As always seems to be the case, changes are coming to export compliance. ECS is monitoring developments, particularly including the following issues that we expect to see more on over the next few months and into the New Year:
From the Department of State, Directorate of Defense Trade Controls (DDTC):
- Movement on Export Control Reform of USML Categories I-III;
- ITAR revisions to improve definitions and organization;
- DECCS deployment for registration and licensing;
- More guidance on the revised 126.4 ITAR Exemption – Shipments by or for U.S. Government agencies;
- Revised and condensed agreements guidelines; and
- A final encryption/cloud storage rule.
From the Department of Commerce, Bureau of Industry and Security (BIS), we are watching for proposed rules to tighten export controls on emerging technologies. The Commerce Department is under Congressional pressure to move forward with the rules, required by the Export Control Reform Act of 2018. If you expect these to impact your business, be ready to review and comment.
From the Department of Treasury, the comment period closed on proposed new CFIUS regulations required by the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). Watch for action on those rules, including what investors can qualify as excepted investors (a whitelist, with limitations). The proposed rules can be found here and here.
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