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BIS, State Propose Rules to Move Missiles & Explosives from USML to CCL

The State Department and Bureau of Industry and Security each issued proposed rules to move articles related to launch vehicles, missiles, rockets, and military explosive devices to the Commerce Control List. State’s rule would amend U.S. Munitions List Category IV (“launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs, and mines”) to remove some items from International Traffic in Arms Regulations control and create a more positive list. The concurrent BIS proposal would create new ECCNs for the articles moving from the USML to the CCL, and make conforming changes. Comments on both proposed rules are due by March 18.

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State’s Proposed Rule

Revisions to Category IV

Removal of articles from USML. Paragraph (a) of Category IV would be revised to remove demolition and blasting caps. Paragraph (e) would be amended to remove military explosive excavating devices. These articles would be controlled on the CCL under ECCN 0A604.c.

More Positive list. Several paragraphs of Category IV would be revised to remove catch-all provisions and clearly enumerate the articles falling under USML control. Affected paragraphs include (a) rockets; (b) launch vehicles and missile and anti-missile systems; (d) missile and space launch vehicle powerplants; and (h) components, parts, accessories, attachments, and associated equipment.

Ablative materials. Ablative materials, currently controlled in USML Category IV paragraph (f), would be moved to Category XIII(d).

Other ITAR Changes

MCTR articles. Articles on the Missile Technology Control Regime also enumerated in the ITAR are currently listed in Section 121.16. State’s proposed rule would instead list these articles with the parenthetical (“MT”) and the end of each section containing these articles. Several other ITAR provisions would be amended to conform to this change.

Shipments between possessions. Section 123.12 of the ITAR would be revised to add language clarifying requirements for shipments between U.S. possessions. For a shipment of defense articles between U.S. possessions not to require an export license, the shipment must be direct, without transiting a foreign country. A temporary export license is required for shipments that do transit a foreign country

BIS Proposed Rule

The BIS proposed rule would add eight new ECCNs to the CCL, and make conforming changes to other ECCNs, as follows:

Military explosive devices and charges. The proposed rule would add the following four ECCNs to control military explosive devices and charges on the CCL: 0A604, 0B604, 0D604, and 0E604. Items covered by new ECCN 0A604 would include demolition blocks and detonators; military explosive excavating devices; smoke hand grenades and stun hand grenades not described in ECCN 1A984; and parts and components “specially designed” for these items.

Launch vehicles, missiles, rockets, torpedoes, bombs, and mines. New ECCNs 9A604, 9B604, 9D604, and 9E604 would control commodities related to launch vehicles, missiles, rockets, torpedoes, bombs, and mines. Specific items controlled in 9A604 would include thermal batteries; components specially designed for ramjet, scramjet, pulse jet, or combined cycle engines; components for rockets motors usable in rockets, missiles, or unmanned aerial vehicles; and gain combustion-based propulsion systems.

All of these new 0X604 and 9X604 ECCNs would be controlled for national security (NS1), regional stability (RS1), and anti-terrorism (AT1) reasons. Missile technology (MT1) controls would also apply to certain items. License Exception Strategic Trade Authorization (STA) would be available in limited form, to countries listed in Section 740.20(c)(1).

Other conforming changes. The proposal would amend ECCNs 0D001, 0E001, 9B115, 9B116, 9D001, 9D002, 9D003, 9D104, 9E001, 9E002, 9E101, and 9E102 to make conforming changes.

State’s proposed rule is available here.

The BIS proposed rule is available here.