Client Alert
Export Control Transparency Act Signed Into Law
28 Aug 2025
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Estimated reading time: 3 minutes
On August 19, 2025, President Trump signed into law the Maintaining American Superiority by Improving Export Control Transparency Act (the “Export Control Transparency Act” or the “Act”). The law amends the Export Control Reform Act of 2018 (50 U.S.C. § 4815) (ECRA) and introduces significant transparency requirements for the Commerce Department’s Bureau of Industry and Security (BIS) regarding export licensing activities. The Act is a response to congressional concerns about transparency around BIS’s licensing activities, particularly related to restricted entities in China, Russia, and other arms-embargoed countries.
Key Takeaways
- The law requires BIS to report annually to Congress on its export control licensing activities with respect to certain end users and countries, including information about license applications that are not approved.
- The Act does not fundamentally change Congress’s authority to request this information, but it may increase the speed and regularity with which Congress obtains it.
- Companies that apply for licenses with respect to covered entities, including Entity List-designated companies in China and other arms-embargoed countries, should prepare for greater congressional scrutiny into any related activities, including activities that are not strictly covered by reported licensing activity.
Background and Legislative Purpose
Congressional oversight committees have, for several years, voiced frustration with the lack of detail and timeliness of BIS’s responses to inquiries about export licensing, especially for transactions involving China and other countries subject to heightened controls. These bipartisan concerns have persisted across both the first Trump and Biden administrations. This law, commonly referred to as the “Export Control Transparency Act” addresses these issues, in part, by mandating automatic, comprehensive annual reporting to Congress on BIS’s licensing and authorization activities for certain high-risk entities.
Key Provisions
The Act requires BIS to submit an annual report to Congress detailing every request for authorization processed for exports to “covered entities.” Covered entities are defined as those that are both located in China, Russia, Syria, or other arms-embargoed countries (Country Group D:5) and are listed on either the Entity List or the Military End User (MEU) List.
Where required, reports must include the names of the applicant and recipient (such as the end user), the location of the end user, a description and value of the item, whether BIS approved the license, and the date of submission. Additionally, BIS must report on end-use checks conducted on these entities. End-use checks are ordinarily conducted by Regional Export Control Officers stationed outside the United States.
The law requires that BIS begin submitting reports not later than one year after the date of enactment, which would begin on August 19, 2026, and not less than once a year following, subject to the availability of appropriations. The law does not mention a retroactive effect, although it remains to be seen if Congress will attempt to investigate prior authorization activities.
Summary of Key Provisions
Provision | Summary | Reference |
Annual Report to Congress | Requires BIS to report annually on requests for authorization for exports, reexports, releases, and in-country transfers of items controlled under ECRA to covered entities. This could include requests beyond licenses, such as requests for letter authorizations or other mechanisms outside of the traditional licensing process. | Section 2(e)(1) |
Elements of Report – General | Outlines information that must be included in the report such as applicant/recipient names, item description/value, and approval status. | Section 2(e)(2) |
Elements of Report – End-Use Checks | Requires inclusion of information on end-use checks conducted on covered entities. | Section 2(e)(2)(a) |
Elements of Report – Aggregate Statistics | Requires aggregate statistics on all license applications and requests for authorization, which can be released publicly. | Section 2(e)(2)(c) |
Covered Entities Definition | Entities located in China, Russia, Syria, or other arms-embargoed countries (Country Group D:5) and listed on the Entity List or MEU List. | Section 2(e)(5)(b) |
Implications and Next Steps
Companies engaged in export activities subject to U.S. export controls with covered entities should keep the following takeaways in mind:
- Congress has been eager to investigate exports of advanced semiconductors and semiconductor manufacturing equipment (among other key emerging technologies) to entities headquartered in arms-embargoed countries, and this law allows more direct and consistent access to the information needed to intensify oversight.
- BIS may exercise greater caution in approving licenses for entities on the Entity List or Military End User List, given the heightened scrutiny.
- Companies with activities that may be subject to enhanced reporting should understand the legal mechanics and potential implications of congressional reviews of their export transactions involving covered entities.
