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More Items Moved from U.S. Munitions List to Commerce Control List

Friday, January 03, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule adding to the Export Administration Regulations export controls on military training equipment, energetic materials, personal protective equipment, shelters, articles related to launch vehicles, missiles, rockets, military explosives and related items that the president has determined no longer warrant control on the U.S. Munitions List. This rule also adds to the EAR export controls on items within the scope of the Munitions List of the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies that are not specifically identified on the USML or the Commerce Control List but that were subject to USML jurisdiction. Finally, this rule moves certain items that were already subject to the EAR to the new export control classification numbers created by this rule.

Concurrently, the State Department’s Directorate of Defense Trade Controls has issued a final rule revising USML categories IV (launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs and mines), V (explosives and energetic materials, propellants, incendiary agents and their constituents), IX (military training equipment), X (personal protective equipment) and XVI (nuclear weapons related articles) to control those articles the president has determined warrant control in those categories of the USML.

Both of these rules will be effective 180 days after Jan. 2, or approximately July 2. These rules are being issued as part of the Export Control Reform Initiative, which includes amendments to (a) the International Traffic in Arms Regulations and the USML so that they control only those items that provide the U.S. with a critical military or intelligence advantage or otherwise warrant such controls and (b) the EAR to control military items that do not warrant USML controls. These changes are designed to enhance national security by improving the interoperability of U.S. military forces with allied countries; strengthening the U.S. industrial base by, among other things, reducing incentives for foreign manufacturers to design out and avoid U.S.-origin content and services; and allowing export control officials to focus government resources on transactions that pose greater national security, foreign policy or proliferation concerns than those involving NATO allies and other multi-regime partners.

Separately, BIS and State have issued numerous corrections to their July 8, 2013, final rules regarding export controls on military vehicles, vessels or war, submersible vessels, oceanographic equipment, related items, and auxiliary and miscellaneous items.

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