BIS Clarifies Changes to Sudan's EAR Status in Guidance

The U.S. will no longer impose a presumption of denial policy for export license applications for Sudan but will still limit which export license exceptions can be used for those exports, the Bureau of Industry and Security said in a Jan. 19 guidance. The guidance, issued less than a week after BIS amended Sudan’s status to loosen certain restrictions in the Export Administration Regulations (see 2101140018), also covered how BIS will control exports of aircraft, encrypted telecommunication items and anti-terrorism controlled items.

Although the agency will no longer employ a “general policy of denial,” BIS stressed that exports and reexports to Sudan will still not be eligible for License Exception Group B Shipments and License Exception Technology and Software under Restriction. BIS said it will review applications for exports to Sudan based on “the items’ reasons for control, the end-uses and the end-users,” and will still require agency approvals for exports of thermal cameras and navigational instruments.

BIS will not require authorizations to sell or lease civil aircraft to Sudan, Sudanese airlines or to Sudanese nationals, the agency said. Those aircraft are “generally” controlled only for anti-terrorism reasons, a control that no longer applies to Sudan after the Trump administration rescinded Sudan’s designation as a state sponsor of terrorism last year (see 2012170015). Because of Sudan’s removal from Country Group E:1 in the EAR, BIS added that aircraft on “temporary sojourn” to Sudan no longer need to rely on License Exception Aircraft, Vessels or Spacecraft.

The agency stressed that exports of certain encrypted telecommunication items may not be eligible for a license exception if the items are controlled for reasons other than for anti-terrorism purposes. BIS urged industry to check whether a license exception is available for their export, and if none is available, the exporter must submit a license application. BIS also said certain license applications may block in-country transfers of certain items in Sudan, and exporters may have to apply for a new license to complete those transfers.