The U.S. Commerce Department's Bureau of Information and Security (BIS) has issued a long-awaited rule on export and re-export controls for military-related shipments to the People's Republic of China. The rule sets new restrictions on the shipment of certain goods when it is known that they are intended for military end-use. It affects items that are on the Commerce Control List but do not otherwise require a license for shipment to China, according to the George R. Tuttle law office, an expert on customs regulations. In addition, the rule sets up an authorized Valid End-User (VEU) program for exports to the PRC, and revises import-certificate requirements for shipments to China that must have licenses. For the VEU program, the names of participants will be placed on an approved list under Commerce's Export Administration Regulations (EAR). In another change, exporters must obtain End-User Statements from China's Ministry of Commerce for all items requiring a license to the PRC, and for most exports exceeding a total value of $50,000. The list of items subject to the "military end-use" restriction covers some 20 products and associated technologies, including aircraft, underwater systems, lasers and airborne navigation systems.
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