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The Bureau of Industry and Security has issued a proposed rule describing how articles that the president determines no longer warrant control under categories I (firearms, close assault weapons, and combat shotguns), II (guns and armament), and III (ammunition/ordnance) of the U.S. Munitions List would be controlled under the Commerce Control List. Concurrently, the State Department’s Directorate of Defense Trade Controls has proposed to revise USML categories I, II, and III to describe more precisely those types of such articles that warrant continuing control on the USML. BIS indicates that these rules aim to help U.S. companies be more competitive in the global marketplace.
BIS states that its proposed rule would not deregulate the transferred items and that licenses would be required to export or reexport to any country a firearm or other weapon currently on the USML that would be added to the CCL. BIS would also require licenses for the export or reexport of guns and armament that would be controlled under new ECCN 0A602. BIS notes that it is trying to reduce the procedural burdens and costs of export compliance on the U.S. firearms industry while allowing the U.S. government to enforce export controls for firearms appropriately and make better use of its export control resources.
September 14, 2020 // Trade Report
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