USML-CCL Final Rule Includes 600-Series ECCNs; De Minimis, AES Changes

The first final rules detailing U.S. Munitions List-Commerce Control List moves, released by the State and Commerce Departments April 16, include edits to three USML categories and the ensuing creation of 10 new Export Control Classification Numbers. The rule also includes transition elements (see 13041518) and a new specially designed definition (see 13041616).

The new ECCNs, which are in the so-called “600 series” of items moving from the USML to the CCL, cover aircraft and gas turbine engines, related parts, components, accessories, attachments, software, and technology. The final rule adopts the general structure of the 600 series from the Bureau of Industry and Security’s proposed rule, including:

• Within each 600 series ECCN, the end items, parts, components, accessories and attachments moving from the USML will be outlined in paragraphs .a through .w.
• Former USML parts, components, accessories and attachments that are not in the revised USML or listed in .a through .w will be controlled in a new .x paragraph.
• A new .y paragraph will control specific types of parts, components, accessories and attachments that warrant no more than antiterrorism-only controls. The .y paragraph does not control items if they were not specially designed for a 600 series item, or a defense article subject to the International Traffic in Arms Regulations.

Other highlights of the final rules include:

• Changes to various license exemptions, including a note to clarify that a shipment originating in Canada or Mexico that incidentally transits the U.S. en route to delivery in the same country does not require a license. The rule also adds a section specifying that when a license exception authorizes reexports, in-country transfers meeting the terms and conditions of the reexport are also authorized.
• Changes the 0 percent de minimis rule of the ITAR for foreign-made items to the standard 25 percent rule of the Export Administration Regulations. The 0 percent de minimis rule for trade in items with countries subject to U.S. arms embargoes remains in place.
• Creates a process for the public to submit classification requests to confirm whether a part, component, accessory, attachment or software is not specially designed. The Departments of State, Commerce and Defense must all reach a consensus that the item is not specially designed.
• Revises section 758.1 of the EAR to require that information on all exports of 600 series items be filed in AES, regardless of value or destination. This requirement does not apply, however, to .y items, a change BIS made in response to comments. Those items have a “lesser military significance,” the rule said.
• Adds a requirement for 600 series items being shipped. The ECCN for each item must be provided on the same documents as the Destination Control Statement, but not in the text of that statement itself. The rule does not change the text of that statement, as requested in comments. The ECCN for each 600 series item must be entered on the invoice and bill of lading, air waybill or other export control document accompanying the shipment to its ultimate consignee or end user abroad.

Read State's final rule (here) and the Commerce Department's final rule (here).