The State Department issued a proposed rule to revise USML Category V (explosives and energetic materials, propellants, incendiary agents, and their constituents) to remove catchall categories, narrow the articles controlled on the USML, to make this list of items more positive, and address multilateral obligations. At the same time, BIS is proposing the creation of four new 600 series ECCNs to control articles removed from Category V that would instead be controlled by the CCL. The State Department is also not proposing any tiering at this time.
The Bureau of Industry and Security announced that Ping Cheng and Prime Technology Corporation, both of New York State, have agreed to $125,000 fines and two-year denial of export privileges for each to settle allegations that they conspired to violate the Export Administration Regulations (EAR). The two-year denial period, as well as $75,000 in fines for each, will be suspended as long as neither commits additional export control violations during the two year period. According to BIS, the violations involve attempts to export carbon fiber to China for use by the China Academy of Space Technology (CAST) without the required U.S. government authorizations.
The Bureau of Industry and Security (BIS) will be looking at three main issues in coming months, said Gerry Horner, Senior Trade and Industry Analyst in the Office of Technology Evaluation at BIS. Horner spoke at the Natinoal Customs Brokers and Forwards Association of America April 24, 2012. The first will be a review of the use of the destination control statement, said Horner. There have been challenges with its use for years and BIS will go out to look at bills of lading and airplane bills at random airports, he said. He noted the review won’t be for enforcement purposes but to see how it is used in order enhance it.
The Bureau of Industry and Security is seeking comments by June 18, 2012, on a proposed rule that would amend the Export Administration Regulations (EAR) by (i) adding a requirement for persons shipping under Authorization Validated End-User to send written notice of such shipments to the recipient VEU; (ii) saying that item-specific conditions under Authorization VEU no longer apply when such items no longer require licenses or become eligible under a license exception; and (iii) for such items, VEUs are still subject to the recordkeeping requirements for items shipped before removal of the license requirement or addition of the license exception.
The Bureau of Industry and Security issued a final rule, effective April 13, 2012, amending the Export Administration Regulations (EAR) by establishing a new Export Control Classification Number (ECCN) “500” series, 0Y521, for items that warrant control on the CCL but are not yet identified in an existing ECCN (for example, because the item is an emerging technology). BIS said the 500 series is equivalent to United States Munitions List (USML) Category XXI (Miscellaneous Articles), but is a temporary classification while the Government either works to adopt a multilateral control; determines a longer-term control; or determines that the item does not warrant control. These items are subject to a case-by-case license review policy through regional stability (RS1) controls, with GOV and item-specific license exceptions.
The Bureau of Industry and Security’s Regulations and Procedures Technical Advisory Committee (RPTAC) held a partially open meeting on March 6, 2012 to discuss, among other things, upcoming proposed and reproposed rules implementing elements of the Export Control Reform (ECR), including the transitional 600 series ECCNs proposed rule and the "specially designed" reproposed rule, and the upcoming rule implementing the changes adopted at the December 2011 Wassenaar Plenary.
U.S. Customs and Border Protection has posted a summary of changes for the Automated Export System Trade Interface Requirements (AESTIR), which include the following:
The Bureau of Industry and Security has issued a final rule, effective February 24, 2012, which amends Supplement No. 7 to Part 748 of the Export Administration Regulations to revise the existing Authorization Validated End-User listings for GE India Industrial Pvt Ltd.; Applied Materials (China), Inc.; Boeing Tianjin Composites Co. Ltd.; CSMC Technologies Corporation; Lam Research Corporation; and Semiconductor Manufacturing International Corporation.
The Bureau of Industry and Security has posted the comments on its proposed rule to add to the Commerce Control List (CCL) submersible vessels, oceanographic equipment and related articles that the President determines no longer warrant control under the U.S. Munitions List (USML). BIS received four comments from private companies on the proposed rule.
The Bureau of Industry and Security has posted the public comments it received on its proposed rule to add to the Commerce Control List (CCL) surface vessels of war and related articles that the President determines no longer warrant control under the U.S. Munitions List (USML). BIS received four comments from private industries in response to this proposed rule. BIS' proposed rule would create five new 600 series ECCNs in the CCL for surface vessels of war and related articles. The State Department had also concurrently issued a proposed rule that would revise USML Category VI for these items to narrow the articles controlled on the USML and to make the list of items more positive.