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New Export Licensing Requirements Imposed on Dual-Use Items

Monday, October 13, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued an interim final rule imposing foreign policy controls (i.e., license requirements) on exports of certain integrated circuits, helicopter landing system radars, seismic detection systems, and technology for infrared up-conversion devices.

- Read-out integrated circuits (classified under new ECCN 6A990) and related software (added to existing ECCN 6D991) and technology (new ECCN 6E990) to all destinations except Canada are controlled for regional stability column 1 reasons and anti-terrorism column 1 reasons. These goods are used only in cameras to provide images for collision avoidance and navigation support for civilian vehicles at distances up to 150 meters and have potential military application because of the infrared detectors, which can be used to enable military personnel to detect images in the dark. License exception LVS is not available.

- Millimeter wave enhanced vision radar imaging systems for helicopter autonomous landing systems is added to ECCN 6A998 because they provide visual awareness and obstacle avoidance in degraded visual conditions and pose concern with regard to their potential military applications by adversaries of the U.S. and its allies. A license is required for exports of such items for regional stability column 2 reasons when going to any destination except Australia, Japan, New Zealand and countries in the North Atlantic Treaty Organization. The existing anti-terrorism column 1 reason for control for ECCN 6A998 continues to apply to the entire entry, including the radar systems being added.

- Seismic intrusion detection systems are being added to ECCN 6A999, related software is being added to ECCN 6D993, and related technology is being added to ECCN 6E991. These systems detect, classify and determine the bearing on the source of a detected signal and thus can be used for monitoring earthquakes but also have the capability for military use in detecting the movement or motion of people, vehicles and equipment. BIS is imposing a license requirement for exports to all destinations but close military allies. Controls are imposed for regional stability and anti-terrorism reasons.

- Technology required for the development or production of specified infrared up-conversion devices is controlled to all destinations except Canada for regional stability column 1 reasons. These devices are used to convert near-infrared light into visible light using an organic light-emitting diode, which can be used in conventional night vision devices used for home energy inspection or night photography but also have military and law enforcement applications. The existing anti-terrorism column 1 reason for control also applies.

BIS states that shipments of items removed from eligibility for export or reexport under a license exception or without a license (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting carrier or en route aboard a carrier to a port of export on Nov. 13 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previously applicable license exception or NLR so long as they are exported or reexported before Nov. 28. Any such items not actually exported or reexported before midnight on Nov. 28 will require a license in accordance with this rule.

In addition, deemed exports of technology and source code removed from eligibility for export under a license exception or NLR as a result of this rule may continue to be made under the previously available license exception or NLR before Jan. 12, 2015. Beginning at midnight on Jan. 12, such technology and source code may no longer be released without a license to a foreign national subject to the deemed export controls when a license would be required for exports to the home country of the foreign national in accordance with this rule.

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