On Tuesday, June 30, the U.S. announced it would suspend License Exceptions for certain exports of defense equipment and high-technology products to Hong Kong. These items include exports, reexports, or in-country transfers subject to the Export Administration Regulations (EAR).

According to announcements from the U.S. Departments of State and Commerce, this action is in response to China’s new security measures in Hong Kong. President Trump revoked Hong Kong’s special trade status in late May, indicating the move would “affect the full range of agreements we have with Hong Kong.”

These changes go into effect immediately. Items that are removed from eligibility and “were on dock for loading…laden aboard an exporting or transferring carrier, or en route aboard a carrier to a port of export or reexport on June 30, 2020…may proceed to their destination under the previous License Exception eligibility.”

Similarly, transactions involving Hong Kong persons authorized under a License Exception eligibility prior to June 30, 2020 may continue to be authorized under such provision until August 28, 2020. However, exporters availing themselves of this 60-day savings must maintain documentation demonstrating that the Hong Kong recipient was hired and provided access to technology prior to June 30, 2020.

To view the complete list of AES License Type codes and report instructions, you can click here.

To view the statement from the US Secretary of State, you can click here.

To view the statement from the US Secretary of Commerce, you can click here.

Trans-Border will continue to monitor the situation. If you have any questions, please reach out to Yateen Patel, Director of Export Compliance, at ypatel@tbgfs.com or (800) 493-9444.