The Bureau of Industry and Security issued a final rule to amend the Export Administration Regulations (EAR), effective July 2, to implement the understandings reached at the June 2011 plenary meeting of the Australia Group. The final rule amends the following 4 ECCNs: 1C351 (Human and zoonotic pathogens and “toxins”); ECCN 1C353 (Genetic elements and genetically modified organisms); ECCN 2B350 (Chemical manufacturing facilities and equipment); and ECCN 2B352 (Equipment capable of use in handling biological materials).

The Bureau of Industry and Security issued a final rule that revises the Export Administration Regulations, effective July 2, to, among other things, implement the changes made to the Wassenaar Arrangement's List of Dual Use Goods and Technologies maintained and agreed to by governments participating in the Wassenaar Arrangement at the December 2011 Plenary Meeting, and add Mexico as the 41st Participating State in the list of Wassenaar Arrangement members in the EAR.

The Bureau of Industry and Security and the State Department issued their proposed transition plans for items transitioning from the U.S. Munitions List to the Commerce Control List, pursuant to the Obama Administration’s Export Control Reform (ECR) initiative. In addition, the BIS proposed rule would (1) extend the validity of BIS licenses from two to four years; (2) broaden license exceptions to conform to State’s International Traffic in Arms Regulations exemptions; (3) amend license exceptions for government uses and temporary exports (4) propose a revised de minimis rule for 600-series USML-CCL transfers; and (5) make additional changes that BIS deems necessary to implement ECR, such as changes to reporting thresholds for the Automated Export System.

The Bureau of Industry and Security and the State Department issued their proposed transition plans for items transitioning from the U.S. Munitions List to the Commerce Control List, pursuant to the Obama Administration’s Export Control Reform (ECR) initiative. In addition, the BIS proposed rule would (1) extend the validity of BIS licenses from two to four years; (2) broaden license exceptions to conform to State’s International Traffic in Arms Regulations exemptions; (3) amend license exceptions for government uses and temporary exports (4) proposed a revised de minimis rule for 600-series USML-CCL transfers; and (5) make additional changes that BIS deems necessary to implement ECR, such as changes to reporting thresholds for the Automated Export System.

The State Department and the Bureau of Industry Security issued proposed rules containing their definitions of the term “specially designed’ as it appears in the Commerce Control List and the U.S. Munitions List. The State and BIS proposed rules would amend the International Traffic in Arms Regulations and the Export Administration Regulations to create a two-paragraph, “catch and release” definition that would initially define items that are “specially designed” for military applications, then provide exceptions to prevent the definition from overreaching.

The State Department issued a proposed rule to revise USML Category IX (military training equipment and training) to change the title to indicate that the category covers training equipment only (and not “training” as a service), remove catchall categories, narrow the articles controlled on the USML, and make this list of items more positive. At the same time, BIS is proposing the creation of four new 600 series ECCNs to control articles removed from Category IX that would instead be controlled by the CCL. The State Department is not proposing any tiering at this time.

Wassenaar Arrangement negotiations need to precede implementation of any moves from the U.S. Munitions List to the Commerce Control List, said export control consultant Bill Root, former member of the Bureau of Industry and Security's Rules and Procedures Technical Advisory (RPTAC) and subsequently frequent participant at committee meetings, in public comments at the June 12 RPTAC meeting. Changes to the U.S. export control regime from the USML-CCL move would inevitably be substantive, Root said, and adopting such substantive unilateral U.S. controls would be risky because it would place U.S. exporters at a competitive disadvantage, lessening incentives for Wassenaar members that compete with U.S. exports to later adopt the same controls multilaterally.

The State Department issued a proposed rule to revise U.S. Munitions List Category X (personal protective equipment and shelters) to describe more precisely the materials warranting control on the USML. At the same time, the Bureau of Industry and Security is proposing the creation of five new 600 series ECCNs to control personal protective equipment, shelters, and related items the President determines no longer warrant control under Category X of the USML. The State Department is also not proposing any tiering at this time, and is still developing its definition of "Specially Designed."

The State Department issued a proposed rule to revise USML Category XIII (materials and miscellaneous articles) to narrow the articles controlled on the USML, and to make this list of items more positive. At the same time, BIS is proposing the creation of five new 600 series ECCNs to control auxiliary and miscellaneous military equipment and related articles the President determines no longer warrant control under Category XIII of the USML. The State Department is also not proposing any tiering at this time, and is still developing its definition of "Specially Designed."

The Bureau of Industry and Security completed the second and final day of its Complying with U.S. Export Controls seminar in Washington, DC, May 8. At the two-day seminar, which is offered by BIS in several cities throughout the year, BIS and Census Bureau outreach and counseling staff provide an in-depth examination of the Export Administration Regulations (EAR).