The Commerce and State Departments released their respective fall 2013 regulatory agendas for Fiscal Year (FY) 2014 that include plans to propose and finalize a host of Export Control Reform (ECR) rules. In conjunction with the State Department's Directorate of Defense Trade Controls (DDTC), Commerce's Bureau of Industry and Security (BIS) has put two concurrent ECR final rules into effect during the current fiscal year. The implementation of final rules on Oct. 15 and Jan. 6 revised U.S. Munitions List (USML) categories and transferred items to the Commerce Control List (CCL). In conjunction with State, BIS intends to propose the following ECR rules during the remainder of FY 2014:
The Commerce Department’s Bureau of Industry and Security (BIS) and the State Department’s Directorate of Defense Trade Controls (DDTC) amended the International Traffic in Arms Regulations (ITAR) to revise the U.S. Munitions List (USML) and place some dual use items in new “600 series” Export Control Classification Numbers (ECCNs) on the Commerce Control List (CCL) (see 13123127). The CCL is subject to the Export Administration Regulations (EAR). The BIS rule (here) and State rule (here) transfer to the CCL items previously located in USML Categories IV (Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines), V (Explosives and Energetic Materials, Propellants, Incendiary Agents, and their Constituents), IX (Military Training Equipment), X (Personal protective equipment), and XVI (Nuclear Weapons Related Articles).
Effective Jan. 1, the Automated Export System (AES) will generate a fatal error back to filers that use Export Control Classification Numbers (ECCNs) 1C351, 1C352, 1C353 and 1C354 with AES License Codes C32 or C33 designated for No License Required (NLR), the Census Bureau said on Oct. 23. The decision restricts filing electronic export information through AES for shipments of certain chemical and biological items. The referenced ECCNs are controlled and subject to a Bureau of Industry and Security (BIS) license requirement for all destinations, including Canada.
The U.S. Census Bureau on Nov. 19 released trouble-shooting techniques to resolve frequent Fatal Error notification issues in the Automated Export System (AES). Fatal Errors occur when a shipment is rejected.
The July 8 Export Control Reform final rule, set to take effect Jan. 6, will add the following “600 series” Export Control Classification Numbers (ECCN) to the Commerce Control List, according to a Nov. 21 Automated Export System (AES) press release: ECCNs 0A606, 0A617, 0B606, 0B617, 0C606, 0C617, 0D606, 0D617, 0E606, 0E617, 8A609, 8A620, 8B609, 8B620, 8C609, 8D609, 8D620, 8E609, and 8E620. The following instructions determine which “600 series” ECCNs are eligible for certain license types:
The Census Bureau on Nov. 12 confirmed the removal of 14 Export Control Classification Numbers (ECCNs) from the Commerce Control List (CCL). The Bureau of Industry and Security published on Oct. 4 a final "CCL clean-up" rule that implemented the removals (see 13100906). The following 14 ECCNs no longer exist on the CCL:
The Commerce Department’s Bureau of Industry and Security (BIS) added on Oct. 15 an edit in the Automated Export System (AES) to prevent exporters and freight forwarders from inadvertently reporting electronic export information (EEI) on items of Encryption Commodities, Software and Technology, the Census Bureau said on Oct. 24. The items in question fall under Export Control Classification Numbers (ECCNs) 5A002, 5B002, 5D002 and 5E002 and the designation of “No License Required” (NLR) or AES license code C33. AES will expand the edit to include license code C32, effective Nov. 15, Census said.
The opportunity for exporters to take advantage of license exceptions has increased since the Oct. 15 implementation of the first set of item transfers from the U.S. Munitions List (USML) to the Commerce Control List (CCL), as part of the administration’s Export Control Reform, according to industry officials. Exporters face limited license exception possibilities under USML, in accordance with the International Traffic in Arms Regulations.
The much-anticipated Export Control Reform (ECR) transfer of U.S. Munitions List (USML) items to the Commerce Control List (CCL) officially took effect on Oct. 15, but exporters are unable to take advantage of the shift due to the on-going government shutdown. The Commerce Department’s Bureau of Industry and Security (BIS) continues to deny action on license applications submitted through the BIS SNAP-R system.
The Commerce Department’s Bureau of Industry and Security published it's final "CCL clean-up" rule Oct. 4. The final rule makes changes to the Commerce Control List that BIS says will make the CCL clearer, by revising the structure of the Commerce Control List, clarifying definitions, removing ECCNs subject to Nuclear Regulatory Commission jurisdiction, amending shipping tolerances, and conforming the CCL to multilateral export control lists and past amendments to the Export Administration Regulations. It also clarifies two BIS final rules associated with the first move of items from the U.S. Munitions List to the CCL. The final rule makes some changes from BIS' November 2012 proposal (see 12112702).