The Commerce Department’s Bureau of Industry and Security finalized a rule to cut the Special Comprehensive License from its list of license authorizations. BIS floated a proposal to remove the SCL in September 2014 (see 14092918). The SCL authorizes U.S. companies to consolidate exports and other activities, such as project, distribution, service supply, service facilities, aircraft and vessel repair station procedures, and special chemical handling, under one license.
The Commerce Department's Bureau of Industry and Security (BIS) again renewed export privilege denials for Mahan Airways, Zarand Aviation, Gatewick, Pejman Mahmood Kosarayanifard, Mahmoud Amini, Kerman Aviation, Sirjanco Trading, Ali Eslamian, Mahan Air General Trading, Skyco (UK), Equipco (UK), and Mehdi Bahrami, Al Naser Airlines, Bahar Safwa General Trading and Ali Abdullah Alhay. BIS added the latter three entries to the denial order in May (see 1505220013). The order is effective immediately and will remain in effect for 180 days (here). BIS last extended these export denials in January (see 1501220015).
A Department of Commerce proposal for implementing changes to export control rules to comply with the multinational Wassenaar Arrangement (see 1505200014) is continuing to draw controversy among industry and nongovernmental organizations, with several industry officials saying at an event July 24 that they're actively lobbying members of Congress, Commerce and other federal agencies on the need for changes to the proposal. A wide range of U.S. cybersecurity parties railed against the Commerce Department's Bureau of Industry and Security (BIS) Wassenaar implementation proposal in comments last week (here), with many saying the proposed implementation of recent changes to Wassenaar that would control the export of intrusion software and network surveillance systems was overly broad and would significantly affect U.S. cybersecurity companies.
Reducing the regulatory burden by using common terms and definitions between Export Administration Regulations with the International Traffic in Arms Regulations is a core objective of this harmonization initiative, said Assistant Secretary of Commerce-Export Administration Kevin Wolf. Wolf, along with representatives from the State Department and private industry, spoke at a conference sponsored by the American Bar Association's Section of International Law and the Export Controls and Economic Sanctions Committee in Washington, DC on July 21. Fewer and more clear regulations will facilitate an "export nirvana," he said. In an effort to harmonize EAR and ITAR, representatives from the Department of State, the Department of Commerce and private industry are discussing the proposed rules and definitions (see 1506020016).
The State Department on July 2 issued a final rule temporarily modifying the U.S. Munitions List so that a change that took effect in December does not inadvertently remove controls on certain intelligence analytics software (here). According to State, a final rule modifying Category XI of the USML and moving certain items to the Commerce Control List (see 1412310014) may have inadvertently given the impression that the intelligence analytics are not controlled on the USML. Effective July 2, State is reinserting language to clarify that the items are still controlled on the USML. The changes are in effect until Dec. 29, 2015 “while a long term solution is developed.”
Exporter account registration and export trade reports went live in the Automated Commercial Environment on June 27 as expected, said the Census Bureau on July 1. Additional information for importer accountholders in ACE , including training material, is available (here), said Census. However, exporters with a current ACE import account or that have additional Employee Identification Numbers (EINs) that are not associated with a current ACE account “will be required to complete the U.S. Census Bureau’s vetting process for each EIN new to ACE,” it said. For technical questions related to ACE Exporter Account or ACE Trade Export Reports contact the CBP ACE Account Service Desk at 1-866-530-4172, selecting option 1, then option 2, or e-mail ACE.Support@cbp.dhs.gov, said Census.
CBP will issue penalties when cargo is exported prior to filing of Electronic Export Information though the Automated Export System, said CBP's Port of New York/Newark office in a June 17 informational pipeline. The pipeline establishes a "national policy and defines the parameters under which penalties will be issued against the U.S. Principal Parties In Interest (USPPI), the Foreign Principal Parties in Interest (FPPI) or their authorized agent, for reporting incorrect date of export," it said.
The Automated Commercial Environment (ACE) Export Account Registration Form will be available this summer, and ACE filers will at that time be able to access export reports by Employer Identification Numbers (EIN), said a recent memo from the Census Bureau, according to an emailed notice sent by the Commerce Department’s Bureau of Industry and Security on June 17. Census’ Automated Export System Direct (AESDirect) filing portal will also be “made available in ACE in Fall 2015,” said the Census memo. Census will allow export access for ACE import account holders for all EINs already created in an existing import account, and the agency will also allow those without import accounts to add new EINs under some restrictions.
The Commerce (here) and State (here) departments issued a set of Export Control Reform proposals to transfer control of some items on U.S. Munitions List categories XIV (Toxicological Agents) and XVIII (Directed Energy Weapons) to the Commerce Control List. Stakeholders may submit comments on the transfers to either Commerce’s Bureau of Industry and Security or State’s Directorate of Defense Trade Controls, the two agencies responsible for export control, by Aug. 17.
The Commerce Department (here) and State Department (here) published concurrent proposals to harmonize a number of terms and phrases in the Export Administration Regulations and the International Traffic in Arms Regulations. The revised definitions are part of the Obama administration’s Export Control Reform, the initiative that aims to transfer export controls from State’s Directorate of Defense Trade Controls to Commerce’s Bureau of Industry and Security. Following the completion of many ECR transfers, many U.S. exporters now ship products on both the EAR and ITAR. The harmonized terms would further ECR by strengthening compliance and reducing "regulatory burdens,” said Commerce in its proposal. That changes in definitions also bring the administration closer to the goal of a “common export control list and common set of export control regulations,” Commerce said. Both agencies are accepting comments until Aug. 3. Stakeholders should submit comments via www.regulations.gov, docket numbers BIS-2015-0019 and RIN 1400-AD70.