BIS Final Rule Clarifies Export Controls on Certain Military Vehicles and Parts

The Bureau of Industry and Security (BIS) has issued a final rule, effective August 31, 2004, which amends 15 CFR Parts 770 and 774 to clarify the export controls on parts and components of certain military ground vehicles, to add a new class of vehicles to the Commerce Control List (CCL), and provide guidance for classifying ground vehicles that are subject to the Export Administration Regulations (EAR) and to distinguish those vehicles from vehicles that are subject to the International Traffic in Arms Regulations (ITAR).

BIS Final Rule Revises ECCN 9A018

According to BIS, this final rule revises Export Control Classification Number (ECCN) 9A018 on the CCL of the EAR to make clear that this ECCN applies to parts and components as well as to vehicles.

BIS states that the final rule updates ECCN 9A018 to include unarmed all-wheel drive vehicles capable of off-road use that have been manufactured or fitted to provide a specified level of ballistic protection.

BIS adds that this final rule also clarifies that ECCN 9A018 does not include vehicles that are on the USML.

BIS Final Rule Revises Interpretation 8 in 15 CFR Part 770

BIS states that the final rule also revises Interpretation 8 (Ground Vehicles) in 15 CFR Part 770.2(h) which provides guidance relating to ECCN 9A018.b. BIS explains that revised Interpretation 8 eliminates explanations of terms that are no longer used in the EAR. Revised Interpretation 8 also employs language from the Wassenaar Arrangement Munitions List to distinguish military vehicles from civil vehicles. In addition, BIS states that revised Interpretation 8 provides guidance to distinguish military vehicles subject to the export licensing jurisdiction of the Directorate of Defense Trade Controls from those subject to the export licensing jurisdiction of BIS.

Final Rule Provides License "Grace Period"

BIS' final rule provides items eligible for export or reexport without a license or under a License Exception prior to publication of this rule and for which this final rule imposes a license requirement or removes that License Exception eligibility may be exported or reexported without a license or under that License Exception if they are on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, pursuant to actual orders for export or reexport by September 14, 2004, and are actually exported or reexported September 30, 2004. BIS states that any such items not meeting these conditions require a license in accordance with this final rule.

BIS Contact - Gene Christiansen (202) 482-2984

BIS Final Rule (D/N 040810235-4235-01, FR Pub 08/31/04) available athttp://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-19872.pdf