How EAR end-use and end-user controls work

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1. What part 744 does

Part 744 of the Export Administration Regulations (EAR) contains prohibitions on exports, reexports and selected transfers to certain end users and end uses, unless the Bureau of Industry and Security (BIS) authorizes them (15 CFR 744.1(a)(1)). The prohibitions are introduced under General Prohibition Five, on end uses and end users, and General Prohibition Nine, on orders, terms and conditions. The sections also set license review standards for the applications they require.

Several sections address defined proliferation activities, including a section on activities of U.S. persons. Section 744.7 covers certain items for foreign aircraft and vessels. Section 744.8 applies when a person on the Specially Designated Nationals and Blocked Persons (SDN) List under specified sanctions programs is a party to the transaction. Section 744.9 covers certain cameras, systems and related components.

2. The lists and country-based end-use rules

Section 744.11 imposes license requirements, to the extent specified in supplement no. 4 to part 744, on entities listed there, the Entity List, for activities contrary to U.S. national security or foreign policy interests (15 CFR 744.1(a)(1)). Section 744.15 sets conditions for parties on the Unverified List (UVL) and procedures for removal or modification of a listing. Section 744.16 sets the license requirements, policies and procedures for the Entity List. Section 744.17 covers microprocessors and related software and technology for military end uses and end users.

Section 744.19 sets the licensing policy where a party has been sanctioned under any of three specified statutes requiring certain applications to be denied (15 CFR 744.1(a)(1)). Section 744.21 restricts items listed in supplement no. 2 to part 744 for a military end use or end user in Burma, Cambodia, China, Nicaragua or Venezuela. For Belarus and Russia it reaches all items subject to the EAR. Section 744.22 covers military-intelligence end uses and end users, and section 744.23 covers certain supercomputer and semiconductor manufacturing end uses. Part 764 separately prohibits exports and certain transfers to denied parties.

3. When several sections apply

If controls under more than one section of part 744 apply to a person, the license requirements are set by all the applicable sections together (15 CFR 744.1(a)(2)). Applications are then reviewed under all the applicable licensing policies.

4. Two steps in using part 744

The first step is to review each end-use and end-user prohibition in the part to learn its scope (15 CFR 744.1(b)(1)). The second is to decide whether any of them applies to the planned export, reexport, shipment, transmission, transfer or other activity (15 CFR 744.1(b)(2)). Supplement no. 1 to part 732 gives guidance.

BIS may inform a party that a license is required while a shipment is in transit (15 CFR 744.1(b)(2)). The party may not then proceed further without first obtaining a license. The bar in section 748.4(d)(2) on applying for a shipment already laden or exported does not apply to such applications. The licensing process is covered in applying for an export license.

5. Items for foreign vessels and aircraft

A further rule applies beyond the Commerce Control List (CCL) license requirements. An item subject to the EAR may not go to, or for the use of, a foreign vessel or aircraft in any port unless certain conditions are met (15 CFR 744.7(a)). That applies to vessels and aircraft in operation or under construction, including in a Canadian port. A license exception or No License Required (NLR) status must permit the shipment to three countries.

They are the country where the vessel or aircraft is located, and the country where it is or will be registered (15 CFR 744.7(a)(1), 15 CFR 744.7(a)(2)). The third is the country, including a national of it, currently controlling, leasing or chartering it (15 CFR 744.7(a)(3)). A shipment to a launch platform or facility in international waters is treated by country. It is an export or reexport to the country or countries that own or control it, or on whose behalf it is operated (15 CFR 744.7, note 1 to paragraph (a)).

6. The exception for U.S. and Canadian carriers

Listed commodities may go to a specific vessel or plane of U.S. or Canadian registry at a port outside the United States or Canada (15 CFR 744.7(b)(1)). The exception does not cover ports in Country Group D:1, other than the People’s Republic of China. The commodities must be ordered by the person in command, or the owner or agent of the vessel or plane (15 CFR 744.7(b)(1)(i)). They must be for use or consumption on board and necessary for proper operation (15 CFR 744.7(b)(1)(ii)).

They must be in usual and reasonable kinds and quantities during times of extreme need, as the rule puts it (15 CFR 744.7(b)(1)(iii)). For ship’s bunkers or aviation fuel, that means only the quantity needed for a single onward voyage or flight. They must be shipped as cargo with Electronic Export Information (EEI) filed in the Automated Export System (AES), except for non-fuel items U.S. airlines send to their own aircraft abroad for their own use (15 CFR 744.7(b)(1)(iv)).

7. Airline installations and agents

The same commodities, except fuel, may go to a U.S. or Canadian airline’s installation or agent in any foreign destination outside Country Group D:1, other than China (15 CFR 744.7(b)(2)). They must be ordered by the airline and consigned to its own installation or agent (15 CFR 744.7(b)(2)(i)). They must be for maintenance, repair or operation of aircraft registered in the United States or Canada (15 CFR 744.7(b)(2)(ii)). They must also be necessary for the aircraft’s proper operation. The exception does not apply where the aircraft is located in, owned, operated or controlled by, or leased or chartered to, a D:1 country or national, other than China.

The quantities must be usual and reasonable, and EEI must be filed, except when U.S. airlines export to their own installations and agents for their aircraft operations (15 CFR 744.7(b)(2)(iii), 15 CFR 744.7(b)(2)(iv)).

8. The commodities covered

The carrier exceptions cover seven groups (15 CFR 744.7(b)(3)). They are fuel, including crude oil, petroleum products not of Naval Petroleum Reserves origin and blends of the two, and deck, engine and steward department stores, provisions and supplies. They also cover medical and surgical supplies, food stores, slop chest articles, saloon stores and supplies, and equipment and spare parts.

Key terms

General Prohibition Five	The general prohibition on exports to certain end uses and end users.
SDN List	Treasury’s list of Specially Designated Nationals and Blocked Persons.
Entity List	Supplement no. 4 to part 744, listing entities subject to added license requirements.
Unverified List	Supplement no. 6 to part 744, listing foreign persons subject to end-user controls under section 744.15.
Ship’s bunkers	Vessel fuel, limited to the amount for one onward voyage.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

End-user screening is part of every controlled shipment. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.