{"id":294,"date":"2018-09-04T18:46:59","date_gmt":"2018-09-04T18:46:59","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=294"},"modified":"2018-09-18T20:40:03","modified_gmt":"2018-09-18T20:40:03","slug":"smorgasbord-summer-export-compliance-updates","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2018\/09\/04\/smorgasbord-summer-export-compliance-updates\/","title":{"rendered":"A Smorgasbord of Summer Export Compliance Updates"},"content":{"rendered":"

EAR Amendment: India Eligible for STA, License Requirements Revised<\/strong><\/p>\n

On August 3, 2018 (83 FR 38018<\/a>), the Department of Commerce amended the Export Administration Regulations (EAR) to reflect India\u2019s membership in the Wassenaar Arrangement and status as a Major Defense Partner.\u00a0 Under this amendment, India moves from Country Group A:6 to Country Group A:1 and A:5.\u00a0 Country Group A:5 \u201cprovides the benefit of greater availability of License Exception Strategic Trade Authorization (STA) for exports and reexports to, and transfers within India under the EAR.\u201d<\/p>\n

The Commerce Country Chart<\/a> was also amended, removing the license requirement for National Security Column 2 (NS2) for India.\u00a0 The amendment also makes conforming changes related to footnotes and AES filings.\u00a0 This follows updates earlier this year<\/a> to reflect India\u2019s admission to the Australia Group.<\/p>\n

Click here<\/a> for the revised Commerce Country Chart (Supplement No. 1 to Part 738).<\/p>\n

Click here<\/a> for the Strategic Trade Authorization (STA) Exception (EAR \u00a7740.20, currently starting on page 59 of the pdf).<\/p>\n

EAR Amendment: South Sudan Arms Embargo<\/strong><\/p>\n

Also on August 3, 2018 (83 FR 38021<\/a>), the Department of Commerce amended the EAR to reflect the addition of South Sudan as a prohibited destination<\/a> under ITAR \u00a7126.1(w).\u00a0 South Sudan is now listed in Country Group D:5: Countries subject to U.S. arms embargoes.\u00a0 Because the State Department list controls, the addition of South Sudan to ITAR \u00a7126.1 in February already had this affect.\u00a0 The Commerce Department amendment conforms Country Group D:5 to the current ITAR \u00a7126.1<\/a>.<\/p>\n

EAR Amendment: MTCR Conforming Changes<\/strong><\/p>\n

On August 30, 2018 (83 FR 44216<\/a>), the Department of Commerce amended the EAR to conform to changes to the Missile Technology Control Regime (MTCR), a voluntary multilateral anti-proliferation arrangement.\u00a0 The following seventeen ECCNs have been revised to align CCL controls with changes made to the MTCR Annex in 2017 (ECCN headings summarized for readability may include additional specifications and related commodities):<\/p>\n

1B117 \u2013 Batch mixers
\n1B118 \u2013 Continuous mixers
\n1C111 \u2013 Propellants and constituent chemicals
\n1C118 \u2013 Titanium-stabilized duplex stainless steel
\n2B109 \u2013 Flow-forming machines
\n2B120 \u2013 Motion simulators or rate tables
\n2B121 \u2013 Positioning tables
\n2B122 \u2013 Centrifuges
\n6A107 \u2013 Gravity meters or gravity gradiometers
\n7A105 \u2013 Airborne receiving equipment for \u2018navigation satellite systems\u2019
\n7A107 \u2013 Three axis magnetic heading sensors
\n7A116 \u2013 Flight control systems
\n9A012 \u2013 Non-military UAVs
\n9A101 \u2013 Turbojet and turbofan engines
\n9A115 – Apparatus, devices and vehicles for transport, handling, control, activation and launching of rockets, missiles, and UAVs
\n9A515 \u2013 Spacecraft
\n9A610 \u2013 Military aircraft<\/p>\n

Additional details of changes can be found in the Federal Register Notice<\/a> and the revised CCL<\/a>.<\/p>\n

Commerce Requests Comments on Spraying and Fogging Systems<\/strong><\/p>\n

On August 13, 2018 (83 FR 39921<\/a>), the Department of Commerce published a request for comments on the effectiveness of its controls on spraying or fogging systems controlled under Commerce Control List (CCL) Category 2<\/a>, ECCN 2B352.i.\u00a0 The items are subject to Chemical & Biological Weapons Controls (CB column 2) because they are identified on the Australia Group\u2019s \u201cControl List of Dual-Use Biological Equipment and Related Technology and Software.\u201d\u00a0 The notice proposes alternative control criteria, particularly to aid classification and avoid controls of commercial (e.g., agricultural) systems.<\/p>\n

