Export Control Reform (ECR)

We have eaten all the holiday meals and treats, we have counted down and watched the ball drop, and we have emptied a fair few champagne bottles.  Now, we are all resolving to be leaner, nimbler, smarter, and stronger in the New Year.

So is the ITAR.


Continue Reading ECR Episode VIII: New Rules for the New Year

Background

If you manufacture or export Auxiliary Military Equipment controlled under Category XIII of the U.S. Munitions List, you may rightly consider the category number unlucky.  The current scope of Category XIII controls is broad and can be difficult to interpret.  The category includes SCUBA gear and might be read to cover materials for an army shed or the green paint slapped on to that shed.  On January 15, 2014, amendments to Category XIII go into effect.  Those amendments, briefly described below, both narrow and clarify the Category XIII controls.  Congratulations: it looks as if your luck may be changing.


Continue Reading ECR Series Episode VII: Livin’ in a Materials World – Changes to USML Category XIII

By: J. Scott Maberry

This fall, the U.S. Government will finish considering public comments on its draft revision of U.S. Munitions List Category XV, which covers “Spacecraft Systems and Related Articles.” By the end of 2013 (unless delayed by the continued government shut-down debacle) the final regulation should be published. The most important headline is that many satellite-related items will return to U.S. Department of Commerce control, where they resided prior to 1995. This change will provide opportunities and challenges to the U.S. satellite industry.
Continue Reading ECR Series Episode VI: The One With Ewoks (And New Rules On Satellites)

By: Reid Whitten

First they came by air, now by sea and by land.

On July 8, 2013, the U.S. Department of State published its final rule revising controls on naval vessels and military vehicles contained in the International Traffic in Arms Regulations (ITAR).   The changes will take effect on January 6, 2014 and will revise United States Munitions List Category VI (Surface Vessels and Special Naval Equipment), Category VII (Ground Vehicles), and Category XX, (now named Submersible Vessels and Related Articles)The final rule also makes changes to Category XII (Materials and Miscellaneous Articles) which are noteworthy and will be covered separately in an upcoming episode of this series.

This article covers highlights of the regulatory changes for naval vessels and military vehicles, notes the pattern of the Export Control Reform revisions, and comments on how these changes may be important to you and your business.
Continue Reading ECR Series Episode V: Revisions to Naval Vessel and Military Vehicle Controls – A Regulatory Sea (and Land) Change

By: Fatima Merchant

Background

In Episode 1 and Episode 2 of this series, we discussed some key points of U.S. Export Control Reform and took you through a step-by-step reclassification analysis of parts and components transitioning from the USML to the EAR.  After determining that the items you export will move from the USML to the CCL, you will need to evaluate your licensing requirements.
Continue Reading Export Control Reform Series Episode III: Harmonizing EAR Exceptions and ITAR Exemptions

By J. Scott Maberry

In Episode I, “The Basics,” we showed you some of the basics of the President’s new export control reform initiative. In Episode II, we helped you understand how to make sense of the impending changes in U.S. Munitions List Category VIII aircraft parts. In Episode III, we took you thorough the critically important license exemptions and exceptions.

And now, just as in the Star Wars epic, we come to the best part: Episode IV: the new definition of “specially designed.”


Continue Reading Export Control Reform Series Episode IV: The New Definition of “Specially Designed”

By: Reid Whitten

The first major wave of the much-discussed U.S. Export Control Reform measures will break on October 15, 2013 as the first round of rule changes take effect.  While many in the affected industries expect that the October changes will be a welcome relief from certain burdensome regulations, many are concerned, confused, and overwhelmed by the complex regulatory shifts being announced by the U.S. State and Commerce departments.

This article is the first in a series addressing various aspects of the ECR changes.  We will do our best to offer a bit of fundamental clarity, provide lay-person explanation, and lend some guidance in parsing nuanced regulations.  We also hope to bring an entirely new concept to the ECR discussion: comprehensibility.  We welcome your feedback by email through our open discussion on Twitter at @ReidGlobalTrade.

Continue Reading Export Control Reform Series Episode I: The Basics – Five Points to Remember about Export Control Reform

By: Reid Whitten

In Episode I: The Basics we noted that U.S. Export Control Reform may be causing confusion and consternation among those who will have to take the first theoretical rule changes and apply them in real and practical situations.  Among the first test subjects are those who oversee ITAR compliance for manufacturers and exporters of aircraft and aircraft parts.  While these brave souls will be the front line of the ECR implementers, those in the ranks behind (looking at you, Military Vehicles and Naval Vessels) will do well to learn from their experience.
Continue Reading Export Control Reform Series Episode II: The First Change – Reevaluating your ITAR Aircraft Parts