The Bureau of Industry and Security has issued a final rule that, effective March 29, eliminates reporting requirements for certain encryption items in an effort to reduce the regulatory burden for exporters while still fulfilling U.S. national security and foreign policy objectives.

Specifically, the rule harmonizes the Commerce Control List with the decisions reached at the Wassenaar Arrangement’s December 2019 WA plenary meeting by revising Export Control Classification Numbers controlled for national security reasons in each category of the CCL. Additionally, it makes associated changes to the Export Administration Regulations as well as modifications to various provisions related to Category 5-part 2 of the CCL, including provisions on license exception encryption commodities, software, and technology.

To effect this change this rule revises 22 ECCNs: 0A502, 0A503, 0A606, 1A002, 1A005, 1A006, 1A613, 1B002, 1C001, 1C002, 1C006, 1C010, 2A001, 3B001, 3E002, 5A002, 6A004, 6A005, 6A008, 9A011, 9D515, and 9E003.

Shipments of items removed from license exception eligibility or eligibility for export, reexport, or transfer (in-country) without a license (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on March 29 pursuant to actual orders for exports, reexports, or transfers to a foreign destination may proceed to that destination under the previous license exception eligibility or NLR so long as they have been exported, reexported, or transferred before May 28. Any such items not actually exported, reexported, or transferred before midnight on May 28 will require a license in accordance with this rule.

For more information, please contact Kristine Pirnia.

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