BIS Final Rule Revises and Clarifies License Exceptions, Requirements, and Policies for Certain Crime Control Items
The Bureau of Industry and Security (BIS) has issued a final rule, effective March 6, 2007, which amends 15 CFR Parts 740, 742, and 774 to revise and clarify license exception availability, license requirements, and licensing policy for certain crime control items.
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According to BIS, the final rule removes the geographic restrictions on use of a license exception used to ship items to U.S. government agencies, applies those geographic restrictions on use of license exceptions to crime control software and technology, reclassifies thumbcuffs on the Commerce Control List, and restates and emphasizes BIS's policy of distinguishing crime control items from specially designed implements of torture for export control purposes.
Final Rule Revisions to License Requirements, Etc. for Certain Crime Control Items
The highlights of the revisions made by the final rule to the license exceptions, requirements, and policies for certain crime control items are as follows:
Application of crime control restrictions to software, technology, etc. The final rule replaces the word "commodities" in 15 CFR 740.2(a)(4) with the word "items" to make clear that the restrictions of paragraph (a)(4) on the use of License Exceptions to export or reexport crime control items apply to software and technology, as well as commodities.
Exemption from crime control restrictions of exports to/for U.S. government use. The final rule revises 15 CFR 740.2(a)(4) to permit the use of License Exception GOV for the export of items subject to 15 CFR 742.7 (crime control items) if consigned to and for the official use of any U.S. government agency, worldwide.
The final rule also reformats 15 CFR 740.2(a)(4) while retaining its pre-existing exemptions for shipments to NATO countries, Australia, New Zealand and Japan as well as certain shipments of shotguns for personal use.
Prohibition of license exception for certain implements of torture. The final rule adds a new 15 CFR 740.2(a)(10), which expressly prohibits the use of License Exceptions for all commodities subject to the license requirements of 15 CFR 742.11 (specially designed implements of torture, thumbscrews, and thumbcuffs, and parts and accessories, n.e.s.).
Requirement of license for all implements of torture under ECCN 0A983. The final rule revises 15 CFR 742.11(a) to make clear that a license is required for the export of all commodities that are controlled by Export Control Classification Number (ECCN) 0A983.
Placement of thumbcuffs in ECCN 0A983, ineligible for license exception. The final rule removes thumbcuffs from ECCN 0A982 and adds them to ECCN 0A983. In addition, this change makes thumbcuffs ineligible for any License Exception under any circumstances.
BIS adds that its licensing policy is generally to deny applications to export or reexport thumbcuffs. Controlling them under ECCN 0A983, for which 15 CFR 742.11 provides a general policy of denial, more accurately states BIS's licensing policy than does controlling them under ECCN 0A982, for which 15 CFR 742.7 provides for favorable case-by-case consideration "unless there is civil disorder in the country or region or unless there is evidence that the government of the importing country may have violated internationally recognized human rights."
BIS contact - Steven Clagett (202) 482-4188
BIS final rule (D/N 060117010-6010-01, FR Pub 03/06/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-3895.pdf