BIS Posts Comments on Proposed Rule to Revise CCL for Aircraft No Longer in USML Cat VIII
The Bureau of Industry and Security has posted the public comments it has received on its proposed rule to add to the Commerce Control List (CCL) certain aircraft and related items that the President determines no longer warrant control under United States Munitions List (USML) Category VIII. The proposed rule also modifies BIS' July 2011 proposed rule regarding the eligibility for License Exception STA, among other things. Written comments on the proposed rule were due by December 22, 2011.
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(The State Department also issued a companion proposed rule to revise USML Category VIII (aircraft and related items) to remove articles that could be controlled on the CCL, and to make the USML list of items more positive.)
Five New 600 Series ECCNs Would be Created
The BIS proposed rule would create five new 600 series ECCNs in CCL Category 9 - 9A610, 9B610, 9C610, 9D610, and 9E610 - that would control articles the President determines no longer warrant control under USML Category VIII. This proposed rule also would move items currently classified under ECCNs 9A018, 9D018, and 9E018 to the new ECCNs. Moving items from 018 ECCNs to the appropriate 600 series ECCNs would consolidate WAML and formerly USML items into one series of ECCNs.
License Exception STA or GOV
The proposed rule would also create a new Supplement No. 4 to part 740 that would prohibit the use of License Exceptions STA (Strategic Trade Authorization) or GOV (U.S. Government) to export or reexport, except to U.S. government agencies or personnel, ECCN 9D610 software and ECCN 9E610 technology (other than “build-to-print technology”) for the production of specific types of parts and components classified under ECCN 9A610.x.
License Exception STA under 740.20(c)(1) generally would be available for eligible end items and all other 600 series items if, at the time of export, reexport or transfer (in-country) the item is destined (i) for ultimate end use by the armed forces, police, paramilitary, law enforcement, customs, correctional, fire, and search and rescue agencies of the “STA-36” countries or of the United States Government; or (ii) for the “production” or “development” of an item for ultimate end use by any of those foreign government agencies in any of the STA-36 countries, by the United States Government, or by any person in the United States. This condition means that exports and reexports to non-governmental end users in one of the STA-36 countries under STA would be permissible so long as the item at issue would ultimately be provided to, or for the production or development of an item to be provided to and for end use by, any of the foregoing agencies of a government of a STA-36 country, the United States Government, or any person in the United States.
This eligibility under License Exception STA is proposed because the U.S. Government recognizes that there would be a significant volume of desirable trade between and among private companies in the STA-36 countries regarding “600 series” end items that would ultimately be for use by one of the foregoing government agencies of an STA-36 country, the United States Government, and manufacturers in the United States.
BIS proposed rule (FR Pub 11/07/11) available here. (See ITT's Online Archives 11110604 for summary of proposed rule.)