Client Advisory: Export Restrictions to Nicaragua

March 22, 2024

The US Departments of Commerce and State announced rules restricting a range of exports to Nicaragua on March 14, 2024.

The Bureau of Industry and Security (BIS) issued a final rule to subject the country to more restrictive measures under the Export Administration Regulations (EAR), 15 CFR parts 730 and 774. The International Traffic in Arms Regulations (ITAR) issued a rule that makes regulatory changes that reflect the US Government’s opposition to the trade of arms with Nicaragua by adding Nicaragua to § 126.1(p) of the ITAR, 22 CFR parts 120 through 130. 

Changes Made by New Rules

Department of Commerce’s (DOC) BIS is making four sets of changes to the EAR that will subject Nicaragua to more stringent export, reexport, and transfer (in-country) controls involving items that are subject to the EAR.

  1. BIS is adding Nicaragua to Country Group D:5 (US Arms Embargoed Countries) in supplement no. 1 to part 740 of the EAR.
  2. BIS is moving Nicaragua from Country Group B to Country Group D, a grouping of countries that raise National Security concerns.
  3. Nicaragua is being added to the countries subject to a stringent licensing policy set for in § 742.4 (national security controls) in connection with the risk of diversion to defined military end uses and end users.
  4. This rule makes the country subject to the military end use and military end user restrictions in § 744.21. Which will impact EAR 600 series regulated equipment to Nicaragua.

The Department of State (DOS) is amending the ITAR to add Nicaragua in the list of countries for which it is the policy of the US to deny licenses or other approvals for exports and imports of defense services and defense articles.

  1. Except that a license or other approval may be issued on a case-by-case basis for non-lethal military equipment intended solely for humanitarian assistance, to include natural disaster relief.
  2. Further, in accordance with ITAR § 129.7, no broker, as described in ITAR § 129.2, 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 Directorate of Defense Trade Controls.

What does it mean for You?

  • Shipments destined to Nicaragua might subject to export license controls.
  • Exporters shall be aware of this new export requirements if you have export shipments going to Nicaragua.

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