BIS Revises Commerce Control List as Part of Systematic Review

(This rule is the third phase of the regulatory implementation of the results of a review of the CCL that was conducted by BIS starting in 2007. See ITT’s Online Archives or 04/28/08 and 10/08/08 news, 08042815 and 08100830, for BP summaries of the first and second phases.)

The revisions to the CCL in this final rule include clarifications to existing controls; eliminating redundant or outdated controls; and establishing more focused and rationalized controls. This rule also makes CCL related changes to other parts of the Export Administration Regulations, including related definitions and license exceptions.

Clarification of Existing ECCNs

To clarify existing controls, BIS’ final rule revises the following Export Controls Classification Numbers:

ECCNs 0E018, 4E992, 4E993 headings. The headings of ECCNs 0E018, 4E992 and 4E993 are revised to clarify the items controlled under those CCL entries.

ECCNs 4E993, 4A991, 8A018, 9A018 “items” paragraphs. The “items” paragraphs under ECCNs 4E993 and 9A991 are revised to provide greater clarity regarding the items controlled under those CCL entries.

The “items” paragraphs under ECCNs 8A018 and 9A018 are also revised to clarify what items are controlled under those entries and to better conform those entries to the language used in multilateral control lists, such as the International Munitions List.

ECCN 4A003 AT control reference. ECCN 4A003 is revised to correct the Anti-Terrorism (AT) control cross reference to inform the public to “refer to 4A994 for controls on ‘digital computer’ with an APP > 0.0128 but ≤ to 0.75 WT).”

ECCN 4A994 related definitions. The Related Definitions paragraph of the List of Items Controlled under ECCN 4A994 is revised to read “N/A” because the definition for “two dimensional vector rate” applied to items controlled by ECCN 4A994.g, which was removed and reserved in October 2008.

ECCN 5A001 technical note. The Technical Note (2) to ECCN 5A001.b.6 is revised to remove a redundant phrase, “samples of human voice and then convert these.”

ECCN 7A008 license exception. The License Exceptions section of ECCN 7A008 is revised by removing “TSR: N/A” because this ECCN is not a technology or software entry and adding License Exceptions “GBS: N/A” and “LVS: N/A” to indicate these license exceptions are not eligible for this entry.

ECCN 9E003 SI control. The “License Requirements” section under ECCN 9E003 is revised to conform the Significant Items (SI) reason for control to the hot section technology for the development, production or overhaul of commercial aircraft engines, components and systems that are currently controlled in the “items” paragraphs of ECCN 9E003 (i.e., 9E003.a.1 through a.10 and h).

Elimination of Redundant or Outdated ECCNs/Controls

BIS’ final rule removes the following redundant or outdated ECCNs/controls:

Syria License Exception LVS eligibility removed. ECCN 3A992 is amended by removing License Exception LVS (Shipments of Limited Value) eligibility for Syria, as it is not eligible to receive commodities authorized by License Exception LVS under the EAR.

Removal of ECCNs 4B994, 4C994. ECCNs 4B994 and 4C994 are removed from the CCL because storage equipment previously controlled under ECCN 4A994 was removed from control in October 2008.

Because the storage equipment is no longer controlled under 4A994, equipment for the “development” and “production” of magnetic and optical storage equipment no longer needs to be controlled under ECCN 4B994.

In addition, for the same reason, materials specially formulated and required for the fabrication of head/disk assemblies for controlled magnetic and magneto-optical hard disk drives no longer needs to be controlled under ECCN 4C994.

ECCN 8A018 “items” paragraph removed. ECCN 8A018 is amended by removing “items” paragraph (b)(5), as the International Munitions List control that was under 8A018.b.5 prior to the publication of this rule, has been moved to paragraphs 8A018.b.1 through 8A018.b.4.

Removal of Inconsistent RS 2 License Requirement for 5 Countries

In order to establish more focused and rationalized controls, in Supplement No. 1 to 15 CFR Part 738 (Commerce Country Chart), BIS’ final rule removes the license requirement for Regional Stability (RS 2) from Austria, Finland, Ireland, Sweden and Switzerland (i.e., this rule removes the “X” in the box in the RS 2 column for these five destinations).

This change is made to create more consistency in what destinations require a license for RS column 2, NS column 2, and countries listed in Supplement No. 3 to part 740 (License Exception ENC Favorable Treatment Countries) because these are the only five countries that are listed in Supplement No. 3 to 15 CFR Part 740 and also do not require a license for NS column 2 reasons. This change is also made because these five are not countries that contribute to regional instability that would be contrary to the foreign policy interests of the U.S.

(BIS notes that this removal raises the number of countries that are in all three groups from 24 to 29.)

Savings Clause

Shipments of items removed from eligibility for a License Exception or export or reexport without a license (NLR) as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport, on June 28, 2010, pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export or reexport NLR so long as they are exported or reexported before July 28, 2010. Any such items not actually exported or reexported before midnight, on July 28, 2010, require a license in accordance with this rule.

BIS contact -- Timothy Mooney (202) 482-2440

(FR Pub 06/28/10, D/N 090126064-0122-01)