{"id":505,"date":"2024-03-18T13:56:30","date_gmt":"2024-03-18T17:56:30","guid":{"rendered":"https:\/\/exportcompliancesolutions.com\/blog\/?p=505"},"modified":"2024-03-18T13:56:31","modified_gmt":"2024-03-18T17:56:31","slug":"new-export-restrictions-for-nicaragua-%c2%a7-126-1-prohibited-destination-and-ear-military-end-user-rule-now-apply","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2024\/03\/18\/new-export-restrictions-for-nicaragua-%c2%a7-126-1-prohibited-destination-and-ear-military-end-user-rule-now-apply\/","title":{"rendered":"New Export Restrictions for Nicaragua: \u00a7 126.1 Prohibited Destination and EAR Military End User Rule Now Apply!"},"content":{"rendered":"\n<div class=\"\"><p><strong>Nicaragua Added to ITAR \u00a7126.1 Prohibited Destinations<\/strong><\/p>\n<p>On March 15, 2024, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a new rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/03\/15\/2024-05695\/international-traffic-in-arms-regulations-addition-to-list-of-proscribed-countries\">89 FR 18796<\/a>) that adds Nicaragua to the International Traffic in Arms Regulations (ITAR) \u00a7 126.1 list of prohibited destinations.<\/p>\n<p>The primary rationales of the new listing are based on human rights concerns and security cooperation with Russia.\u00a0 Nicaragua is now listed in \u00a7 126.1(p) with case-by-case exceptions related to \u201cnon-lethal military equipment intended solely for humanitarian assistance, to include natural disaster relief.\u201d<\/p>\n<p>While the main effect of this change will be that defense articles may no longer be exported or reexported to or imported from Nicaragua, there are a number of follow-on effects of the \u00a7126.1 listing that companies need to be aware of, including:<\/p>\n<ul>\n<li><strong><em>Proposed and final sales<\/em><\/strong>: Broad prohibition includes proposals and presentations to individuals and companies as well as for actual sales and exports. For example, information on the equipment&#8217;s performance characteristics, price, and probable availability for delivery would be a proposal or presentation requiring a license or other approval.<\/li>\n<li><strong><em>Disclosures<\/em>:<\/strong> An affirmative duty to <u>immediately<\/u> inform DDTC of any \u201cproposed, final, or actual sale, export, transfer, reexport, or retransfer of articles, services, or data.\u201d Failure to provide a full disclosure within a reasonable time may result in a decision by State\/DTCC to not consider the notification as a mitigating factor in determining the appropriate disposition of the violation.<\/li>\n<li><strong><em>Exemptions<\/em><\/strong>: Most exemptions are not available for \u00a7 126.1 countries.<\/li>\n<li><strong><em>Dual\/Third Country Nationals<\/em><\/strong>: \u00a7 126.18(c)(2) will require screening for substantive contacts with Nicaragua.<\/li>\n<li><strong><em>Brokering<\/em>:<\/strong> Note Part 129 for additional restrictions.<\/li>\n<\/ul>\n<p>The listing was effective on the date of publication, March 15<sup>th<\/sup>.\u00a0 The State Department also published a <a href=\"https:\/\/www.state.gov\/u-s-arms-restrictions-on-nicaragua\/\">press release<\/a> on the new restrictions.<\/p>\n<p><strong>Nicaragua Faces New EAR Restrictions<\/strong><\/p>\n<p>Also on March 15, the Department of Commerce, Bureau of Industry and Security (BIS) issued a new rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/03\/15\/2024-05696\/revisions-to-export-reexport-and-transfer-in-country-controls-for-nicaragua-under-the-export\">89 FR 18780<\/a>) making parallel changes to the Export Administration Regulations (EAR).<\/p>\n<p>Based on the same rationale provided in the \u00a7 126.1 notice, Cambodia has been added to the following EAR lists:<\/p>\n<ol>\n<li>Country Group D:1 (National Security concern) (removal from Country Group B makes certain license exceptions unavailable and foreign direct product rules now apply);<\/li>\n<li>Countries subject to the licensing policy in EAR \u00a7\u2009742.4(b)(7) (review policy for national security-controlled items, based on risk of diversion to military end user or end use);<\/li>\n<li>Countries subject to military end use and end user controls in \u00a7\u2009744.21; and<\/li>\n<li>Countries subject to a U.S. arms embargo under Country Group D:5.<\/li>\n<\/ol>\n<p><strong>Seven Countries Now Subject to MEU Rule<\/strong><\/p>\n<p>Nicaragua joins Belarus, Burma, Cambodia, China, Russia, and Venezuela as subject to the military end use and end user controls.\u00a0 Although no entity in Nicaragua has yet been identified as a \u201cMilitary End User\u201d (MEU) in <a href=\"https:\/\/www.bis.doc.gov\/index.php\/documents\/regulations-docs\/2714-supplement-no-7-to-part-744-military-end-user-meu-list\/file\">Supplement No. 7 to Part 744<\/a>, it is important to note that the <a href=\"https:\/\/ecscreening.com\/index.php\/blog\/65-new-commerce-and-ofac-sanctions-lists-include-communist-chinese-military-companies-entity-list-expanded\">MEU List<\/a> is not an exclusive list of parties subject to the MEU restrictions.\u00a0 Careful evaluation of potential exports to those seven countries is advised.\u00a0 Even business entities may be considered \u201cmilitary end users\u201d which are defined broadly to include \u201cany person or entity whose actions or functions are intended to support \u2018military end uses.\u2019\u201d<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Nicaragua Added to ITAR \u00a7126.1 Prohibited Destinations On March 15, 2024, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a new rule (89 FR 18796) that adds Nicaragua to the International Traffic in Arms Regulations (ITAR) \u00a7 126.1 list of prohibited destinations. The primary rationales of the new listing are based on [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7,3],"tags":[15,14,12,16,13],"class_list":["post-505","post","type-post","status-publish","format-standard","hentry","category-all","category-compliance","tag-bis","tag-ddtc","tag-ear","tag-itar","tag-nicaragua"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Export Restrictions for Nicaragua: \u00a7 126.1 Prohibited Destination and EAR Military End User Rule Now Apply! - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"Nicaragua added to 126.1 prohibited destination list, EAR restrictions including Military End User rule also apply.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exportcompliancesolutions.com\/blog\/2024\/03\/18\/new-export-restrictions-for-nicaragua-\u00a7-126-1-prohibited-destination-and-ear-military-end-user-rule-now-apply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Export Restrictions for Nicaragua: \u00a7 126.1 Prohibited Destination and EAR Military End User Rule Now Apply! 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