On March 15, 2024, the Bureau of Industry and Security (BIS) and the Directorate of Defense Trade Controls (DDTC) amended the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR) to implement new restrictions on trade with Nicaragua.
BIS's amendments moved Nicaragua from Country Group B to Country Group D, applying a stringent licensing policy for items controlled for national security reasons, and making exports, reexports, and in-country retransfers to/within the country subject to 'military end use' and 'military end user' restrictions.
DDTC's amendments added Nicaragua to ITAR § 126.1(p) and applies a policy of denial for licenses or other approvals for exports, imports, and brokering of defense articles or defense services. This new policy of denial does not apply to non-lethal military equipment intended solely for humanitarian assistance, to include natural disaster relief. Further, as a result of this amendment and in accordance with ITAR § 129.7, no broker may engage in or make a proposal to engage in brokering activities subject to the ITAR that involve Nicaragua without obtaining the approval of the DDTC.
Crowell will continue to monitor developments around revisions to the EAR and ITAR.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
