BIS Says More Proposed USML Revisions by Jan 2012, Works on Single License
At a September 13, 2011 BIS Committee meeting1, a BIS official gave an update on the status of the Administration’s Export Control Reform Initiative. According to BIS, progress continues to be made toward transferring certain items on the USML to the CCL. In addition, the Export Enforcement Coordination Center is expected to become operational in the next couple of months and BIS advisory committees have been asked for feedback on a draft single export license form.
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Proposed Revisions to USML Cats 6, 8, 15, Etc. Expected to be Released Within 3-4 Months
BIS and the State Department are currently working on revising the U.S. Munitions List and Commerce Control List. In December 2010, the State Department issued a proposed rule on restructuring USML Category VII (tanks and military vehicles). Proposals to revise Category VI (naval vessels), Category VIII (aircraft), Category XV (spacecraft), and possibly others, are expected to be issued within the next 3-4 months.
Once the revised categories are issued, BIS and State will begin the “38(f)” process2 of notifying Congress of the proposed transfer of certain items from the USML to the CCL so that final regulations implementing the changes can be issued in 2012. (Officials note that Congress has already been notified under AECA Section 38(f) about the proposed revisions to USML Category VII.)
Dramatic Changes in Export Controls Expected from Revising USML Cats 8 and 7
To emphasize the magnitude of the changes expected from the restructuring of the first few USML categories, BIS notes that for USML Category VII, 91% of the 12,000 items currently controlled by the State Department would be moved to BIS’ jurisdiction. Half of the those items would be immediately eligible for License Exception STA, another 35% would likely be eligible for License Exception STA after a one-time review, and the remaining items would be eligible for NLR (no license required) except for a few items from certain countries which would remain controlled.
BIS notes that an even more dramatic decontrol would be expected from a restructuring of USML category VIII.
Export Enforcement Coordination Center Expected to Open in Nov
According to a BIS official, the Export Enforcement Coordination Center is expected to be operational in November 2011. (A November 2010 Executive Order mandated the participation of BIS, the Federal Bureau of Investigation, military security agencies, Immigration and Customs Enforcement, and the Intelligence Community in an Export Enforcement Coordination Center to share information and leverage resources. See ITT’s Online Archives or 11/10/10 news, 10111009, for BP summary of on the Center.)
Draft Single Export License Form is Being Reviewed by Advisory Committees
According to BIS, a draft of the single export license application form (for use by BIS, State, and Treasury) has been shared with the technical advisory committees (TACs) so they can provide feedback.
(BIS sources recently stated that the Administration is not expected to implement a single export license application form on a single electronic portal until late 2012 at the earliest. See ITT’s Online Archives or 07/21/11 news, 11072105, for BP summary.)
Advisory Committees Still Working to Revise “Specially Designed” Definition
During the September 13, 2011 meeting, a significant amount of time was devoted to the advisory committee’s discussion of revisions to the definition of “specially designed.”
(BIS’ proposed rule to implement a control structure in order to transfer less significant items that no longer warrant control on the USML to control under the CCL would establish new definitions for several terms, including “specially designed.” In that notice, BIS noted that the Administration has determined that it cannot completely eliminate "specially designed" as a control parameter. According to BIS, the term is commonly used in the multilateral export control regimes’ control lists upon which much of the CCL and USML are based. See ITT’s Online Archives or 07/15/11 news, 11071519, for BP summary.)
1The Bureau of Industry and Security’s Regulations and Procedures Technical Advisory Committee.
2Under Section 38(f) of the Arms Export Control Act, any item which the Executive Branch proposes to remove from the USML must first be reviewed by the House Foreign Affairs Committee and the Senate Foreign Relations Committee.