While many export compliance providers offer programs geared toward compliance with a single set of regulations, CVG Strategy offers a harmonized program that will ensure that your company is compliant to all regulations. Furthermore, we consolidate this program in a collection of documents that can be integrated into a quality management system.
The CVG Strategy team has over 20 years of experience in U.S. export controls. We can help you develop an ITAR Compliance Program appropriate to your organizations requirements and provide training to prevent occurrences. We also have the experience to assist in guidance when unforeseen incidents do occur to develop strategies to prevent future violations.
How Can We Help?
CVG Strategy provides expertise to businesses in Quality Management, Product Test and Evaluation, Cybersecurity, and Export Compliance. Learn more about how we can help your organization by contacting us today.
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