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Defense Export Regulations Updated

Friday, October 05, 2018
Sandler, Travis & Rosenberg Trade Report

The State Department has issued an interim final rule removing certain notification requirements from the International Traffic in Arms Regulations and revising several entries on the U.S. Munitions List. This rule is effective Oct. 4 and comments are due by Nov. 19.

Among other things, this rule does the following.

- eliminates the requirement to return licenses after the initial export of approved technical data

- revises USML category XV(f) to achieve consistency with category IV(i) related to mission integration and launch failure analysis (with no change in the scope of controls)

- adds Note 2 to USML category IV(d) to clarify that it does not control thrusters for satellites and spacecraft
- adds new Note 3 to category V to clarify that for materials described in this category, with some exceptions, State Department approval is not required for any export, reexport, or retransfer when the defense articles are incorporated into an item subject to the Export Administration Regulations and classified under ECCN 1C608

- updates USML category VIII(h)(2) to make more precise the export control for unmanned aerial vehicle flight control systems and vehicle management systems with swarming capability

- adds a note to USML category XI(a)(3)(i) to allow commodity jurisdiction reviews for radars used in commercial drones

- revises category XI(c)(4) to implement power thresholds that will exclude those electronic components necessary for 5G wireless technology but maintain control on those items that provide the U.S. a critical military and intelligence advantage

State adds that it is working on the following and, where relevant, will publish separately any related changes to the ITAR: (a) creating an exemption for temporary exports of defense articles for repair or replacement by foreign original equipment manufacturers, (b) establishing a definition of “manufacturing,” and (c) reviewing whether an information technology solution for export licensing can be put in place to allow a single output document that sufficiently protects U.S. foreign policy and national security interests.

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