The Bureau of Industry and Security (BIS) has clarified the agency’s suspension of license exceptions for exports to Hong Kong, saying it will no longer allow exceptions for items subject to the Export Administration Regulations (EAR) “that provide differential treatment than those available” to China. In the guidance, BIS said U.S. exporters cannot use license exceptions for any shipments to Hong Kong “except for transactions that would otherwise be eligible for a license exception” for mainland China.

BIS has explained that all exports, which now require a license due to this change and were aboard a carrier June 30, 2020, may continue to their port of export or reexport destinations under the previous eligibility. BIS added that all deemed exports and reexports involving “Hong Kong persons” that were authorized before June 30, may continue to be authorized until August 28, 2020. During this 60-day period, exporters and transferors must maintain documentation that the Hong Kong recipient was “hired and provided access to technology” before June 30.

At this time, there has been no indication from BIS that they will reexamine the suspension at a later date. If you have questions, reach out to your Mohawk Global customer service representative.