{"id":456,"date":"2021-10-21T18:26:09","date_gmt":"2021-10-21T22:26:09","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=456"},"modified":"2021-10-21T18:26:09","modified_gmt":"2021-10-21T22:26:09","slug":"export-compliance-recap-ethiopia-added-itar-126-1-ear-country-group-d5-changes-policy-cyprus-ear-controls","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2021\/10\/21\/export-compliance-recap-ethiopia-added-itar-126-1-ear-country-group-d5-changes-policy-cyprus-ear-controls\/","title":{"rendered":"Export Compliance Recap: Ethiopia to be added to ITAR 126.1 and EAR Country Group D:5.  Changes to Policy for Cyprus, EAR Controls, and More!"},"content":{"rendered":"<p><strong>Ethiopia Sanctions and 126.1<\/strong><\/p>\n<p>Following the announcement of <a href=\"https:\/\/ecscreening.com\/index.php\/blog\/76-new-sanctions-program-announced-for-ethiopia\">sanctions targeting the conflict in Ethiopia<\/a> on September 17, the Department of State, Directorate of Defense Trade Controls (DDTC) <a href=\"https:\/\/www.pmddtc.state.gov\/ddtc_public?id=ddtc_public_portal_homepage\">announced on its website<\/a> that it intends to add Ethiopia to ITAR \u00a7126.1 and revise the entry for Eritrea.<\/p>\n<p>While the main effect of this change will be that defense articles may no longer be exported or reexported to Ethiopia (where approvals would already have been unlikely), there are a number of follow-on effects of the \u00a7126.1 listing that may catch some companies by surprise.\u00a0 Such effects include the following:<\/p>\n<ul>\n<li><strong><em>Proposed and final sales<\/em><\/strong>: Broad prohibition includes proposals and presentations as well as actual sales and exports.<\/li>\n<li><strong><em>Disclosures<\/em>:<\/strong> An affirmative duty to <u>immediately<\/u> inform DDTC of any \u201cproposed, final, or actual sale, export, transfer, reexport, or retransfer of articles, services, or data.\u201d<\/li>\n<li><strong><em>Exemptions<\/em><\/strong>: Most exemptions are not available for \u00a7126.1 countries.<\/li>\n<li><strong><em>Dual\/Third Country Nationals<\/em><\/strong>: \u00a7126.18(c)(2) will require screening for substantive contacts with Russia.<\/li>\n<li><strong><em>Brokering<\/em>:<\/strong> Additional restrictions under Part 129.<\/li>\n<\/ul>\n<p>Through its addition to \u00a7126.1, Ethiopia will also be added to the Commerce Department\u2019s Export Administration Regulations (EAR) Country Group D:5.<\/p>\n<p>Ethiopia will be the second addition to \u00a7126.1 this year, following <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2021\/03\/14\/russia-burma-face-new-export-sanctions\/\">Russia\u2019s listing in March<\/a>.<\/p>\n<p><strong>Cyprus \u00a7126.1 Revision Extended<\/strong><\/p>\n<p>In other ITAR \u00a7126.1 news, <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2020\/10\/27\/cyprus-missiles-human-rights-cfius-export-compliance-updates\/\">last year\u2019s temporary modification<\/a> of the policy towards Cyprus was extended for another year.\u00a0 The modification potentially allowing the export of non-lethal defense articles and services is now in effect until September 30, 2022, unless extended (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/09\/30\/2021-21255\/international-traffic-in-arms-regulations-temporary-update-to-republic-of-cyprus-cyprus-country\">86 FR 54044<\/a>).<\/p>\n<p>Cyprus, a member of the European Union since 2004, was originally listed in \u00a7126.1 with the objective to prevent an arms race on the island.\u00a0 Cyprus is currently divided between the Republic of Cyprus and the internationally unrecognized Turkish Republic of Northern Cyprus, a division which followed the 1974 Turkish invasion.\u00a0 The relaxed \u00a7126.1 policies are based on the cooperation of Cyprus on additional U.S. foreign policy objectives of anti-money laundering and denial of ports for Russian military vessels.<\/p>\n<p><strong>USML Category XI(b) Extended for Five Years<\/strong><\/p>\n<p>In what had become an <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2017\/09\/05\/state-department-amends-category-xib-continue-current-text\/\">annual<\/a> or <a href=\"http:\/\/exportcompliancesolutions.com\/blog\/2019\/09\/16\/cornucopia-export-compliance-updates\/\">biennial event<\/a>, on August 30, 2021 DDTC published a notice (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/08\/27\/2021-18544\/international-traffic-in-arms-regulations-itar-continued-temporary-modification-of-category-xi-of\">86 FR 48021<\/a>) continuing the current text controlling intelligence-analytics software in USML Category XI(b).\u00a0 DDTC and its interagency partners have been unable to resolve how Category XI controls such software, and are now deferring to a wholesale revision of the category expected by 2026.