The Directorate of Defense Trade Controls (DDTC) and the Bureau of Industry and Security (BIS) posted notices in the Federal Register this month announcing changes and proposed changes to the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).

Fire Control, Laser, Imaging and Guidance Equipment (ITAR Category XII)

On October 12, 2016, both DDTC and BIS published final rules for Fire Control, Laser, Imaging and Guidance Equipment (ITAR Category XII), but are now seeking industry comment on the impact of further increasing certain controls implemented by that final rule. Comments for both the ITAR and EAR proposals are due no later than March 14, 2017. In its notice, DDTC is requesting comment on (1) alternatives to controls on certain items when “specially designed for a military end user,” (2) the scope of the control in paragraph (b)(1), and (3) certain technical parameters that the Department is evaluating to replace “specially designed” controls.

Spacecraft and Related Systems (ITAR Category XV)

Both the ITAR and EAR final rule published on January 10 address issues raised in, and public comments on, the interim final rule that was published on May 13, 2014, as well as additional clarifications and corrections. According to DDTC, the amendments describe more precisely the articles warranting control in this category.

The changes made in this final rule are grouped into four types of changes:

  • Changes to address the movement of additional spacecraft and related items from the U.S. Munitions List (USML) to the Commerce Control List (CCL) as a result of changes in aperture size for spacecraft that warrant ITAR control.
  • The movement of the James Webb Space Telescope (JWST) from the USML to the CCL.
  • Other corrections and clarifications to the spacecraft interim final rule.
  • The addition of .y items to Export Control Classification Number 9A515.

Other EAR Changes

Implementation of the India-U.S. Joint Statement of June 7

  • This rule amends the EAR by establishing a licensing policy of general approval for exports or re-exports to or transfers within India of items subject to the EAR and controlled only for National Security or Regional Stability reasons.
  • In addition, BIS amended the end use and end user provisions of the Validated End User (VEU) authorization to state that items obtained under authorization VEU in India may be used for either civil or military end uses other than those that are for use in nuclear, “missile,” or chemical or biological weapons activities.

Support Document Requirements with Respect to Hong Kong

  • This rule requires persons intending to export or re-export to Hong Kong any item subject to the EAR and controlled on the Commerce Control List (CCL) for national security (NS), missile technology (MT), nuclear nonproliferation (NP column 1), or chemical and biological weapons (CB) reasons to obtain, prior to such export or re-export, a copy of a Hong Kong import license or a written statement from the Hong Kong government that such a license is not required.
  • This rule also requires persons intending to re-export from Hong Kong any item subject to the EAR and controlled for NS, MT, NP column 1, or CB reasons to obtain a Hong Kong export license or a statement from the Hong Kong government that such a license is not required.

For more information, contact: Chris Monahan, J.J. Saulino, Edward Goetz

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Photo of Edward Goetz Edward Goetz

Edward Goetz is the manager for International Trade Services in Crowell & Moring’s Washington, D.C. office. Edward leads the firm’s international trade analysts providing practice support to the International Trade Group in the areas of customs regulations, trade remedies, trade policy, export control…

Edward Goetz is the manager for International Trade Services in Crowell & Moring’s Washington, D.C. office. Edward leads the firm’s international trade analysts providing practice support to the International Trade Group in the areas of customs regulations, trade remedies, trade policy, export control, economic sanctions, anti-money laundering (AML), anti-corruption/anti-bribery, and antiboycott. He has extensive government experience providing information and interpretive guidance on the International Traffic in Arms Regulations (ITAR) concerning the export of defense articles, defense services, and related technical data. He also assists attorneys with matters involving the Export Administration Regulations (EAR), economic sanctions, AML, anti-corruption/anti-bribery, and trade remedies.