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Bureau of Industry and Security Requests Comments on Counterfeiting

The Bureau of Industry and Security (BIS), a bureau with the Department of Commerce issued a Notice of Inquiry and request for comments (83 FR 53411, October 23rd, 2018) regarding the costs associated with amending their regulations to restrict exports of used electronics and require additional recordkeeping for exports of used electronics.

This proposal is very similar to the export control legislation (the Secure E-Waste Export Act, H.R. 917) introduced for several years that would restrict the exports of used non-working electronic devices. The concerns behind the legislation and this notice and request for comments is that counterfeit goods are entering the military and civilian products as a result of the exports of used electronics. This proposal would prohibit the exports from the United States unless certain conditions are met. Otherwise, used electronics would not be allowed to be exported and other means would be necessary to dispose of these materials. The request for comments is also interested observations regarding counterfeit goods and electronic exports in the electronics supply chain to better assess the prevalence of counterfeit goods in the military and civilian supply chains and whether these changes would alleviate this problem. Some items that would be exempted are consumer appliances that have electronics features, electronics parts of a motor vehicle, tested and working, and called products. What is fully functional is still being identified. Electronics used as feedstock would also be exempted. Lastly, the notice is proposing a new recordkeeping requirement for exempted electronics under a new license exception and a potential new AES data element to keep documentation on all used electronics that are exported. The BIS is also interested in testing methodology used to test these items. ISRI will be providing comments and meeting with BIS officials to learn more about these proposals.

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