Comments are due by October 12, 2018 and may be submitted via regulations.gov<\/a> (docket number BIS\u20132018\u20130013), by email, or by paper submission.\u00a0 Please see the Federal Register Notice<\/a> for more details.<\/p>\n

State Requests Comments on Part 130 Statements<\/strong><\/p>\n

On August 15, 2018 (83 FR 40618<\/a>), the Department of State published a request for comments on the ITAR Part 130 \u201cStatement of Political Contributions, Fees, and Commissions Relating to Sales of Defense Articles and Defense Services.\u201d\u00a0 Part 130<\/a> statements require information about fees, commissions, and political contributions from<\/p>\n

\u201cany person who applies to the Directorate of Defense Trade Controls for any license or approval\u2026 for the export, reexport, or retransfer of defense articles or defense services valued in an amount of $500,000 or more which are being sold commercially to or for the use of the armed forces of a foreign country or international organization.\u201d<\/p>\n

Comments may be submitted until September 14, 2018.\u00a0 Please see the Federal Register Notice<\/a> for additional details.<\/p>\n

USML Category XI(b) Amended (Again) to Continue Current Text<\/strong><\/p>\n

On August 30, 2018 (83 FR 44228<\/a>), the Department of State published an amendment to USML Category XI(b) that continues the current text which was scheduled to be replaced on August 30, 2018.\u00a0 XI(b) currently controls:<\/p>\n

*(b) Electronic systems, equipment or software, not elsewhere enumerated in this subchapter, specially designed for intelligence purposes that collect, survey, monitor, or exploit, or analyze and produce information from, the electromagnetic spectrum (regardless of transmission medium), or for counteracting such activities.<\/p>\n

This text was scheduled to be replaced on August 30, 2018, but with the amendment the replacement will be delayed until August 30, 2019.\u00a0 At that time, unless otherwise amended, Category XI(b) will read:<\/p>\n

*(b) Electronic systems or equipment, not elsewhere enumerated in this subchapter, specially designed for intelligence purposes that collect, survey, monitor, or exploit the electromagnetic spectrum (regardless of transmission medium), or for counteracting such activities.<\/p>\n

The change now scheduled for 2019 removes \u201csoftware\u201d as well as the capability to analyze and produce information from the electromagnetic spectrum.<\/p>\n

The current language is meant to maintain control of \u201ccertain intelligence-analytics software\u201d until a long-term solution is developed.\u00a0 The rule gives the government additional time \u201cto finalize its review of USML Category XI, with rulemaking to follow, to include any further modifications to the USML Category XI paragraph (b) as may be warranted.\u201d<\/p>\n

DDTC published a similar amendment last year<\/a>.<\/p>\n

DTAG to Meet in October<\/strong><\/p>\n

The Defense Trade Advisory Group (DTAG) will meet on October 25, 2018 to discuss the following topics:<\/p>\n

    \n
  1. Oversight of technical data under the ITAR and NISPOM;<\/li>\n
  2. Challenges regulated entities face in advising the Department of ownership changes that implicate existing licenses and foreign persons, and processes the Department may implement to facilitate the provisions of this information;<\/li>\n
  3. Possible schedule for future ongoing periodic review of USML categories;<\/li>\n
  4. Developing a definition for common carrier; and<\/li>\n
  5. Issues that exist with licensing of defense articles, including intelligence related products, related technical data, and defense services to the \u2018\u2018Five Eyes\u2019\u2019 countries of the U.S., UK, Australia, Canada and New Zealand.<\/li>\n<\/ol>\n

    The DTAG meeting is open to the public, with seating limited to 125 persons.\u00a0 For meeting and registration information, click here for the meeting notice<\/a>.<\/p>\n

    Click here<\/a> for more information about DTAG.<\/p>\n

    Finally, watch for our next blog post on the NDAA and big changes coming to the Committee on Foreign Investment in the United States (CFIUS)!<\/p>\n","protected":false},"excerpt":{"rendered":"

    EAR Amendment: India Eligible for STA, License Requirements Revised On August 3, 2018 (83 FR 38018), the Department of Commerce amended the Export Administration Regulations (EAR) to reflect India\u2019s membership in the Wassenaar Arrangement and status as a Major Defense Partner.\u00a0 Under this amendment, India moves from Country Group A:6 to Country Group A:1 and […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7,8],"tags":[],"class_list":["post-294","post","type-post","status-publish","format-standard","hentry","category-all","category-ear-licensing"],"yoast_head":"\nA Smorgasbord of Summer Export Compliance Updates - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"Department of Commerce amends EAR for India, South Sudan, and revised MTCR annex. 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