The Bureau of Industry and Security proposed its long-expected “clean-up” of the Commerce Control List (CCL), in a rule scheduled for publication in the Nov. 29 Federal Register. The proposed rule follows a December 2010 request for comments on how to make descriptions of items controlled on the CCL clearer. ECCNs in all categories of the CCL, as well as its basic structure, would be affected by the proposal. Most of the changes would be non-substantive and would provide additional guidance to people classifying items subject to the Export Administration Regulations (EAR), BIS said. Comments on the proposed rule are due by Jan. 28.
The State Department and Bureau of Industry and Security proposed changes for export controls on military electronics in two rules set for publication in the Nov. 28 Federal Register. State’s proposed rule would amend the International Traffic in Arms Regulations (ITAR) to revise Category XI (military electronics) of the U.S. Munitions List (USML) to move jurisdiction for control of certain items to BIS, describe more precisely the articles warranting control, and provide a definition for "equipment." BIS is proposing corresponding changes to the Export Administration Regulations (EAR), as well as changes to implement Wassenaar Arrangement controls on cryogenic and superconducting equipment. Both State and BIS are accepting comments on their respective proposals until Jan. 28.
The Bureau of Industry and Security announced a partially open meeting of the Emerging Technology and Research Advisory Committee (ETRAC) Dec. 12-13. At the open session Dec. 13 at 8:30 a.m. ET, the ETRAC will hear an overview on export controls for new members, and discuss the 521 ECCNs (not elsewhere listed on the Commerce Control List), 3D bio-printing, a National Academy of the Sciences nanotech initiative, a rare earths study, and additive manufacturing. The open session will be accessible via teleconference to 40 participants on a first come, first served basis. To participate, submit inquiries to Yvette Springer at Yvette.Springer@bis.doc.gov, no later than Dec. 5.
Circuit protection product manufacturer Littelfuse will pay $180,000 pursuant to a settlement with the Bureau of Industry of Security of Export Administration Regulations violations. Between 2006 and 2008, Littelfuse exported $90,017.96 worth of liquid crystal polymer, which is classified under ECCN 1C008.b and controlled for national security (NS) reasons, to the Philippines without the required BIS licenses, BIS alleged. In so doing, Littelfuse committed 37 violations of Section 764.2(a) of the EAR (Unlicensed Exports of an Item Controlled for National Security Reasons). BIS was made aware of the alleged violations through a voluntary self-disclosure made by Littelfuse.
The Bureau of Industry and Security issued a Critical Technology Assessment on night vision focal plane arrays, sensors, and cameras. The report, compiled by the BIS Office of Technology Evaluation, was done to examine the impact of export controls on key existing or emerging technologies that are subject to the Export Administration Regulations. The night vision equipment examined in this assessment is controlled under U.S. Munitions List Category XII and EAR ECCNs 6A002 and 6A003. Highlights of the report include:
As export control reform continues, freight forwarders need to be thinking about employee training, monitoring, and systems controls to ensure compliance, said Paulette Kolba, chair of the National Customs Brokers and Freight Forwarders Association of America (NCBFAA) Transportation Subcommittee on Export Compliance. Kolba spoke in a webinar Oct. 4 on export control reform along with Bureau of Industry and Security Under Secretary Eric Hirschhorn.
PhibroChem will pay $31,000 to settle alleged violations of the Export Administration Regulations, according to an agreement with the Bureau of Industry and Security. In 2008, PhibroChem exported sodium fluoride to Mexico without a license, BIS said, but knew that it needed BIS authorization. As part of the settlement, PhibroChem neither admitted nor denied its guilt.
The Bureau of Industry and Security’s proposed definition of “specially designed” will be revised to avoid new controls on items currently treated as EAR99 items that the State Department has previously determined not to be controlled under the International Traffic in Arms Regulations, said Kevin Wolf, assistant secretary for export administration, at the Regulations and Procedures Technical Advisory Committee Sept. 11. The revision to paragraph (b)(1) of the “release” component of the definition would avoid pulling such items within the scope of the 600 series ECCNs through the .x catchall, Wolf said. Wolf also discussed future BIS priorities at the meeting.
The Bureau of Industry and Security issued a correction to a July 26 notice revising the Commerce Control List. The July 26 notice said BIS was correcting 5A003 to remove the entry for EI in the table for “License Requirements” and place it below the table as an indented paragraph. The sentence should have instead referred to 5A002.
Industry expressed concern over increased controls on exports parts and components that would result from the Bureau of Industry and Security and State Department’s proposed definitions of “specially designed’ on the Commerce Control List (CCL) and U.S. Munitions List (USML), in comments submitted in response to BIS and State’s June 19 proposed rules. Comments were due Aug. 3. While most commenters were generally supportive of BIS and State’s efforts at a unified definition, others were worried about the effect of the rules on small business. A BIS advisory committee voiced its complete opposition to the proposed definitions, calling instead for removal of the phrase “specially designed” from the CCL.