The final rule issued by the Bureau of Industry and Security (BIS), Department of Commerce, presents a modification to the existing Export Administration Regulations (EAR) concerning the renewal of temporary denial orders (TDOs). Under the newly adopted § 766.24(d)(1), BIS is now permitted to request the Assistant Secretary for Export Enforcement to extend an existing TDO for up to one year, a substantial extension from the previous 180-day limit.
This enhanced provision is triggered in cases where a subject party has exhibited a pattern of repeated and ongoing violations of the EAR, thereby justifying the need for a more protracted control mechanism.
Key distinctions in this new regulation include:
Legal Foundation: The rule makes editorial adjustments to reflect the EAR's current statutory basis, replacing references to the outdated Export Administration Act (EAA) with the Export Control Reform Act (ECRA).
Enforcement Horizon: If a request for an extended TDO renewal doesn't meet the new standard, the existing 180-day extension provision remains applicable, subject to BIS demonstrating its necessity in the public interest
This final rule does not change the current language set forth in the first sentence of paragraph (d)(1), which allows BIS to request the renewal of a TDO for a period of 180 days by demonstrating that such a renewal is necessary in the public interest to prevent an imminent violation of the EAR.
Rather, this final rule allows BIS to request the renewal of a TDO for an extended period by demonstrating that a party that is subject to an existing TDO has engaged in a pattern of repeated, ongoing and/or continuous apparent violations of the EAR.
| Filed on: 08/29/2023 at 8:45 am Scheduled Pub. Date: 08/30/2023 FR Document: 2023-18772 |
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