BIS Final Rule Amends Certain Provisions of EAR to Provide Consistent Treatment for Eleven NATO Members

BIS explains that the final rule's amendments provide consistent treatment to all North Atlantic Treaty Organization (NATO) member states with respect to national security-based license requirements, national security licensing policy, availability of certain License Exceptions, and certain in-transit transactions.

(BIS notes that in June 2004, it published an amendment to the EAR to remove certain regional stability and crime control license requirements to new NATO member countries. See ITT's Online Archives or 07/01/04 news, 04070125, for BP summary.

BIS adds that in March 2004, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia acceded to NATO (newer NATO members).)

Highlights of Final Rule's Amendments to EAR

The following are highlights of the final rule's amendments to the EAR:

Eleven members excluded from national security license requirement. This final rule amends the EAR to provide for these newer NATO members and for three other NATO member states, Hungary, Iceland, and Poland, treatment consistent with all other NATO member states with respect to national security license requirements outlined in 15 CFR 742.2(a) and Supplement No. 1 to Part 738 (Country Chart).

According to BIS, 15 CFR 742.2(a) sets forth the license requirements for items listed on the Commerce Control List (CCL) with "National Security" indicated as a reason for control. This final rule adds the above-listed countries to the destinations excepted from the "NS Column 2" license requirement in 15 CFR 742.4(a). BIS notes that all other NATO member states other than the U.S. are already exempt from this license requirement because they are listed in Country Group A:1.

Removal of certain in-transit restrictions for four members. This final rule also removes Bulgaria, Estonia, Latvia, and Lithuania from General Prohibition Eight (15 CFR 736.2(b)(8)) which requires a license for items that transit listed countries if the items would require a license to be exported or reexported to those counties and no license exception would authorize export or reexport.

Removal of restrictions related to crime control for nine members. The final rule removes restrictions on License Exceptions related to crime control from Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Poland, Romania, Slovakia, and Slovenia in 15 CFR 740.2.

Five members added to Country Group B.BIS' final rule also adds Bulgaria, Estonia, Latvia, Lithuania, and Romania to Country Group B and removes them from Country Group D:1 in Supplement No.1 to 15 CFR Part 740. BIS states that exports to these countries are now eligible for certain license exceptions set forth in 15 CFR Part 740 and the national security licensing policy set forth in 15 CFR 742.2(b) for Country Group D:1 countries no longer applies. See BIS' final rule for details of the effects of the amendments to Country Groups B and D:1.

(BIS notes that the Czech Republic, Iceland, Poland, Slovakia, and Slovenia have been included in Country Group B since it was created in 1996.)

Certain technical and conforming amendments to EAR. BIS adds that its final rule also makes certain technical and conforming amendments to other provisions of the EAR that refer to NATO member states or to individual countries that are now NATO member states. See BIS' final rule for details.

BIS Contact - William Arvin (202) 482-2440

BIS Final Rule (D/N 051020273-5273-01, FR Pub 11/07/05) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-22079.pdf