Final EAR Rule Adds USML Items to the CCL

A comprehensive final rule issued by the Bureau of Industry and Security adds a new structure and related provisions to the Export Administration Regulations. The rule moves to the Commerce Control List ( Supplement No. 1 to EAR Part 774) to munitions items the President has determined no longer warrant export control on the United States Munitions List ( International Traffic in Arms Regulations 121.1). The rule adds a new control structure and creates 10 new “600 series” Export Control Classification Numbers to control an initial group of items moving from the USML to the CCL: aircraft and gas turbine engines, related parts, components, accessories, attachments, software, and technology. This rule adopts a common definition of “specially designed” for use under the EAR and the ITAR, along with other key terms used on the two control lists. The rule also addresses implementation issues related to the transition of items from the USML to the CCL, including the continued use of Directorate of Defense Trade Controls-issued licenses that include items transferred to the CCL.

New 600 Series

The final rule adds the new “600 series” to each applicable CCL category so that it falls after the 300 series (ECCNs that control items primarily for chemical and biological weapon proliferation reasons) and before the 900 series (ECCNs that control items for various foreign policy reasons). This new framework allows for identification, classification, and control of items transferred from the USML that, based on their technical or other characteristics, are not classified under an existing ECCN that is subject to controls for any reason other than Anti-Terrorism (AT) reasons. According to BIS, this structure provides a straightforward application of a licensing policy for items moving from the USML to the CCL. The fourth and fifth characters of each new “600 series” ECCN generally track the Wassenaar Arrangement Munitions List categories for the types of items at issue.

Delayed Implementation

The final rule implements changes proposed in five rules ( ¶72,755.37, ¶72,755.38, ¶72,755.39, ¶72,755.48, ¶72,755.50). It is part of the President’s Export Control Reform effort and the Commerce Department’s retrospective plan under Executive Order 13563 completed in August of 2011. BIS is providing a 180-day delayed effective date to allow the regulated community a reasonable amount of time to implement the changes. BIS published the final rule in conjunction with a Department of State rule ( ¶70,445.90) that revised the USML so that, upon the effective date of both rules, the USML and CCL and corresponding regulatory structures will be complementary. A complete listing of the EAR parts affected by the final rule appears in the regulation table below. The rule has an effective date of October 15, 2013. For the text of the Final rule, see ¶72,750.282.