BIS Implements Strategic Trade Authorization License Exception

On June 16, 2011, the Bureau of Industry and Security (BIS) posted a final rule in the Federal Register that adds the Strategic Trade Authorization (STA) license exception to the Export Administrations Regulations (EAR). STA authorizes the export, reexport, and transfer (in- country) of specified items to destinations that pose relatively low risk that those items will be used for a purpose that licensing requirements were designed to prevent.  

To use the STA license exception, parties to the transaction must exchange notifications and statements designed to provide assurance against diversion of such items to other destinations. The exception is only relevant to exports, reexports, and transfers for which a license is required under the EAR. Thus, if the EAR do not impose an obligation to apply for and receive a license before exporting, reexporting, or transferring an item subject to the EAR, STA is not relevant to the transaction. 

STA license exception is expected to facilitate exports between the U.S. and partner countries while enhancing the competitiveness of U.S.'s key industrial base sectors.