{"id":526,"date":"2024-12-16T10:50:46","date_gmt":"2024-12-16T15:50:46","guid":{"rendered":"https:\/\/exportcompliancesolutions.com\/blog\/?p=526"},"modified":"2024-12-16T10:50:46","modified_gmt":"2024-12-16T15:50:46","slug":"export-regulatory-and-policy-update-roundup-december-2024","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2024\/12\/16\/export-regulatory-and-policy-update-roundup-december-2024\/","title":{"rendered":"Export Regulatory and Policy Update Roundup: December 2024"},"content":{"rendered":"<p>As the year winds down, regulatory activity continues.\u00a0 Most are rules that renew, formalize, or build on earlier actions, plus a small expansion of controls on items destined for Pakistan related to non-proliferation concerns.<\/p>\n<p><strong><u>Department of State: DDTC \/ ITAR<\/u><\/strong><\/p>\n<p><strong>Temporary Modification of USML Category VIII(h)(1)<\/strong><\/p>\n<p>On November 26, 2024, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a final rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/11\/26\/2024-27592\/international-traffic-in-arms-regulations-extension-of-an-existing-temporary-modification-of\">89 FR 93170<\/a>) which extends the temporary modification of United States Munitions List (USML) Category VIII (aircraft).<\/p>\n<p>VIII(h)(1) currently controls \u201cParts, components, accessories, and attachments specially designed for the following U.S.-origin aircraft: The B-1B, B-2, B-21, F-15SE, F\/A-18 E\/F, EA-18G, F-22, F-35, and future variants thereof; or the F-117 or U.S. Government technology demonstrators.\u201d<\/p>\n<p>The temporary modification allows Category VIII(h)(1) to continue to control specially designed parts, components, accessories, and attachments for listed aircraft if also used in the KF-21 aircraft. Without this note, use of a part for one of the listed aircraft on the KF-21 would have released it form ITAR control.<\/p>\n<p><strong>Registration Fee Increase<\/strong><\/p>\n<p>On December 10, 2024, DDTC issued a final rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/12\/10\/2024-29032\/international-traffic-in-arms-regulations-registration-fees\">89 FR 99081<\/a>) which, effective January 9, 2025 will increase registration fees for manufacturers, exporters, and brokers.<\/p>\n<p>Originally <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2024\/04\/30\/bis-announces-aukus-exemption-ddtc-proposes-fee-increase\/\">proposed in April<\/a>, the new fee structure will be as follows:<\/p>\n<ul>\n<li>Tier 1: $3000\n<ul>\n<li>New registrants and registrants with no authorization approvals<\/li>\n<li>Increase from $2250<\/li>\n<\/ul>\n<\/li>\n<li>Tier 2: $4000\n<ul>\n<li>Registrants with five or fewer approvals<\/li>\n<li>Increase from $2750<\/li>\n<li>Previous threshold was ten approvals<\/li>\n<\/ul>\n<\/li>\n<li>Tier 3: $4000 + $1100 for each approval after the first five\n<ul>\n<li>Registrants with more than five approvals<\/li>\n<li>Increase from $2750 + $250 for each approval after the first ten<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Brokering registration fees remain tied to Tier 1, regardless of the number of brokering authorizations submitted or approved.\u00a0 No additional fee is required for brokers already registered as manufacturers or exporters.\u00a0 Limited discounts are available.<\/p>\n<p><strong><u>Department of Commerce: BIS \/ EAR &amp; CCL<\/u><\/strong><\/p>\n<p><strong>Commerce Increases Controls on Pakistan<\/strong><\/p>\n<p>On November 26, 2024, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/11\/26\/2024-27648\/implementation-of-additional-controls-on-pakistan\">89 FR 93164<\/a>) adding export controls for certain items destined for Pakistan.<\/p>\n<p>Effective immediately, the new rule adds a license requirement for items listed on the Commerce Control List under Export Control Classification Numbers (ECCNs) 1B999, 2A992, 2B999,1 3A992, 3A999, and 6A996, including:<\/p>\n<ul>\n<li>Particle accelerators<\/li>\n<li>Certain stainless or alloy pipes and valves<\/li>\n<li>Certain pumps and welders<\/li>\n<li>Oscilloscopes<\/li>\n<li>Chromatographs and spectrometers<\/li>\n<li>Magnetometers<\/li>\n<\/ul>\n<p>The primary concern is whether items may be used in nuclear or missile activities, or may be diverted to any of the currently 162 <a href=\"https:\/\/ecscreening.com\/index.php\/blog\/124-bis-adds-twenty-six-to-entity-list-removes-two\">Entity List<\/a> members located in Pakistan.\u00a0 Based on these concerns, the availability of license exceptions is also limited.<\/p>\n<p>BIS also issued a <a href=\"https:\/\/www.bis.gov\/press-release\/commerce-strengthens-restrictions-exports-pakistan-address-diversion-concerns\">press release<\/a> on the new rule, which also notes the existence of specific <a href=\"https:\/\/www.bis.doc.gov\/index.php\/policy-guidance\/pakistan-due-diligence-guidance\">Pakistan Due Diligence Guidance<\/a> on the BIS website.<\/p>\n<p><strong>Advance Computing Foreign Direct Product Rule<\/strong><\/p>\n<p>On December 5, 2024, BIS issued an interim final rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/12\/05\/2024-28270\/foreign-produced-direct-product-rule-additions-and-refinements-to-controls-for-advanced-computing\">89 FR 96790<\/a>) expanding the Foreign Direct Product (FDP) rules for advanced computing and semiconductor manufacturing items.\u00a0 Effective December 2, 2024, comments will be accepted through January 31, 2025.<\/p>\n<p><strong>ICTS Supply Chain Rule<\/strong><\/p>\n<p>On December 6, 2024, BIS issued a final rule (<a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/12\/06\/2024-28335\/securing-the-information-and-communications-technology-and-services-supply-chain\">89 FR 96872<\/a>) on Securing the Information and Communications Technology and Services (ICTS) Supply Chain.\u00a0 This follows an interim final rule <a href=\"https:\/\/exportcompliancesolutions.com\/blog\/2021\/02\/12\/flurry-activity-state-commerce-treasury-rules-issued-ahead-change-administration\/\">published in 2021<\/a> and will be effective February 4, 2025.<\/p>\n<p>The original rule was intended to provide a process to review information and communications technology and services (ICTS) supply chain transactions, \u201csimilar to the process by which entities may inform the Committee on Foreign Investment in the United States (CFIUS) of investments in U.S. businesses\u201d and requested comments.\u00a0 The new rule \u201cresponds to public comments on the interim final rule and finalizes the practices guiding review of ICTS Transactions, amending and, in some cases, removing terms or concepts which experience has shown to be unnecessary, inefficient, or ineffective.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the year winds down, regulatory activity continues.\u00a0 Most are rules that renew, formalize, or build on earlier actions, plus a small expansion of controls on items destined for Pakistan related to non-proliferation concerns. Department of State: DDTC \/ ITAR Temporary Modification of USML Category VIII(h)(1) On November 26, 2024, the Department of State, Directorate [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7,3],"tags":[],"class_list":["post-526","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 Regulatory and Policy Update Roundup: December 2024 - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"Export Regulatory and Policy Update Roundup: December 2024\" \/>\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\/2024\/12\/16\/export-regulatory-and-policy-update-roundup-december-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Export Regulatory and Policy Update Roundup: December 2024 - 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