The Bureau of Industry and Security has posted an "advisory opinion" guidance document for the public to use when preparing commodity classification (“CCATS”) requests for information pertaining to the development or production of carbon fiber organic matrix composite items. BIS states that it hopes to begin building a public collection of carbon fiber organic matrix composite-related classification determinations that will be the foundation for common understandings between industry and government.
The Bureau of Industry and Security has announced that each Wednesday, beginning December 14, 2011, Assistant Secretary Kevin Wolf will hold weekly teleconferences at 2:00 pm (Eastern Time) to answer questions about the Department of Commerce’s proposed rules pertaining to the Administration’s Export Control Reform (ECR) Initiative. These calls are intended to foster public understanding of the initiative and to assist interested parties to prepare more informed comments.
The State Department has issued a proposed rule to create a new USML Category XIX for gas turbine engines and associated equipment that currently are covered in USML Categories VI, VII or VIlI. The intent of this proposed change is to make clear that gas turbine engines for surface vessels, vehicles, and aircraft that meet certain objective parameters warrant control on the USML, and to create a more positive list. At the same time, BIS has issued a companion proposed rule for military gas turbine engines and related articles that no longer warrant USML control. The State Department is also not proposing any tiering at this time, and is still developing its definition of "Specially Designed."
The State Department has issued a proposed rule to revise USML Category VII (military ground vehicles and related articles) to narrow the articles controlled on the USML, and to make this list of items more positive. At the same time, BIS is reproposing the creation of five new 600 series ECCNs to control articles removed from Category VII that would instead be controlled by the CCL. The State Department is also not proposing any tiering at this time, and is still developing its definition of "Specially Designed."
During a November 15, 2011 NCBFAA webinar, a Bureau of Industry and Security’s Office of Export Enforcement Special Agent in Charge discussed the root causes of civil enforcement actions and what to do if export violations are found. According to the SAC, the root causes of civil enforcement cases are (1) incomplete transaction information, (2) ignoring red flags, (3) human error, (4) incorrect EEI filing1, and (5) non-compliance with license conditions.
The State Department has issued a proposed rule to revise USML Category VIII (aircraft and related items) to narrow the articles controlled on the USML, and to make this list of items more positive. At the same time, BIS issued a proposed rule to create five new 600 series ECCNs to control articles removed from Category VIII that would instead be controlled by the CCL. The State Department is also not proposing any tiering at this time, and is still developing its definition of "Specially Designed." BIS is also modifying its July 2011 proposed rule regarding the eligibility for License Exception STA, among other things.
The Bureau of Industry and Security is correcting, as of January 1, 2011, the Commerce Control List (Supplement No. 1 to 15 CFR Part 774) to revise the “Items” paragraphs in ECCN 1C118 (Certain titanium-stabilized duplex stainless steel (Ti-DSS)) and ECCN 2B008 (Certain assemblies or units, specially designed for machine tools, or dimensional inspection or measuring systems and equipment). ECCN 1C118 correction available here, ECCN 2B008 correction available here.
The Bureau of Industry and Security has issued a final rule, effective September 12, 2011, which amends the Export Administration Regulations (15 CFR Parts 740, 742, and 774) to implement a decision adopted under the Australia Group (AG) intersessional silent approval procedures in November 2010.
On August 31, 2011, the Bureau of Industry and Security published a new set of “best practices,” developed in cooperation with U.S. industry to help guard against the diversion of dual-use items shipped to a transshipment "hub" or to any intermediate country before being shipped to the country of ultimate destination. Recommendations include using only those forwarders that have sound compliance programs and avoiding routed transactions for dual-use exports.
In July 2011, the Bureau of Industry and Security issued a proposed rule, seeking comments by September 13, 2011, that would implement a control structure under the Export Administration Regulations in order to transfer less significant items that no longer warrant control on the U.S. Munitions List to control under the Commerce Control List.