BIS Seeks Comments on Proposed Revisions to EAR re: Control of Items that No Longer Warrant ITAR Control Under the USML

On July 15, 2011, the Bureau of Industry and Security (BIS) issued arule in the Federal Register proposing a new regulatory construct for the transfer of items on the USML that, in accordance with section 38(f) of the Arms Export Control Act (AECA), the President determines no longer warrant control under the AECA and that would be controlled under the Export Administration Regulations (EAR) Commerce Control List (CCL) once the congressional notification requirements of section 38(f) and corresponding amendments to the International Traffic in Arms Regulations (ITAR) and its USML and the EAR and its CCL are completed.  

This rule also proposes amending the EAR to establish a process by which certain items moving from the USML to the CCL would be made eligible for License Exception Strategic Trade Authorization (STA), and proposes EAR amendments related to movement of USML items to the CCL, such as new definitions of relevant terms, including "specially designed," "end items," "parts," and "components." The proposed rule also establishes a new holding Export Control Classification Number (ECCN) in which items that warrant a significant level of control, but are not otherwise classified on the CCL, may be temporarily placed.

Finally, the rule proposes the transfer of an initial tranche of items from USML Category VII (Tanks and Military Vehicles) to the CCL.

Comments to BIS are due September 13, 2011.