The following is not meant to be legal advice.
On June 19, 2007, the Department of Commerce's Bureau of Industry and Security published its rule imposing controls on exports, reexports, and transfers of U.S.-origin goods, software, and technology to China.
The rule affects U.S. companies that: have a subsidiary operating in China; export their items to China; are engaged in Chinese joint ventures; or finance, or otherwise support, transactions in China.
The rule mandates retaining an end-user statement from China's Ministry of Commerce, for exports requiring a license and valued over $50,000. The rule amends the Export Administration Regulations (EAR) to impose license requirements on any item the exporter has knowledge that the item is intended for a military end-use.
Knowledge includes actual knowledge that a situation exists, as well as awareness of a high probability of its existence or a future occurrence. Military end-use covers operation, installation, maintenance, repair, development, design, production, manufacture, integration, and testing of any item listed on the United States Munitions List or the International Munitions List.
The export control classification numbers include commodities, software, and technology, and are listed in a Supplement 2 to part 744 of the EAR.
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