{"id":407,"date":"2020-08-03T15:29:30","date_gmt":"2020-08-03T15:29:30","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=407"},"modified":"2020-08-03T15:29:30","modified_gmt":"2020-08-03T15:29:30","slug":"export-policy-updates-state-commerce-departments","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2020\/08\/03\/export-policy-updates-state-commerce-departments\/","title":{"rendered":"Export Policy Updates from State and Commerce Departments"},"content":{"rendered":"<p>It may be summer and COVID-19 is still impacting everyone, but it is not a time to stop paying attention to export compliance! The U.S. Government is working away updating policies, expanding services and asking for your comments on export controls.<\/p>\n<p><strong>Unmanned Aerial Systems Policy Adjustment<\/strong><\/p>\n<p>On July 24, 2020, the <a href=\"https:\/\/www.whitehouse.gov\/briefings-statements\/statement-press-secretary-unmanned-aerial-systems-exports\/\">White House announced<\/a> a revision in the standards for exporting Unmanned Aerial Systems (UAS) under the Missile Technology Control Regime (MTCR).\u00a0 U.S. export policy <u>will now consider<\/u> \u201ca carefully selected subset of MTCR Category I UAS, which cannot travel faster than 800 kilometers per hour, as Category I.\u201d\u00a0 Higher speed UAS such as such as cruise missiles and hypersonic aerial vehicles remain subject to the Category I presumption of denial, while exportability will improve for larger, lower speed systems that already face competition from countries such as \u00a0China and Israel.\u00a0 Fortunately complex interagency review will still be required for any such export licenses.<\/p>\n<p>For additional detail on the changes and rationale, a video event has been recorded with Assistant Secretary Assistant Secretary of State Christopher Ford on the topic of \u201cU.S. Policy and the Missile Technology Control Regime.\u201d\u00a0 You can access the video on \u00a0the <a href=\"https:\/\/www.hudson.org\/events\/1846-video-event-assistant-secretary-of-state-christopher-ford-on-u-s-policy-and-the-missile-technology-control-regime72020\">website of the Hudson Institute<\/a>.<\/p>\n<p><strong>DDTC Policy and Process Notices<\/strong><\/p>\n<p>The U.S. Department of State, Directorate of Defense Trade Controls (DDTC) has made a series of announcements <a href=\"https:\/\/www.pmddtc.state.gov\/ddtc_public?id=ddtc_public_portal_homepage\">on their website<\/a>, including:<\/p>\n<ul>\n<li>International Traffic in Arms Regulations: Notification of Temporary Suspension, Modification, or Exception to Regulations due to SARS-COV2 (<a href=\"https:\/\/www.federalregister.gov\/documents\/2020\/07\/29\/2020-15777\/international-traffic-in-arms-regulations-notification-of-temporary-suspension-modification-or\">85 FR 45513<\/a>, July 29, 2020) for the continued telework of employees.<\/li>\n<\/ul>\n<ul>\n<li>Electronic Submissions of 60-Day Advance Notifications of Mergers, Acquisitions, and Divestitures (MAD).<\/li>\n<\/ul>\n<ul>\n<li>Use of DECCS form DS-6004 DS-6004 \u201cReexport\/Retransfer Application \u2013 ITAR Part 123.9\u201d to submit General Correspondence (GC) requests related to Mergers and Acquisitions, U.S. and Foreign Entity Name\/Address Changes or Registration Code Changes, U.S. Persons providing defense services abroad, End-Use\/End-User Change Requests, and Amendments to existing General Correspondence approvals.<\/li>\n<\/ul>\n<ul>\n<li>Rescission of its firearms sound suppressor policy, potentially allowing the export of sound suppressors for civilian end-use (e.g., for use by individuals at gun ranges):<\/li>\n<\/ul>\n<p><em>Effective immediately, the Department of State has rescinded its April 18, 2002, firearms sound suppressor policy.\u00a0 This policy provided for enhanced guidelines for the approval and issuance of export licenses for sound suppressors and restricted their export to only official end users such as government or military entities.\u00a0 Henceforth, DDTC will handle suppressor exports in a manner consistent with other USML-controlled technologies.\u00a0 This requires that applicants must identify a specific end user.