The Bureau of Industry and Security is issuing a final rule that will amend the Commerce Control List (CCL) to reflect the February 2015 intersessional recommendations adopted by the Australia Group (AG) and the understandings reached at the June 2015 AG Plenary meeting, as follows:

The Bureau of Industry and Security (here) and State Department (here) are issuing final rules that will update definitions in the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), respectively, to enhance clarity and consistency of terms between both export regimes. BIS' rule will revise the scope provisions of the EAR to modernize and clarify controls on electronic technology and software, while State's rule will create new ITAR sections detailing the scope of licenses and unauthorized releases of controlled information, and will revise ITAR's section on exports of technical data to overseas U.S. persons, the agencies said. State's rule will also consolidate provisions on treatment of foreign dual and third country nationals with one exemption. In its rule, BIS is adding definitions for "access information," "technology," "required," "foreign person," "proscribed person," "published," results of "fundamental research," "export," "reexport," "release," "transfer," and "transfer (in-country)," BIS said. State's rule will update definitions for "export," and "reexport or retransfer," and add new definitions for "release" and "retransfer," State said. Part of the Obama administration’s Export Control Reform (ECR), the rules will take effect Sept. 1.

The Bureau of Industry and Security is amending the Export Administration Regulations (EAR) to reflect Congress’ 2015 repeal of the U.S. oil export ban, BIS said (here). Effective May 12, the agency's final rule eliminates Export Control Classification Number (ECCN) 1C981 of the Commerce Control List (CCL), which controlled crude petroleum products, BIS said. U.S. crude oil exports that neither involve individuals subject to an export denial order, nor involve any embargoed or sanctioned people or countries, will no longer require a BIS short supply license, the agency said. The 2016 Consolidated Appropriations Act, which entered into force on Dec. 18, codified the repeal of the U.S. prohibition on oil exports.

The Census Bureau should not create a new “used electronics indicator” data element in the Automated Export System, said the National Customs Brokers & Forwarders Association of America in comments on the agency’s recent proposed rule (here). Doing so would place on forwarders “the burden of explaining this new requirement to the exporting community as well as seeking out and collecting additional information related to the nature of the product being exported,” said the NCBFAA. Forwarders are “not well equipped” to ascertain “whether the goods being exported are new or used" or "indeed whether goods that have never been used” fall under that definition because they have been resold, it said. Census proposed adding the new data element, and make other changes to the Foreign Trade Regulations, in a notice issued March 9 (see 1603080033).

In a Census Bureau email to stakeholders on May 3, the agency offered the following tips to help exporters avoid issues with setting up accounts in the AESDirect filing system in ACE:

The removal of Cold War-era trade restrictions with Cuba would likely increase U.S. agricultural exports to the country, according to a recently released report by the International Trade Commission (here) requested by the Senate Finance Committee. Experts recently highlighted the expected financial benefits of opening up trade with Cuba during a March 15 House Foreign Affairs Trade Subcommittee hearing (see 1603160001), the same day that the Office of Foreign Assets Control and the Bureau of Industry and Security relaxed several trade barriers between the U.S. and Cuba (see 1603150018). U.S. agricultural exports to the country peaked at $709 million in 2008 and fell to $149 million last year.

Companies should be wary about asking questions related to citizenship status and national origin when hiring personnel for positions subject to export control laws, said the Justice Department’s Civil Rights division in a March 31 letter sent in response to a lawyer’s inquiry. DOJ provided the guidance in a letter responding to Morgan Lewis attorney Eric Bord, who asked about a series of hypothetical questions related to a potential employee's immigration status, to be asked when hiring for positions dealing in export controls

The Bureau of Industry and Security’s online SNAP-R filing system is having “technical difficulties with the registration process,” said the agency in emails sent the night of April 12 and the morning of April 13. “We are working to resolve the issue and apologize for the inconvenience,” said BIS. “We hope to advise you very soon that the system is back up and functioning properly.”

The Bureau of Industry and Security recently reminded exporters (here) that annual reports of offset agreements related to the sale of defense articles or services to foreign countries and firms are due June 15. U.S. companies are required to report to BIS annually on sales subject to offsets agreements over $5 million in value, or performance of offsets valued at $250,000 or more under existing commitments. An example of this type of agreement is offsetting the cost of a foreign government’s purchase of military aircraft by providing training assistance to plant managers in the country, said BIS.

Refactored AESDirect users saw some new problems after a third batch of entrants admitted on March 28 to ACE reduced system functionality, said trade associations. Three-month delays for adding new exporters, login obstacles, and discord between ACE and certain web browsers were among the several problems encountered by filers transferring from the Census Bureau’s legacy AESDirect system to the new ACE-embedded filing system, the American Association of Exporters and Importers said in an April 1 letter to CBP.