<\/p>\n<p>Export Control Reform measures were originally scheduled to remove \u201csoftware\u201d from XI(b) as well as the capability to analyze and produce information from the electromagnetic spectrum.\u00a0 Some software would remain controlled under XI(d).\u00a0 Based concerns that a revised category would no longer clearly control \u201ccertain intelligence-analytics software,\u201d DDTC has continued to \u201camend\u201d XI(b) to maintain the original text.<\/p>\n<p><strong>DTAG Meeting Announced<\/strong><\/p>\n<p>On September 24, 2021, DDTC published a notice (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/09\/24\/2021-20739\/defense-trade-advisory-group-notice-of-open-meeting\">86 FR 53137<\/a>) announcing that the next Defense Trade Advisory Group (DTAG) open meeting will be on November 4, 2021.\u00a0 The meeting will be held virtually with discussion on the following topics:<\/p>\n<p style=\"padding-left: 30px;\">(1) Advise on best practices for conducting internal audits to evaluate ITAR compliance programs, and<\/p>\n<p style=\"padding-left: 30px;\">(2) provide sources for recordkeeping and reporting requirements for all licenses, agreements, and exemptions, as well as industry perceptions of the return on investment of said requirements, plus any recommendations for improvement.<\/p>\n<p>The meeting is open the public and accepts questions by email.\u00a0 For more information on the meeting including how to register, please refer to the <a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/09\/24\/2021-20739\/defense-trade-advisory-group-notice-of-open-meeting\">Federal Register Notice<\/a>.<\/p>\n<p><strong>Commerce Revises EAR Controls<\/strong><\/p>\n<p>On August 19, 2021, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/08\/19\/2021-17647\/control-of-firearms-guns-ammunition-and-related-articles-the-president-determines-no-longer-warrant\">86 FR 46590<\/a>) making corrections and clarifications to the \u201c0x5zz\u201d firearms Export Control Classification Numbers (ECCNs), including edits, new notes, and some changes to the ECCNs effective September 30, 2021.\u00a0 Refer to the <a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/08\/19\/2021-17647\/control-of-firearms-guns-ammunition-and-related-articles-the-president-determines-no-longer-warrant\">Federal Register Notice<\/a> for more information.<\/p>\n<p>On October 5, 2021, BIS published two separate rules (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/10\/05\/2021-20649\/the-export-administration-regulations-editorial-revisions-clarifications-and-corrections\">86 FR 54807<\/a> and <a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/10\/05\/2021-21493\/commerce-control-list-expansion-of-controls-on-certain-biological-equipment-software\">86 FR 54814<\/a>).\u00a0 The first rule makes a series of targeted editorial corrections and clarifications throughout the Export Administration Regulations (EAR).\u00a0 The second establishes controls on nucleic acid assembler and synthesizer software under new ECCN 2D352, implementing an Australia Group decision from May 2021.\u00a0 BIS also <a href=\"https:\/\/www.bis.doc.gov\/index.php\/documents\/about-bis\/newsroom\/press-releases\/2848-2021-10-04-bis-press-release\/file\">issued a press release<\/a> on the new control.<\/p>\n<p>On October 6, 2021, BIS and the Nuclear Regulatory Commission (NRC) issued companion rules (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/10\/06\/2021-21509\/control-of-deuterium-that-is-intended-for-use-other-than-in-a-nuclear-reactor-under-the-export\">86 FR 55492<\/a> and <a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/10\/06\/2021-21548\/updates-on-the-export-of-deuterium\">86 FR 55476<\/a>) transferring responsibility for licensing exports of deuterium for non-nuclear end use from the NRC to BIS.\u00a0 Exports of deuterium for nuclear end use remain under NRC jurisdiction.\u00a0 The revision affects ECCN 1C298, which currently includes graphite, and will take effect December 6, 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethiopia Sanctions and 126.1 Following the announcement of sanctions targeting the conflict in Ethiopia on September 17, the Department of State, Directorate of Defense Trade Controls (DDTC) announced on its website that it intends to add Ethiopia to ITAR \u00a7126.1 and revise the entry for Eritrea. While the main effect of this change will be [&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-456","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 Compliance Recap: Ethiopia to be added to ITAR 126.1 and EAR Country Group D:5. Changes to Policy for Cyprus, EAR Controls, and More! - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"Export Compliance Recap: Ethiopia to be added to ITAR 126.1 and EAR Country Group D:5. 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