BIS Final Rule Amends EAR/CCL to Reflect Changes to the Missile Technology Control Regime
The Bureau of Industry and Security has issued a final rule, effective June 16, 2008, amending the Export Administration Regulations and the Commerce Control List to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the November 2007 Plenary in Greece.
(The MTCR establishes a common export control policy based on a list of controlled items (the Annex) and on guidelines that member countries implement in accordance with their national export controls.)
Technical Notes to Definition of "Payload" Amended
The final rule amends 15 CFR 772.1 (Definitions of Terms as Used in the EAR), by amending the technical notes to the definition of the term ''payload'' to include munitions supporting structures and deployment mechanisms under paragraphs (e)(5) and (e)(7) (MTCR Annex Change Definitions: ''Payload'' Technical Notes 5.e and 5.g).
BIS states that this will clarify under the paragraph (e) technical notes to the definition of ''payload'' that payload for ''other UAVs'' (Unmanned Aerial Vehicles) includes munitions supporting structures and deployment mechanisms.
Four ECCNs Revised
The final rule also amends the CCL (15 CFR Part 774, Supplement No. 1) to reflect changes to the MTCR Annex by amending the following four Export Control Classification Numbers, for which BIS expects the impact on license applications to range from none to slight:
ECCN 9B106 amended to clarify types of environmental chambers controlled. ECCN 9B106 is amended by modifying the heading to read ''Environmental chambers usable for rockets, missiles, or unmanned aerial vehicles capable of achieving a ''range'' equal to or greater than 300 km and their subsystems, as follows (see List of Items Controlled)''. This change makes it clear that this ECCN controls these types of environmental chambers useable for these types of systems and their subsystems.
Paragraph (a) of this ECCN is amended by removing paragraph a.1, redesignating paragraph a.2 as a new paragraph a.1, and inserting a new paragraph a.2 that includes a new control parameter. The new control parameter in paragraph a.2 specifies that environmental chambers controlled by this ECCN include those incorporating, or designed or modified to incorporate, a shaker unit or other vibration test equipment that produce vibration environments equal to or greater than 10 g rms, measured 'bare table', between 20 Hz and 2 kHz imparting forces equal to or greater than 5 kN (MTCR Annex Change Category II: Item 15.B.4).
In addition, paragraph (a) of ECCN 9B106 is amended by adding a technical note to clarify the control text and to include controls on environmental chambers that are capable of incorporating shaker units or vibration test equipment, even if the shaker units or vibration test equipment are not included at the time of export (MTCR Annex Change Category II: Item 15.B.4).
This change is being made to the EAR to address a missile proliferation concern of the MTCR members with regard to this type of equipment and its usefulness in MTCR type systems (e.g., missile delivery systems). (BIS expects this amendment to the EAR to cause a slight increase in license applications.)
ECCN 1C111 amended to clarify scope of controlled materials. ECCN 1C111 paragraph (b) is amended by adding additional text to clarify the scope of materials controlled in this entry (MTCR Annex Change Category II: Item 4.C.5). Specifically, paragraph b.1 is amended to state that carboxy-terminated polybutadiene includes carboxyl-terminated polybutadiene. Similarly, paragraph b.2 is amended to state that hydroxy-terminated polybutadiene includes hydroxyl-terminated polybutadiene. (BIS expects this change to have a minimal impact on license applications.)
ECCN 1C116 amended to clarify scope of entry. ECCN 1C116 is amended by adding text to the heading to clarify the scope of the entry (MTCR Annex Change Category II: Item 6.C.8). This change is made to clarify that maraging steels are iron alloys generally characterized by high nickel, very low carbon content, and the use of substitutional elements or precipitates to produce strengthening and age-hardening of the alloy. (BIS expects this change to have a minimal impact on license applications.)
ECCN 2B116 amended to clarify scope of vibration test modes. ECCN 2B116 paragraph (a) is amended by removing the word ''and'' and replacing it with ''while'' to clarify the scope of the vibration test modes controlled under this paragraph (MTCR Annex Change Category II: Item 15.B.1.a). (BIS expects this change to have no impact on license applications.)
Savings Clause
BIS states that shipments of items removed from eligibility for a License Exception or export or reexport without a license (NLR) as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport, on June 16, 2008, pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export or reexport without a license (NLR) so long as they are exported or reexported before July 16, 2008. Any such items not actually exported or reexported before midnight, on July 16, 2008, require a license in accordance with this rule.
-public comments on this final rule are welcome on a continuing basis
BIS contact - Dennis Krepp (202) 482-1309
BIS final rule (D/N 080208146-8148-01, FR Pub 06/16/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-13468.pdf