Background

The Bureau of Industry and Security has issued a final rule that effective Feb. 24 or March 14 (depending on the specific provision) revises U.S. export controls to implement the remaining controls agreed by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies at the December 2021 WA Plenary meeting.

BIS issued a final rule Aug. 15, 2022, that implemented some of the decisions taken at the December 2021 WA Plenary meeting, including new controls for two substrates of ultra-wide bandgap semiconductors (gallium oxide and diamond), electronic computer aided design software specially designed for the development of integrated circuits with any gate-all-around field-effect transistor (GAAFET) structure, and pressure gain combustion technology for the production and development of gas turbine engine components or systems.

The new final rule makes the following changes to the Commerce Control List:

- ECCN 0A988 (conventional military steel helmets) is being removed from the CCL because these helmets were moved years ago from ECCN 0A988 to ECCN 1A613.y.1

- Certain revisions are being made to ECCNs 1A613 (armored and protective equipment and related commodities), 1C006 (fluids and lubricating materials), 2E003 (other technology), 3A001 (electronic items), 3A002 (general purpose electronic assemblies, modules, and equipment), 4A003 (digital computers), 4D001 (software), 4E001 (technology), 5A003 (systems, equipment, and components for non-cryptographic information security), 6A005 (lasers, components, and optical equipment), 6A008 (radar systems, equipment, and assemblies), 6D003 (other software), 7D003 (other software), 9A004 (space launch vehicles and spacecraft, spacecraft buses, spacecraft payloads, spacecraft on-board systems or equipment, terrestrial equipment, and air-launch platforms), 9B001 (manufacturing equipment, tooling, or fixtures), and 9E003 (other technology)

- Annex to Category 1 (list of explosives) is being revised by adding two explosives under two entries: EDNA (Ethylenedinitramine) and TKX–50 (Dihydroxylammonium 5,5′-bistetrazole-1,1′-diolate)

- Note 1 to Category 3 (electronics notes) is being revised by adding 3A001.b.12 to the list of 3A001 subparagraphs that are not within the scope of the note (i.e., if a 3A001.b.12 item is specially designed for or has the same functional characteristics as other equipment, then it remains classified as 3A001.b.12.)

The final rule also makes corrections to align the scope of significant item license requirements throughout the Export Administration Regulations as well as a revision to license exception strategic trade authorization (STA). In addition, it amends license exception adjusted peak performance (APP) to raise the APP eligibility levels for deemed exports of technology and software source code destined to foreign nationals of computer tiers 1 and 3 countries.

For more information on U.S. export controls and how to ensure your company is in compliance, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.

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