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Export Control Regulations Amended to Reflect Missile Technology Regime Changes

Tuesday, July 11, 2017
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective July 7, made the following amendments to the Export Administration Regulations to align the missile technology controls on the Commerce Control List and other parts of the EAR with changes to the Missile Technology Control Regime annex that were agreed to by MTCR member countries in 2016.

- revises Export Control Classification Numbers 1C107, 1C111, 2B018, 2B109, 5A101, 7A103, 9A101, 9E101, 9E102, 9D101, 9D104, 9E001, and 9E002

- adds ECCN 9B104 to control aerothermodynamic test facilities

- revises the definitions of “missiles” and “unmanned aerial vehicles” (BIS states that these changes will not alter any scope of control and are not expected to affect the number of license applications received by BIS)

The MTCR is an export control arrangement among 35 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 July 7 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 Aug. 7. Any such items not actually exported or reexported before midnight on Aug. 7 will require a license in accordance with this rule.

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