BIS Publishes Final Rule on Export Control Reform

In Federal Register (FRN) #22660, Vol 78, No 73, the US Bureau of Industry and Security (BIS) published its final rule regarding the revisions to the Export Administration Regulations (EAR) and the initial implementation of the Export Control Reform (ECR).   The effective date of this rule is October 15, 2013.  The full plan can be accessed at http://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules

According to the FRN, this final rule implements the initial ECR changes by adding a structure and related provisions to control munitions that no longer warrant export control on the US Munitions List (USML) which have been moved to the Commerce Control List (CCL).   In addition, this rule creates a new “600 series” Export Control Classification Numbers (ECCNs) to control items moving from the USML to the CCL, and that includes: aircraft and gas turbine engines, related parts, components, accessories, attachments, software, and technology.   Along with these changes, the rule also adopts a common definition of “specially designed” for use under the EAR and the ITAR, and addresses implementation issues related to the transition from the USML to the CCL.

Once this rule goes in effect on October 15, 2013, the USML and the CCL, as well as all corresponding regulatory structures, will be complementary.  It should be noted that BIS has agreed that a delayed effective date of 180 days will provide the trade a reasonable amount of time to implement changes to conform their export control compliance systems to the new “600 series” and the first ten ECCNs that are being added to the EAR in this rule.

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