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BIS Final Rule Implements Most December 2009 Wassenaar Changes

The Bureau of Industry and Security has issued a final rule, effective September 7, 2010, to revise the Export Administration Regulations to implement most of the changes made to the Wassenaar Arrangement's List of Dual Use Goods and Technologies maintained and agreed to by governments participating in the Wassenaar Arrangement’s December 2009 Plenary Meeting.

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Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

(The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability.)

To harmonize with the changes made to the Wassenaar List at the Plenary, BIS’ final rule revises the EAR by amending certain entries that are controlled for national security reasons in Categories 1, 2, 3, 4, 5 Part I (telecommunications), 6, 7, and 9; revising reporting requirements; and adding, removing and amending EAR definitions.

Some December 2009 Wassenaar Changes to be Implemented Separately

According to BIS, the changes agreed to at the December 2009 Plenary that pertain to Export Control Classification Numbers (ECCNs) 5A002, 5D002, 6A002, 6A003, 8A002 and all related ECCNs will be implemented in a separate rule because of the sensitivity of the items and complexity of procedures and controls for these items.

BIS also states that the changes agreed to at the December 2009 Plenary that pertain to raising the Adjusted Peak Performance (APP) for digital computers in ECCN 4A003 will be implemented in a separate rule when the President’s report for High Performance Computers has been sent to Congress that sets forth the new APP in accordance with the National Defense Authorization Act for FY1998.

Savings Clause

Shipments of items removed from license exception eligibility or eligibility for export without a license as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on September 7, 2010, pursuant to actual orders for export to a foreign destination, may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported from the U.S. before November 8, 2010. Any such items not actually exported before midnight, on November 8, 2010 require a license in accordance with this regulation.

See future issues of ITT for additional details on the Wassenaar changes being implemented by BIS.