Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Insights
    3. Alerts
    4. U.S. places new export restrictions on Hong KongAlerts

    Alert / Asia-Pacific Alert

    U.S. places new export restrictions on Hong Kong

    June 30, 2020

    Share

    By David Kaufman, Alexandra Lopez-Casero, David Cheng, John Sandweg and Rachel Winkler

    We discuss yesterday’s announcement from the State Department to restrict the export of U.S.-origin defense equipment to Hong Kong and its goal to impose the same restrictions on exports of U.S. dual-use technologies to Hong Kong as they exist for China. Also, this morning the Commerce Department announced that it is suspending all License Exceptions for exports to Hong Kong, unless a License Exception could also be used for exports to China.

    As a sign of the growing tension between the United States and China over the imposition by the Beijing government of a new security law on Hong Kong, the U.S. government on Monday, June 29, announced new restrictions banning the export of U.S.-origin defense equipment to Hong Kong and the desire to impose the same restrictions on U.S. dual-use technologies to Hong Kong as for China. Previously, on May 27, U.S. Secretary of State Michael Pompeo communicated to Congress that the U.S. no longer considered Hong Kong as being autonomous from the People’s Republic of China and President Trump two days later announced he was, “directing my administration to begin the process of eliminating policy exemptions that give Hong Kong different and special treatment.”[1]

    Secretary Pompeo announced on June 29 that the administration would “end exports of U.S.-origin defense equipment and will take steps toward imposing the same restrictions on U.S. defense and dual-use technologies to Hong Kong as it does for China.” These restrictions include both defense articles that are on the U.S. Munitions List and dual-use products that the exporter knows will be used for military purposes. Imposing restrictions on the export of defense articles to Hong Kong will eventually require a change to the International Traffic in Arms Regulations (ITAR). As of this morning, the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC), which administers and enforces the ITAR, has not announced such a change, including in its country-specific guidance. However, such a change could come any time in the coming days. However, this morning, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), which administers the export, reexport, and transfer of dual use and commercial products, announced that effective June 30, 2020, it is suspending any License Exceptions for exports to Hong Kong, reexports to Hong Kong, and transfers (in-country) within Hong Kong of items subject to the Export Administration Regulations (EAR), which provide differential treatment than those available to the People’s Republic of China. BIS explained that it is taking this action pursuant to Section 740.2(b) of the EAR, which provides that all License Exceptions are subject to revision, suspension, or revocation, in whole or in part, without notice. Additionally, in the coming months BIS will likely work on changing actual provisions in the EAR pertaining to its licensing policy regarding Hong Kong, reasons for control, and related changes to eventually treat exports, reexports, and transfers to and within Hong Kong as if they were destined to China.

    Separate but relatedly, U.S. Commerce Secretary Wilbur Ross announced that his department would suspend “regulations affording preferential treatment to Hong Kong over China, including the availability of export license exceptions.” Exporters of sensitive technology products will likely be required to undergo a rigorous application process to receive a license to export these items to Hong Kong.

    Nixon Peabody advises clients on all aspects of export compliance, including U.S. export controls on China and can provide additional details on the existing and announced restrictions. We will continue to monitor these developments and provide further analysis as warranted.


    1. See our prior alert, “U.S. looks at redrawing its relationship with Hong Kong.”
      [Back to reference]

    Locations

    Hong Kong

    Practices

    Supply Chain Risks & Customs SeizuresInternational ServicesChinaExport Controls & Economic Sanctions

    Insights And Happenings

    • Alert

      U.S. imposes further sanctions against Russia and Russian nationals

      April 6, 2022
    • Alert

      New U.S. sanctions against Russia

      Feb 24, 2022
    • Alert

      The United States imposes financial sanctions against Russia and blocking sanctions on Russian individuals

      Feb 23, 2022

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL