BIS Final Rule Clarifies, Corrects, and Updates EAR
The Bureau of Industry and Security (BIS) has issued a final rule, effective March 21, 2006, which revises the Export Administration Regulations (EAR) to clarify certain provisions or to update technical information. BIS notes that these revisions were identified through internal review or questions from the public. The following are highlights of the revisions made by BIS' final rule:
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Clarification of Country Group restrictions on use of certain License Exceptions. 15 CFR 740.9(b) provides an exception to export license requirements for items temporarily in the U.S. under certain circumstances, for example, (i) items traveling through the U.S., and (ii) items imported into the U.S. for display at exhibitions or trade fairs. If such items are listed on the Commerce Control List (CCL) for national security, nuclear nonproliferation, chemical or biological weapons proliferation or missile technology reasons, the License Exception provisions that govern these two circumstances do not authorize exports to certain destinations in Country Group D (15 CFR Part 740, Supp. No. 1) because of national security, nuclear nonproliferation, chemical or biological weapons, or missile technology concerns.
Prior to publication of this rule, 15 CFR 740.9(b)(1)(i) and 15 CFR 740.9(b)(2)(ii)(C), which relate to these two circumstances, respectively, transposed terms in a way that could appear to restrict items controlled for missile technology reasons from being sent to countries of concern for chemical and biological weapons reasons or nuclear proliferation reasons and to restrict items controlled for chemical and biological or nuclear proliferation reasons to countries of concern regarding missiles. This BIS final rule moves the phrases "missile technology" and "chemical or biological weapons" to match them to their relevant country groups.
The BIS final rule also revised the EAR in order to:
correct citations in statement of licensing policy regarding entities sanctioned pursuant to 15 CFR 11B(1)(B);
revise the Administrative Law Judge address to reflect the address currently in use; and
remove an obsolete interpretation (15 CFR 770.1(c)--Interpretation 3) because the commodities to which it applies are no longer on the CCL.
BIS contact - William Arvin (202) 482-2440
BIS final rule (D/N 060109005-6005-01, FR Pub 03/21/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-2685.pdf.