BIS, DDTC Finalize Third Set of ECR Rules, Transfer USML Category IV, V, IX, X Items
The Commerce Department’s Bureau of Industry and Security (BIS) and the State Department’s Directorate of Defense Trade Controls (DDTC) amended the International Traffic in Arms Regulations (ITAR) to revise the U.S. Munitions List (USML) and place some dual use items in new “600 series” Export Control Classification Numbers (ECCNs) on the Commerce Control List (CCL) (see 13123127). The CCL is subject to the Export Administration Regulations (EAR). The BIS rule (here) and State rule (here) transfer to the CCL items previously located in USML Categories IV (Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines), V (Explosives and Energetic Materials, Propellants, Incendiary Agents, and their Constituents), IX (Military Training Equipment), X (Personal protective equipment), and XVI (Nuclear Weapons Related Articles).
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The rules implement four previously proposed rules. The rules also add to the EAR controls on items that fall within the scope of the Munitions List of the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies that are not specifically identified on the USML or the CCL, but that were subject to USML jurisdiction. Moreover, the rules move certain items that were already subject to the EAR to the new ECCNs. The rules were published in the Federal Register on Jan. 2 and take effect on July 1. They are the third set of Export Control Reform (ECR) final rules.
In response to comments, BIS made a number of changes to the proposed rules in the final rule. Among several changes that apply broadly to all items impacted by this final rule, BIS determined items formally determined not to be subject to the ITAR that were also EAR99 items because they were not identified on the CCL should retain EAR99 status if not otherwise identified on the CCL. This final rule also identifies “accessories” and “attachments” as separate terms wherever they appear throughout the regulatory text. BIS also made a number of changes that apply specifically to the items' transfer from specific categories.
Among the specific changes made in the State Department rule, DDTC revised Category IV to remove demolition blocks and blasting caps. Military explosive excavating devices are transferred to the CCL jurisdiction under ECCN 0A604.b. Ablative materials are moved to USML Category XIII. Regarding revisions to Category V, this final rule makes one major change by eliminating “catch-all” paragraphs. Through the eliminations, DDTC is specifically adding the following materials to Category V: tetrazines (BTAT (Bis(2,2,2-trinitroethyl)-3,6-diaminotetrazine); LAX-112 (3,6-diamino- 1,2,4,5-tetrazine- 1,4-dioxide); PNO (Poly(3-nitrato oxetane); 4,5 diazidomethyl-2-methyl-1,2,3-triazole (iso- DAMTR)); TEPB (Tris (ethoxyphenyl) bismuth) (CAS 90591-48-3); and TEX (4,10-Dinitro-2,6,8,12-tetraoxa-4,10-diazaisowurtzitane).
Regarding changes made to Category IX, a new paragraph is added to the category in order to allow ITAR licensing for commodities, software, and technical data subject to the EAR provided those commodities, software, and technical data are to be used in or with defense articles controlled in USML Category IX and are described in the purchase documentation submitted with the application. The title of the Category X is changed to remove reference to shelters that are now subject to the EAR. Regarding Category XVI, nuclear radiation detection and measurement devices are subject to the EAR under already existing ECCN 1A004.c.2 or 2A291.e. This rule also creates a new definition for the term “equipment.”
(Federal Register 1/2/13)