Final EAR, ITAR Rules Continue Export Control Reform

The Bureau of Industry and Security and the Department of State have issued final rules addressing the United States Munitions List ( International Traffic in Arms Regulation 121.1) and the Commerce Control List ( Supplement No. 1 to Export Administration Regulations Part 774). The rules are issued as part of the President’s Export Control Reform Initiative. A complete listing of the regulations affected by the rules appears in the table below. Both rules have a delayed effective date of January 6, 2014.

USML Revised

The ITAR rule ( ¶70,445.93) finalizes five proposed rules ( ¶70,450.13, ¶70,450.19, ¶70,450.21, ¶70,450.22, and ¶70,450.24), with changes. The rule revises USML Categories VI (Surface Vessels of War and Special Naval Equipment), VII (Ground Vehicles), XIII (Materials and Miscellaneous Articles), and XX (Submersible Vessels and Related Articles). Also, the rule adds ITAR 121.4 to provide a definition for “ground vehicles,” ITAR 121.14 to provide a definition for “submersible vessels,” and ITAR 120.38 to provide definitions of “organizational-level maintenance,” “intermediate-level maintenance,” and “depot-level maintenance.” Further, the rule revises the definition “surface vessels of war” in ITAR 121.15. The remaining revisions continue implementation of a new licensing procedure for the export of items subject to the EAR that are to be exported with defense articles, and make related changes to other ITAR sections.

New ECCN Series

The BIS rule ( ¶72,750.288) finalizes, with changes, four proposed rules ( ¶72,755.40, ¶72,755.41, ¶72,755.42, ¶72,755.45) amending the EAR. This rule creates a new “600 series” of Export Control Classification Numbers to control certain military vehicles and related items; vessels of war and related items; submersible vessels, oceanographic equipment and related items; and auxiliary and miscellaneous items. Further, the rule adds controls on items within the scope of the Munitions List of the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies that are not specifically identified on the USML or the CCL but that were subject to USML jurisdiction. Other broad changes address EAR 740.20 (License Exception STA) eligibility; notes on forgings and castings; United Nations reason for control ( EAR 746.1); removal of the .y.99 paragraph; separate definitions for “accessories” and “attachments”; and the composition of the entries for software and technology. The rule also moves certain items that were already subject to the EAR to new ECCNs.