The Commerce and State departments aim to continue progress with Export Control Reform in the coming months, the Office of Management and Budget said in its Spring 2015 Unified Agenda. Commerce and State plan to issue concurrent notices of proposed rulemakings at some point in May to transfer regulations from the U.S. Munitions List to the Commerce Control List for USML Category XIV (Toxicological Agents), despite the limited time remaining in the month.

The Commerce and State Departments proposed rules to harmonize the destination control statements for both the Export Administration Regulations and the International Traffic in Arms Regulations. Commerce’s Bureau of Industry and Security and State’s Directorate of Defense Trade Controls are asking for industry to comment on the proposals by July 6. The change would impact all EAR exports, aside from those with license exceptions for baggage (BAG) and gift parcels and humanitarian donations (GFT).

The Commerce Department’s Bureau of Industry and Security is asking industry for comments on a potential proposal to revise and improve export clearance requirements in order to, in part, harmonize Export Administration Regulations with the International Traffic in Arms Regulations. This advanced notice of proposed rulemaking aims to build on regulatory harmonization through Export Control Reform. The prospective changes would impact regulations under EAR part 758. BIS is asking for comments on the following specific revisions under consideration at the agency:

The Commerce Department’s Bureau of Industry and Security added an individual and two entities to a temporary export denial directive, which the agency administers over Iranian Mahan Air and other individuals and companies. The BIS export denial for Mahan, which has been renewed since 2008, will expire on July 21 (see 1501220015). BIS is adding the following additional individuals and entities to the denial, it said in a May 21 statement:

The Census Bureau on May 15 issued a final rule (here) adopting reinstated exemptions for temporary exports, including carnets and goods that were imported under a Temporary Importation Under Bond and intended for return in identical condition. The rule finalizes without change an interim rule issued in September providing that exporters are not required to file these types of shipments in the Automated Export System (AES) (see 14091118). Earlier changes to the Foreign Trade Regulations had created new filing requirements for the now-exempt shipment types (see 14040717). However, the trade community said in comments that mandatory AES filing for temporary exports could violate the Customs Convention on the ATA Carnet for the Temporary Admission of Goods.

U.S. Trade Representative Michael Froman and Commerce Secretary Penny Pritzker reiterated support for Trade Promotion Authority and the Trans-Pacific Partnership in remarks on April 9, which coincided with the release of a new report on state-by-state trade data. The cabinet officials touted U.S. export gains as critical for U.S. economy growth, according to a USTR statement (here). Texas is the leading U.S. exporting state, with California, Washington state and New York trailing in that order, the report shows (here). The U.S. exported more than $700 billion worth of goods to TPP negotiating partners in 2014, as part of a record-breaking export year for the country, the report says. Some observers expect the Senate Finance Committee to mark up a TPA-led package before the end of April (see 1503310017). That legislation is widely viewed as necessary for TPP implementation.

Reform of satellite export controls has been beneficial for the satellite industry, said industry and government officials at an Federal Communications Bar Association event April 2. Moving satellite export controls from the State Department's International Traffic in Arms Regulations (ITAR) to the Bureau of Industry and Security's Commerce Control List (see 14051224) has resulted in more license exceptions available for satellite exports and fewer license applications filed, said Assistant Secretary of Commerce-Export Administration Kevin Wolf. The new rules create more of an incentive for satellite providers to use U.S.-made materials, instead of avoiding ITAR regulation, said industry executives.

The Commerce Department’s Bureau of Industry and Security will no longer require exporters to obtain an International Import Certificate or Delivery Verification when filing a license application, the agency said in a final rule, which takes effect March 13 (here). The final rule also limits the requirement of a State by Ultimate Consignee and Purchaser to only 600 Series Major Defense Equipment. The rule is part of an ongoing effort to revise necessary support documentation for license under the Export Administration Regulations.

The Commerce and State departments asked industry for comments on the implementation of Export Control changes to U.S. Munitions List Categories VIII (Military Aircraft) and XIX, which the agencies say controls military gas turbine engines, in a Federal Register notice early in March. The ECR is an ongoing effort to transfer dual-use items from the USML to the Commerce Control List. The Obama administration transferred items in these two categories to the CCL in the first batch of ECR final rules, which took effect in October 2013 (see 13101618). In its March 2 final rule (here), Commerce asks for comments in order to review the changes “to ensure that they are clear, do not inadvertently control items in normal commercial use, account for technological developments, and properly implement the national security and foreign policy objectives of the reform effort.” State asked for comments on more commodities in these USML categories that deserve transfers to the CCL (here). State and Commerce also made small additional changes to both those categories in 2014 (see 14070104).

The European Union should move forward quickly with approvals for 13 pending soy, maize, rapeseed, cotton biotechnology products, a group of U.S. agriculture producers said in recent days. The EU has slowed processing time for biotech products, and the body has halted new approvals since November 2013, said the agricultural groups in a letter. U.S. trade officials and advocates have long pressed for quicker approvals and more biotech access to the European market (see 14082502). “Timely action by the European Commission will avoid the risk of disruption to the essential supply of feedstocks needed by the EU’s livestock, poultry and feed industries, which are more than 70 percent dependent on imported protein,” said the groups (here), adding that 57 biotech products are currently at some stage in the EU vetting process. “The uncertainty and undue delays surrounding import approvals are creating unnecessary costs for producers and the agri-supply chain.” U.S. Trade Representative Michael Froman will meet with European Union Agriculture Commissioner Phil Hogan in Washington on Feb. 19 (see 1502150005).