On December 9, 2021, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) both issued final rules adding export restrictions on Cambodia.

BIS amended the Export Administration Regulations (EAR) to implement more restrictive export controls for Cambodia to ensure that items subject to the EAR are not available to Cambodia’s military and military intelligence services without prior review by the U.S. Government, and also added Cambodia to the list of countries subject to a more stringent review policy for license applications involving national security-controlled items.

Specifically, BIS made four changes to the EAR restricting exports to Cambodia as follows:

(1) updating the controls applicable to Cambodia related to National Security-controlled items;

(2) making Cambodia subject to the Military End User (MEU) list;

(3) making Cambodia subject to the Military Intelligence End Use List (MIEU) list; and

(4) adding Cambodia to Country Group D:5.

DDTC amended § 126.1(d)(2) of the International Traffic in Arms Regulations (ITAR) to add Cambodia to the list of proscribed countries. This change institutes a policy of denial to licenses and approvals for exports of defense articles or defense services to Cambodia, see additional information at § 126.1(o).

These country policy amendments were made in response to serious concerns about the deepening influence of China’s military presence in Cambodia and a concern that this presence presents a threat to regional security. Additionally, the changes were made in response to credible evidence of growing corruption and human rights abuses by the Government of Cambodia.

The Federal Register notices are available here and here.

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Photo of Jeffrey L. Snyder Jeffrey L. Snyder

Since 1986, Jeff’s practice has concentrated on the U.S. regulation of international trade. Clients seek him out for troubleshooting and problem solving in cross-border transactions. Jeff advises on import, export, and sanctions laws. He develops approaches for multinationals to manage the impact of…

Since 1986, Jeff’s practice has concentrated on the U.S. regulation of international trade. Clients seek him out for troubleshooting and problem solving in cross-border transactions. Jeff advises on import, export, and sanctions laws. He develops approaches for multinationals to manage the impact of U.S. extraterritorial regulations. Jeff assists companies in day-to-day compliance with these laws, and with interventions — such as audits and investigations, and civil enforcement proceedings.

Photo of Chandler Leonard Chandler Leonard

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce…

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce, State, and Treasury. Chandler has experience analyzing and advising U.S. and non-U.S. companies with respect to proposed transfers of U.S. origin technology, software, hardware, and services. She has performed jurisdictional and classification analyses under the ITAR and EAR, including drafting Commodity Jurisdiction requests and CJ Reconsideration requests. She assists in developing and/or reviewing U.S. export and sanctions compliance programs, including risk assessments. Chandler also has experience training a wide variety of audiences, both U.S. and foreign, on compliance with U.S. export control and sanctions requirements.

Photo of Rachel Schumacher Rachel Schumacher

Rachel Schumacher is an associate in the International Trade and Government Contracts groups in Crowell & Moring’s Washington, D.C. office. Rachel’s practice focuses on transactions, investigations, and compliance and advisory matters involving a variety of government contracts and international trade issues.