1. Are you impacted by these duplicate re-export control measures? (ie: re-export of US item from the EU, reexport of an EU dual item from the US initially exported under EU001)
AmCham EU Members are affected by duplicate licensing in several instances, even more so when re-exporting US origin items from the EU:
- Reexports of US origin items from the EU to a third country require both an EU and a US license or license exception.
- In the context of systems integration, parts may be coming from both jurisdiction and require multiple licenses to the same destination and end-user. Specifically, for products that have inputs from the EU and the US, overlapping national controls can result in situations where parts or products need to be exported or re-exported as a precondition to the export of the end-item to the ultimate end-user. US restrictions on re-exports from Germany to Turkey are causing Germany to also hold export approvals – even though it doesn’t have the same legal restrictions as the US.
- Exports from the EU to a third country shipping through the US: because the US is covered under EU general license 001 some Member States do not deliver licenses for exports to the ultimate end-destination via the US. The only way to export to a third country through the US is then to use EU001 to the US and have a separate export license from an EU Member State to cover the next part of the export to a third country in addition to whatever license is required from the US to the final destination.
2. How much has it cost your organization in terms of workload and time?
Duplicate licensing is burdensome in multiple ways:
- Compliance analysis is required in both jurisdictions, requiring more skills and time
- Export licenses may need to be applied for in both jurisdiction
- Requesting export licenses in two jurisdictions creates uncertainty that the outcome may be different, especially for more sensitive government end-users. This is particularly true as Amcham EU members mostly export out of the EU to Africa, Middle East, and Eastern Europe.
- US pre-shipment inspection may also apply in addition for certain exports out of the EU. In this case, the goods must first be sent to the US before shipping again.
3. Where have the greatest problems been identified in obtaining re-export authorisation?
Exports to more sensitive government end-users have resulted in different outcomes from EU and US authorities. US Pre-shipment inspection for products leaving from the EU create extra shipments and impact delivery timelines.
4. Has it made it impossible for you to carry out the export?
AmCham EU Members have lost transactions over duplicte jurisdiction and licensing. As a result of pre-shipment inspection, delivery deadlines have been missed. Transactions have also been lost over divergent outcomes in getting export license requests approved from EU and US authorities.
5. Any experience in this regard is welcome.
AmCham EU members understand the need for national-policy based controls, but believe EU and US control regimes should account for the impact of overlapping export control jurisdiction on products assembled in and shipped from multiple jurisdictions with equally secure export control systems. Both regimes should provide an avenue for exporters to be exempted from obtaining multiple export approvals by EU and US authorities
We believe there may be opportunities to create limited carve-outs from such controls for certain types of products or based on cost thresholds to simultaneously relieve the burden on US/EU industry while ensuring top-line national-level policies remain relevant. As such we suggest:
- Expanding US license exception STA to include 5 part 2 items
- Clarifying and expanding scope of US license exception APR
- Removing pre-shipment inspections for re-exports out of the EU.
- Aligning corresponding EU general license EU008 and US license exception ENC by lightening ENC (b)(2) and (b)(3) classification request and thirty days hold requirement and expanding EU general license EU008 to 5A002.a.1 to match technical scope of US license exception ENC.
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