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BIS Corrects Wassenaar Rule to Fix Ball Bearing Error, Etc.

The Bureau of Industry and Security has issued a correction, effective June 14, 2011, to its May 20, 2011 final rule which revised the Export Administration Regulations to implement the changes made to the Wassenaar Arrangement's List of Dual Use Goods and Technologies agreed to at the December 2010 Plenary Meeting. According to BIS, its June 14, 2011 notice corrects errors concerning radial ball bearings, as well as editorial mistakes.

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BIS Correction Adds New ECCN 2A101 for Radial Ball Bearings

BIS’ final rule removed paragraph 2A001.b, “Other ball bearings and solid roller bearings, having all tolerances specified by the manufacturer in accordance with ISO 492 Tolerance Class 2 (or ANSI/ABMA Std 20 Tolerance Class ABEC-9 or RBEC-9, or other national equivalents), or better.” However, a subset of these ball bearings are listed on the Missile Technology Control Regime (MCTR) Annex in 3.A.7.

To address this error, BIS is adding a new Export Control Classification Number (ECCN) 2A101 to the Commerce Control List (CCL, Supplement No. 1 to 15 CFR Part 774) to control the export and reexport of these ball bearings. ECCN 2A101 is controlled for Missile Technology (MT) and Anti-terrorism (AT) reasons, more specifically MT column 1 and AT column 1.

(Note that a license is required under MT Column 1 of the Commerce Country Chart (Supplement No. 1 to 15 CFR Part 738) for export or reexport of ball bearings classified under ECCN 2A101 to all destinations, except Canada. License requirements and license review policy for MT controlled items are set forth in 15 CFR 742.5. License requirements and license review policy for AT controlled items are set forth in 15 CFR 742.8 Iran, 15 CFR 742.9 Syria, 15 CFR 742.10 Sudan, and 15 CFR 742.19 North Korea.)

See BIS notice for complete details on the corrections to the May 20, 2011 Wassenaar final rule.

Saving Clause

Shipments of items removed from license exception eligibility or eligibility for export without a license as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on June 14, 2011, pursuant to actual orders for export to a foreign destination, may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported from the U.S. before August 15, 2011. Any such items not actually exported before midnight, on August 15, 2011, require a license in accordance with this regulation.

(See ITT's Online Archives or 05/23/11 news, 11052305, for the final part of BP's multi-part summary of the May 20 final rule, with links to earlier parts.)

BIS contact -- Sharron Cook (202) 482-2440, sharron.cook@bis.doc.gov.

(BIS correction, D/N 110124056-301-02, FR Pub 06/14/11)