Commerce Makes Corrections to Rules to "Clean-Up" CCL
The Commerce Department’s Bureau of Industry and Security published it's final "CCL clean-up" rule Oct. 4. The final rule makes changes to the Commerce Control List that BIS says will make the CCL clearer, by revising the structure of the Commerce Control List, clarifying definitions, removing ECCNs subject to Nuclear Regulatory Commission jurisdiction, amending shipping tolerances, and conforming the CCL to multilateral export control lists and past amendments to the Export Administration Regulations. It also clarifies two BIS final rules associated with the first move of items from the U.S. Munitions List to the CCL. The final rule makes some changes from BIS' November 2012 proposal (see 12112702).
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The changes are effective Oct. 15, with the exception of some changes to the CCL that are effective Jan. 6, 2014.
Clarifications to existing CCL controls, including the use of the terms “parts” and “components” on the CCL
In its final rule, BIS is adding additional references to CCL “parts” and “components” to clarify that the scope of ECCNs extends to parts and components, even if the ECCN previously referenced only one or the other. The final rule adds quotation marks to terms such as “electronic,” “accessories,” “attachments,” and “specially designed” in order to eliminate confusion about the definition of those terms. And it revises the language in many ECCNs, both in response to comments and to conform to multilateral controls. The final rule also makes structural changes to the CCL, and includes minor corrections and clarifications to correct certain misspellings and typographical errors.
Changes to conform the CCL to the multilateral export control regime control lists and previous amendments to the EAR
This final rule adds 19 countries to the list of those eligible to receive the type of technology that falls under License Exception Technology and Software Restricted, bringing the total number of eligible countries to 36. Those countries include Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Removal of 14 Export Control Classification Numbers (ECCNs) subject to theexclusive jurisdiction of the Nuclear Regulatory Commission (NRC)
This final rule removes 14 ECCNs that refer to NRC controls. In the Nov. 29 proposal, BIS proposed removing ECCNs to eliminate certain cross-references to controls that are under the exclusive jurisdiction of other agencies. The current CCL includes 49 ECCNs that refer to items that are subject to the exclusive jurisdiction of the Department of Energy (DOE), the NRC, or the Department of State, which constitute approximately 10 percent of the total number of ECCNs on the CCL.
Revisions to Shipping Tolerances and removal of all “Unit” paragraphs
BIS is revising in this final rule the way shipping tolerances are calculated and applied under the EAR, so that no shipping tolerances will be available to exceed license quantity. A shipping tolerance of ten percent will be available on the total approved value for all commodities subject to the EAR. BIS also said it will "no longer differentiate between items based on unit for the availability of shipping tolerances.
Clarifications to the April 16 (initial implementation) rule
The final rule clarifies that there is no de minimis level for foreign-made items that incorporate U.S.-origin “600 series” items when destined for a country listed in Country Group E:1 or China. The final rule also clarifies which ECCNs are controlled for Anti-Terrorism-only reasons for the purposes of the “specially designed” definition.