\u00a0 Applications for the permanent export of hardware must include purchase documentation, a DSP-83 non-transfer and end use certificate (as suppressors are considered Significant Military Equipment under the USML), an end-user statement, and an import permit (if required by the destination country).\u00a0 Consistent with current licensing practices, all licenses will be reviewed and adjudicated on a case-by-case basis, and any pre-license checks or post shipment verifications will be conducted as deemed necessary and appropriate based on the totality of the circumstances of the transaction.\u00a0 Standard staffing protocols within the Department and interagency will be applied as required.<\/em><\/p>\n<p><strong>Central African Republic 126.1 Entry Revised<\/strong><\/p>\n<p>On July 22, 2020, DDTC published a final rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2020\/07\/22\/2020-13511\/international-traffic-in-arms-regulations-amendment-of-central-african-republic\">85 FR 44188<\/a>), revising the International Traffic in Arms Regulations (ITAR) \u00a7126.1 entry for the Central African Republic.\u00a0 The Central African Republic remains a prohibited destination under ITAR \u00a7126.1(u), subject to revised exceptions under United Nations Security Council resolutions.\u00a0 UN notification and\/or approval is required for the case-by-case issuance of licenses or other approvals.\u00a0 DDTC approval is still required for brokering proposals to the Central African Republic.<\/p>\n<p><strong>Russian Pipelines Subject to CAATSA Sanctions<\/strong><\/p>\n<p>On July 23, 2020, the Department of State published an \u201cUpdate to the Public Guidance for Section 232 of the Countering America\u2019s Adversaries Through Sanctions Act of 2017 (CAATSA) (<a href=\"https:\/\/www.federalregister.gov\/documents\/2020\/07\/23\/2020-15901\/notice-of-department-of-state-update-to-the-public-guidance-for-section-232-of-the-countering\">85 FR 44561<\/a>) effective July 15, 2020.\u00a0 The notice does not impose any new sanctions, but clarifies that CAATSA sanctions may apply to \u201cRussian energy export pipelines such as Nord Stream 2 and the second line of TurkStream.\u201d<\/p>\n<p><strong>Commerce Publishes EAR Amendment for Hong Kong<\/strong><\/p>\n<p>Finally, on July 31, 2020, BIS published a rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2020\/07\/31\/2020-16278\/revision-to-the-export-administration-regulations-suspension-of-license-exceptions-for-hong-kong\">85 FR 45998<\/a>) suspending \u201cthe availability of all License Exceptions for Hong Kong that provide differential treatment as compared to those available to the People&#8217;s Republic of China (PRC).\u201d\u00a0 This rule implements the <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2020\/07\/01\/important-breaking-developments-export-policies-towards-china-hong-kong-dod-releases-list-communist-chinese-military-companies-significant-interest-company\/\">previously announced end to Hong Kong\u2019s special status<\/a> under the Export Administration Regulations (EAR).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It may be summer and COVID-19 is still impacting everyone, but it is not a time to stop paying attention to export compliance! The U.S. Government is working away updating policies, expanding services and asking for your comments on export controls. Unmanned Aerial Systems Policy Adjustment On July 24, 2020, the White House announced a [&hellip;]<\/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":[7,3],"tags":[],"class_list":["post-407","post","type-post","status-publish","format-standard","hentry","category-all","category-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Export Policy Updates from State and Commerce Departments - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"More Policy Updates from State and Commerce: UAS\/MTCR policy, DECCS features, Central African Republic embargo and CAATSA sanctions. and Commerce controls for Hong Kong.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exportcompliancesolutions.com\/blog\/2020\/08\/03\/export-policy-updates-state-commerce-departments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Export Policy Updates from State and Commerce Departments - 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