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EU Dual-Use List Receives Major Update

Thursday, December 18th, 2014

The European CommissionThe European Commission has made some long overdue changes to the EU control list of Dual-Use Items (Annex I to Council Regulation (EC) No 428/2009) in order to incorporate changes from multilateral regime meetings held in 2011-2013. The newly updated list comes into force on December 31, 2014 and includes over 400 changes to every category (0-9) on the dual-use list.

For a headline summary of changes by category, see this PowerPoint file hosted by the UK ECO. For a little more detail, take a look at the comprehensive change note.

Source: UK ECO

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Expansion of Microprocessor Military End-Use and End-User Controls

Wednesday, December 17th, 2014

MicroprocessorToday BIS announced an expansion of the military end-user/end-use rules under  § 744.17 of the EAR.Chiefly, this expansion deals with a new combination item/end-use based license requirement for all microprocessors having a processing speed of 5 GFLOPS or more and an arithmetic logic unit with an access width of 32 bit or more, including those incorporating ‘‘information security”, when destined for military end-uses or military end-users in Country Group D:1 countries. This license requirement now also applies to in-country transfers to prohibited military end-users or end-uses as well as the software and technology to develop or produce the microprocessors.

The following ECCNs now have a License Requirement Note referencing these newly expanded controls 3A001, 3A991 (revision of existing note), 3D002, 3D991, 3E001, 3E002, 3E991, 5A002, 5A992, 5D002, 5D992, 5E002 and 5E992.

Pay particular note to the fact that these license requirements for military end-user/end-use apply to microprocessors meeting the speed requirements above classified under any ECCN in Category 5—Part 2 (including Mass Market items), even if NLR or License Exception ENC would otherwise be available.

Source: 79 FR 75044

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ECR – Final Rules for Military Electronics Published

Thursday, July 24th, 2014

On July 1, 2014 the Departments of State and Commerce published their respective rules for amending the ITAR and EAR for control of military electronic equipment and other items the President determines no longer warrant control under the United States Munitions List (USML). This adds USML Category XI to the list of USML categories that have gone through the Export Control Reform effort.

These final rules are effective on December 30, 2014, except for the revision to Sec. 121.1, Category VIII(h)(4), which is effective August 15, 2014 (a revision to ensure that wing folding systems for commercial aircraft are not controlled as defense articles, while retaining those systems that warrant ITAR controls for foreign policy and national security).

Below is an up-to-date chart showing which USML categories are left for rewrites. It’s worth nothing that Under Secretary Eric Hirschhorn has mentioned that USML Category XII will very likely be the last category to undergo reform.

USML Category Key Milestones Federal Register Notice(s)
No. Description Effective
Date
Transition
End Date
Final Rule Correction
Rule
I Firearms TBD TBD TBD TBD
II Artillery TBD TBD TBD TBD
III Ammunition TBD TBD TBD TBD
IV Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines 07/01/2014 06/30/2016 79 FR 34 79 FR 36393
V Explosives and Energetic Materials, Propellants, Incendiary Agents, and Their Constituents 07/01/2014 06/30/2016 79 FR 34 79 FR 36393
VI Surface Vessels of War and Special Naval Equipment 01/06/2014 01/05/2016 78 FR 40922 79 FR 26
VII Ground Vehicles 01/06/2014 01/05/2016 78 FR 40922 79 FR 26
VIII Aircraft and Related Articles 10/15/2013 10/14/2015 78 FR 22740 78 FR 61750
IX Military Training Equipment 07/01/2014 06/30/2016 79 FR 34 79 FR 36393
X Personal Protective Equipment 07/01/2014 06/30/2016 79 FR 34 79 FR 36393
XI Military Electronics 12/30/2014 12/29/2016 79 FR 37536 TBD
XII Fire Control/Sensors/Night Vision TBD TBD TBD TBD
XIII Materials and Miscellaneous Articles 01/06/2014 01/05/2016 78 FR 40922 79 FR 26
XIV Toxicological Agents TBD TBD TBD TBD
XV Spacecraft and Related Articles 11/10/2014 11/09/2016 79 FR 27180 TBD
XVI Nuclear Weapons Related Articles 07/01/2014 06/30/2016 79 FR 34 79 FR 36393
XVII Classified Articles, Technical Data, and Defense Services 10/15/2013 10/14/2015 78 FR 22740 78 FR 61750
XVIII Directed Energy Weapons TBD TBD TBD TBD
XIX Gas Turbine Engines and Associated Equipment 10/15/2013 10/14/2015 78 FR 22740 78 FR 61750
XX Submersible Vessels and Related Articles 01/06/2014 01/05/2016 78 FR 40922 79 FR 26
XXI Articles, Technical Data, and Defense Services Otherwise Not Enumerated 10/15/2013 10/14/2015 78 FR 22740 78 FR 61750

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New ITAR Brokering Rule!

Monday, August 26th, 2013

Today DDTC published an interim final rule amending the brokering regulations under ITAR Part 129. This rule is effective October 25, 2013 and interested parties may submit comments by October 10, 2013.  Key changes include:

Clarification of registration requirements

  • Only foreign persons outside the U.S. that are owned / controlled by a U.S. person are required to register
  • Foreign subsidiaries can be included on a parents registration
  • Brokering does not include the provision of advice to clients by an attorney

Updating the scope of brokering activities

  • Excludes activities of foreign subsidiaries to a U.S. parent when promoting defense products and services of the parent

New prior approval requirements and exemptions for brokering activities

Revised reporting and recordkeeping for such activities

  • All persons involved must be identified by name, address, nationality, country location and function
  • Include quantity, description and U.S. dollar value of defense articles and services
  • Indicate the source and value of fees and commissions received or expected

Full details of the rule can be found at: http://www.pmddtc.state.gov/FR/2013/78FR52680.pdf

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Revision of USML Categories VI, VII, XIII, and XX

Wednesday, August 7th, 2013

On July 8, 2013 the Department of Commerce and Department of State published their respective final rules for initial implementation of the following Categories. These various ITAR and EAR amendments are effective January 6, 2014.

From the FR: As part of the President’s Export Control Reform (ECR) effort, the Department of State is amending the International Traffic in Arms Regulations (ITAR) to revise four more U.S Munitions List (USML) categories and provide new definitions and other changes. The revisions contained in this rule are part of the Department of State’s retrospective plan under E.O. 13563.

To view the full Revisions to the ITAR click here . Similarly, revisions to the EAR can be found here.

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