The guidance says that when red flags are raised in information that comes to a firm, it has a duty to check out the suspicious circumstances and inquire about the end-use, end-user or ultimate country of destination; and that absent red flags (or an express requirement in the EAR) there is no affirmative duty to inquire, verify or go behind the customer's representations.

The exact words it rests on

absent “red flags” (or an express requirement in the EAR), there is no affirmative duty upon exporters to inquire, verify, or otherwise “go behind” the customer's representations. However, when “red flags” are raised in information that comes to your firm, you have a duty to check out the suspicious circumstances and inquire about the end-use, end-user, or ultimate country of destination.

What the source said when we opened it, on 9 Nov 2026.

The source

Supplement No. 3 to Part 732: BIS's Know Your Customer Guidance and Red Flags
Electronic Code of Federal Regulations (BIS)

Open the sourcearchived copy

Checked

Checked by the notis newsroom on 9 Nov 2026, against the source above.

In the story

What the H200 export rule requires before China licences get case-by-case review 9 Nov 2026