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Submersibles, Vessels of War Proposed for Transfer to Commerce Control List

Friday, December 23, 2011
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued two proposed rules describing how certain articles that the president determines no longer warrant control under the U.S. Munitions List would be controlled under the Commerce Control List. These rules apply to (a) submersible vessels, oceanographic equipment and related articles and (b) vessels of war and related articles. Concurrently, the State Department’s Directorate of Defense Trade Controls has issued proposed rules that would revise USML categories VI and XX to describe more precisely those types of such articles that warrant continuing control on the USML. Comments on all of these proposed rules are due no later than Feb. 6, 2012.

The BIS proposal on submersible vessels would also (a) control closed and semi-closed circuit (rebreathing) apparatus, engines and propulsion systems for submersible vessels, and submarine and torpedo nets, under new Export Control Classification Number 8A620 and (b) establish a new unilateral control on submersibles specially designed for cargo transport that are not currently subject to USML or CCL controls. BIS states that under this rule the licensing jurisdiction for submersible vessels, oceanographic equipment and related articles currently controlled on the USML will remain largely unchanged. Furthermore, unlike other similar proposed rules, this one would not affect the licensing jurisdiction of parts, components, accessories and attachments specially designed for articles that would continue to be controlled under USML Category VI or Category XX, which would remain controlled on the USML.

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