BIS Final Rule Amends CCL to Reflect Changes to the MTCR Annex
The Bureau of Industry and Security (BIS) has issued a final rule, effective May 4, 2004, which amends the Commerce Control List (CCL)1 to reflect changes to the Missile Technology Control Regime (MTCR) Annex agreed to at the September 2003 Plenary in Buenos Aires, Argentina.
(The MTCR is a voluntary export control arrangement among 33 nations that establishes a common export control policy based on a list of controlled items and on guidelines that member countries follow to implement national export controls. The goal of maintaining the Annex and the Guidelines is to stem the flow of missile systems capable of delivering weapons of mass destruction to the global marketplace.
While the MTCR was originally created to prevent the spread of missiles capable of carrying a nuclear warhead, it was expanded in January 1993 to also cover delivery systems for chemical and biological weapons. The only absolute prohibition in the regime's Guidelines is on the transfer of complete "production facilities" for specially designed items in Category I of the MTCR Annex.)
1 The CCL is Supplement No. 1 to 15 CFR Part 774.
BIS Final Rule Amends ECCNs in the CCL
BIS states that the following Export Control Classification Numbers (ECCNs) in the CCL are amended as follows:
1B118 - changing the 1B118.b parameter from reading "Capability to open the mixing chamber" to read "A single rotating shaft which oscillates and has kneading teeth/pins on the shaft as well as inside the casing of the mixing chamber."
1C111 - adding Inhibited Red Fuming Nitric Acid (IRFNA) to 1C111.a.3.e.
5A101 - (a) clarifying the heading to include the phrase "including ground equipment;" (b) revising telemetry controls to capture only items designed or modified for missile or unmanned aerial vehicle (UAV) systems capable of traveling at least 300 km; (c) amending the technical note to add equipment that is not controlled by this entry, including: equipment designed or modified for manned aircraft or satellites; ground based equipment for terrestrial or marine applications; and equipment designed for commercial, civil, or safety of life (e.g., data integrity or flight safety) Global Navigation Satellite System services; and (d) adding a note to specify, "Item 5A101 does not include items not designed or modified for unmanned aerial vehicles or rocket systems (including ballistic missile systems, space launch vehicles, sounding rockets, cruise missile systems, target drones, and reconnaissance drones) capable of a maximum "range" equal to or greater than 300 km (e.g., telemetry circuit cards limited by design to reception only and designed for use in personal computers)."
9A115 - amending the heading to clarify that this entry captures equipment used in association with UAVs capable of traveling at least 300 km.
9A120 - adding this ECCN to capture UAVs designed or modified for aerosol delivery.
Limited "Grace Period" for Licensing
Shipments of items removed from license exception eligibility or No License Required (NLR) authorization as a result of this final rule that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on May 4, 2004, pursuant to actual orders for export to a foreign destination, may proceed to that destination under the previous license exception eligibility or NLR authorization provisions so long as they have been exported from the U.S. before June 3, 2004.
BIS states that any such items not actually exported before midnight, on June 3, 2004, require a license in accordance with this final rule.
BIS contact - Steven Clagett (202) 482-1641
BIS final rule (D/N 040414116-4116-01, FR Pub 05/04/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-10129.pdf