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Export Control Regulations Amended to Reflect Missile Technology Regime Changes

Tuesday, April 05, 2016
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective April 4, amends the Export Administration Regulations to reflect changes to the Missile Technology Control Regime annex that were agreed to by MTCR member countries in 2015. Specifically, this rule:

- revises Export Control Classification Numbers 1B101, 1C111, 7A116, 9A102, 9A610 and 9B106;

- specifies that BIS licenses for MT-controlled items also authorize the minimum software and technology for MT-controlled items authorized under the same license unless specifically excluded by BIS on the license; and

- adds a new paragraph to the section of the EAR that specifies which changes to a license are considered non-material to facilitate the above revised MT licensing policy.

This rule also makes two conforming changes to correlate the Commerce Control List and other EAR provisions with the current MTCR annex.

The MTCR is an export control arrangement among 34 nations, including most of the world’s suppliers of advanced missiles and missile-related equipment, materials, software and technology. The regime establishes a common list of controlled items (the annex) and a common export control policy (the guidelines) that member countries implement in accordance with their national export controls. The MTCR seeks to limit the risk of proliferation of weapons of mass destruction by controlling exports of goods and technologies that could make a contribution to delivery systems (other than manned aircraft) for such weapons.

Shipments of items removed from eligibility for a license exception or export or reexport without a license (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport on April 4 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previous eligibility for a license exception or NLR so long as they are exported or reexported before May 4. Any such items not actually exported or reexported before midnight on May 4 will require a license in accordance with this rule.

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