BIS Adds New ECCNs and Review Policy for Concealed Object Detection Equipment
The Bureau of Industry and Security has issued a final rule, effective March 25, 2010, which adds three new Export Control Classification Numbers to the Commerce Control List covering certain concealed object detection equipment, and adds a presumption of approval license review policy for these new ECCNs to certain countries.
3 New Detection Equipment ECCNs are Subject to RS and AT Controls
BIS' final rule adds three new ECCNs: 2A984, 2D984 and 2E984, which are subject to Regional Stability (RS 2) and Anti-terrorism (AT 1) controls on the CCL.
ECCN 2A984 controls concealed object detection equipment operating in the frequency range from 30 GHz to 3000 GHz and having a spatial resolution of 0.5 milliradian up to and including 1 milliradian at a standoff distance of 100 meters.
(A "Note" to ECCN 2A984 clarifies that concealed object detection equipment includes but is not limited to equipment for screening people, documents, baggage, other personal effects, cargo and/or mail. A "Technical Note" clarifies that the range of frequencies span what is generally considered as the millimeter-wave, submillimeter-wave and terahertz frequency regions.)
ECCN 2D984 controls software "required" for the "development," "production" or "use" of concealed object detection equipment controlled by 2A984.
ECCN 2E984 controls technology "required" for the "development," "production" or "use" of equipment controlled by 2A984 or "required" for the "development" of software controlled by 2D984.
BIS is also revising the headings of ECCNs 2E001 and 2E002 to clarify that they do not include technology for 2A984, which will be controlled under new ECCN 2E984.
(See BIS final rule for "Related Controls.")
License Application Review Policy Presumes Approval for 9 Countries
BIS' final rule adds a new license review policy under 15 CFR 742.6 (Regional Stability), which states that applications to export and reexport items controlled under ECCNs 2A984, 2D984 and 2E984 will be reviewed under a presumption of approval when exported or reexported to Austria, Cyprus, Finland, Ireland, Israel, Malta, Mexico, Singapore or Sweden, provided the items are being made to a government end-user or to a person designated by the government end-user pursuant to contract.
License applications to export to a designated person must include a statement from the government end-user that the contractor is so designated1.
License Applications Considered Favorably Case-by-Case for Other RS Countries
The license review policy for any other country subject to an RS Column 2 license requirement for the new ECCNs will be the same as other RS Column 2 controlled items, i.e., applications to export or reexport items controlled by ECCNs 2A984, 2D984 and 2E984 will generally be considered favorably on a case-by-case basis unless there is evidence that the export or reexport would contribute significantly to the destabilization of the region to which the equipment is destined.
(This rule also adds three new paragraphs under 15 CFR 742.9, 742.10, and 742.19 to indicate that applications for export and reexport to all end-users in Syria, Sudan, and North Korea of items controlled under ECCNs 2A984, 2D984 and 2E984 will generally be denied.)
Savings Clause
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 March 25, 2010, 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 April 26, 2010. Any such items not actually exported or reexported before midnight, on April 26, 2010, require a license in accordance with this rule.
(See BIS final rule for complete regulations, including contract sanctity provisions, special record keeping requirements, etc.)
1Statements must include: (1) a DHS Customer Contract Number or agreement reference number, end-user name (company), complete address, and end-user point of contact; (2) a brief contract description, including DHS Project information and projected outcome; and (3) a certification stating "We certify that all of the representations in this statement are true and correct to the best of our knowledge and we do not know of any additional representations which are inconsistent with the above statement."
BIS contact - Ronald Rolfe (202) 482-4563
BIS final rule (D/N 0906041008-91452-01, FR Pub 03/25/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-6588.pdf