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Spacecraft Systems and Related Items Proposed for Transfer to Commerce Control List

Wednesday, May 29, 2013
Sandler, Travis & Rosenberg Trade Report

As part of President Obama’s Export Control Reform Initiative, the Bureau of Industry and Security has issued a proposed rule describing how spacecraft systems and related items that the president determines no longer warrant control under the U.S. Munitions List would be controlled under the Commerce Control List in new export control classification numbers 9A515, 9B515, 9D515 and 9E515. Concurrently, the State Department’s Directorate of Defense Trade Controls has issued a proposed rule that would revise USML category XV to describe more precisely those types of such articles that warrant continuing control on the USML.

BIS notes that these rules are the first step in implementing the authorities returned to the president by the 2013 National Defense Authorization Act to determine the proper and more tailored controls over the export of satellites and related items. Similar to the creation of a new 600 series of ECCNs controlling munitions items being moved from the USML to the CCL, this rule proposes the creation of a new 500 series of ECCNs for such transfers of spacecraft systems and associated items, many of which are commercial items (such as satellites) with no military or intelligence applications. BIS is generally proposing to extend to the 500 series of ECCNs provisions applicable to the 600 series with respect to foreign-made direct products of controlled technology, license exceptions, license applications and export clearance.

Comments on these proposed rules are due no later than July 8.

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