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BIS Final Rule on Wassenaar Changes to the CCL, Etc

The Bureau of Industry and Security (BIS) has issued a final rule, effective March 30, 2004, which, among other things, amends the Commerce Control List (CCL) to remove "National Security " (NS) controls from, and to impose "Regional Stability" (RS) controls on, certain items in order to conform with certain provisions of the Export Administration Act (Act), which limits the duration of U.S. unilaterally imposed NS controls.

According to BIS, among other things, this final rule implements these changes by modifying four existing Export Control Classification Numbers (ECCNs) (0A018, 0A988, 0E018 and 8A018), and creating three new ECCNs (0A918, 0E918 and 8A918). It also amends the RS license requirements in 15 CFR Part 742 to include the three newly created ECCNs.

Highlights of BIS' Final Rule

The following are highlights of BIS' final rule (partial list):

Items removed from NS controls now controlled for RS reasons. According to the final rule, the CCL is being amended to remove NS as a reason for control with respect to those items which the Wassenaar Arrangement has removed from its control lists. BIS explains that NS controls are generally imposed to implement the decisions of the Wassenaar Arrangement.

However, BIS has decided to continue to control the export and reexport of these items pursuant to foreign policy-based "Regional Stability" (RS) controls because these items have the potential to contribute to military capabilities in a manner that could alter regional military balances contrary to the foreign policy interests of the U.S. The affected items are as follows:

Power controlled searchlightsand control units thereof, designed for military use, and equipment mounting such units; and specially designed parts and accessories thereof.

BIS states that such items are removed from Export Control Classification Number (ECCN) 0A018 and are moved to newly created ECCN 0A918. As a result of this change, certain paragraphs in ECCN 0A018 are reordered (see final rule for details).

Bayonets. BIS states that bayonets are removed from ECCN 0A018 and are moved to newly created ECCN 0A918. This change also results in the reordering of certain paragraphs in ECCN 0A018.

Technology for the development, production or use of bayonets. BIS also states that such technology is removed from ECCN 0E018 and is now moved to newly created 0E918.

Marine boilers designed to have any of the following characteristics: heat release rate (at maximum rating) equal to or in excess of 190,000 BTU per hour per cubic foot of furnace volume; or ratio of steam generated in pounds per hour (at maximum rating) to the dry weight of the boiler in pounds equal to or in excess of 0.83.

BIS is removing these marine boilers from ECCN 8A018 and listing them in newly created ECCN 8A918.

Certain muzzle loading (black powder) firearms.BIS' also states that newly redesignated paragraph ECCN 0A018.c, which covers muzzle loading firearms is rewritten to conform to the corresponding language in the Wassenaar Munitions List, Category ML1.a. BIS explains that this item is controlled by the U.S. as a result of its inclusion on the Wassenaar Munitions List for NS reasons.

References to "International Munitions List" revised to reflect Wassenaar.This rule also revises two references in ECCNs 0A018 and 8A018 to the "International Munitions List'' to readWassenaar Munitions List'' to reflect the correct current title of that document. In addition, two references to the "Office of Defense Trade Controls" are revised to read "Directorate of Defense Trade Controls" to reflect the current name of that organization.

Editorial Changes to Certain Existing ECCNs. In addition to the above-described changes, certain cites in ECCNs 0A988 and 0E018 are modified to reflect the reordering of certain paragraphs in ECCN 0A018 (see final rule for complete details).

BIS Contact - William Arvin (202) 482-0436

BIS Final Rule (D/N 031201299-3299-01, FR Pub 03/30/04) available athttp://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-7005.pdf