2010Æs export reform rulemakings
‘ Implementation of Additional Changes from the Annual Review of the Entity List. This is a significant update to the Entity List by the Commerce Department’s Bureau of Industry and Security (BIS), since it not only removed five Russian entities, but also identified numerous parties in Russia and China that were operating under aliases. This rule will require the exporter/importer to recheck the client vendor list to see if previous transactions were conducted with listed entities that may have been operating under other identities that are now called out in the Federal Register notice.
‘ Amendment to the International Traffic in Arms Regulations (ITAR): Revision of U.S. Munitions List Category VII. The State Department’s proposed rule provides insights into the criteria used by the interagency list review under the export control reform.
‘ Commerce Control List: Revising Descriptions of Items and Foreign Availability. As part of the export control reform initiative, BIS seeks public comments on how the descriptions of items controlled on the Commerce Control List (CCL) of the Export Administration Regulations (EAR) could be more clear and positive and ‘tiered’ in a manner consistent with the control criteria the Obama administration has developed as part of the reform effort. The request for comments on how items on the CCL could be tiered includes a request for comments on the degree to which a controlled item provides the United States with a critical, substantial, or significant military or intelligence advantage; and the availability of the item outside certain groups of countries.
‘ Export Control Modernization: Strategic Trade Authorization License Exception. This proposed rule by BIS would add a new license exception to the Export Administration Regulations (EAR). The exception would allow exports, re-exports and transfers (in-country) of specified items to destinations that pose little risk of unauthorized use of those items. To provide assurance against diversion to unauthorized destinations, transactions under this license exception would be subject to notification, destination control statement and consignee statement requirements.
‘ Best Practices for Transit, Transshipment, and Re-export of Items Subject to the Export Administration Regulations. For this notice of inquiry, BIS sought public comments on a set of proposed ‘Best Practices for Transit, Transshipment, and Re-export of Items Subject to the Export Administration Regulations.’ BIS is particularly interested in engaging in a dialogue with industry regarding new transshipment principles and best practices that complement those already identified by BIS in its Web guidance and industry outreach regarding export management and compliance.
‘ Amendment to the International Traffic in Arms Regulations: Dual Nationals and Third-Country Nationals Employed by End-Users. The State Department proposed to amend the International Traffic in Arms Regulations (ITAR) to update the policies regarding end-user employment of dual nationals and third-country nationals.
‘ The Jurisdictional Scope of Commodity Classification Determinations and Advisory Opinions Issued by BIS. This interim final rule deals with jurisdictional scope of commodity classification determinations and advisory opinions issued by BIS. In essence, the party submitting a commodity classification request cannot fully rely on the determination from BIS in regards to jurisdiction.
‘ Foreign Direct Products of U.S. Technology. This BIS final rule clarifies the U.S. jurisdiction of controls on foreign manufactured products based on U.S. know-how and the requirements to comply with License Exception TSR (Technology and Software Restricted) when applicable.
‘ Revisions to the Commerce Control List To Update and Clarify Crime Control License Requirements. This BIS final rule updates and clarifies export and re-export license requirements on striking weapons, restraint devices, shotguns and parts, optical sighting devices, and electric shock devices. It also adds equipment designed for the execution of humans to the Commerce Control List.
‘ Addition of New Export Control Classification Number 6A981 Passive Infrasound Sensors to the Commerce Control List of the Export Administration Regulations, and Related Amendments. BIS publishes a new control for ECCN 6A981 ‘passive ultrasound sensors’ controlled for ‘regional stability.’ This demonstrates that controls can be added and not just removed. Manufacturers and exporters need to monitor the Federal Register to ensure they have not missed a change.
‘ Encryption Export Controls: Revision of License Exception ENC and Mass Market Eligibility, Submission Procedures, Reporting Requirements, License Application Requirements, and Addition of Note 4 to Category 5, Part 2. BIS issues substantial revisions intended to liberalize controls on encryption products.
‘ Revisions to the Export Administration Regulations to Enhance U.S. Homeland Security: Addition of Three Export Control Classification Numbers (ECCNs) and License Review Policy. BIS’s final rule established a new ‘homeland security’ control for items previously on the State Department list by creating a new ECCN with a three-tier licensing determination for ECCN 2A994 ‘concealed object detection equipment.’ This is a direct result of a compromise between the State, Defense and Commerce departments to differentiate when an item is truly under ITAR jurisdiction and when it is ‘dual use’ under Commerce jurisdiction.
‘ Implementation of Both the Understandings Reached at the 2009 Australia Group (AG) Plenary Meeting and a Decision Adopted Under the AG Intersessional Silent Approval Procedures.
‘ Wassenaar Arrangement 2008 Plenary Agreements Implementation: Categories 1, 2, 3, 4, 5 Parts I and II, 6, 7, 8 and 9 of the Commerce Control List, Definitions, Reports; Correction. Both rules by BIS offer revisions to the Commerce Control List for those items controlled for ‘national security, chemical and biological controls.’ Changes are made in line with multilateral control regimes Wassenaar and Australia Group.