On November 25, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced new export controls targeting Pakistan to address concerns about the diversion of certain items to unauthorized end uses or end users, particularly those on the Entity List. The final rule, effective November 25, 2024, imposes new licensing requirements on specific items destined for Pakistan.

Key Items and ECCNs

The new controls apply to six categories of items, now subject to licensing requirements for regional stability (RS) reasons. These items fall under the following Export Control Classification Numbers (ECCNs):

  • 1B999: Specific Processing Equipment
  • 2A992: Piping, fittings, and valves made of, or lined with stainless, copper-nickel alloy, or other alloy steel containing 10% or more nickel and/or chromium
  • 2B999: Specific Processing Equipment, n.e.s. (excluding 2B999.h.2)
  • 3A992: General purpose electronic equipment not controlled by 3A002
  • 3A999: Specific Processing Equipment, n.e.s.
  • 6A996: Magnetometers not controlled by ECCN 6A006, superconductive electromagnetic sensors, and specially designed components therefor

Licensing Requirements & Exceptions

Exporters must now seek a license from BIS to export, reexport, or transfer (in-country) items controlled under these ECCNs to or within Pakistan. License exceptions are limited and generally unavailable when a party on the Entity List is involved in the transaction.

License applications will be reviewed on a case-by-case basis to assess the risk of use in, or diversion to, an end use or end user of concern. Applications presenting an unacceptable risk will be denied.

Impact & Compliance

The new controls are expected to increase the number of license applications submitted to BIS. Exporters are encouraged to review BIS’s Pakistan Due Diligence Guidance located on its website. Shipments en route on December 26, 2024 may proceed under previous eligibility unless otherwise required by law.

The new export controls on Pakistan are particularly newsworthy given the historical context of U.S. export regulations. Previously, both India and Pakistan were subject to stringent controls under the EAR due to significant concerns over nuclear proliferation. These controls were initially imposed following nuclear tests conducted by both countries in the late 1990s. Over time, while certain entities in Pakistan remained on the Entity List, broader controls were somewhat relaxed as part of diplomatic and trade considerations. However, the most recent actions by the BIS suggest a renewed focus on Pakistan as a proliferation concern. The imposition of new licensing requirements for specific items indicates that the U.S. government is once again prioritizing the prevention of unauthorized use of dual-use technologies and addressing the risk of diversion to entities involved in activities contrary to U.S. national security and foreign policy interests.