In tomorrow’s Federal Register, the Department of Commerce’s Bureau of Industry and Security will propose, as part of the export reform initiative, a new license exception called the Strategic Trade Authorization (STA). The new license exception will eliminate current license requirements for exports of a large number of items on the Commerce Control List to 162 destinations. The exact list of items eligible for this exception is not yet completely finalized because BIS has not yet designated “Tier 1” items, i.e., the most sensitive items on the CCL, all of which will not be eligible for this new exception.

Countries not eligible for exports under License Exception STA include, not surprisingly, all the countries subject to complete or partial arms embargos, as listed here and including, for example, China, Venezuela, Haiti, Vietnam, Lebanon and Belarus. Ineligible countries also include countries not subject to any arms embargo, including the U.A.E., Malaysia, Qatar, Angola and Pakistan.

Exporters using License Exception STA will be required to comply with other conditions as a prerequisite to the availability of the exception, most notably a requirement that the exporter report exports using the exception to BIS under the provisions of § 743.1 of the Export Administration Regulations. Additionally, a special Destination Control Statement will be required for exports under License Exception STA.

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