Draft USML Cats Expected Soon, Single License Application Created
At a recent AAEI conference, Commerce, State, and Defense Department officials provided an update on the status of the Administration’s export control reform initiative. Officials discussed the status of the rulemakings to make the USML a “positive” list and align it structurally with the CCL, announced that a single export license has been developed but is not yet public, and stated that the Administration is developing its own export reform legislation.
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Commerce, State Rules Needed Before Items Removed from USML
The Administration is in the process of finalizing proposed rules on the process for transitioning items from the U.S. Munitions List to the Commerce Control List. According to one official, this process must be established before the Administration can notify Congress that items are being removed from the USML.
Draft Revisions for Remaining USML Cats Expected to be Completed in June
In December 2010, the State Department issued a proposed rule to revise USML Category VII (tanks and military vehicles) into a “positive” list. (See ITT’s Online Archives or 12/10/10 news, 10121013, for BP summary of proposed rule.)
For the remaining 18 USML categories, the Administration expects to have drafts of the proposed USML revisions completed by the end of June 2011. Revisions to seven of the remaining USML categories have been drafted and are undergoing inter-agency review. The Administration expects to have draft revisions for the remaining eleven USML categories completed and ready for inter-agency review by the end of June 2011.
Proposed Rule on USML Category 1 Expected in August 2011
Once the inter-agency review is completed for each category, a proposed rule will be drafted and published. The next proposed rule is expected to cover USML Category 1 (Firearms, Close Assault Weapons and Combat Shotguns) and is expected in August 2011.
Administration Develops Single License Application, Delays Public Release
Officials state that although a single export license application for State, Commerce, and Treasury has been developed, it is not expected to be made public until the agencies complete work on harmonizing certain export-related definitions, etc. One official stated that the single license application form is not expected to be made available “for quite a while.”
(See ITT’s Online Archives or 04/28/11 news, 11042817, for BP summary of the Administration’s statement that the form would be unveiled in summer 2011.)
Commerce Not Expected to be on USXPORTS Until End of 2011 or Later
As part of the Administration’s efforts to create a single IT system, the Department of Defense has been working with the State and Commerce Departments to transition them to DOD’s USXPORTS internal licensing system.
Initial operational capability for the State Department is still expected by August/September 2011. However, the Commerce Department is not expected to be operational on USXPORTS until the end of 2011 (at the earliest). (DoD had recently stated that Commerce was expected to become operational in October 2011.)
The Administration has previously stated that after State and Commerce are operational in USXPORTS, attention will turn to other agencies, such as the Office of Foreign Assets Control, Department of Energy, etc.
(USXPORTS currently provides DoD with the capability to process electronic export license data more efficiently and effectively through: inter-agency and electronic data exchange; electronic dissemination to all review layers; auto-staffing of cases; identifying precedent cases; and end-user alerts for workflow management. See ITT's Online Archives or 05/13/11 news, Administration Working on its Own Export Reform Legislative Proposal According to officials, although export reform bills have recently been introduced in the House (H.R. 2004 and 2122), the Administration has developed its own legislative proposal to allow it to transition to the new export control system and merge the CCL and USML into a single list and implement a single licensing agency. The Administration’s legislative proposal is currently undergoing inter-agency review. (See ITT’s Online Archives or 05/27/11 news, [Ref:11052727">11051322, for details on USXPORTS.) Administration Working on its Own Export Reform Legislative Proposal According to officials, although export reform bills have recently been introduced in the House (H.R. 2004 and 2122), the Administration has developed its own legislative proposal to allow it to transition to the new export control system and merge the CCL and USML into a single list and implement a single licensing agency. The Administration’s legislative proposal is currently undergoing inter-agency review. (See ITT’s Online Archives or 05/27/11 news, [Ref:11052727