BIS proposed rule moves U.S. export reform forward

BIS proposed rule moves U.S. export reform forward    The U.S. Commerce Department's Bureau of Industry and Security released a proposed rulemaking Friday that moves another step forward the Obama administration's goal to modernize the country's aging export control system.
   A significant piece of the reform is for BIS and its counterpart at the State Department that oversees exports of munitions to review and revise the two primary lists of controlled items — the Commerce Control List (CCL) and the U.S. Munitions List (USML) — to make them more 'positive,' 'aligned' and 'tiered.'
   To do this, BIS has proposed a new regulatory construct for the transfer of items on the USML that the Obama administration determines no longer warrant control under the Arms Export Control Act to the Export Administration Regulations (EAR).
   Before the president can make these types of jurisdictional changes, he must report the results of the review to Congress and wait 30 days before removing any items from the USML.
   The rule also proposes the transfer of an initial tranche of items from USML Category VII ('Tanks and Military Vehicles') to the CCL, and calls for amending the EAR to establish a process by which certain items moving from the USML to the CCL would be made eligible for License Exception Strategic Trade Authorization (STA).
   In addition, the proposed rule will put in place EAR amendments related to movement of USML items to the CCL, such as new definitions of relevant terms, including 'specially designed,' 'end items,' 'parts,' and 'components', with the objective of regulatory and definitional harmonization.
   Finally, the BIS notice proposes establishing a new holding Export Control Classification Number (ECCN) 0Y521 in which items that warrant a significant level of control, but are not otherwise classified on the CCL, may be temporarily placed, BIS said.
   For more details access the Federal Register notice. ' Chris Gillis