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Certain Revisions Made to U.S. Export Controls

The U.S. Department of State has extended through 30 August 2019 a temporary change to a July 2014 final rule that revised category XI (military electronics) of the U.S. Munitions List to describe more precisely the articles continuing to warrant control in that category. The final rule revised paragraph (i) of category XI to clarify the extent of the control and maintain the existing scope of control on items described in paragraph (ii) and the directly related software described in paragraph (d). State has determined that exporters may read the revised control language to exclude certain intelligence analytics software that has been and remains controlled on the USML. Paragraph (b) has therefore been temporarily revised to reflect this fact pending the development of a long-term solution, which will be published as a proposed rule for public comment.

Separately, the DOC’s Bureau of Industry and Security has issued a final rule revising the following export control classification numbers to align the missile technology controls on the Commerce Control List and other parts of the Export Administration Regulations with changes to the Missile Technology Control Regime annex that were agreed to by MTCR member countries in 2017: 1B117, 1B118, 1C111, 1C118, 2B109, 2B120, 2B121, 2B122, 6A107, 7A105, 7A107, 7A116, 9A012, 9A101, 9A115, 9A515 and 9A610.

The MTCR is an export control arrangement among 35 nations, including most of the world’s suppliers of advanced missiles and missile-related equipment, materials, software and technology. It establishes a common list of controlled items (the annex) and a common export control policy (the guidelines) that member countries implement in accordance with their national export controls. The MTCR seeks to limit the risk of proliferation of weapons of mass destruction by controlling exports of goods and technologies that could make a contribution to delivery systems (other than manned aircraft) for such weapons.

Shipments of items removed from eligibility for a licence exception or export or re-export without a licence (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting or re-exporting carrier, or en route aboard a carrier to a port of export or re-export on 30 August pursuant to actual orders for export or re-export to a foreign destination may proceed to that destination under the previous eligibility for a licence exception or NLR so long as they are exported or re-exported before 1 October. Any such items not actually exported or re-exported before midnight on 1 October will require a licence in accordance with this rule.

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